Document background
The Contractor Offer Letter is a crucial document used when a company wishes to formally engage an independent contractor in Pakistan. It serves as the initial formal communication establishing the intent to enter into a contractor relationship, outlining key terms while maintaining compliance with Pakistani legislation, particularly the Contract Act 1872 and relevant tax regulations. This document is typically used at the final stage of contractor negotiations, after terms have been verbally agreed but before the commencement of services. The letter includes essential information such as project scope, payment terms, duration, and explicitly states the independent contractor status to avoid any confusion with employment relationships. While less detailed than a full contractor agreement, the Contractor Offer Letter often serves as the foundation for the subsequent contractual relationship and may be referenced in more comprehensive agreements.
