A modern remote/hybrid work policy tuned for Pakistani employers — covering eligibility, attendance, data security and statutory compliance.
Pakistan's IT, BPO and professional services employers now run distributed teams by default. A written remote work policy protects both sides: employees get clarity on expectations, and employers stay compliant with PTA data-protection requirements, FBR payroll obligations, and EOBI registration — none of which change because someone works from home.
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REMOTE WORK POLICY 1. PURPOSE This policy defines the terms under which employees of [COMPANY NAME] may perform all or part of their work from a remote location. 2. ELIGIBILITY - The role must be demonstrably remote-capable (no requirement for physical presence) - The employee must have completed probation with a rating of Meets Expectations or higher - Reporting manager approval is required for any ongoing remote arrangement - Interns and trainees are generally excluded 3. WORK MODES - Fully Remote: Employee works from an agreed remote location 5 days a week - Hybrid: Employee works 2-3 days in the office per week - Occasional Remote: Up to 5 remote days per month, manager-approved 4. WORKING HOURS Standard working hours — 9:00 AM to 6:00 PM, Pakistan Standard Time (PST, UTC+5) — continue to apply unless varied in writing. Employees must be reachable on Slack/Teams and respond within a reasonable window during working hours. 5. ATTENDANCE - Remote employees mark attendance on the Peoplifi mobile app with timezone stamp - Leave requests are submitted through the self-service portal, same as in-office employees - Statutory leaves (annual, casual, sick, maternity, paternity) apply identically 6. EQUIPMENT The Company will provide a laptop. Employees are responsible for: - A reliable internet connection (minimum 10 Mbps) - A quiet, private work area for client calls - Uninterrupted power supply (UPS/generator) in power-cut-prone areas 7. DATA SECURITY - Company laptops must run the approved endpoint security agent - No company data may be stored on personal devices - Client calls and confidential meetings must be taken in a private setting - Any suspected data incident must be reported within 24 hours 8. LOCATION AND TAX RESIDENCY Employees must remain Pakistani tax residents unless a separate arrangement is signed. Working from outside Pakistan for more than 30 days in a tax year requires written approval — we cannot support permanent establishment risk in third countries. 9. HEALTH AND SAFETY While the Company cannot inspect a home office, employees are responsible for maintaining an ergonomic and safe workspace. Work-related injuries in an approved remote setup are treated on par with office injuries under the Workmen's Compensation Act 1923. 10. REVOCATION The Company may revoke remote/hybrid arrangements at any time with 14 days' notice where operational needs require it. 11. ACCEPTANCE I have read and understood the above policy. Employee Name: ____________________ Employee ID: ____________________ Signature: ____________________ Date: ____________________
If the appointment letter lists the office as the work location, yes — with reasonable notice. Peoplifi's policy template includes a 14-day notice clause that is fair to both sides.
EOBI registration follows the employer's principal business address. Remote status does not change statutory registration or contribution — payroll runs identically.
If they change tax residency you may face permanent establishment risk in the new country. Most Pakistani employers cap overseas working at 30 days per year without a separate agreement.
Pakistan's IT-export sector and broader services economy have shifted decisively toward remote and hybrid work since 2020. The country has become a major source of remote technical and creative talent for international clients in the US, UK, EU, UAE, and increasingly other markets. For Pakistani employers — both domestic and remote-first international companies hiring Pakistani staff — a clear remote-work policy is critical. The policy needs to address Pakistani-specific items: EOBI and provincial social security registration regardless of remote status, FBR Section 149 income-tax compliance, currency-conversion clarity for USD-or-foreign-currency-paid roles, time-zone expectations for cross-border work, and the realities of internet stability and loadshedding that affect Pakistani remote work.
Remote status does not change Pakistani statutory obligations. (1) **EOBI** — registration follows the employer's principal business address; remote workers are still registered at the employer's address with standard 5%/1% contributions. (2) **Provincial social security** — PESSI/SESSI/KPESSI/BESSI applies based on the employer's establishment registration, not the employee's home location for typical scenarios. (3) **Section 149 income tax** — federal income tax withholding applies normally regardless of work location. (4) **Provident Fund** — if the employer operates one, remote employees participate identically. (5) **Gratuity** — accrues identically under the Standing Orders Ordinance 1968. (6) **Working Hours / Factories Act** — Factories Act applies to factory premises and largely doesn't affect office/remote knowledge workers. The remote-work policy should clarify all this so employees understand their entitlements aren't reduced by remote status.
