Most dismissals we see in Pakistan are not unlawful because the employer had no reason. They are unlawful because of how it was done: no show-cause notice, no inquiry, no opportunity to answer, and a termination letter that either gives no reason or gives one that cannot be sustained.
Procedure is not a formality in Pakistani employment law. It is frequently the whole case.
The employer must follow a process
Where an employee is dismissed for misconduct, the standing orders applicable to the establishment generally require a defined sequence:
- A show-cause notice setting out the allegation specifically
- An opportunity for the employee to reply
- A domestic inquiry, conducted fairly, at which the employee can defend themselves and see the material against them
- A finding, and a decision proportionate to what was found
Dismissal without an inquiry is a very common ground on which a grievance succeeds. So is an inquiry that was nominal — held after the decision was already taken, with no real opportunity to answer.
Termination is not the same as dismissal for misconduct
There is an important distinction.
Dismissal for misconduct is punitive, and requires the inquiry process above.
Termination simpliciter — ending employment in accordance with the contract or standing orders, with notice or pay in lieu — is a different thing, and does not require an inquiry.
Employers regularly try to characterise a punitive dismissal as an ordinary termination in order to avoid the inquiry. Where the real reason was alleged misconduct, that recharacterisation can be challenged.
Act quickly — the deadlines are short
This is where most employees lose a case they would otherwise have won.
The grievance procedure requires the employee to raise the matter with the employer within a defined and short period after the cause of grievance, with further defined periods for proceeding to the Labour Court thereafter. These periods are measured in days, not months.
An employee who spends three months hoping the employer will reconsider, and then seeks advice, may find the remedy has already lapsed. If you have been dismissed and believe it was wrongful, take advice immediately — before sending anything, and certainly before signing anything.
Where the case is heard
- Labour Courts in Sindh for most individual grievances
- National Industrial Relations Commission (NIRC) where the establishment operates in more than one province, and for certain collective matters
- Sindh Labour Appellate Tribunal on appeal
- Constitutional petition to the High Court in defined circumstances, particularly for public-sector service matters
Filing in the wrong forum wastes the very time the deadlines do not allow.
What can be recovered
Realistically:
- Reinstatement, with or without back wages, where the dismissal is set aside
- Compensation in lieu of reinstatement, which is frequently the practical outcome where the relationship has broken down
- Unpaid dues — salary, overtime, leave encashment, bonus
- Gratuity or provident fund, according to entitlement
- Notice pay where notice was required and not given
What is generally not recoverable is damages for hurt feelings or reputational harm as such. Expectations should be set accordingly, and we will set them honestly before you commit to proceedings.
For employers
The same law read from the other side. Most employer losses are self-inflicted and preventable:
- Issue a specific show-cause notice, not a vague one
- Hold a real inquiry and keep a proper record of it
- Make the penalty proportionate to what was actually found
- Ensure standing orders and service rules exist, are current, and are followed
- Do not dress up a misconduct dismissal as a routine termination
- Pay final dues promptly — withholding them converts a defensible dismissal into a grievance with an obvious merit
Well-drafted contracts and service rules, and a properly conducted inquiry, are far cheaper than defending a grievance. This is the single clearest example in employment law of advice being cheaper than litigation.
Points that recur
Resignation under pressure. A resignation extracted by a threat of dismissal can be challenged as not genuinely voluntary. Do not sign one on the spot.
Full and final settlements. Signing a settlement and releasing claims will usually bind you. Take advice before signing, not after.
Contract vs reality. Being labelled a "consultant" or "contractor" does not by itself decide the question. What matters is the substance of the relationship.
Harassment complaints follow a separate statutory route and different timelines, and should not be folded into an ordinary grievance without advice.
How the firm can help
We act for employees in grievance and wrongful dismissal proceedings before the Labour Courts and the NIRC, and for employers in defending them — as well as drafting the contracts, service rules and inquiry procedures that prevent the dispute in the first place.
Because these matters are governed by short deadlines, the most useful thing you can do is take advice early. If you have been dismissed, or you are about to dismiss someone, contact the firm before the next step rather than after it.