Wrongful Termination in Karachi: Taking Your Case to the Labour Court

Losing a job suddenly, often by a phone call or a verbal instruction not to come back, is a common experience for workers in Karachi. The law does provide a remedy, but it has strict entry requirements. A claim can fail before it is heard if the wrong person files it, in the wrong forum, or without a proper grievance notice. This guide explains how wrongful termination claims work under Sindh labour law.

First question: are you a "worker"?

The Labour Court's protection is for workers as defined in the Sindh labour laws. Broadly, this covers persons employed to do skilled or unskilled, manual or clerical work for hire or reward. Persons employed mainly in a managerial or administrative capacity are generally excluded.

The label in the appointment letter is not conclusive. The court looks at the actual nature of the duties. A person called an "officer" who mainly does clerical work may still be a worker.

Two other threshold points matter:

• Where the employer operates. Establishments operating in more than one province can come under the federal Industrial Relations Act, 2012 and the National Industrial Relations Commission rather than the Sindh law.
• Government employees. Civil servants generally go to the Sindh Service Tribunal, not the Labour Court. See our page on service law in Karachi.

How employment can lawfully end

The Sindh Terms of Employment (Standing Orders) Act, 2015 sets out the terms on which workers in covered establishments are employed and can be removed. In broad terms:

• Termination not for misconduct. A permanent worker can be terminated only in the manner the law allows, which includes notice or wages in lieu, and reasons in writing.
• Dismissal for misconduct. Misconduct must be charged and proved through the procedure the law requires, including a written charge, an opportunity to answer and an inquiry where required.
• Retrenchment and closure. These have their own conditions and benefits.

A verbal termination with no written order, no charge and no inquiry is a common basis for a claim. So is "termination" disguised as the end of a fixed-term contract for work that is in fact permanent.

The grievance notice under Section 34 SIRA 2013

Under Section 34 of the Sindh Industrial Relations Act, 2013, a worker with an individual grievance, including a termination, must first bring it to the notice of the employer in writing. The employer is expected to respond, and if the worker is not satisfied, the matter can then be taken to the Labour Court.

The section sets short time limits for each step. Treat them as strict, and seek advice on the first day rather than after weeks of informal negotiation.

The notice must be a real grievance notice. In Talib Hussain v. Star General Hospital, the Sindh Labour Court held that notices demanding salary, gratuity and other dues, without challenging the termination or asking for reinstatement, were recovery notices rather than grievance notices. The defect was held to be incurable.

A sound grievance notice should:

• identify the worker, the post and the date of joining;
• state the date and manner of termination;
• say clearly that the termination is challenged and why;
• ask for reinstatement with back benefits, or other specific relief;
• be delivered in a way that can be proved.

Before the Labour Court

If the grievance is not resolved, the worker files a grievance application before the Labour Court with jurisdiction. Karachi has several Sindh Labour Courts. The employer files a written statement, issues are framed, evidence is recorded and the court decides.

Where the termination is found unlawful, the court can order reinstatement and may award back benefits, depending on the facts. Final dues such as gratuity may also be in issue; see our guide on gratuity in Pakistan and Sindh.

Many cases settle along the way. If you settle, put the terms in writing: the amount, when it is paid, what it covers, and whether the claim for reinstatement is withdrawn.

Evidence that matters

Most termination cases turn on documents. Where the employer denies that the person was ever its employee, the worker has to prove the relationship. In the Talib Hussain case, the court looked for engagement by the establishment, payment of wages through it, and integration into its workforce.

Useful evidence includes:

• appointment letter, contracts and service cards;
• salary slips and bank statements showing salary credits;
• registration with EOBI or the Sindh Employees' Social Security Institution;
• attendance records, duty rosters and leave applications;
• emails, messages and letters from the employer, including any termination message.

Keep originals safe and make copies early, while you still have access.

If the Labour Court is not the right forum

Employees who are not workers, such as many managers, generally cannot seek reinstatement. They may have a claim for damages for breach of contract, for example unpaid notice pay or contractual benefits, before the civil court. Civil servants go to the Sindh Service Tribunal, usually after a departmental appeal. Choosing the forum correctly at the start avoids wasted time.

For employers

• Issue written appointment letters and keep payroll records paid through traceable channels.
• Put terminations in writing, with reasons where the law requires them.
• For misconduct, follow the charge, reply and inquiry procedure properly.
• Respond to grievance notices in writing and within time.

The firm acts for workers and employers in termination disputes before the Sindh Labour Courts as part of its employment and labour practice, and in civil claims through its litigation work.

Disclaimer: This article is general information about the law in Pakistan as at the date shown. It is not legal advice and does not create a lawyer-client relationship. Laws, fees and procedures change; please take advice on your own facts before acting.