Pakistan
There are no specific worker classifications in Pakistan.
Fixed-term contracts are permitted in Pakistan. There is no minimum or maximum duration. There is also no limit on how many times they can be renewed. The termination procedures for fixed-term contracts are the same as indefinite contracts.
Employers can decide if they want to include a probationary period. It is customary to include 3 to 12 months. During the probationary period, one month's notice or pay in lieu is required to terminate an employee.
Workers in Pakistan recognize 10 paid public holidays including Kashmir Day, Pakistan Day, Eid ul-Fitr, Labour Day, Eid ul-Azha, Ashura, Independence Day, Milad un-Nabi, Quiad-e-Azam Day/Christmas, Day after Christmas. Some of these holidays are multiple days in duration. Workers who perform work on a public holiday must be compensated at 300% of their normal hourly rate.
After one year of service, Workers are entitled to 14 days of annual leave. Employers can decide whether unused annual leave may be carried over from year to year, up to a maximum of 30 days accrued. Accrued but unused leave does have to be paid at the end of employment.
There are no federal laws that require employers to provide sick days to employees. However, in recent years, an increasing number of states and cities have passed paid sick leave laws to protect employees. Therefore, whether paid sick leave is due will depend on where the work is performed. In all cases, a medical certificate is required.
A standard workday is 9 hours including a one-hour break for lunch and prayer time. There is a weekly limit of 48 hours per week. During certain religious holidays, such as Ramadan, working hours may be reduced to 6 hours per day for workers practicing the religion.
Overtime regulations apply to laborers such as those in manufacturing industries. In all cases, working hours should not exceed 56 hours inclusive of overtime.
There are no mandatory bonuses in Pakistan.
Workers may be terminated with one month's notice or salary in lieu of notice.
Workers under a fixed term contract, are subject to the notice terms within the contract. Workers under an indefinite contract must provide at least one month's notice of resignation. Workers must receive one-month of salary when resigning, with or without notice.
Severance pay equivalent to 30 days of wages per year of service is generally provided for workers who have completed at least six months of service and are terminated for reasons other than misconduct.
Additional nuances may occur based on the worker's age and/or years of service.
Mandatory costs include contributions to the Employees Old-Age Benefit Institution (EOBI), local social security schemes, severance payments, and a health insurance contribution.
Companies are required to contribute to worker's health insurance in Pakistan.
TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.
When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.
