A comprehensive offer letter template covering role, compensation, probation, confidentiality and Standing Orders compliance. Editable in any word processor.
A tight offer letter is the employer's single best defence in a labour dispute. Vague letters lead to ambiguity over probation, benefits, working hours and notice periods — all of which are tested in NIRC and provincial labour court proceedings. This template locks down the commercial terms and cross-references the statutes that govern the employment relationship.
Get a properly formatted Microsoft Word (.docx) file with headings, bullets and placeholders already styled. Replace all [SQUARE BRACKETS] with your own details.
OFFER OF EMPLOYMENT [DATE] [CANDIDATE NAME] [ADDRESS] Dear [CANDIDATE NAME], 1. POSITION We are pleased to offer you the position of [JOB TITLE] at [COMPANY NAME], reporting to [MANAGER NAME / TITLE]. Your date of joining shall be [JOINING DATE]. 2. PLACE OF WORK Your primary place of work shall be the Company's office at [OFFICE ADDRESS]. The Company may, at its discretion, assign you to other locations within Pakistan or to approved remote work. 3. COMPENSATION Your gross monthly salary shall be PKR [AMOUNT], structured as follows: - Basic salary: PKR [___] - House rent allowance: PKR [___] - Utility allowance: PKR [___] - Medical allowance: PKR [___] Annual CTC: PKR [___________] 4. STATUTORY DEDUCTIONS AND CONTRIBUTIONS Applicable income tax under Section 149 of the Income Tax Ordinance 2001 shall be deducted from your salary. EOBI contributions (employer 5%, employee 1% of the prescribed wage ceiling) apply, as do any provincial social security contributions (PESSI, SESSI, KPESSI or BESSI) depending on location. 5. WORKING HOURS Standard working hours are 9:00 AM to 6:00 PM, Monday through Friday/Saturday, with a one-hour lunch break. Total working hours shall not exceed 48 per week, in line with the Factories Act 1934 / applicable Shops and Establishments Ordinance. 6. PROBATION You shall be on probation for the first [3 / 6] months. During probation, employment may be terminated by either party with [7 / 14] days' written notice. On successful completion, you will be confirmed in writing. 7. LEAVE ENTITLEMENT - Annual (earned) leave: [14] days per annum, accrued monthly - Casual leave: [10] days per annum - Sick/medical leave: [16] days per annum (medical certificate required beyond 2 consecutive days) - Public holidays as notified by the Federal and Provincial Governments 8. BENEFITS - Health insurance: [COVERAGE DESCRIPTION] - Provident Fund / Gratuity: as per Company policy, under the Standing Orders Ordinance 1968 - [Other benefits] 9. CONFIDENTIALITY You agree to keep confidential all non-public Company information, client data, and trade secrets, both during and after your employment — under general common law and the Prevention of Electronic Crimes Act 2016 where applicable. 10. NOTICE OF TERMINATION (POST-CONFIRMATION) Either party may terminate the employment with [30 / 60 / 90] days' written notice, or payment in lieu thereof. Termination for misconduct shall follow the process laid down in the Industrial and Commercial Employment (Standing Orders) Ordinance 1968. 11. GOVERNING LAW This agreement is governed by the laws of the Islamic Republic of Pakistan. Please sign the duplicate copy of this letter as acceptance and return to HR by [OFFER EXPIRY DATE]. We look forward to welcoming you to [COMPANY NAME]. Sincerely, ____________________ [HR HEAD NAME] [DESIGNATION] [COMPANY NAME] ACCEPTED Candidate signature: ____________________ Date: ____________________
The Standing Orders Ordinance 1968 requires employers to issue a written appointment order specifying terms of employment. A well-drafted offer letter satisfies this requirement.
Typically 3 months for junior roles and 6 months for senior roles. Longer probation periods are generally not enforceable and weaken the employer's position.
Non-compete clauses during employment are enforceable; post-termination non-competes are treated with scepticism by courts and must be reasonable in duration and geography.
The offer letter is the foundational employment document under the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 — Pakistani labour law explicitly requires written appointment orders specifying terms of employment, and the offer letter is the practical implementation of that requirement. A vague or sloppy offer letter creates problems on multiple fronts: candidates may decline because they perceive the offer as unprofessional; accepted candidates may dispute terms during onboarding; subsequent labour-court matters may turn on letter wording. The template here is structured to be clear, professional, legally defensible, and competitive — covering all elements that should appear in any modern Pakistani offer letter.
Pakistani offer letters typically present compensation through a CTC (Cost to Company) framework that aggregates direct cash, statutory contributions, and non-cash benefits. The standard structure includes (1) **Monthly gross salary** with breakdown of basic and each allowance (HRA, conveyance, medical, utility, special). (2) **Annual gross** for cash compensation. (3) **CTC** including employer EOBI, employer PESSI/SESSI/KPESSI/BESSI, employer Provident Fund match, gratuity accrual, group health and life insurance premiums. (4) **Variable / performance pay** structure. (5) **Tax notes** explaining medical-allowance exemption (10% of basic per Clause 139), Provident Fund employee contribution, and projected net pay. The basic-vs-allowance split typically settles at 50-60% basic with the remainder spread across allowances; this affects gratuity calculation (Standing Orders Ordinance gratuity is on basic only), so the structure should be documented thoughtfully.
