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HR template

Employment Contract — Pakistan

Quick answer

A standard employment agreement covering role, salary, hours, leave, confidentiality, and termination. When to use it: When hiring any employee — a written contract is your main protection in disputes over terms.

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Key factsVerified June 2026
Fill in 1Employer details
Fill in 2Employee name & CNIC
Fill in 3Job title & duties
Fill in 4Salary & benefits
Fill in 5Probation & notice period

What's in it — and why

Probation

Defines the trial period during which either side can exit on short notice. Getting the length and notice right protects the employer while the law still requires a written confirmation on successful completion.

Remuneration & Statutory Deductions

Sets gross pay, the salary breakdown, and confirms tax is withheld at source under the Income Tax Ordinance, 2001 — essential for FBR compliance and to avoid disputes over net pay.

Benefits & Statutory Entitlements

Ties leave and social-security/old-age-benefit contributions to the applicable provincial labour law so the employer does not inadvertently fall below the legal minimum.

Confidentiality & IP Assignment

Keeps trade secrets protected and ensures anything the employee creates on the job belongs to the employer — critical for any business that produces software, designs or proprietary processes.

Non-Solicitation / Restraint

Protects customers and staff after the employee leaves, while expressly acknowledging that under the Contract Act, 1872 a broad restraint of trade is void — so the clause stays within enforceable limits.

Term & Termination

Sets notice periods, grounds for summary dismissal for misconduct, and — importantly — confirms statutory minimums (gratuity, notice, terminal benefits) always prevail over weaker contract terms.

Discipline & Grievance / Natural Justice

For employees who are 'workmen', dismissal must follow the inquiry process under Standing Orders law; this clause builds that in to reduce the risk of a reinstatement order from a labour court.

The template

Copy the text below (or download a Word copy) and replace everything in [BRACKETS].

EMPLOYMENT AGREEMENT

This Employment Agreement (this "Agreement") is made at [CITY], Pakistan on this [DAY] day of [MONTH], [YEAR]

BY AND BETWEEN

[EMPLOYER LEGAL NAME], a [sole proprietorship / partnership firm / company incorporated under the Companies Act, 2017] having its registered/principal office at [EMPLOYER ADDRESS], NTN [NUMBER] (hereinafter the "Employer", which expression includes its successors-in-interest and permitted assigns) of the ONE PART;

AND

[EMPLOYEE FULL NAME], son/daughter of [FATHER'S NAME], holding CNIC No. [CNIC], resident of [EMPLOYEE ADDRESS] (hereinafter the "Employee") of the OTHER PART.

The Employer and the Employee are referred to individually as a "Party" and collectively as the "Parties".

RECITALS

A. The Employer carries on the business of [DESCRIBE BUSINESS] and wishes to engage the Employee.
B. The Employee has represented that he/she possesses the qualifications, skills and experience required and is willing to be employed on the terms set out below.
C. This Agreement is intended to record the terms of employment and, where applicable, to satisfy the requirements of the applicable provincial Shops and Establishments / Standing Orders law for the issue of terms of employment to a workman.

NOW THEREFORE the Parties agree as follows:

1. DEFINITIONS
1.1 "Confidential Information" means all non-public business, technical, financial, customer and personnel information of the Employer.
1.2 "Board/Management" means the Employer's directors, partners or designated management.
1.3 "Group" means the Employer and its associated/affiliated undertakings, if any.

2. APPOINTMENT AND COMMENCEMENT
2.1 The Employer appoints the Employee to the position of [JOB TITLE], reporting to [REPORTING LINE].
2.2 Employment commences on [START DATE] (the "Commencement Date").
2.3 The Employee's place of work is [LOCATION], provided the Employer may require the Employee to work at any other location of the Group within Pakistan on reasonable notice.

3. PROBATION
3.1 The first [THREE (3) / specify] months from the Commencement Date constitute a probationary period during which either Party may terminate the employment by giving [NUMBER] days' written notice or payment in lieu, without assigning reason.
3.2 The Employer may extend the probationary period once for a further period not exceeding [NUMBER] months. On confirmation, the Employer shall issue a written confirmation letter.