A growing pattern is Pakistani employees working remotely from countries where they hold residency rights — Dubai, UK, US, Canada, and other destinations with sizeable Pakistani diaspora. These cross-border arrangements create complex compliance issues. (1) **Permanent establishment risk** — extended employee presence in another country can create taxable presence for the Pakistani employer in that country. (2) **Income tax in two jurisdictions** — employee may face tax obligations in both Pakistan (residency-based) and the work-location country (source-based). (3) **Social security** — international social-security agreements (totalisation agreements) determine which country's regime applies; Pakistan has limited treaty network. (4) **Currency-conversion implications** — the exchange-rate volatility between PKR and target currency affects effective compensation. The remote-work policy should require advance written approval before extended overseas working (typically 30+ days), with HR and tax-counsel involvement.
Pakistani remote workers serving international clients increasingly receive compensation denominated in USD, GBP, or EUR. Several considerations apply. (1) **Foreign-currency salary** — typically processed through SBP-approved channels; the employer may use Roshan Digital Account, USD-denominated employer account, or third-party payroll services. (2) **PKR vs foreign-currency CBC** — exchange-rate movements can dramatically affect employee real income; some employers use blended approaches with floor protection. (3) **Tax treatment** — remitted foreign currency is taxable as Pakistani income but may qualify for foreign-tax-credit arrangements depending on source. (4) **Bank-channel compliance** — non-compliant currency-conversion routes (informal hawala) create employer compliance risk. The policy should clarify currency arrangements transparently and direct employees to compliant banking channels.
Pakistani remote work operates in conditions different from the US or UK. Power outages (loadshedding) remain common in many areas; internet stability varies significantly across cities and within neighbourhoods; and equipment availability and cost differ from international norms. Pragmatic Pakistani remote-work policies typically include (1) **Equipment provision** — laptop and basic peripherals supplied by employer. (2) **Internet stipend** — typically PKR 3,000-8,000 per month depending on role, helping employees afford reliable fiber or backup connections. (3) **UPS/inverter support** — some employers provide stipends for power backup equipment given loadshedding realities. (4) **Co-working budget** — periodic co-working space access for power/internet stability or social interaction. (5) **In-office days** — some hybrid policies require quarterly or monthly in-office presence for connection and collaboration.
Pakistani remote workers serving international clients often work non-standard hours to align with US Pacific (12.5-hour gap), US Eastern (10-hour gap), UK (4-5 hour gap), UAE (1-hour gap), or other client time zones. Policy considerations include (1) **Defined working hours** — clarity on whether the employee works Pakistani hours, client hours, or hybrid. (2) **Overtime treatment** — late-evening work for US clients may trigger overtime under Pakistani law. (3) **Health and well-being** — sustained late-night work creates fatigue and family-life impact. (4) **Compensatory off** — arrangement for time off following intense client-coverage periods. (5) **Time-zone-aware leave policies** — public holidays in Pakistan vs client country may create complex coverage planning. The policy should be explicit about expectations and compensation for non-standard-hours work.
Customisation before rollout: (1) Eligibility — which roles are remote-eligible. (2) Remote vs hybrid expectations — defined in-office days, full-remote, or flexible. (3) Working-hour expectations — Pakistani hours, client-aligned, or core overlap. (4) Equipment and internet stipends — amounts and policy. (5) Loadshedding and power-backup support if applicable. (6) Cross-border / overseas-working policy — approval required, duration limits. (7) Currency-of-pay clarity for international-client-serving employees. (8) Performance management — how remote performance is evaluated. (9) Notice period for return-to-office should the employer's needs change. (10) Termination procedures for remote employees including equipment return logistics. Local HR or labour-law counsel review before first use.
Peoplifi generates Pakistan-compliant offer letters, warning letters, and policy packs from your employee data in one click — referenced against the Standing Orders Ordinance and applicable provincial law, with no copy-pasting and no version drift.