Retail, trade and services are the prominent economy sectors in Pakistan after agriculture and manufacturing. Pakistan is a resilient economy — its GDP shows positive growth in recent years despite global recession. Despite the COVID-19’s impact on the country’s economy, Pakistan is on its path towards revival of its economy, spurred by an economic stimulus package, social safety program as well as prudent monetary and fiscal policies.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Pakistan. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.
Global payroll solutions make it easy to find and hire top talent in Pakistan. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
Pakistan’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
The labour laws in Pakistan have evolved to meet the socio-economic conditions, state of industrial development, population and labour force explosion, growth of trade unions, level of literacy, and Government’s commitment to development and social welfare. They cover issues from employee representation and industrial relations, to discrimination, and maternity and family leave rights.
Globelise will be able to help you navigate through the employment process and so that you will be able to offer a competitive and compliance offer to attract and retain your employees in Pakistan.
Trade unions in Pakistan are designed to help Pakistan stay competitive and workers remain employable. They work with the local authorities to tackle issues such as promotion of fair and progressive employment practices, flexible wage system, among other labour-related issues. Employees may seek their union for help when they feel that they are unfairly treated or have been non-compliant with their employment terms.
Probation is optional in Pakistan. However, the common practice is 3 months.
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