The Service Termination Letter is a crucial document in Pakistani employment law, used when an employer needs to formally end an employment relationship. It must be drafted in accordance with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 and other relevant labor laws of Pakistan. This document is essential for both documenting the termination decision and ensuring compliance with legal requirements regarding notice periods, final settlements, and employee rights. The letter typically includes details about the termination date, reason for termination (if applicable), notice period or payment in lieu of notice, final settlement information, and instructions regarding company property and confidentiality obligations. It serves as both a legal record and a formal communication tool, protecting the interests of both the employer and employee during the separation process.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Subject Line: Clear indication that this is a termination of services letter
3. Employee Information: Employee name, ID, designation, and department
4. Termination Statement: Clear statement of termination decision with effective date
5. Notice Period: Specification of notice period or payment in lieu of notice as per employment contract and law
6. Reason for Termination: Brief, professional explanation of termination grounds if applicable
7. Final Settlement: Information about final dues, salary, and benefits settlement
8. Company Property: Instructions for returning company assets and properties
9. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
10. Signature Block: Authorized signatory details and company stamp
1. Performance History: Include when termination is performance-based, summarizing key performance issues and prior warnings
2. Severance Package: Details of any additional compensation or benefits being offered beyond statutory requirements
3. Transition Plan: Include when handover of duties is required, outlining the transition process
4. Reference Policy: Statement about company's policy on providing references
5. Non-Compete Reminder: Include if employee is bound by non-compete agreements
6. Grievance Procedure: Information about appeal process, if applicable under company policy
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, benefits, deductions, and any other dues
2. Company Property Checklist: List of company assets to be returned with their current status
3. Exit Clearance Form: Checklist for departmental clearances required before final settlement
4. Benefits Summary: Details of any continuing benefits or benefit conversions post-termination
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Transportation & Logistics
Real Estate
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Relevant Teams
Human Resources
Legal
Administration
Compliance
Employee Relations
Corporate Secretariat
Operations
Relevant Roles
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HR Director
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Department Manager
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HR Business Partner
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Employee Relations Manager
HR Operations Manager
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