Employ Candidates Compliantly in Papua New Guinea

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  1. Overview: Papua New Guinea
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Contractor vs. employee: which is better?
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Global HR Compliance in Papua New Guinea

Although there are various reasons for companies expanding internationally, the key need most businesses face is finding and engaging international talent that would help them achieve their global objectives. However, after the right candidates have been selected, it is important to adjust the company’s processes to the legislative norms of the country.

By trusting Acumen International to do employment for your foreign employees in Papua New Guinea, you get a unique opportunity to protect your company from numerous non-compliance risks, outsource HR admin while taking advantage of the opportunity to focus on the key tasks of your business.

The war for global talent has never been tougher. Attracting and keeping sought-after international employees requires knowledge. Whether your company is already engaging or planning to engage global workforce in Papua New Guinea, you need to trust that your operations are executed without flaw and without any unnecessary risks.

Businesses of all sizes face a devastating lack of information and support on global employment, taxation, and immigration in Papua New Guinea. There’s a common and significant gap between what’s required to be 100% compliant and what most organizations actually have at their disposal.

Acumen International can fill the gap in fragmented Global HR Compliance knowledge

We are experts in global workforce employment in Papua New Guinea, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

We act as an information service for corporate clients, agencies, and independent contractors and freelancers. Our Global HR Compliance service in Papua New Guinea will help you:

  1. Navigate legislation and local nuances of Papua New Guinea. You need to know what is acceptable and what can expose you to employment litigation as well as employee / independent contractor misclassification risk in Papua New Guinea.
  2. Avoid areas of possible risk. Certain areas and activities can create unnecessary risk, such as employer-employee relations. We can help you with worker classification, payroll and tax calculations, and social cost contributions.
  3. Handle currency exchanges and local invoicing in Papua New Guinea. We save you time and effort, freeing you from having to understand complicated regulations and tax calculations written in the local language and subject to frequent changes.
  4. Create employment contracts and handle compliant engagements. Our objective is to assist you with international HR compliance issues and offer you the best payment and taxation options in Papua New Guinea.
  5. Manage expatriate immigration and visa support nuances in Papua New Guinea. Acumen International provides information about the best scenarios of expat immigration and employment.
  6. Handle global recruitment issues. We can help you select the person and then employ him with our help. We advise you on local employment laws and implied compliance risks to determine the most cost-effective, compliant, and risk-free solution for you.
  7. Withdraw from the region in the least risky and most cost-effective way. If you choose to do so, we can help you withdraw from the region as simply as possible.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Papua New Guinea.

Hiring and Firing Workforce in Papua New Guinea Guide

# Employment contracts
Where an employer and an employee enter into an oral contract of service, the employer shall, at the time of the engagement, make a written record of the terms and conditions of the contract. (2) Where a dispute arises as to the terms and conditions of an oral contract of service, and the employer fails to produce a record under Subsection (1), a statement by the employee as to the terms and conditions of the contract shall be conclusive evidence of those terms and conditions unless the employer satisfies the Secretary or an Arbitration Tribunal established under the Industrial Relations Act 1962 to the contrary.

A written contract of service is of no force or effect unless and until:

  • in the case of a literate employee – he has signed the instrument of agreement and has certified under his hand on the agreement that he has read, understood and agreed to abide by the terms and conditions endorsed on the agreement; and the employer has endorsed on the agreement a note that he believes and is satisfied that – the employee is literate; and before signing the agreement, the employee read and understood it; and
  • in the case of an illiterate employee, he has – signed; or affixed his mark or an impression of his thumb on.

# Minimum (Statutory) Employment Rules and Regulations in Papua New Guinea

# Hours of work:
An employee shall not be required to work more than 12 hours in any one day.

# Annual leave:
An employee is entitled for each year of continuous service to a period of 14 consecutive days paid leave including non-working days occurring within that period of paid leave, and where any public holiday falls within an employee’s period of paid leave and is observed on a day that, in the case of that employee, would have been an ordinary working day had he not been on leave, there shall be added to that leave period one extra day being an ordinary working day, for each day of that public holiday.

# Parental leave:
Where the employer of a female employee is notified or becomes aware of the pregnancy of the employee, the employer, in addition to complying with the other provisions of this Act:

  • shall agree, if the employee so desires, to the termination of the employment without penalty; and
  • shall not, except where the employee has been employed for less than 90 days, without the consent of the employee, terminate the employment on the grounds of or arising out of the pregnancy; and
  • shall, where the employment is not terminated, grant to the employee maternity leave in accordance with this section where the employee has been employed by the employer – for not less than 108 days within the period of 12 months; or for not less than 90 days within the period of six months,
  • immediately preceding the grant of leave.

During the period of maternity leave the employment of the employee shall not be terminated except by mutual consent.

The period of maternity leave shall be – the period necessary for hospitalization prior to confinement; and subject to Subsection (4), six weeks following confinement.

# Sick leave:
An employee who

  • has served an employer for a period of not less than six months; and
  • is absent on account of illness or injury, other than illness or injury arising out of or in the course of his employment; and
  • produces a certificate of a medical practitioner or other acceptable medical certificate to his employer, is entitled to be paid sick leave at the rate of six days in each year.

Sick leave may be accumulated to a maximum of 18 days exclusive of sick leave credits for the current year. In the event of a dispute as to whether a medical certificate, other than a certificate of a medical practitioner is acceptable, the decision of a labour officer is final.

An employee who absents himself on sick leave – (a) without producing to the employer an acceptable medical certificate; and (b) without informing or attempting to inform the employer of his absence on sick leave within 72 hours of the commencement of his absence, is not entitled to sick leave pay and shall be deemed to be absent without the permission of the employer and without reasonable excuse for the period of that absence.

# Overtime:
An employer may require an employee to work a reasonable amount of overtime. Where overtime is to be worked on a Sunday or a public holiday, it shall be by agreement between the employer and the employee or between their respective registered industrial organizations.

# State minimum salary:
Papua New Guinea’s minimum wage is 3.20 Papua New Guinean kina per hour for adult workers in the private sector. Papua New Guinea’s minimum wage was last changed in August 2014.

# Employee dismissal:
A contract of service for a specified time or for specified work shall, unless terminated otherwise under this Division, terminate when the period of time for which the contract was made expires, or the work specified in the contract is completed. A contract of service for an unspecified period of time shall be deemed to continue until terminated by either party.

A party to a contract of service may, at any time, give notice to the other party of his intention to terminate the contract. The length of the notice shall be not less than:

  • one day’s notice if the employee has been employed for less than four weeks; or
  • one week’s notice if the employee has been employed for not less than four weeks and for less than one year; or
  • two weeks’ notice if the employee has been employed for not less than one year and for less than five years; or
  • four weeks’ notice if the employee has been employed for five years or more.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Papua New Guinea by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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