Appointment Letter (Pakistan)

An Appointment Letter in Pakistan records the particulars of the engagement, fixing salary, working hours, leave entitlement and the grounds for termination.

The Industrial and Commercial Employment (Standing Orders) Ordinance 1968 (Standing Orders Ordinance) applies to industrial and commercial establishments in Pakistan as defined under the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968. Section 3 of the Ordinance requires every employer covered by the Ordinance to frame Standing Orders setting out the conditions of employment — including classification of employees (permanent, probationer, temporary, casual, apprentice), leave entitlements, disciplinary procedures, and termination rules — and to have these Standing Orders certified by the Deputy Director of Labour or relevant provincial labour authority. The Appointment Letter operates within the framework of the certified Standing Orders of the employer's establishment.

For government employees in Pakistan, the Appointment Letter is equivalent to the posting order or appointment order issued under the relevant service rules — for federal civil servants, under the Civil Servants Act 1973 and the Civil Servants (Appointment, Promotion and Transfer) Rules 1973; for provincial civil servants, under the respective provincial service rules. Government appointment letters specify the post, Basic Pay Scale (BPS) grade, initial basic pay, and the service rules applicable to the appointee.

The Factories Act 1934 separately requires that workers employed in factories registered under the Act be given a written notice of the terms of employment including wages. The Minimum Wages Ordinance 1961 and the notifications issued by the provincial Minimum Wages Boards — under the Punjab Minimum Wages Act 2019, the Sindh Minimum Wage Act 2015, and parallel KPK and Balochistan legislation — set the minimum wages below which the salary stated in the Appointment Letter cannot lawfully fall. For the financial year 2024-25, the federal minimum wage for unskilled workers has been set at PKR 37,000 per month, with provincial boards setting higher rates in some provinces.

The Appointment Letter Pakistan must be distinguished from a Letter of Intent (LoI) or offer letter — the Appointment Letter is issued after the candidate has formally accepted the offer and completed pre-employment verification, and typically requires the candidate's signature confirming acceptance of the stated terms. An unsigned Appointment Letter does not constitute a binding employment contract under Pakistani contract law governed by the Contract Act 1872 — acceptance must be communicated to the employer either by signing and returning the letter or by reporting for duty on the commencement date stated in the letter, which constitutes implied acceptance under Section 8 of the Contract Act 1872.

Social security and statutory contribution obligations — EOBI (Employees' Old-Age Benefits Institution) registration under the Employees' Old-Age Benefits Act 1976, Social Security registration under the West Pakistan Employees' Social Security Ordinance 1965 or provincial equivalents, and PESSI (Punjab Employees Social Security Institution) in Punjab — attach from the first day of employment and are referenced in the Appointment Letter as employer obligations.

An Appointment Letter Pakistan is required whenever an employer in Pakistan makes a formal offer of employment to a selected candidate for any position — whether permanent, probationary, contractual, or part-time — and wishes to document the terms of engagement in compliance with the Standing Orders Ordinance 1968 and general employment law best practice.

An Appointment Letter is needed when a private sector company — a manufacturing firm, a services company, a bank, a hospital, or a technology company — hires a new employee at any level and must provide written evidence of the terms of employment that can be referenced by both parties, the Labour Department inspectors, and courts in any subsequent employment dispute before the Labour Court under the provincial industrial relations acts.

An Appointment Letter is required when an employer wishes to enforce a probation period — under Standing Order 1 of the Standing Orders Ordinance 1968, a probationer is defined as a worker employed on probation for a period not exceeding three months (extendable to a maximum of six months in certain categories). Without a written Appointment Letter specifying the probation period, an employer may not be able to terminate a probationer without following the full termination notice procedure applicable to permanent employees under Standing Order 12.

An Appointment Letter is needed when an employee seeks financing from a bank — a housing loan from the House Building Finance Company (HBFC) or a car loan from a scheduled bank — and the bank requires evidence of employment status and salary, typically satisfied by producing the original Appointment Letter along with the most recent salary slips and a salary certificate from the employer.

