Embarking on business ventures as a sub-contractor in Papua New Guinea (PNG) brings a myriad of opportunities and challenges. Among these challenges, understanding and navigating local labor laws are paramount. This is one of the many reasons businesses choose to engage an Employer of Record (EoR) agency, over setting up a legal entity in Papua New Guinea.
As the 4th step in our 5-step Blueprint to bringing your offshore operations to PNG, we wanted to further highlight the intricacies of PNG’s labor regulations, and shed light on key aspects that businesses must consider for successful contracting/EoR operations in this dynamic country.
Understanding PNG’s Labor Landscape for sub-contractors using EoR
PNG’s labor laws are designed to protect the rights and interests of both employers and employees. As a business, considering EoR services in the country and comprehending these regulations is crucial for legal compliance and fostering positive employer-employee relationships.
Key Components of PNG’s Labor Laws:
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Employment Contracts
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Minimum Employment Standards
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Occupational Health and Safety (OHS)
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Wages, tax and Benefits
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Termination Procedures
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Compliance
As an EoR/Contracting management company, here is an example of some of the applications of local labour laws and compliance standards we set for our clients:
- Ensure all staff are paid minimum wages and on time
- Process termination payments as per Employment law and employee contracts
- Deduct and remit Salary and Wages Tax (SWT) as per Inland Revenue
- Provide and remit Superannuation as per Employment regulations
- Streamlined Onboarding process to ensure all employees are inducted with all policies
- Provide all employees with Work Cover Insurance
- Conduct regular OHS audits with our client
- Assist clients with Performance reviews and Termination processes
- General HR advise
Navigating local labor laws is integral to the success of any sub-contractor or business looking to bring their operations and services to Papua New Guinea. By understanding and adhering to these regulations, businesses can build sustainable and compliant on-hire practices, contributing to the overall economic growth and development of the nation.
If you are a sub-contractor or business looking to bring your offshore operations into PNG without the rigmarole of setting up a local registered entity, get in contact with us. Our clients range from Not For Profits without entities in Papua New Guinea, to EPCM Contracting to PNG’s Mining, Oil & Gas Projects.
We are currently offering free consultations with our Contractor Workforce Manager, Mari-lette which you can book here: