Q. What is the typical probation period for new employees under Pakistan labor law?
Under the Industrial Relations Ordinance, 2002, probation periods typically last for three to six months in Pakistan. During probation, the employer assesses the employee’s suitability for permanent employment. The probationary period can be extended if both parties agree, but this must be documented.
Q. Can an employer extend the probation period in Pakistan, and by how much?
Yes, an employer can extend the probation period under Section 14 of the Industrial Relations Ordinance, 2002. Extensions are usually limited to three additional months, but they must be agreed upon by both the employer and the employee. Any extension must be clearly communicated and formalized.
Q. What rights do employees have during their probation period in Pakistan, especially regarding termination?
During probation, employees are generally entitled to basic rights such as salary, statutory deductions (e.g. tax, EOBI contributions), and protection against unlawful termination. However, employers can terminate employees with less notice or without the same protections as permanent employees, under the Industrial Relations Ordinance, 2002.
Q. Are employees on probation entitled to benefits like paid leave or public holidays in Pakistan?
Employees on probation are entitled to the same minimum legal benefits, including paid public holidays and sick leave as outlined in the Shops and Establishments Ordinance. However, benefits like annual leave may be restricted or pro-rated during the probation period.
Q. What happens after an employee completes their probation period in Pakistan?
Once an employee successfully completes their probation, they are typically considered confirmed as a permanent employee. Employers should issue a confirmation letter to formalize the employee’s permanent status. The employment terms will transition to those applicable for regular employees, including full benefits under the Industrial Relations Ordinance, 2002.
Q. Can an employee resign during the probation period in Pakistan, and do they need to provide notice?
Yes, an employee can resign during the probation period. They must provide a 30-day notice, as required by the Industrial Relations Ordinance, 2002, unless a different notice period is stated in their contract. If they do not serve the full notice, the employer may deduct the equivalent salary from their final settlement.
Q. What types of employment contracts are commonly used in Pakistan?
The most common employment contracts in Pakistan are permanent contracts, fixed-term contracts, temporary contracts, and apprenticeship contracts. Permanent contracts provide long-term employment with standard benefits, while fixed-term contracts are for a specified period, as per Section 11 of the Contract Act, 1872.
Q. How does a fixed-term contract differ from permanent employment in terms of legal rights and benefits in Pakistan?
A fixed-term contract provides employment for a specified period, and rights such as annual leave, medical benefits, and gratuity may be pro-rated. In contrast, permanent employees are entitled to full leave benefits, severance pay, and long-term job security under the Industrial Relations Ordinance, 2002.
Q. Is there a maximum duration or limit on how many times a fixed-term contract can be renewed in Pakistan?
A fixed-term contract can be renewed under Section 11 of the Contract Act, 1872. However, after three consecutive renewals, the employee may be considered permanent unless explicitly stated otherwise. The contract cannot last for more than 5 years in most cases.
Q. What is an apprenticeship contract, and how does it differ from regular employment in Pakistan?
An apprenticeship contract is a type of training agreement where the apprentice learns specific skills. Apprentices are entitled to a stipend rather than full wages and are not considered full-time employees under the Apprenticeship Ordinance, 1962. Apprenticeships are limited in duration and may not provide full benefits like permanent employment.
Q. Do part-time or daily-wage workers have the same legal protections as full-time employees in Pakistan?
Part-time and daily-wage workers are entitled to minimum wage, overtime pay, and leave benefits in proportion to the time worked, as per the Minimum Wage Ordinance, 1961 and the Industrial Relations Ordinance, 2002. However, certain benefits like health insurance or retirement benefits may only apply to full-time employees.
Q. Are employers legally required to provide a written employment contract or appointment letter under Pakistan labor law?
Yes, employers are required to provide a written contract or appointment letter under Section 7 of the Industrial Relations Ordinance, 2002. The contract must clearly outline the terms of employment, such as job description, salary, benefits, notice period, and termination clauses.