An Appointment Letter is required when an employee applies for a work visa for a foreign country — including a UAE work permit, a Saudi Iqama, or a visa for the United Kingdom, Canada, or Australia — where the foreign immigration authority or the Federal Investigation Agency (FIA) requires documentary proof of current employment in Pakistan as part of the visa assessment.

An Appointment Letter Pakistan is needed when a multinational company onboards a new employee in Pakistan and must comply both with Pakistani labour law requirements (Standing Orders Ordinance 1968) and with the group's global HR documentation standards — the Appointment Letter bridges the domestic legal requirements and the employer's global onboarding process.

An Appointment Letter is required when an employer wishes to include post-employment restrictions — such as a non-compete clause, a non-solicitation clause, or a confidentiality obligation — which must be clearly stated in writing to be enforceable, to the extent permitted, under the Contract Act 1872. Section 27 of the Contract Act 1872 restricts agreements in restraint of trade but allows reasonable post-employment restrictions protecting legitimate business interests.

An Appointment Letter Pakistan compliant with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 and employment law best practice must contain the following essential elements.

Employer and Candidate Identification: Full registered name of the employer, establishment address, and contact details; full name of the appointee exactly as on their NADRA CNIC, CNIC number, and residential address. For companies, the SECP company registration number is helpful for formal record-keeping.

Position and Designation: The exact job title and designation, the department or division to which the appointee is assigned, and the reporting line — the name and designation of the immediate supervisor. For graded organisations, the pay scale or grade applicable to the position must be stated.

Date of Commencement and Probation Period: The start date on which the appointee is to report for duty, and the duration of the probation period — typically three months under Standing Order 1 of the Standing Orders Ordinance 1968, extendable to six months by written notice before the initial period expires. The Appointment Letter must specify whether the probation may be confirmed or extended, and what criteria govern confirmation of service.

Salary and Remuneration: Basic salary per month in PKR, allowances (house rent allowance, medical allowance, conveyance allowance, fuel allowance), performance bonuses if guaranteed, and any benefits in kind (company vehicle, accommodation, mobile phone). The total monthly compensation must meet or exceed the applicable minimum wage set by the relevant provincial Minimum Wages Board. Salary revision procedures — whether annual increments are automatic or performance-linked — should be stated.

Leave Entitlements: Annual earned leave (minimum fourteen days per year under Factories Act 1934 or Standing Orders Ordinance 1968), casual leave (typically ten days per year), sick leave, and public holidays as per the government gazette. The leave year should be defined (January-December or July-June) and the procedure for leave application should cross-reference the employer's Standing Orders.

Statutory Deductions and Contributions: Confirmation that income tax will be deducted from salary at source under Section 149 of the Income Tax Ordinance 2001, that EOBI contribution (employee's share currently 1% of minimum wages under the Employees' Old-Age Benefits Act 1976) will be deducted, and that Social Security contribution (employee's share under PESSI, SESSI, or equivalent provincial scheme) will be deducted. The employer's matching EOBI contribution (5% of minimum wages) and Social Security contribution obligations should also be stated.

Confidentiality and Code of Conduct: Reference to the employer's confidentiality policy, code of conduct, employee handbook, and IT security policy — all of which the appointee is required to read and comply with as a condition of employment. For senior employees and those with access to trade secrets, a separate Confidentiality Agreement may be referenced or attached.

Termination Provisions: Notice period for resignation by the employee and for termination by the employer — under Standing Order 12 of the Standing Orders Ordinance 1968, a permanent worker is entitled to one month's notice or one month's wages in lieu of notice upon termination (other than for misconduct). During probation, a shorter notice period (typically one week) applies. Termination for misconduct is governed by the Standing Orders' enquiry procedure.

Governing Law and Dispute Resolution: Pakistan law as the governing law, with disputes to be resolved before the Labour Court having jurisdiction under the applicable provincial industrial relations act. Forms-legal.com provides this Appointment Letter (Pakistan) template as a practical starting point for employers and HR professionals. Employers should have their Standing Orders certified by the provincial Labour Department and confirm that the Appointment Letter is consistent with the certified Standing Orders.