4. DUTIES AND OBLIGATIONS OF THE EMPLOYEE
4.1 The Employee shall: (a) faithfully and diligently perform the duties of the position and such other duties consistent with the role as may reasonably be assigned; (b) devote his/her whole working time and attention to the business of the Employer; (c) comply with all lawful and reasonable instructions, policies and codes of conduct of the Employer; and (d) act in the best interests of the Employer and not engage in any activity that conflicts with those interests.
4.2 The Employee shall not, without the prior written consent of the Employer, engage in any other employment, business or trade during the subsistence of this Agreement.

5. HOURS OF WORK
5.1 Normal working hours are [HOURS] per [day/week], [DAYS], in accordance with applicable labour law. The Employee may be required to work reasonable additional hours as the role demands; overtime, where applicable to the Employee under law, shall be compensated in accordance with the applicable Shops and Establishments / Factories law.

6. REMUNERATION
6.1 The Employer shall pay the Employee a gross monthly salary of PKR [AMOUNT] (Rupees [AMOUNT IN WORDS]), payable in arrears on or before the [DATE] of each month by bank transfer, subject to deduction of income tax at source under the Income Tax Ordinance, 2001 and any other lawful deductions.
6.2 The salary breakdown (basic, house rent, utilities and other allowances) is set out in Schedule 1.
6.3 The Employee's remuneration shall be reviewed [annually] at the discretion of the Employer; a review does not guarantee an increase.

7. BENEFITS AND STATUTORY ENTITLEMENTS
7.1 The Employee shall be entitled to leave (annual/casual/sick) and public holidays in accordance with the applicable provincial Shops and Establishments Act / labour law and the Employer's leave policy, as set out in Schedule 1.
7.2 Where applicable by law and by headcount thresholds, the Employer shall register and contribute in respect of the Employee under the applicable social-security and old-age-benefits schemes (e.g. Provincial Employees Social Security and the Employees' Old-Age Benefits Institution).
7.3 Additional benefits (medical, provident fund, gratuity, bonus), if any, are set out in Schedule 1 and are governed by the relevant Employer policy as amended from time to time.

8. CONFIDENTIALITY
8.1 During and after employment, the Employee shall keep all Confidential Information strictly confidential and shall not use or disclose it except in the proper performance of his/her duties or as required by law. All records, documents and materials relating to the Employer's business remain its property and shall be returned on termination.

9. INTELLECTUAL PROPERTY
9.1 All intellectual property, inventions, works, software, designs and materials created by the Employee in the course of employment or using the Employer's resources shall vest absolutely in the Employer. The Employee assigns all such rights to the Employer and shall, at the Employer's cost, execute such documents as are necessary to perfect such vesting.

10. NON-SOLICITATION AND NON-COMPETE
10.1 During employment and for [NUMBER] months thereafter, the Employee shall not solicit or entice away any employee, customer or supplier of the Employer with whom the Employee dealt during the [12] months before termination.
10.2 Any restraint operating after the termination of employment shall apply only to the extent it is a reasonable and lawful protection of the Employer's legitimate business interests; the Parties acknowledge that under the Contract Act, 1872 an agreement in restraint of lawful trade is void except to the extent permitted by law.

11. TERM AND TERMINATION
11.1 This Agreement continues until terminated in accordance with this Clause.
11.2 After confirmation, either Party may terminate by giving [ONE (1) MONTH / specify] written notice or salary in lieu of notice.
11.3 The Employer may terminate without notice and without payment in lieu for misconduct, including the grounds recognised under the applicable Standing Orders law (e.g. wilful insubordination, theft, fraud, habitual absence, or material breach of this Agreement), after such inquiry as the law requires.
11.4 On termination, the Employee shall return all Employer property and shall be paid all earned salary and accrued statutory dues up to the date of termination.
11.5 Nothing in this Agreement reduces any minimum statutory entitlement of the Employee (including in respect of gratuity, notice or terminal benefits) under applicable law; statutory minimums prevail over any less-favourable term.

