A Layoff Letter is a crucial document used in Pakistan when an organization needs to terminate employment relationships due to business circumstances rather than performance issues. It must comply with Pakistani labor laws, particularly the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, and relevant provincial regulations. The letter serves multiple purposes: it officially communicates the termination decision, outlines the notice period or payment in lieu thereof, details the final settlement process, and specifies any additional benefits or support offered by the company. This document is essential for both legal compliance and maintaining professional standards during workforce reductions. It should be prepared with input from legal and HR professionals to ensure all statutory requirements are met while maintaining clarity and professionalism in communication.
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1. Company Letterhead and Date: Official company letterhead with complete contact information and date of issuance
2. Employee Information: Full name, employee ID, designation, and department of the employee
3. Subject Line: Clear indication that this is a layoff notice
4. Layoff Notice and Effective Date: Clear statement of employment termination and when it takes effect
5. Reason for Layoff: Brief explanation of the business circumstances necessitating the layoff
6. Notice Period Details: Information about the notice period or payment in lieu of notice as per Pakistani labor laws
7. Final Settlement Information: Overview of final payment including salary, benefits, and other entitlements
8. Company Property Return: Instructions regarding return of company assets and properties
9. Full and Final Settlement Timeline: Timeline for processing final dues and settlements
10. Contact Information: HR department contact details for queries and future correspondence
1. Severance Package Details: Include when additional severance beyond statutory requirements is being offered
2. Continuation of Benefits: Include when certain benefits will continue for a specified period post-termination
3. Outplacement Support: Include when company is offering career transition assistance
4. Non-Compete and Confidentiality Reminder: Include when employee was bound by such agreements during employment
5. Reference Letter Offer: Include when company is willing to provide references for future employment
6. Rehire Eligibility: Include when specifying future rehire possibilities with the organization
7. Union-Specific Terms: Include for unionized employees with specific terms under collective agreements
1. Final Settlement Calculation: Detailed breakdown of all final payments including basic salary, allowances, and deductions
2. Gratuity Calculation Sheet: Detailed calculation of gratuity payment as per Pakistani labor laws
3. Benefits Statement: List of benefits and their status post-termination
4. Company Property Checklist: Itemized list of company properties to be returned
5. Important Contacts List: List of relevant HR, Finance, and Administrative contacts for post-termination matters
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