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Job Contract Termination Letter Template for Pakistan

A Job Contract Termination Letter is a formal document used in Pakistan to officially end an employment relationship between an employer and employee. The document must comply with Pakistan's labor laws, particularly the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, and relevant provincial legislation. It includes essential details such as the termination date, notice period, reason for termination (if applicable), final settlement information, and requirements for returning company property. The letter serves as a legal record of employment termination and outlines both parties' obligations and rights during the separation process.

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What is a Job Contract Termination Letter?

The Job Contract Termination Letter is an essential document used in Pakistani business practice to formally end employment relationships. It must be drafted in accordance with Pakistan's labor laws, including the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, and relevant provincial regulations. This document is typically used when an employer needs to terminate an employee's contract, whether due to performance issues, organizational restructuring, or other valid reasons. The letter should include specific details about the termination date, notice period, final settlements, and post-employment obligations. It serves as both a legal document and a formal communication tool, protecting both employer and employee interests during the separation process. The content and format must be carefully constructed to ensure compliance with local labor laws while maintaining professional standards and clarity in communication.

What sections should be included in a Job Contract Termination Letter?

1. Letter Header: Company letterhead, date, reference number, and addressed to the employee with their designation and department

2. Subject Line: Clear indication that this is a termination notice/letter

3. Opening Statement: Direct statement of employment termination with reference to the employment contract

4. Termination Details: Specific information about the termination including effective date and notice period

5. Reason for Termination: Brief, professional explanation of the termination reason if applicable

6. Final Settlement: Information about final salary, benefits, and other dues

7. Company Property: Instructions for returning company assets and properties

8. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

9. Closing Statement: Professional closing with good wishes for future endeavors

10. Signature Block: Authorized signatory details and company stamp

What sections are optional to include in a Job Contract Termination Letter?

1. Performance History: Include when termination is performance-related and documentation is necessary

2. Garden Leave: Include when employee is being placed on garden leave during notice period

3. Non-Compete Reminder: Include when employment contract contained non-compete clauses

4. Severance Package: Include when additional severance benefits are being offered

5. Handover Instructions: Include when employee holds critical responsibilities requiring formal handover

6. Reference Provision: Include when company agrees to provide future references

7. Legal Rights Statement: Include when required by specific circumstances or industry regulations

What schedules should be included in a Job Contract Termination Letter?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, benefits, deductions, and any other dues

2. Company Property Checklist: List of company assets to be returned with their condition status

3. Handover Document: Detailed list of pending tasks, projects, and responsibilities to be transferred

4. Benefits Summary: Summary of post-employment benefits, insurance coverage periods, and relevant contact information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Pakistan

Publisher

Genie AI

Cost

Free to use

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