Why are Pakistani workers bearing their own litigation costs? A Chinese entrepreneur’s quiet worry in Karachi
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I’ve been in Karachi for 14 months now, running a small automated washing machine export business out of a rented warehouse in SITE Town. My team has 17 local workers—electricians, packers, warehouse hands. I pay on time. I’ve never yelled. I even bought them monsoon raincoats last year because the warehouse leaks when the sky opens.
But last week, one of my packers, Arif, came to me with a folded piece of paper. He didn’t ask for a raise. He didn’t ask for leave. He asked: “Sir, if I file a labor complaint against a supplier who didn’t pay me for two months of work… who pays the lawyer?”
I froze.
I’ve handled contract disputes in Vietnam, logistics delays in Indonesia, customs holds in Germany. But this? This was the first time someone asked me, not as a boss, but as a fellow human: “Who foots the bill when the system doesn’t protect you?”
I didn’t have an answer.
The silence between law and reality
Pakistan’s Industrial Relations Act, 2012 and the Sindh Labor Policy technically guarantee workers the right to file labor complaints, access legal aid, and seek compensation for unpaid wages. But “technically” is the key word here.
In my warehouse, I’ve seen three cases in the last year where workers tried to take legal action—against subcontractors, against transporters who lost goods, against a local vendor who skipped after taking advance payments. In every case, the worker either dropped the case before filing, or paid a local “legal facilitator” out of pocket—roughly 15,000 to 30,000 PKR ($50–100 USD)—just to get the paperwork started.
No one told them it was optional. No one told them they might qualify for free legal aid through the Sindh Labor Department’s Labor Dispute Resolution Cell. And honestly? I didn’t know either—until Arif asked.
I looked up the official portal. The Sindh Labor Department does list a Labor Litigation Support Program. But the form requires a CNIC, a written employment letter, and a signed affidavit—all things many informal workers don’t have. And the office? It’s in Saddar, a 45-minute ride from SITE Town. No bus route. No English signage. No WhatsApp helpline.
So they stay silent.
And here’s what keeps me awake:
Are we, as foreign employers, quietly benefiting from a system that makes justice too expensive for the people who make our products?
The variables no one talks about
I asked a local lawyer I met at a chamber of commerce coffee—no formal engagement, just a conversation over chai—if this was common.
He didn’t answer with statutes. He said: “In Karachi, the law is a building. But the stairs are broken. Some people have crutches. Others climb the walls. Most just sit on the ground and wait.”
That stuck with me.
Here’s what I’ve observed, not as a lawyer, but as someone who signs checks every Friday:
Cost of entry: Filing a labor complaint in Karachi’s Labor Court requires a nominal fee—but then comes the “process fees”: photocopying, notary, court stamps, transportation, lost wages during hearings. For someone earning 30,000 PKR/month, losing two days of work to court = 2,000 PKR. That’s a meal for a family of four.
Trust deficit: Workers fear retaliation. One guy told me, “If I sue my supplier, who will give me work next month? My name is in the system now.” He didn’t say “my boss.” He said “the system.”
The middlemen: There’s a gray ecosystem of “legal assistants”—often ex-clerks, retired court staff—who take cash to “guide” workers through paperwork. They’re not lawyers. They’re not licensed. But they’re the only ones who know how to fill the forms.
And here’s the quiet truth:
Most Chinese exporters don’t ask. We assume compliance. We assume the system works. We assume the worker will handle it.
But Arif’s question cracked that illusion.
What I started doing differently
I don’t have a solution. But I started small.
- I printed a simple one-page guide in Urdu: “What to Do If Your Salary Is Late?” with the Sindh Labor Department’s phone number, address, and office hours. I put 20 copies on the warehouse notice board.
- I asked my HR manager to help two workers fill out a complaint form last week. We used a tablet. I paid for the photocopies.
- I reached out to a local NGO, Sindh Human Rights Commission, via email. They replied within 48 hours with a list of pro bono lawyers who take labor cases. I shared it with my team.
It’s not a fix. It’s not legal advice. But it’s something.
I used to think my job ended at shipping the last washing machine out of the port.
Now I wonder:
Does my responsibility end when the container leaves Karachi? Or does it begin when I hire someone who might not have a lawyer to call?
🤔 FAQ: What can a foreign employer actually do?
Q1: Can I legally pay for my workers’ labor litigation costs?
A: You can pay for their transportation, photocopies, or filing fees—but you must not sign documents on their behalf or interfere in the legal process.
- ✅ Safe path: Offer a small fund for “legal access support” via HR, clearly labeled as voluntary and non-binding.
- ❌ Risky: Paying a lawyer directly or instructing workers to sue a specific party.
- 💡 Tip: Check the Sindh Labor Department’s Labor Welfare Fund eligibility criteria. Some cases qualify for state-funded legal aid.
Q2: Where do I find verified pro bono labor lawyers in Karachi?
A: Start here:
- Sindh Labor Department, Labor Dispute Resolution Cell (Office: 1st Floor, Sindh Secretariat, Saddar, Karachi)
- Contact: +92-21-99201222 (call during 9AM–3PM, Mon–Fri)
- NGO Partners: Sindh Human Rights Commission, Justice Project Pakistan (JPP)
- Online: Visit www.sindh.gov.pk/labor (site often slow—try on mobile data)
- ⚠️ Avoid: “Legal consultants” offering “guaranteed outcomes” for cash. These are not lawyers.
Q3: How do I know if my local supplier is violating labor laws?
A: Look for these red flags:
- No written contract (even informal)
- No CNIC copies on file for workers
- Wages paid in cash with no receipt
- Workers sleeping on factory floor
- No access to clean water or rest breaks
If you see this, don’t assume it’s “normal.” Ask your supplier for their labor compliance policy. If they laugh? That’s your answer.
I used to think logistics was the hardest part of doing business here—delayed shipments, customs holds, currency swings.
Now I know: the real cost isn’t in the shipping fee.
It’s in the silence.
The silence of workers who don’t know their rights.
The silence of employers who assume they’re not responsible.
The silence of a system that lets you build a business—but forgets to build the ladder for the people holding the bricks.
Maybe different people will have different answers.
If you’ve worked in Karachi—or any city where the law looks good on paper but feels heavy in practice—I’d love to hear how you’ve navigated this.
Did you help a worker file a complaint?
Did you get ignored?
Did you find a lawyer who actually listened?
You can reach me here—or better yet, connect with JingJing on WeChat: lvga2015. She’s helped other entrepreneurs in Pakistan sort through contract ambiguities, labor disputes, and local compliance gaps. No promises. Just real talk.
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