Global HR Compliance in Papua New Guinea

Papua New Guinea (PNG) maintains a statutory labour framework under the Employment Act and Industrial Relations Act. However, enforcement is often inconsistent. Companies, especially those without a registered local presence, face a fragmented and informal regulatory landscape, where compliance depends on formal contracts, local engagement, and the discretion of regional labour officers.

This guide outlines the legal and procedural landscape for hiring and terminating local or expatriate staff in Papua New Guinea. It is tailored to international employers seeking lawful, low-risk hiring solutions without establishing a permanent presence.

Employment Contracts

Both oral and written employment contracts are legally valid in Papua New Guinea. If the terms are not written down at the time of hire, and a dispute arises, the employee’s account is presumed accurate unless disproved in arbitration.

Written contracts must:

Be signed by literate employees, who must also confirm they understand the terms
Include a statement from the employer confirming the employee’s understanding
Include a thumbprint or mark in place of a signature for illiterate employees

Regardless of format, contracts must honour statutory entitlements related to wages, hours, and leave.

Working Hours and Overtime

The law limits working hours to 12 per day, with no weekly maximum or averaging system. Any overtime must be mutually agreed.

Work on Sundays and public holidays requires the consent of the employee or their registered union
Overtime pay rates are not mandated unless outlined in industrial agreements

Leave Entitlements

Annual Leave

14 consecutive days per year of continuous service
Public holidays during leave that fall on working days must be compensated with an extra day off

Sick Leave

6 paid days per year after 6 months of employment
Unused sick leave can accrue up to 18 days
Valid medical certificate and 72-hour notification required
Labour officers arbitrate disputes over non-physician certificates

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Maternity Leave

Employees are protected from dismissal due to pregnancy if employed for:

At least 108 days in the last 12 months, or
At least 90 days in the last 6 months

Entitlements:

Pre-birth leave if hospitalisation is medically required
6 weeks post-birth leave
No statutory paid maternity leave, though employers may provide it voluntarily

Minimum Wage

The legal minimum wage is PGK 3.50 per hour. While it applies nationwide, enforcement is inconsistent, particularly in remote or informal work environments. International employers are expected to comply strictly, especially when managing expatriates or using formal contracts.

Termination and Notice

For fixed-term or task-specific work, employment ends automatically on completion. Open-ended contracts require notice:

1 day if employed under 4 weeks
1 week if employed 4 weeks to less than 1 year
2 weeks if employed 1 to under 5 years
4 weeks if employed 5 years or more

Payment in lieu is permitted. Dismissals for misconduct must be supported by documented cause and may be contested.

Immigration and Foreign Work Authorisation

Foreign nationals must have valid work permits and visas before beginning employment. Employers must:

Secure approval from the Department of Labour
Ensure the candidate enters Papua New Guinea on the correct visa category

Violations may lead to permit cancellations, reputational harm or fines.

Acumen International: Global Employer of Record Services in Papua New Guinea

Hiring compliantly in Papua New Guinea can be difficult to navigate, especially without a registered legal entity. Between complex immigration approvals, strict procedural rules for expatriates, and unpredictable enforcement patterns, the risk of delays or missteps is high.

Acumen International provides a fully compliant hiring infrastructure that enables your company to engage local or foreign talent in Papua New Guinea without establishing a local subsidiary. Through our Global Employer of Record (EOR) solution, we serve as the legal employer, handling employment contracts, payroll, benefits, and immigration formalities on your behalf.

Whether you’re hiring one specialist for a technical project or building a local team to support long-term operations, our EOR service gives you fast, low-risk access to Papua New Guinea’s labour market.

Who We Support

Companies without a local Papua New Guinea entity but needing to hire or deploy staff
Organisations hiring expatriates on work permits or local hires under compliant contracts
Employers seeking short-term, project-based, or fixed-scope assignments
Businesses looking to test market potential or respond to client demand in Papua New Guinea.

Legal Employment and Workforce Operations

We manage the full employment lifecycle under Papua New Guinea labour law, ensuring every step is legally sound and locally compliant.

Employment contract drafting and execution
Statutory onboarding documentation and employee record management
Local payroll processing with mandatory deductions and payslips
Leave entitlement tracking, accruals, and compliance with working time rules
Termination procedures aligned with Papua New Guinea notice and severance obligations.

Immigration Sponsorship and Expatriate Support

We handle all necessary steps to ensure work permit sponsorship.

Sponsorship and application of work permits via the Department of Labour
Visa coordination for main applicants and dependents
Permit renewals, cancellations, and exit processing
Liaison with immigration and labour authorities throughout the process.

Compliance, Oversight, and Risk Mitigation

Our legal infrastructure allows you to operate confidently in Papua New Guinea without exposure to employment or tax liability.

Full alignment with Papua New Guinea’s labour, tax, and social legislation
Employer liability assumed by Acumen under our EOR model
Documented compliance protocols for audit resilience and legal defence
No reliance on informal arrangements or third-party intermediaries

Plan and Budget with Acumen’s Global Payroll Calculator

Before you hire, we help you understand your total cost of employment transparently and accurately with Global Payroll Calculator.

Real-time gross-to-net and employer cost projections
Payroll simulations based on role type, tax rates, and social contributions
Support for contractor-to-employee conversions
Multi-country budget modelling across 190+ jurisdictions.

With Acumen International, you gain more than just operational support, you gain an employment infrastructure designed to absorb risk, remove delays, and align your workforce plans with Papua New Guinea’s legal realities. Whether for one role or an entire team, long-term or short-term, we make hiring in Papua New Guinea secure, scalable, and fully compliant, no local entity required.

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