Remote Work Agreement (Pakistan)
REMOTE WORK AGREEMENT
Industrial and Commercial Employment (Standing Orders) Ordinance 1968 | Contract Act 1872
This Remote Work Agreement (the 'Agreement') is entered into on [Agreement Date] between:
EMPLOYER:
[Employer Name], NTN: [Employer NTN], registered at [Employer Address] ('Employer')
EMPLOYEE:
[Employee Name], CNIC: [Employee CNIC], Designation: [Employee Designation], Remote Work Address: [Employee Remote Address] ('Employee')
1. REMOTE WORK ARRANGEMENT
1.1 Type: [Remote Work Type]
1.2 Office Attendance (if hybrid): [Office Days Per Week]
1.3 Commencement Date: [Commencement Date]
1.4 Duration: [End Date]
1.5 Recall to Office: The Employer may require the Employee to return to office working by providing [Recall Notice Period] written notice. The Employee's employment terms are not otherwise affected by this Agreement.
1.6 The Employee's approved remote work location is [Employee Remote Address]. Any change of remote work location requires prior written approval from the Employer.
2. WORKING HOURS AND AVAILABILITY
2.1 Working Hours: [Working Hours]
2.2 Core Availability Hours: [Core Availability Hours]
2.3 Response Time: [Response Time Expectation]
2.4 Working hours comply with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968. Overtime, if required, shall be compensated in accordance with the Employee's employment contract and applicable Standing Orders.
3. EQUIPMENT AND EXPENSES
3.1 Equipment Provided: [Equipment Provided]
3.2 All company-provided equipment remains the property of the Employer. The Employee shall maintain the equipment in good working order and return all equipment to the Employer immediately upon termination of employment or upon the Employer's request.
3.3 Internet / Utility Allowance: [Internet Allowance]
4. DATA SECURITY AND CONFIDENTIALITY
4.1 VPN Requirement: [VPN Required]
4.2 Data Security Obligations: [Data Security Obligations]
4.3 The Employee acknowledges that misuse, unauthorised disclosure, or theft of company data accessed during remote work may constitute an offence under the Prevention of Electronic Crimes Act 2016 (PECA 2016) and may give rise to civil liability under the Employee's NDA and employment contract.
5. PERFORMANCE AND REPORTING
5.1 Performance Expectations: [Performance Expectations]
5.2 Reporting Supervisor: [Supervisor Name]
5.3 The Employee's performance will be evaluated by the Employer against the same standards applicable to office-based employees. Sub-standard performance may result in withdrawal of remote work privileges in addition to other disciplinary measures available under the Employment Contract and applicable Standing Orders.
6. INTELLECTUAL PROPERTY AND HEALTH AND SAFETY
6.1 All work product created by the Employee during remote work using company equipment, resources, or on company time is the intellectual property of the Employer under the Copyright Ordinance 1962 and the Employee's employment contract.
6.2 The Employee is responsible for maintaining a safe and ergonomic home workspace. The Employer's Workmen's Compensation coverage under the Workmen's Compensation Act 1923 extends to genuine work-related injuries occurring during work hours at the approved remote work location stated in this Agreement.
7. EMPLOYMENT RIGHTS PRESERVED
This Agreement supplements and does not replace the Employee's existing employment contract. All statutory employment rights — minimum wage, annual leave, medical leave, maternity benefits, EOBI contributions, gratuity, and other benefits — remain in full force regardless of the remote work arrangement, in accordance with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 and other applicable employment statutes.
EXECUTION
Executed on [Agreement Date].
EMPLOYER: [Employer Name]
Authorised Signatory: _________________________ Designation: _____________
Signature: _________________________ Date: _____________
EMPLOYEE: [Employee Name] (CNIC: [Employee CNIC])
Signature: _________________________ Date: _____________
Employer (Authorised Representative)
________________
Signature
Employee
________________
Signature
What Is a Remote Work Agreement (Pakistan)?
A Remote Work Agreement in Pakistan records the bargain between the parties, fixing their respective rights, duties and remedies.
Remote work in Pakistan has expanded significantly since 2020, driven by the COVID-19 pandemic and Pakistan's growing IT and services sector. The Pakistan Software Export Board (PSEB) estimates that Pakistan's IT freelancing and remote services sector employs hundreds of thousands of professionals working from home for domestic and international clients. Pakistan's National IT Policy and the Digital Pakistan initiative under the Ministry of Information Technology and Telecommunication (MoITT) actively encourage remote working arrangements in the IT sector as part of the broader strategy to grow Pakistan's technology exports.