12. DISCIPLINE AND GRIEVANCE
12.1 The Employee is subject to the Employer's disciplinary procedure. Misconduct shall be dealt with in accordance with the principles of natural justice and, where the Employee is a "workman" under the applicable Standing Orders law, the procedure prescribed thereunder.
12.2 Any grievance shall be raised in writing with [DESIGNATION] and dealt with under the Employer's grievance procedure.

13. DATA PROTECTION
13.1 The Employee consents to the Employer collecting, holding and processing his/her personal data for purposes connected with the employment relationship and the Employer's lawful obligations.

14. GOVERNING LAW AND JURISDICTION
14.1 This Agreement is governed by the laws of Pakistan. Subject to the jurisdiction of the labour courts/tribunals where the dispute is an industrial dispute under applicable labour law, the courts at [CITY] shall have jurisdiction.

15. DISPUTE RESOLUTION
15.1 The Parties shall first attempt to resolve any dispute amicably. Industrial/labour disputes shall be resolved through the forums prescribed under the applicable labour legislation. Any other dispute may, by mutual agreement, be referred to arbitration under the Arbitration Act, 1940, with the seat at [CITY].

16. GENERAL
16.1 Severability. If any provision is invalid, the remainder continues in force.
16.2 Waiver. No failure to enforce any term is a waiver of it.
16.3 Entire Agreement. This Agreement together with its Schedules and the Employer's policies constitutes the entire terms of employment and supersedes prior understandings.
16.4 Amendment. Variations must be in writing and signed by both Parties, save for changes to policies which the Employer may make and notify from time to time.
16.5 Notices. Notices shall be in writing to the addresses above.

SCHEDULE 1 - REMUNERATION, ALLOWANCES AND BENEFITS
- Basic salary: PKR [AMOUNT]
- House rent allowance: PKR [AMOUNT]
- Utilities/other allowances: PKR [AMOUNT]
- Annual leave: [NUMBER] days | Casual leave: [NUMBER] days | Sick leave: [NUMBER] days
- Medical / Provident fund / Gratuity / Bonus: [DETAILS or "As per Employer policy / applicable law"]

IN WITNESS WHEREOF the Parties have signed this Agreement on the date first above written.

For and on behalf of the EMPLOYER
Signature: ______________________
Name: [NAME]   Designation: [DESIGNATION]

EMPLOYEE
Signature: ______________________
Name: [EMPLOYEE NAME]   CNIC: [CNIC]

WITNESS 1
Signature: ______________________
Name: [NAME]   CNIC: [CNIC]

WITNESS 2
Signature: ______________________
Name: [NAME]   CNIC: [CNIC]

Relevant Pakistani law

  • Contract Act, 1872
  • Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (and provincial equivalents, e.g. Sindh / Khyber Pakhtunkhwa Standing Orders Acts)
  • Provincial Shops and Establishments Acts (e.g. Punjab Shops and Establishments Ordinance, 1969; Sindh Shops and Commercial Establishments Act, 2015)
  • Provincial Minimum Wages Acts / Ordinances
  • Income Tax Ordinance, 2001 (withholding on salary)
  • Provincial Employees Social Security Ordinances and the Employees' Old-Age Benefits Act, 1976
  • Companies Act, 2017 (where the employer is a company)
  • Arbitration Act, 1940
Note: Use this for a permanent or fixed-term employee in Pakistan. Labour law in Pakistan is largely DEVOLVED to the provinces — you must apply the Shops and Establishments / Standing Orders / minimum wage / social security law of the PROVINCE where the workplace sits (Punjab, Sindh, KP, Balochistan or ICT), and the categorisation of the worker as a 'workman' materially changes termination rights. Complete Schedule 1 carefully and never set any term below the statutory minimum. This is a template, not legal advice; have a qualified Pakistani labour lawyer review it against the applicable provincial law before signing. This is a template, not legal advice — have a lawyer review it before signing.

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