Separation Payout & Settlement Breakdown
Credited Service Horizon (Standing Order 12(6)):
6 Years (Rounded > 6 Mos)
Statutory Gratuity Entitlement (30 Days Basic / Year):
PKR 4,320,000
Notice Period Pay in Lieu (Contractual Buyout):
PKR 3,600,000
Arbitration Dispute Mitigation Premium:
PKR 1,200,000
Total Recommended Settlement Payout:
PKR 9,120,000
Estimated Statutory Tax Exemption (FBR Clause 13 / SO 12(6)):
PKR 4,320,000 (Approved Gratuity)
Under Standing Order 12(6) of the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, any service duration exceeding six months counts as a full year of service. Section 12 of the Income Tax Ordinance 2001 governs withholding on separation packages, while Section 27 and 74 of the Contract Act 1872 govern the enforceability of separation covenants and non-disclosure obligations.
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