Pakistan has a thriving Gig Economy model but like most countries at the moment lacks any regulatory regime regarding Gig Working and Gig Workers. The lack of a regulation simultaneously plays to the advantage and disadvantage of a company. There is a risk that the Gig Workers may end up being categorized as employees of a company and such company becoming eventually liable financially and legally for such employees.
What are the risks? The relationship between the Company and the FR is categorized as an employer-employee relationship where the company is sanctioned to pay the FR all benefits accruing to an employee. Company is penalized under employment law and criminal law for not having paid employment benefits to the Freelance Lancers.
What triggers the risks? Any level of control of the Company over the Free lancers.
What are the consequences of the risks? A regulatory authority or court of law adjudicates that that due to a level of control exhibited by the Company over the Free Lancers, the authority is of the view that the relationship between the company and the Free Lancers are those of an employer-employee.
