Many employment relationships in Pakistan run on an appointment letter alone, without a proper contract addressing the terms that matter when the relationship ends or a dispute arises.
What should be addressed
- Position, reporting line and probation period
- Compensation, including any variable or bonus component and when it is earned
- Notice period and grounds for termination
- Confidentiality and, where appropriate, a reasonably scoped restrictive covenant
- Leave entitlement and applicable statutory benefits
Provincial labour law applies
Employment law in Pakistan is largely provincial following the 18th Amendment, so the applicable legislation — governing matters such as standing orders, shops and establishments, and industrial relations — depends on where the employment is based.
Fixed-term versus permanent
Whether an engagement is fixed-term or ongoing affects notice requirements and the consequences of non-renewal or termination. This should be stated explicitly rather than left ambiguous, since ambiguity here is a frequent source of dispute.
What to do next
Bring the current appointment letter or contract, if one exists, and a description of the role and compensation structure, so gaps can be identified and closed.