The Industrial and Commercial Employment (Standing Orders) Ordinance 1968 (Standing Orders Ordinance) applies to all industrial and commercial establishments in Pakistan employing twenty or more workers and requires employers to issue Standing Orders (internal employment rules) covering various aspects of the employment relationship. Where an employer adopts remote working as a permanent or semi-permanent arrangement, the Standing Orders must be updated to reflect the remote work policy — the Standing Orders cannot simply ignore a major change in the mode of work. Standing Orders approved by the Labour Court or the Labour Department of the relevant province have statutory force and bind all covered employees.
Data security is a critical dimension of remote work agreements in Pakistan. Employees working remotely access company systems, client data, and confidential business information over home internet connections that may be less secure than office networks. The Electronic Crimes Act 2016 (PECA 2016) enacted by Pakistan's Parliament criminalises unauthorised access to computer systems, data theft, and cybersecurity offences — employees who misuse company data accessed during remote work may face liability under PECA 2016 as well as civil liability under the Contract Act 1872 and the employee's Non-Disclosure Agreement (NDA).
The Prevention of Electronic Crimes Act 2016 (PECA 2016) also has implications for employers' monitoring of remote employees. Employers who monitor employee communications, keystrokes, or computer usage must confirm their monitoring practices are disclosed to employees and are consistent with the employee's reasonable privacy expectations. Pakistan does not yet have a thorough data protection statute — the Personal Data Protection Bill remains under consideration — but standard practices drawn from the PECA 2016 and international standards apply to remote work monitoring.
Tax implications of remote work in Pakistan arise where employees work remotely from a different province than their employer's registered office. Provincial income tax on salaries (where applicable) and the employer's withholding tax obligations under Section 149 of the Income Tax Ordinance 2001 remain the same regardless of the employee's remote work location within Pakistan.
When Do You Need a Remote Work Agreement (Pakistan)?
A Remote Work Agreement in Pakistan is needed whenever an employer and employee agree to a working arrangement where the employee performs their duties wholly or partly from a location other than the employer's designated office premises.
A Remote Work Agreement is needed when an employer implements a permanent work-from-home policy for some or all employees. Post-pandemic, many Pakistani businesses — particularly in the IT sector registered with PSEB, financial services companies regulated by the State Bank of Pakistan (SBP), and multinational corporations operating in Pakistan — have adopted hybrid or fully remote working models. A formal agreement documents the specific terms applicable to each remote employee.
A Remote Work Agreement is needed when an employee requests to work from a home location due to personal circumstances — childcare responsibilities, disability, living far from the office, or caring for a dependent family member. Formalising the arrangement in a written agreement prevents ambiguity about the employer's expectations and the employee's obligations, and protects both parties in the event of a dispute before a Labour Court under the Industrial Relations Act 2012.
A Remote Work Agreement is needed when an employer hires an employee who will work remotely from the outset — a tech professional hired in Lahore by a Karachi-based company, or a content writer employed in Islamabad by a Peshawar-based firm. The agreement must specify the reporting structure, communication tools, attendance and availability requirements, and performance metrics applicable to the remote arrangement.
A Remote Work Agreement is needed when an employer provides company equipment — laptop, mobile phone, internet connection — to a remote employee. The agreement should document the equipment provided, the employee's obligations to maintain and return the equipment, and the employer's rights in the event of damage or loss.
A Remote Work Agreement is needed when an employer wants to address the data security and confidentiality risks inherent in remote work. The agreement establishes the employee's obligations to protect company data under the Electronic Crimes Act 2016 (PECA 2016) and the company's information security policy, and specifies the technical requirements — use of VPN, encrypted storage, secure password management — that the employee must comply with when accessing company systems from a remote location.
A Remote Work Agreement is needed when an employee of a PSEB-registered IT company works on projects for international clients from Pakistan. The agreement establishes the intellectual property ownership of work produced remotely, consistent with the employer's export contracts and PSEB registration obligations.
What to Include in Your Remote Work Agreement (Pakistan)
A thorough and legally sound Remote Work Agreement in Pakistan under the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 and the Contract Act 1872 must contain the following essential provisions.
Employee and Employer Details: Full legal names, designations, CNIC numbers, and addresses of both parties. The employee's remote work location (home address) must be specified — particularly relevant for occupational health and safety purposes under the Factories Act 1934 and West Pakistan Shops and Establishments Ordinance 1969, and for tax withholding purposes under Section 149 of the Income Tax Ordinance 2001.
