ZAFAR & ASSOCIATES - LLP | Employment Law Services - Pakistan (2024)

ZAFAR & ASSOCIATES - LLP | Employment Law Services - Pakistan (1)

Employment law is the set of laws and rules that regulate relationships between employers and employees, these laws compliment in smooth running of the business with regard to matters relating to employment for achieving the target of higher productivity, reasonable profits, better earnings and reduction in unjust practices or discrimination.

The relationship between an employer and an employee in the workplace is delicate but fundamental. This relationship can define the employee's experience in the workplace and the success of the employer.

When an employer wants to hire someone, there’s a lot they have to know. There are minimum wage laws that require the employer to pay a certain amount. There are laws that prohibit the employer from discriminating against applicants or employees based on certain characteristics. Employers must provide a safe working environment. In some cases, they must provide health insurance options. Employers must collect and submit payroll taxes on behalf of the employee.

Employment Law Practice in Pakistan

In Pakistan, working conditions are less than favorable. There are no laws to protect employees from working shifts longer than eight hours without overtime pay, employees do not get social security, cannot create unions, and have no statutory right to weekly leave.

The Pakistan Workers Federation (PWF) has been created in order to speak for all employees within the country, regardless of their employment role. Similarly, employees’ social security institutions have been formed at provincial levels ensures provision of healthcare, financial assistance, and other benefits to workers and their dependents.

Employment Law Rights in The Constitution of Pakistan

The rights of employees have been sufficiently safeguarded in the constitution of Pakistan. The chapter of Fundamental Rights and Principles of Policy has articles that protect employees’ rights.

  • Article 11 – does not allow any forms of child labor, forced labor, and slavery as stated in this article.

  • Article 17 – provision for fundamental right to form unions and to exercise freedom of association is also describe in this part.

  • Article 18 - the right of its citizens to enter upon any lawful profession or occupation and to conduct any lawful trade or business.

  • Article 25 - the right to equality before the law and prohibition of discrimination on the grounds of sex alone.

  • Article 37(e) - provision for securing just and humane conditions of work, ensuring that children and women are not employed in vocations unsuited to their age or sex, and for maternity benefits for women in employment.

Statutory Employment Laws in Pakistan

The Provincial Employees Social Security Ordinance, 1965

The Provincial Employees Social Security Ordinance, 1965, had introduced a social security scheme to provide benefits to certain employees and their dependents in cases of sickness, maternity, employment injury or death. However, after the 18th amendment, the ordinance was devolved and employees’ social security bodies were formed it provincial level to provide the same kinds of benefits. They are named as:

  • Punjab Employees Social Security Institution (PESSI)

  • Sindh Employees Social Security Institution (SESSI)

  • KPK Employees Social Security Institution

The Industrial and Commercial Employment (Standing Ordinance, 1968)

The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 was one of the best ever employment laws promulgated in Pakistan. It was considered as the magna carta of employment legislation in Pakistan by the then policymakers.

Standing Orders Ordinance requires that every employee at the time of his appointment, transfer or promotion should be provided with an order in writing, showing the terms and conditions of his service. Similarly, every permanent worker is entitled to a written certificate of service at the time of his dismissal, discharge, retrenchment or retirement from service (S.O. 2-A and 18of Standing Orders Ordinance, 1968)

Similar provisions are found in the Khyber Pakhtunkhwa Industrial and Commercial Employment (Standing Order) Act 2013 (Standing Order 3 & 4) and the Sindh Terms of Employment (Standing Orders) Act 2015 (Standing Order 3 & 17).

Employment Contracts in Pakistan

Pakistani employment law prohibits hiring fixed term contract employees for tasks of permanent nature. The maximum length of a fixed term (temporary) contract including renewals is 09 months.

Khyber Pakhtunkhwa and Sindh legislation allow for hiring employees on contract where the term of the contract is specified by the contract itself.

Sindh legislation however defines a contract worker as "a worker who works on contract basis for a specific period mentioned in the contract, in any establishment but does not include the third-party employment".

Khyber Pakhtunkhwa legislation also defines a contract worker as "a worker who works on contract basis for a specific period mentioned in the Letter of Contract". The legislation requires an employer to obtain a No Objection Certificate (NOC) from the Employment Department to contract out jobs of peripheral nature and not those which are related to core activity of the organization. Such NOC is issued only for a period of 6 months at a time and contains certain conditions related to the job and employment of contract workers.

Employees’ Old Age Benefits Act, 1976

Pension Rights

Social security laws provide for both full and partial/early pension. For full pension, a worker must have attained 60 years of age (55 years for women) with at least 15 years of contributions. A reduced pension is paid to the workers with ages from ages 55 to 59 (men) or ages 50 to 54 (women) with at least 15 years of contribution. (Section 22 of the Employees' Old Age Benefits Act, 1976).

Dependent’s / Survivor’s Benefits

Social Security laws provide for survivor benefit (these include dependents including widow, widower, children). The deceased worker must be a pensioner at the time of death. 100% of the deceased minimum pension is distributed equally among deceased's spouses. (Section 22-B of the Employees' Old Age Benefits Act, 1976).

Invalidity Benefit

The above acts provide for invalidity benefit in the case of non-occupational accident/injury/disease resulting into permanent invalidity. (Sec. 23 of the Employees' Old Age Benefits Act, 1976).

How ZA-LLP may help?

Employment Law in Pakistan is very comprehensive and contains several Ordinances, Acts, Rules and Regulations and all other statutes relating to Industrial, Commercial and Employment Establishments which are widely scattered and inaccessible statutes. These different laws give authentic guide to the Employers, the Employees, the Trade Unions and the concerned Agencies to realize their respective responsibilities and to become aware of their prescribed legal rights to be asserted. Our Law Firm has the main object to provide the legal services concerning these Employment Laws to the Employers and the Employees for the smooth running of the business in order to achieve the target of higher productively, reasonable profits and better salaries.

Our Core Competencies


Collaborative Skillset

Collaborative lawyers trust the wisdom of the group; lone wolves and isolationists do not do any good anymore.


Emotional Intelligence

Distant, detached lawyers are relics of the 20th century, the market no longer wants a lawyer who is only half a person.


Technological Affinity

If you can not effectively and efficiently use e-communications, and mobile tech, you might as well just stay home.


Time Management

Virtually a substantial part of lawyers difficulties in this regard lie with their inability to prioritise their time.

What People Say About Us

  • Thank you for your email and the final draft. Indeed it is one of the finest drafts I have come across with. Certainly, your commitment level, eagerness to resolve, intellectual strength, attention to detail and legal expertise are commendable. Under your admirable guidance and direction, I have been able to maneuver with immense success and will reach fruition much earlier than anticipated. Thank you for being so supportive!

    Yaser Shan ~ Toronto, Canada
  • Thank you again so much for this wonderful service. I just wanted you both to know, I spent weeks searching for a service in Pakistan like this, that could legally handle payroll for a Pakistani employee for a US based business and so far I am extremely happy with your organization's service and punctuality. Your service thus far is absolutely amazing and I know Sunita is grateful that we were able to find your organization to ensure her position at our company.

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    Dr. Albrecht Muser | KPMG ~ München, Germany
  • Working with all of you over the last years has been a pleasure and an honour! Your expertise, focus on customer service and professionalism make it possible for us to provide superior services to our clients and I am so grateful to you.

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    Zubair Mufti ~ Texas, USA
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    Petrov Andrey ~ Moscow, Russia
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ZAFAR & ASSOCIATES - LLP | Employment Law Services - Pakistan (2024)
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