Employment contracts Pakistan

What should an employment contract in Pakistan include?

An employment contract in Pakistan should include the following information:

• The employer and employee’s names, along with their contact information.
• The job title and duties of the employee.
• The set work hours and days.
• The agreed salary, additional perks, and potential bonuses.
• The procedure for terminating the employment, including notice periods for both parties.
• A shared agreement on maintaining confidentiality and not disclosing sensitive information.

Before signing, it’s essential for both parties to review the terms of the employment agreement carefully.

What types of employment contracts exist in Pakistan?

Employment contracts in Pakistan can be classified into several categories.

1. Employee contracts

Employee contracts can be further classified into two categories:

• Permanent employment contract: This is a long-term contract that establishes an indefinite employment relationship between the employer and the employee. It typically includes details about job roles, responsibilities, benefits, and termination procedures.

• Fixed-term contract: This type of contract specifies a specific duration for the employment relationship. It automatically ends when the agreed-upon term expires without the need for a formal termination notice.

2. Project-based contract

These contracts are used when an employee is hired to work on a specific project or assignment. Once the project is completed, the employment relationship may or may not continue, depending on the employer’s needs. The project shouldn’t last longer than 6 months. 

3. Probationary contract

Probationary contracts are used to assess an employee’s suitability for a specific role. During the probation period, the employer and employee can evaluate the fit and performance. Upon successful completion of the probationary period, the employee might be offered a permanent position. In Pakistan, probationary periods usually last up to 3 months, after which the individual is employed for a permanent position. 

How to hire employees in Pakistan?

When recruiting employees in Pakistan, it’s generally required to establish a formal entity within the country. This entails registering your company with the relevant Pakistan authorities and obtaining an official business identification. It’s also crucial to fully comply with Pakistan’s local laws and rules.

Nevertheless, with the support of Native Teams’ employer of record services, you can focus on your business’s daily activities while we take care of the remaining responsibilities. We provide extensive help for legal hiring in Pakistan and numerous other countries across the globe.