Friday evening, the phone call
You have worked at the same factory for three years. On Friday evening your supervisor calls and says, "Don't come from Monday." No letter. No reason. No notice.
Is that legal? In most cases, no. The law that protects you is the Industrial and Commercial Employment (Standing Orders) Ordinance 1968. It applies to industrial and commercial establishments that employ 20 or more workers. Its Standing Order 12 sets the notice rule.
What Standing Order 12 says
Standing Order 12(1) says a permanent workman cannot be removed for any reason other than misconduct without one month's notice. The notice can come from either side. The employer can also pay one month's wages instead of the notice, based on the average wages of the last three months.
So if you are permanent and the employer fires you without notice and without pay in lieu, the termination itself is not done the way the law requires.
Who counts as a permanent workman
The standing orders classify workers as permanent, probationer, badli, temporary, apprentice and contract worker. A permanent workman is someone engaged on work of a permanent nature likely to last more than nine months, who has completed a probation period of three months.
A probationer is someone provisionally employed who has not completed three months. A badli is a substitute worker. A temporary workman is engaged for work likely to finish within nine months.
Who does not get notice
Standing Order 12(2) is clear. No temporary workman, probationer or badli is entitled to notice if the employer ends their service. They are also not required to give notice or pay wages in lieu if they leave on their own.
That is why your job status matters. A person on probation for two months and a person permanent for two years are not treated the same.
Gratuity: the part people forget
Standing Order 12(6) gives a permanent workman gratuity when employment ends for any reason other than misconduct. The rate is 30 days' wages for every completed year of service. Any part of a year over six months counts as a full year. Five years and eight months counts as six years.
Provincial rates differ. Punjab and the Islamabad Capital Territory apply 30 days per year. Sindh and Khyber Pakhtunkhwa broadly follow one month per year. Balochistan requires two months per year. Where the employer runs a registered provident fund, that scheme may stand in for gratuity.
A written order with a reason
Termination needs a written order that states the reason. This applies to both a simple termination under Standing Order 12 and a dismissal for misconduct under Standing Order 15. A verbal sacking, or a letter without a reason, is weak and easy to challenge.
Misconduct is different
Standing Order 15 covers misconduct: absence without permission, willful disobedience, theft, fraud, damage to property. Dismissal on this ground needs a proper inquiry where the worker gets a chance to answer the charges. No inquiry, no valid dismissal for misconduct.
What to do if you were fired without notice
Section 33 of the Industrial Relations Act 2012 (and the provincial versions) gives the route. You serve a written grievance notice on the employer within 90 days of the grievance. If the employer does not respond within 15 days, or you are not satisfied with the reply, you file a grievance petition before the Labour Court or the National Industrial Relations Commission within 60 days of the reply or the expiry of the 15 days.
The court can order reinstatement with back benefits, or damages and compensation where reinstatement is not practical. It can also order unpaid notice pay, gratuity and leave dues.
Your final settlement checklist
Whatever the reason for leaving, check these items:
- Unpaid salary up to the last working day.
- Notice pay, if proper notice was not served.
- Gratuity or provident fund for your years of service.
- Encashment of earned but unused leave.
- Refund of any security or tool deposits.
Your EOBI pension is separate. If your contributions were deposited, you claim it directly from EOBI when you meet the age and service conditions.
What it means for you
One month's notice, or one month's pay. A written order with a reason. Gratuity for your years. And a route to the Labour Court with strict deadlines.
Keep your appointment letter, pay slips and the termination order. The dates matter. If you were fired without notice, act within 90 days.
You can compare your pay against the minimum wage in Pakistan and check the overtime pay rules to see what else you may be owed.
While you work, you are owed one full day off every week. The weekly off law in Pakistan explains the rest day rules for factories, shops and offices.
If you believe the termination was wrong, the labour court can order reinstatement or compensation. The guide on filing a labour court case in Pakistan explains how.
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