Redundancy and Retrenchment: Employer Obligations Under Pakistani Law

Legal requirements for layoffs and retrenchment, including notice periods, compensation, and the 'last in first out' rule.

Retrenchment under the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 requires employers to give one month's notice or pay in lieu. The 'last in first out' rule applies unless the employer can justify departure on skill or performance grounds. Retrenched workers are entitled to 30 days' wages for each completed year of service as retrenchment compensation. For establishments with 50 or more workers, the employer must notify the government before effecting retrenchment. LexForm advises employers on compliant retrenchment processes and represents employees challenging unfair layoffs.

How LexForm Can Help

LexForm provides expert legal assistance on this topic across Pakistan, the UK, and the US. Contact us at info@lex-form.com or WhatsApp +92-323-2999999 for a free initial consultation.