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Utility Stores Corporation Announces Termination of All Employees

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Legal Editorial Desk
Utility Stores Corporation Announces Termination of All Employees
The administration of the Utility Stores Corporation (USC) has issued a formal circular announcing the termination of all employees, effective September 1. Under the decision, 11,406 employees of the corporation will receive a government-approved financial package. The Ministry of Industries has finalized a Rs. 25.5 billion payment package for employees affected by the restructuring of Utility Stores Corporation, according to official documents. The package covers regular, contract, and daily wage staff, as well as allocations for widows and institutional closure costs. According to the official statement, permanent employees with up to two years of service will receive full salaries for the remaining months. Employees with over 20 years of service will be compensated with two current basic salaries for each completed year. Meanwhile, those with up to 20 years of service will be entitled to either three current basic salaries for each completed year or 1.25 times their current basic salary for the remaining months. The Utility Stores Corporation currently employs 5,229 regular workers, for whom Rs. 13.18 billion has been set aside. For the 3,323 contract employees, Rs. 3.6 billion has been earmarked, while the 2,854 daily wage workers will receive benefits worth Rs. 2.71 billion. Additionally, Rs 5.75 billion has been allocated for organizational wind-up expenses and support for widows of deceased employees. Here is the breakdown of packages between regular and contract employees:
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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