Pakistan (PK)
Pakistan is South Asia's second-largest country and a land of extraordinary contrasts — from the towering Karakoram peaks in the north to the bustling port city of Karachi on the Arabian Sea.
Employment Rights
Sick leave, dismissal protection and red flags in Pakistan.
Pakistan employment rights are governed by a combination of federal and provincial laws, following the 18th Constitutional Amendment (2010) which devolved most labour legislation to the provinces. Key instruments include the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, the Factories Act 1934, the West Pakistan Shops and Establishments Ordinance 1969, provincial shops and establishments acts, and provincial minimum wage notifications. Disputes are heard by Labour Courts (provincial) and the National Industrial Relations Commission (NIRC) at the federal level. Senior foreign staff, NGO workers, FATA/AJK-based employees and Special Economic Zone workers may be subject to different frameworks; written contract terms are essential.
Sick leave
Rules: Under the Standing Orders Ordinance 1968, permanent workers are entitled to sick leave (typically up to 10 paid days per year in most provinces). Provincial variations exist: Punjab and Sindh workers in shops and commercial establishments are entitled to 10 days of casual leave (which covers short illness) plus sick leave as specified in establishment rules. Medical certification is required for formal sick leave claims and almost always required for any absence beyond 2–3 days.
Doctor note: Typically required from Day 1 of formal sick leave; most employers require a medical certificate from a registered medical practitioner within the first 2 days of absence, though the exact day varies by provincial standing order and contract.
Employer pay: Full wages for up to 10 paid sick-leave days per year; employer pays directly. Beyond the statutory minimum, entitlement depends on the contract and employer policy. No state sickness cash benefit applies to most workers in short-term illness; expats should rely on employer-provided health insurance.
Long-term: No universal state sickness benefit for most workers or foreign nationals. The Social Security Institutions (provincial, e.g. PESSI in Punjab, SESSI in Sindh) cover registered low-income workers for sickness and medical benefits. Most expats rely on private employer health insurance and medical evacuation policies for long-term illness.
Dismissal protection
Law: Termination of permanent workers is governed by the Industrial and Commercial Employment (Standing Orders) Ordinance 1968. Misconduct dismissal requires a domestic inquiry. Workers dismissed without following due process are entitled to reinstatement or compensation. Provincial Labour Courts have primary jurisdiction. The NIRC (National Industrial Relations Commission) handles appeals and certain industrial-sector disputes.
Deadline to sue: Labour Court complaints must generally be filed within 30 days of the incident giving rise to the claim (including dismissal). Some provinces allow up to 90 days; the safest approach is to file with the provincial Labour Court within 30 days. Delay beyond 30 days risks the claim being time-barred. Seek a Pakistani labour lawyer immediately upon receiving a termination notice.
Probation
Probation periods of 3–6 months are standard and should be specified in writing. During probation, employment may be terminated with shorter notice (7–15 days under Standing Orders). Only permanent workers (post-probation) are entitled to the one-month statutory notice; probationers and temporary workers may be terminated without notice under the Standing Orders. After confirmation, the standard statutory notice period for permanent workers is 1 month by either party, or payment of 1 month wages in lieu.
Notice periods
Permanent workers: 1 month notice by employer or employee, or payment of 1 month wages in lieu. Probationers: 7–15 days notice. Temporary and badli workers: no statutory notice entitlement on termination. Misconduct dismissal: can be without notice after a domestic inquiry. On termination without misconduct, workers are entitled to gratuity of 30 days' wages for each completed year of service (or part exceeding 6 months).
Working time
Max hours: Factories Act 1934: maximum 9 hours per day and 48 hours per week for factory workers. Including overtime, total weekly hours must not exceed 60. Professional services, shops and commercial establishments follow provincial Shops and Establishments rules, which commonly set 48 hours per week as the standard. Many professional/corporate contracts in Pakistan specify 40–45 hours per week.
Min rest: Workers are entitled to at least one rest day (usually Friday or Sunday) per week. Factories must provide adequate meal and rest intervals. Under the Factories Act, no worker may be required to work for more than 5 consecutive hours without a half-hour rest interval. Annual public holidays are gazetted at the federal and provincial level.
Overtime: Overtime for factory workers must be paid at double the ordinary rate of pay (2×). Maximum overtime is 150 hours per quarter per worker. For commercial establishment workers, overtime rate and limits depend on the applicable provincial standing order. Overtime agreements should be documented in the employment contract for all categories.
Vacation
Under the Standing Orders Ordinance, permanent workers are entitled to 14 consecutive days of paid annual leave after 12 months of continuous service. In Punjab and Sindh shops/commercial establishments, 10 days of casual leave per year is standard, plus the 14-day annual leave entitlement. Festival and national public holidays (Pakistan Independence Day, Eid, Quaid-i-Azam Day etc.) are additional; the exact list varies by province. Professional and senior contracts typically offer 20–25 working days of annual leave.
Anti-discrimination
The Constitution of Pakistan (Articles 25–27) prohibits discrimination on grounds of sex, religion, race, caste, or place of birth in public employment. Provincial labour laws and the Protection against Harassment of Women at the Workplace Act 2010 (extended to all provinces) prohibit workplace sexual harassment and require employers to establish inquiry committees. There is no single comprehensive anti-discrimination employment statute covering all protected characteristics; enforcement relies on constitutional provisions, sector policy, and case law through Labour Courts. Protection is stronger in formal-sector and corporate environments.
Contract red flags
- !Passport retention by employer — illegal; no employer in Pakistan may hold your travel document.
- !No work visa/NOC responsibility clause — confirm in writing which party sponsors and maintains your Work Visa or No Objection Certificate (NOC) from the Board of Investment or relevant authority.
- !Net salary quoted without PAYE/tax clarity — Pakistan operates a PAYE withholding system; the contract must specify gross salary and confirm who bears the income-tax liability.
- !No medical evacuation or health insurance cover — private medical costs and emergency evacuation are significant; employer-provided international health cover is non-negotiable for expat packages.
- !Vague or absent security and driver arrangements — security risk varies by city and sector; housing, driver, and personal security arrangements must be in the signed contract.
- !No termination, repatriation, or gratuity clause — statutory gratuity (30 days per year) and repatriation flights for expats must be documented; omitting them creates major departure disputes.
Employment Rights
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