Scope and Duration of Remote Work: Whether the remote work arrangement is permanent, temporary, or hybrid (specifying the number of days per week worked remotely versus in-office). The commencement date and, for temporary arrangements, the expiry date or review date. The employer's right to require the employee to return to office working with reasonable notice should be included.
Working Hours and Availability: The employee's agreed working hours — consistent with Section 8 of the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 regarding maximum working hours and rest periods. For remote workers in Pakistan's IT sector, specific availability windows (such as core hours of 10:00 to 17:00 PKT) and response time expectations for emails, messages, and calls should be specified. Overtime arrangements, if applicable, must comply with the Standing Orders Ordinance.
Home Office Requirements: Standards for the employee's remote work environment — a dedicated workspace free from household distractions, a reliable internet connection of specified minimum speed, adequate lighting and ergonomic seating consistent with the employee's occupational health obligations under applicable workplace safety standards. The employer's right to conduct a remote workspace assessment (physical or virtual) should be stated.
Equipment and Expenses: Itemised list of equipment provided by the employer (laptop, monitor, keyboard, company mobile phone) and any monthly allowances for internet costs, electricity, or home office consumables. Ownership of equipment, maintenance obligations, insurance requirements, and the employee's obligation to return all company equipment upon termination must be addressed. Under Section 13 of the Standing Orders Ordinance, deductions from wages for equipment damage require prior approval.
Data Security and Confidentiality: The employee's obligations to protect company data when working remotely — mandatory use of VPN when accessing company systems, prohibition on using public Wi-Fi without VPN, encrypted storage of company files, password security standards, and the requirement to report any security incident (lost laptop, suspected data breach) immediately. Reference to the Electronic Crimes Act 2016 (PECA 2016) penalties for unauthorised disclosure of company data strengthens compliance.
Performance and Deliverables: Performance metrics, deliverables, and reporting requirements applicable to the remote employee — weekly status reports, task management system updates, attendance in scheduled video meetings. The employer's right to monitor productivity through agreed tools (such as project management software) with the employee's knowledge and consent.
Intellectual Property: Confirmation that all work product created by the employee during remote work hours using company equipment and resources is the intellectual property of the employer under the Copyright Ordinance 1962 and the terms of the employment contract.
Health, Safety, and Insurance: The employee's responsibility for their own occupational health and safety in the home office environment, and the employer's obligations under applicable health and safety legislation. The employer's Workers' Compensation coverage under the Workmen's Compensation Act 1923 should be confirmed as extending to work-related injuries occurring in the employee's approved remote workspace.
Forms-legal.com provides this Remote Work Agreement (Pakistan) template as a practical guide for employers and employees establishing remote work arrangements. The agreement should be reviewed by an employment law advocate enrolled with the relevant provincial Bar Council and aligned with the employer's Standing Orders and HR policies.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Remote Work Agreement (Pakistan) (Pakistan) [Legal document template]. Forms Legal. https://forms-legal.com/pakistan/employment/contracts/remote-work-agreement-pakistan
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year = {2026},
howpublished = {\url{https://forms-legal.com/pakistan/employment/contracts/remote-work-agreement-pakistan}},
note = {Free legal document template}
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Frequently Asked Questions
Yes. Remote workers in Pakistan who are employed on employment contracts are entitled to the same statutory employment benefits as office-based workers. Under the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, all employees of covered establishments — regardless of their work location — are entitled to minimum wage under the provincial Minimum Wages Ordinance, paid annual leave under Standing Order 8, medical leave, maternity leave under the Maternity Benefits Ordinance 1958, gratuity under the applicable standing orders, and EOBI (Employees' Old-Age Benefits Institution) contributions under the Employees' Old-Age Benefits Act 1976. Employees working remotely are covered by the Workmen's Compensation Act 1923 for work-related injuries occurring during work hours at the approved remote workspace. Employers cannot reduce or withhold statutory benefits on the basis that an employee works remotely — doing so would constitute a breach of the employment contract under the Contract Act 1872 and could give rise to a complaint before a Labour Court under the Industrial Relations Act 2012. Contractual benefits such as office transport allowances or lunch subsidies tied to physical office attendance may be excluded from the remote worker's package if the employment contract or standing orders so specify.
