Utility Stores Corporation Announces Mass Layoffs with Comprehensive Severance Package
In a major restructuring move, the Utility Stores Corporation of Pakistan (Private) Limited (USC) has laid off all its employees, effective from the 1st of September, 2025. In a circular order issued by the Head Office in Islamabad on September 9, 2025, the corporation detailed a comprehensive Severance / Compensatory Package for all affected staff, including regular, contractual, and daily wage employees.
The circular, signed by Human Resource Manager Muhammad Usman, outlines a structured compensation plan, often referred to as a “golden handshake,” designed to provide financial support to the departing workforce.
Detailed Breakdown of the Severance Package
The compensatory package has been tailored for different categories of employees based on their service tenure and employment status.
For Regular Employees:
Employees with 02 or less remaining years of service: Will receive the Gross pay of the Remaining Months.
Employees with service of above 20 years: Will be paid 02 running basic pay for each completed year of service.
Employees with less than 20 years of service: Will receive the higher of either (a) 03 Running Basic Pay for each Completed Year of service, OR (b) 1.25x Running Basic for each Remaining Month of Service. This is capped at a maximum of 50 months.
For Contractual Employees:
Employees with 2 or less remaining years: Will receive the Running basic for each remaining month.
Employees with service up to 16 years: Will be paid 30 x running basic pay.
Employees with service above 16 years: Will receive 35 x running basic pay.
For Daily Wagers:
Employees with 2 or less remaining years: Will be given Rs. 37,000 for each remaining month.
Employees with up to 10 years of service: Will receive 15 x Rs. 37,000.
Employees with 10 to 15 years of service: Will be paid 28 x Rs. 37,000.
Employees with service above 15 years: Will receive 30 x Rs. 37,000.
Additional Dues and Important Procedures
The circular clarifies that in addition to the severance package, all laid-off employees are also eligible for other pending dues.
Other Payments: Apart from the compensatory package, pending salaries, wages, and other terminal dues as admissible under the USC Service Rules will also be paid.
No-Objection Certificate (NOC): The individuals are being informed separately about the package and the procedure to obtain a No-Objection Certificate (NOC) from their respective departments.
Facilitation by Management: All General Managers, Zonal Managers, and Regional Managers have been instructed to facilitate the employees who are proceeding for their NOC so that their dues can be processed in a timely manner upon receipt of funds from the Federal Government.
The circular has been distributed to all key departments and zonal managers to ensure the compensation package and its payment are communicated and implemented accordingly for all laid-off employees.
