The world now is a global village and corporate world has expanded its business into many other countries. Jobs in such multi-national corporate companies are considered quite prestigious and are highly sought after by potential employees. Most of these companies are based in developed countries like Europe, America, and other developed countries. These countries have a functional judicial system, and companies are bound to obey business laws and procedures as defined by the host country.
However, when it comes to operating in third world countries, the enforcement of these laws is often not strictly enforced. Furthermore, companies with the help of local middle-man setups and law firms, play around the laws that protect employees. This often leads to a high turnover year-round from these countries which are witnessed up-to 15 to 20 million dollars per annum, yet when it comes to paying benefits to the working class, capitalistic greed comes into play, leading to worker exploitation by non-payment of dues owed to the employee. To protect themselves from the repercussions of such malpractices, companies hire an army of lawyers that drown the voice of the employee in a sea of paperwork and counter lawsuits.
A multinational company, let’s say S, hires an employee by conducting internal recruiting process, once the employee is hired, they start reporting to the company management and work as it is required by the company but the multi-national company in-coordination with local HR companies play with rights of employees as well as with the laws of country. Employee works for a multi-national company but is considered as the employee of a local HR company keep it in mind that these local HR companies run their business on commission earned on the salary of multi-national company’s employee.
And get paid highly for performing all these malpractices to the laws of countries. Practically management of these corporate companies treats employees as a “Slave” and forced to work more than the time mentioned on contract, and if they protest against the malpractices management threaten employees for terminating of their jobs, as in developing countries it is very difficult to get a job so employees are exploited but keep on performing the job knowing the fact that their fundamental rights are been violated by the corporate overlords essentially a slave to their circumstances.
There are many cases in Pakistan in which an employees worked more than 20 years with the company, yet they are not eligible for gratuity and any other benefits because they were on contract their whole professional life. This is a clear violation of our local law which states that every contractual employee must be given a permanent position after completion of his 3-year service. The multi-national company in tandem with local HR firms dodge the law by issuing short-term contracts e.g., 11-month contract which are continuously renewed at expiry. This tactic is clearly designed to manipulate the law to their own greedy practices of employee exploitation. The law further states that if an employer has employed an employee for 1 year the employee is then eligible for 1 year of gratuity so they reissue the contract before completion of year and that’s how they deliberately violate the employment laws.
On the other hand, when any of their employees speak against these malpractices, they immediately terminate their services without cause. When employee ask them for grievance they took no responsibility of them by saying that the company where you are working is not your employer, and if employee take the matter into the court all these corporate companies have a very strong legal firms on their payroll who defend the companies by taking edge of the flaws in the judicial system by playing the delaying tactics normally most of these cases took 5 to 10 years to be judged and during that period the only party suffer the most is the employee who had already lost the job and is fights for the rights given by the state, It also affect the employee’s career and whole life of an employee is disturbed.
If these corporate feel they are about to lose the case in the court of law they ask an employee to settle the issue outside the court, by doing this they pay a small amount of money to individuals and keep on performing the same malpractices repeatedly. There are plenty of cases pending the court of law in many third world countries and employees are still suffering.