Notice Period

The advance warning period one party must give before ending employment, set by contract or statute.

Detailed Definition

Notice Period is the minimum time an employer or employee must give before ending an employment relationship. In Pakistan, the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 prescribes 1 month's notice (or 1 month's wages in lieu) for confirmed permanent employees. Shop and commercial establishment employees fall under similar provisions via the West Pakistan Shops and Establishments Ordinance 1969.

Company-specific notice periods are often longer than the statutory minimum, especially for senior roles: 2 to 3 months is common for managerial positions. During the notice period, the employee continues to work and receive full pay; the employer may buy out the notice with a lump-sum payment in lieu. Non-compete and non-solicitation clauses often take effect at the end of the notice period.

During probation, notice periods are typically shorter (1 week). Termination for misconduct does not require notice if due process is followed. Modern HR platforms track notice period clocks, calculate buyouts, and prompt F&F workflows automatically.

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