The Standing Orders Ordinance 1968 contemplates a 3-month probation period for workmen, extendable by a further 3 months on documented grounds. For non-workman managerial roles, longer probation periods can be agreed contractually but 6 months is the practical ceiling for enforceability. The offer letter should clearly specify (1) **Probation duration** — typically 3-6 months. (2) **Notice during probation** — typically 1 week or wages in lieu, materially shorter than post-confirmation notice. (3) **Confirmation procedure** — written confirmation letter at probation end after evaluation. (4) **Performance evaluation** — typically a documented review at probation end. (5) **Benefit eligibility during probation** — what's available immediately versus deferred to post-confirmation. Implicit confirmation through silent passage of time can occur if the employer fails to issue an explicit confirmation letter; many Pakistani employers therefore use explicit confirmation as a controlled HR workflow.
Pakistani notice periods under the Standing Orders Ordinance are typically 1 month or 1 month's wages in lieu for confirmed permanent employees. Senior-role notice periods can extend to 2-3 months by contract. The offer letter should specify (1) **Notice during probation** — typically 1 week. (2) **Notice post-confirmation** — typically 1-3 months depending on seniority. (3) **Notice in lieu** — buyout option for either party. (4) **Misconduct dismissal** — reference to the Standing Orders Ordinance procedures (charge sheet, response opportunity, domestic enquiry, dismissal). (5) **Garden leave** — for senior roles, the employer's option to pay full salary during notice while keeping the employee away from office and information. (6) **Final settlement** — gratuity, leave encashment, pro-rata bonus, Section 149 tax treatment within 30 days of last working day.
The offer letter should reference Section 149 of the Income Tax Ordinance 2001 income-tax withholding using the average-rate methodology. Tax credits the employee may claim include (1) Medical allowance up to 10% of basic salary exempt under Clause 139 of Part I of the Second Schedule. (2) Donation credit under Section 61 for approved institutions. (3) Education-expense credit under Section 60D for self or dependent education at HEC-recognised institutions. (4) Pension-fund investment credit under Section 63 for VPS contributions. The employee should submit supporting declarations and documentation to HR at the start of the tax year so credits flow through Section 149 calculations. The offer letter should also reference EOBI registration (5% employer + 1% employee on the prescribed wage), provincial social security (6% employer + 1% employee on the relevant ceiling), and Provident Fund participation if applicable.
Most Pakistani offer letters reference a separate Confidentiality and IP Assignment Agreement that handles substantive intellectual-property and confidentiality terms. This two-document approach (offer letter + separate confidentiality agreement) keeps each document focused and supports independent updates. Restrictive covenants — non-compete, non-solicit, non-poach — have nuanced enforceability in Pakistan. Non-compete during employment is generally enforceable; post-termination non-compete is treated with scepticism by courts and requires reasonable scope, duration (typically 6-12 months), and geography. Non-solicit and confidentiality are easier to enforce. The offer letter should reference the separate restrictive-covenant agreement rather than embedding terms inline.
Many Pakistani workforces have mixed English and Urdu literacy. Best practice for white-collar roles is English offer letters with bilingual versions where the workforce is primarily Urdu-speaking. Some employer practices include (1) **English-primary** — for skilled and managerial roles where English is the working language. (2) **Bilingual side-by-side** — for mixed workforces. (3) **Urdu-primary** — for blue-collar and entry-level roles where Urdu is the primary working language. (4) **Verified translation** — Urdu versions translated by qualified professional translators. (5) **In-person delivery and explanation** — particularly for first-time job entrants who may need verbal walk-through. The bilingual investment supports both legal defensibility and employee understanding.
Customisation points include (1) **Compensation specifics** — gross, CTC, variable structure, equity if offered. (2) **Reporting line** — manager name and title. (3) **Start date and onboarding details** — joining formalities, equipment provision. (4) **Probation duration** — typically 3-6 months. (5) **Notice period** — 1-3 months depending on seniority. (6) **Specific allowance components** — HRA, conveyance, medical, utility per company policy. (7) **EOBI / PESSI / PF specifics** — clarifying contribution structure and employee shares. (8) **Group insurance benefits** — health, life, accidental coverage. (9) **Bonus structure** — annual bonus eligibility, performance-bonus formula. (10) **Restrictive covenants** — reference to separate agreement. (11) **Background check requirements** — reference verification, CNIC verification, HEC degree attestation. (12) **Bilingual issuance** — Urdu translation if applicable. Local HR or labour-law counsel review before first use.
Peoplifi generates Pakistan-compliant offer letters, warning letters, and policy packs from your employee data in one click — referenced against the Standing Orders Ordinance and applicable provincial law, with no copy-pasting and no version drift.