An initial employment period during which employer and employee evaluate fit, typically 3 to 6 months.
A probation period in Pakistan is an initial phase of employment during which both employer and employee assess mutual fit before full-employment benefits vest. Under the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, probation can last up to 3 months (extendable by mutual agreement). The West Pakistan Shops and Establishments Ordinance 1969 allows up to 3 months of probation for shop and commercial establishment employees.
During probation, notice periods for termination are shorter (typically 1 week by either side), gratuity does not accrue, and some benefits like leave encashment may be restricted. Confirmation at the end of probation entitles the employee to full statutory and contractual benefits, including full notice period, gratuity accrual, and annual leave.
Employers should document probation extensions in writing and communicate confirmation explicitly. Many Pakistani companies use probation for a 3-month assessment with a formal review meeting and letter at the end. Modern HR software automates probation-end reminders and confirmation workflows.
Saad completed his 3-month probation successfully and was confirmed as a permanent employee effective 1st January.
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