Page 41 - CMA Journal (Jan-Feb 2026)

Focus Section

10) Remote Work Compliance: • Ergonomics and Well-being: Employers must
Contracts, Safety, and Productivity provide proper training on ergonomics, including
seating arrangements and computer setup. They
Remote work is defined as a scenario where a permanent should also conduct sessions to encourage
full-time employee performs duties remotely, such as mental well-being and reduce risks such as
from home, at their own pace and space, mainly as it burnout or isolation, while considering the
intersects with the digital economy. The major difference adoption of a right to disconnect policy observed
is only the classification: a permanent employee works in some countries.
remotely, whereas a gig worker provides services as an
• Cost of Equipment: Employers should cover the
independent contractor. Remote work compliance
focuses on three main areas viz. Employment Contracts, cost of home office equipment to ensure a
smooth and uninterrupted work environment.
Safety and Productivity.
A. Employment Contracts – The employment C. Productivity and Monitoring - Organizations
contracts outline the non-traditional work seeking productivity from remote and hybrid setups
arrangement along with clear terms of engagement. must balance monitoring with privacy laws to avoid
unnecessary interruptions.
• Jurisdictional Complexity: Employees working
from different countries face compliance issues if • Transparency and Compliance: Compliance
the employer is in another state or country. policies should clearly define how, when, and
Furthermore, it is essential to specify their what is tracked in remote setups.
governing jurisdiction in the contract regarding • Privacy Expectations: Monitoring methods
wage laws, tax laws, and other applicable
must respect the privacy expectations of workers.
regulations. Best practices suggest that the laws
of the country where the employee resides are • Compliance Risk in Multi-Location Scenario: A
usually considered the governing law. major compliance risk arises when an employee
works remotely in a different city from the
• Key Clauses: When drafting contract clauses,
company. This situation involves changes in labor
employers must define the scope of work, laws, tax jurisdiction, and security regulations, as
including working hours, time zones, and data
most are managed at the provincial level. If an
security measures. The contract should clearly employee relocates to a new province, the
state who will provide necessary equipment such
company must comply with the labor laws,
as computers and internet access, as well as the minimum wage standards, social security
payment method.
schemes, and other regulations of that province.
• Mandatory Written Agreements (Pakistan): Conclusion
Employment in the industrial and commercial
sector in Pakistan must comply with the Standing In a country like Pakistan, gig and remote work models
Orders Ordinance 1968, which requires written offer unique opportunities for economic growth and
appointment letters and agreements for all sustainability. The independent contractor status of gig
employees. workers leaves gaps in mandatory safety nets such as
social security, health coverage, and minimum wage
Contract Description and Compliance
Clause Focus protections, which are governed by the labor laws of
Nature & Must stipulate whether the employment is each province.
Duration permanent or fixed-term Considering future global regulatory trends, Pakistan
(temporary/project-based)
Working Hours Important for any non-traditional role should focus on reducing gaps created by misclassification
(e.g., Part-Time): Must stipulate exact and creating a modern legal framework that supports
daily/weekly hours and mandatory workers without stifling innovation and flexibility in the
working days.
Compensation Compensation and Benefits should meet digital economy. For companies embracing remote work,
& Benefits the government notified minimum wage compliance requires precise, geographically aware
on pro-rata basis and describe all the employment contracts that clearly address jurisdiction,
benefits applicable accordingly including safety, and privacy in this non-traditional and increasingly
paid leaves, social security / EOBI.
Termination The required notice period for termination blended work environment.
Clause by either party.
Data & Requirements for company data About the Author: Dr. Rozina Muzammil is a Fellow of ICMA and
Confidentiality protection, particularly important in PIPFA and currently serves as an Independent Director at Loads
remote/hybrid models. Limited. She holds a PhD in Business Administration and is a
seasoned HR and finance professional with over 20 years of
B. Safety (Occupational Health and Safety) - The leadership experience. She is the Chief Human Resource Officer at
responsibility of employers is not limited to local
the National Institute of Banking and Finance and has previously
workstations; it extends to remote and hybrid held senior roles in the FMCG sector and at PIPFA.
workspaces.

ICMA’s Chartered Management Accountant, Jan-Feb 2026 39