Adopting and complying with labor laws in Pakistan are critical components of any expansion in the area. You must verify that every person you hire and employ complies with Pakistani labor laws. Then you have to take them on board, prepare all their employment papers and keep running your business. People and People Perfect AE Consultant is from the beginning the leading outsourcing company in Pakistan that will make the difference in the hiring and recruiting process. We hire employees on your behalf, put them on a legal payroll and make sure they meet all your requirements. Click here to see Human Resource Consulting Firm in Pakistan.
Recruiting in Pakistan
Most companies do not have well-defined recruiting processes. Job analysis, a reliable job description and detailed employee specifications can go a long way in helping you find the ideal workforce. There are only a few outside recruitment agencies in the country, and most of them are inexperienced. For employment and recruitment in Pakistan, we recommend hiring alone or partnering with an experienced global PEO like People and People Perfect AE.
In this country, the most typical recruitment method is to place an ad in a major national newspaper on Sundays. In order to reach a wider audience, the advertisement must be written in both Urdu and English. Many private sector employers fill vacancies by relying on personal recommendations rather than advertisements.
We recommend following this general procedure:
Create a job description and hiring criteria.
Create a job description.
Determine how applicants will be assessed and how they will apply.
Create a compensation plan that is competitive.
Post the vacancy.
Make a list of potential applicants and conduct interviews with them.
Check credentials and run a background check.
Designate the right person.
During the employment process, you must abide by Pakistani recruitment laws. You could face fines or other penalties if you don’t. You must be aware of the legal rights of your employees and keep abreast of changing rules and procedures. For example, you cannot make a decision based on:
Consider dealing with a global PEO if you are unfamiliar with the country’s regulations. We understand the complexity of these rules based on region at People and People Perfect AE, so we can make sure you stay compliant while you focus on running your business.
Bonus in Pakistan
According to section 1(4) of the Standing Orders Ordinance, 1968, any industrial and commercial establishment in Pakistan with 20 or more employees is required to pay profit bonuses to their employees if they have worked for the company for at least 90 days in the last year and the company made a profit.
The bonus is given to employees in honor of their outstanding performance while working for the company.
It must be paid within three months of the end of the fiscal year and can be deferred for any reason, including lack of cash or incomplete financial statements.
Working hours in Pakistan
The usual working week for all workers in Pakistan is determined by the Employment Recruitment Regulations. Full-time employees work an average of 48 hours a week, or eight hours a day. They are not allowed to work more than nine hours a day or 48 hours a week without being paid overtime.
Termination/dismissal in Pakistan
In the private sector, an employee’s probationary period usually lasts 3-6 months. Probation in the public sector is generally one to two years.
The employment of a permanent employee cannot be terminated for any reason other than misconduct until the employer or the employee has given one month’s notice or wages. The average wage earned during the previous three months of service is used to determine one month’s income. If the employee only works with the company for a month or less, he or she is entitled to one month’s salary in lieu of notice.
Employees who are fired for reasons other than misconduct are entitled to severance pay. For each full year of service or any portion of more than 6 months, the severance pay is equal to 30 days’ pay (for example, 5 years and 8 months are considered 6 years of service).
How to hire Pakistani workers
To hire Pakistani staff, you must first build a personal relationship, which is crucial in the country. Negotiation is an art form in Pakistan and usually takes place between senior members, so be prepared for lengthy discussions about business and working conditions. Despite the fact that Urdu is the official language, barely 8% of the population speaks it while the rest speak more than 80 languages. If your company doesn’t have someone who is proficient in all of these languages, it’s critical to hire a team member or translator who can communicate with employees.
Any time a company with 20 or more employees hires someone, they must prepare a formal employment contract. These agreements must be written in the local language and must contain all compensation, benefits and termination terms. In lieu of foreign currency, all fees and other fees must be in Pakistani rupees.
Employment Compliance Laws in Pakistan
Once you have recruited workers in Pakistan, they must provide you with a form IT-3, which is an income tax return form. Businesses must also register with the Federal Board of Revenue (FBR) by submitting a TRF01 Taxpayer Registration Form or registering online.
How to successfully onboard employees
After discovering how to hire Pakistani workers, you need to figure out how to get them on board in a way that makes them feel comfortable. While there is no legal requirement to hire employees. You can do everything you can to familiarize them with your business. Start by reviewing the employment contract, as well as any other essential documents, such as a code of business conduct. You can also choose to onboard many employees at once to foster camaraderie and foster a sense of community among colleagues.
Benefits of Choosing the Best Recruitment Outsourcing Companies
Using People and People Perfect AE’s outsourcing services in Pakistan can bring you a number of benefits. We find the best candidates for your vacant positions and ensure that you comply with all applicable laws. We also put them on our local payroll and pay them the right salary and benefits. As a result, you don’t have to worry about the time-consuming secondary procedure or employment compliance in Pakistan as People and People Perfect AE takes care of everything for you.
Work with People and People Perfect AE for your expansion
People and People Perfect AE’s Employer of Record solution will accelerate your growth. Contact us now for more information. Setting up a branch or subsidiary in Pakistan to hire a small workforce takes time, money and effort. Pakistan’s labor law provides robust workers’ rights, but requires meticulous attention to detail and knowledge of local best practices. People and People Perfect AE makes expanding to Pakistan simple and effortless.
We can help you hire your favorite talent, manage HR and payroll, and ensure compliance with local regulations without the hassle of setting up a foreign branch or subsidiary. Our PEO and Global Employer of Record solutions in Pakistan give you peace of mind so you can focus on running your business. Contact us if you would like to know more about how People and People Perfect AE can help you hire workers in Pakistan with smooth staff leasing or PEO solution. Click here to see HR Recruitment Agencies in UAE.