Hired and Fired

The corporate world in Pakistan is replete with examples of malpractices that weaken applicants, employees and even pitching agencies. Such practices undermine trust, exploit talent, and make a mockery of state laws.

A common malpractice gaining momentum is requiring job applicants to complete real-life projects during the hiring process. These assignments usually involve developing strategies or conducting analyses that directly benefit the company. Applicants invest significant time and effort but end up being rejected while their ideas are implemented. For example:

A private university recently asked shortlisted candidates to draft a five-year growth strategy, only to reject them all and use their proposals without any compensation.

A pharmaceutical company requested an applicant to create a detailed presentation and then rejected her, claiming she was overqualified while demanding the presentation’s soft copy.

An advertising agency’s CEO asked for a competitive analysis from an applicant, offered him a job based on the project, but later dismissed him without any formal employment contract after receiving the report.

Clients frequently call for pitches not to genuinely consider awarding their accounts but for other reasons. This unethical behaviour undermines the integrity of the pitching process and exploits the creative efforts of agencies. Clients also misuse this process to:

Gather Market Intelligence: Clients use the pitches to learn about the latest trends and insights in the market, as highlighted by a CEO of a large fashion brand who candidly admitted they were “educating” themselves.

Steal Creative Ideas: Agencies invest significant time and resources in developing concepts and strategies, only to see their ideas implemented with minor modifications by the client – without awarding them the account.

Some employers reduce the salaries of their employees based on what is written in their employment contracts or letters of employment. This is an illegal practice according to Pakistan’s labour laws. Unfortunately, this is a common occurrence, particularly in the ad industry. The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (Section 6-A) mandates that employers must provide a written contract of employment to each worker, specifying the terms and conditions of employment, including wages, and alteration to the contract must be mutually agreed upon by both the employer and the employee. Labour courts in Pakistan have a history of upholding employee rights in cases of unauthorised salary reductions. Employers found guilty of such practices are typically ordered to pay the withheld amounts along with accrued interest. Additionally, the courts can also deploy a penalty on violating employers.

Many companies, particularly in the advertising sector, frequently do not pay gratuity to their departing employees. This non-compliance not only violates labour laws but also deprives employees of their rightful financial benefits. The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (Section 12) mandates that establishments with 12 or more employees must offer either a gratuity or a provident fund. Gratuity is calculated at the rate of 30 days’ wages for each completed year of service. Many companies try to evade their legal responsibilities by citing ‘company policy’ or other lame excuses. Common arguments include:

‘Company Policy’: Companies claim that their internal policies do not provide for gratuity payments to certain categories of employees.

Financial Constraints: Some companies cite financial difficulties as a reason for not paying gratuity.

Misclassification of Employees: Employers often misclassify employees as contractors, freelancers, or temporary workers to avoid gratuity obligations.

These excuses hold no legal weight against the clear mandatory requirements of Pakistan’s labour laws. Courts in Pakistan have consistently dismissed such arguments, emphasising that no company policy can override statutory rights provided to employees.

I have heard of several companies particularly those in the marketing communication sector that do not issue appointment letters immediately upon hiring a new employee in order to avoid making a commitment in writing. This can go on for years sometimes, so that when the employee leaves, they have no proof of employment and find themselves deprived of their separation benefits.

Other companies do issue appointment letters but include dubious terms and conditions such as: “You will be governed by all company rules and regulations in force from time to time, and your terms of service will be subject to prevailing policies and procedures.” Such clauses do not specify whether it pertains to written rules and regulations, or whether such policies are fair and developed within the framework of existing labour laws. The purpose is to make the interpretation fluid, so it can be manipulated according to circumstance.

Some companies delay payment of monthly salaries to their employees by two to three months. On one hand, they earn interest on the withheld monies, and on the other, they place employees in a vulnerable position, reducing their bargaining power and compelling them to work under unfavourable conditions. Employees also cannot leave their jobs because that would mean foregoing their back salaries and other benefits.

Discrimination based on gender, age, class or creed remains common. Older employers face unfair termination under the pretext of the advertising industry being ‘young’. In reality, this is far from the truth. In India, for example, Ravi Deshpande started his advertising career in 1983 and continues as a force to be reckoned with. There are many more examples. Such a practice not only deprives companies of experienced talent but also contradicts the principles of diversity and inclusion.

---

Combating these malpractices requires a multifaceted approach:

1 Legal Action: Affected employees should not hesitate to pursue legal avenues. Labour laws in Pakistan provide robust protection and the judiciary typically supports workers in clear-cut cases of exploitation.

2 Public Awareness: We must raise the level of awareness about these issues in order to pressure companies to adhere to ethical standards. Media coverage and social media campaigns can help address these concerns.

3 Compliance with Labour Laws: Employees aware of their legal rights are in a far better position to deter companies guilty of unfair employment practices. The Securities and Exchange Commission of Pakistan (SECP) must conduct regular audits and compliance checks to ensure adherence to labour laws.

4 Non-Disclosure Agreements (NDAs): Agencies should request clients to sign NDAs before sharing detailed pitch materials. NDAs can legally bind clients to not use the ideas without the agency’s consent.

5 Support Systems: Establishing support systems like legal aid and counselling for affected employees can help them navigate the challenges posed by such malpractices.

6 Intellectual Property Rights: Agencies own the intellectual property of their creative concepts until a contract is signed, transferring those rights to the client. Unauthorised use of these ideas may constitute intellectual property theft.

7 Pitch Fees: Implementing a pitch fee structure wherein clients paying agencies for the pitch process can deter frivolous pitches and compensate agencies for their efforts.

By addressing these unethical practices, we can foster a more equitable and respectful work environment that values the contributions of every individual.

Khalid Naseem is a brand and marketing strategy consultant and freelance writer.
khalid.naseem.795@gmail.com