Pakistani employers can monitor remote employees' computer activity on company-owned devices within legal limits, provided the monitoring is disclosed to the employee and is proportionate to the employer's legitimate business needs. The Electronic Crimes Act 2016 (PECA 2016) criminalises unauthorised access to computer systems, but employer monitoring of company-owned systems used by employees for work purposes is generally lawful if the employee has been informed of the monitoring policy. Pakistan does not yet have a comprehensive data protection or privacy law (the Personal Data Protection Bill remains pending), but monitoring of employee communications on personal devices without consent would be considered a violation of constitutional privacy rights under Article 14 of the Constitution of Pakistan 1973. Best practice for Pakistani employers establishing remote monitoring is to clearly disclose the monitoring tools used (screen capture software, activity tracking, VPN usage logs), obtain the employee's written consent in the Remote Work Agreement, and limit monitoring to work hours and work-related applications. Covert monitoring of personal communications, including WhatsApp messages on personal phones, would be legally problematic and could expose the employer to PECA 2016 liability.
The allocation of internet and electricity costs for remote workers in Pakistan is a matter of agreement between employer and employee, as Pakistani employment statutes do not specifically address remote work expenses. In practice, Pakistani employers typically take one of three approaches: first, providing a fixed monthly work-from-home allowance (often PKR 2,000 to PKR 5,000) added to the employee's salary to cover internet and utility costs, treated as a taxable allowance under Section 149 of the Income Tax Ordinance 2001; second, reimbursing the employee's actual incremental internet and electricity costs upon submission of bills, treated as a tax-neutral reimbursement of business expenses; or third, providing company-paid internet connectivity — installing a dedicated office internet connection at the employee's home address, billed directly to the employer. The Remote Work Agreement should specify the approach clearly. Where no agreement is made, employees working from home bear their own utility costs, which is increasingly seen as unreasonable as remote work becomes more established in Pakistan's IT and services sectors. PSEB-registered companies and multinationals typically provide explicit WFH expense policies aligned with international practice.
Yes. A Pakistani employer can require an employee to return to office working, subject to the terms of the Remote Work Agreement and the employee's employment contract. If the Remote Work Agreement specifies that the arrangement is temporary or subject to review, the employer can terminate the arrangement on the agreed notice period without further justification. If the remote work arrangement was established by a variation to the employment contract or is embedded in the Standing Orders of the establishment, the employer must follow the process for varying employment terms under the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 — which may require updating the Standing Orders with Labour Department approval and giving employees reasonable advance notice. An employer who abruptly terminates a permanent remote work arrangement without reasonable notice, where the employee has made significant commitments based on the arrangement (such as relocating to another city), may face a claim for constructive dismissal or breach of contract before a Labour Court under the Industrial Relations Act 2012. The Remote Work Agreement should include a clear clause specifying the notice period required for the employer to recall the employee to office, typically 30 to 90 days, to manage this risk.
Remote work in Pakistan generally does not change the income tax treatment of salary income for employees working within Pakistan. Employers remain responsible for withholding income tax from employee salaries under Section 149 of the Income Tax Ordinance 2001, regardless of whether the employee works from the office or from home. The employee's salary is taxable in Pakistan under the normal tax slab rates applicable to salaried individuals under the First Schedule of the Income Tax Ordinance 2001. For remote workers employed by foreign companies who receive their salary in foreign currency — a common scenario for Pakistani IT professionals working for international clients — the tax treatment depends on the employee's residency status under Section 82 of the Income Tax Ordinance 2001 and whether the income is considered Pakistan-source. Pakistani tax residents are taxable on worldwide income, and salary received from a foreign employer for work performed in Pakistan is Pakistan-source income under Section 101 of the Income Tax Ordinance 2001 and is fully taxable. Remote workers should file annual income tax returns with FBR and declare all income, including foreign-source salary, to ensure compliance with the Income Tax Ordinance 2001 and avoid penalties under Section 182.
Remote employees in Pakistan handling company and client data are subject to data security obligations under the Prevention of Electronic Crimes Act 2016 (PECA 2016), the terms of their employment contract and NDA, and applicable international data protection standards (for employees of companies serving EU or UK clients — GDPR and UK GDPR respectively). Under PECA 2016, Section 3 criminalises unauthorised access to computer systems, Section 4 criminalises unauthorised copying or transmission of data, and Section 7 criminalises cyber terrorism — remote employees who improperly disclose or transmit company data accessed during remote work may face criminal prosecution under PECA 2016 in addition to civil liability under their employment contract. Practically, remote employees should use company-approved VPNs when accessing company systems over home internet connections, store company data only on encrypted, company-approved drives, avoid accessing work systems from public Wi-Fi without VPN, use strong and unique passwords with two-factor authentication, and report any suspected security incident immediately to the employer's IT team. Employers of remote workers handling personal data of EU citizens must ensure that remote workers comply with GDPR requirements on data access controls, breach notification, and data minimisation, which can be addressed through the Remote Work Agreement's data security provisions.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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