The Renewal Of Employment Contract is essential when an existing employment agreement is approaching its end date and both parties wish to continue the employment relationship. This document is commonly used in Pakistan when fixed-term contracts expire, or when substantial updates to employment terms are needed while maintaining the continuity of employment. It must comply with Pakistani labor laws, particularly the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, and various provincial labor regulations. The contract typically includes updated terms of employment, compensation adjustments, revised responsibilities, and any new conditions while preserving the original employment relationship's stability. It's crucial for organizations to maintain proper documentation for labor law compliance and human resource management.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Reference to original employment contract, its date, and reason for renewal
3. Definitions: Key terms used in the contract including any updates or modifications from the original agreement
4. Term of Renewal: Duration of the renewed contract period and effective date
5. Position and Duties: Confirmation or updates to job title, role, responsibilities, and reporting structure
6. Compensation: Updated salary, benefits, and payment terms in compliance with minimum wage laws
7. Working Hours: Standard working hours, overtime provisions, and work schedule
8. Leave Entitlement: Annual leave, sick leave, and other authorized absences as per law
9. Confidentiality: Ongoing obligations regarding company information and trade secrets
10. Termination: Updated conditions for contract termination by either party
11. Governing Law: Confirmation that the contract is governed by Pakistani law
12. Signatures: Space for dated signatures of both parties
1. Probation Period: Include if a new probation period applies to the renewal
2. Performance Targets: Include if the renewal is contingent on specific performance metrics
3. Relocation Terms: Include if the renewal involves change of work location
4. Training Requirements: Include if new training or certifications are required
5. Non-Competition: Include if new non-compete terms are being introduced
6. Remote Work Provisions: Include if allowing or updating work-from-home arrangements
7. Commission Structure: Include for sales or commission-based positions
1. Schedule A - Compensation Details: Detailed breakdown of salary, allowances, and benefits
2. Schedule B - Job Description: Detailed description of role, responsibilities, and performance expectations
3. Schedule C - Company Policies: Updated company policies and procedures applicable to the employee
4. Schedule D - Benefits Package: Details of insurance, retirement benefits, and other perks
5. Appendix 1 - Performance Metrics: Specific KPIs and evaluation criteria if applicable
6. Appendix 2 - Compliance Declaration: Employee's declaration of compliance with company policies and local laws
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