Can a Pakistani employer transfer an expatriate between group companies?

A Pakistani employer should not assume it can transfer a foreign employee between group companies without examining the person's immigration permission. A business group may contain separate incorporated employers, and a visa or work authorisation can be connected to a specified employing entity, role or activity. Internal management approval and an intercompany secondment letter cannot automatically override applicable immigration rules. The proper route depends on the original permission, new host employer, nature and duration of duties and current official procedures.

Separate corporate employers

A holding company, subsidiary and joint venture can be distinct legal persons even where shareholders or executives overlap. Identify the exact entity named in the employee's original sponsorship and employment contract. A transfer from Company A to Company B may change the contractual employer rather than merely the place where duties are performed. The distinction matters to both immigration authorities and the employee's accrued salary and benefit rights.

Examine the original visa conditions

Obtain the electronic visa approval, sponsorship letter and any conditions concerning employer, work location or role. Some permissions can allow specified business activities while others are more tightly linked to an assignment. Never infer unrestricted group-wide work authorisation from the fact that both companies operate under the same brand. If conditions are unclear, seek confirmation through the competent government process before commencing the new role.

Change of employment versus secondment

A permanent move to a new employer may involve termination or novation of the existing contract and a new agreement. A temporary secondment may preserve the original employment relationship while an affiliate directs day-to-day work. These structures can have different immigration, tax and employment implications. The contract should identify who pays salary, controls duties, bears workplace liabilities and sponsors the immigration permission.

Official visa procedure

The Board of Investment identifies employment-letter and sponsorship documentation for work visa applicants through the designated online system. Where the legal employing entity changes, the parties should establish whether a new application, amendment, extension or notice is legally required. The appropriate process should be confirmed from current official instructions. A company should not issue an inaccurate letter presenting Company B's employee as still working entirely for Company A if the substance has changed.

Sector regulator requirements

A transferred professional may also hold a regulated role under SECP, SBP or another licensing framework. A commodity intermediary, for example, may need regulator approval or notifications for changes in senior management. Immigration approval does not replace a fit-and-proper assessment or a professional licence. The acquiring employer should complete sector checks before allowing the individual to perform reserved functions or use regulated credentials.

Professional registration

Foreign engineers, healthcare practitioners and other professionals may need recognition or registration with the appropriate Pakistani council. The transfer may change the scope of practice or require an additional employer-related step. A visa valid for employment is not a general professional licence. Review the actual qualification, registration and new responsibilities. A move from software project management to reserved engineering certification can raise new requirements even if the worker remains in the same group.

Employment contract and consent

The employee should receive written terms defining the change, remuneration, benefits, leave, reporting line, workplace and any effect on service continuity. A contract may contain mobility clauses, but those must be applied within governing law and the employee's legitimate rights. A transfer that materially reduces salary or ends agreed benefits can create a contractual dispute. Do not assume a parent company's HR policy alone binds every subsidiary employee.

Payroll and tax treatment

Secondments can affect which entity bears salary cost and whether an intercompany charge is made. Pakistani income tax and transfer-pricing rules may require assessment, particularly where a foreign group employer continues payroll. The worker's personal tax position may depend on residence and duties performed. An arrangement in which the employee works full-time in Pakistan but is paid abroad should not be assumed tax-free simply because local payroll is absent.

Corporate governance and authority

If the expatriate is also a director or signatory of one group company, moving employment does not automatically transfer those offices to another corporation. Each board appointment, power of attorney and bank mandate must be considered separately. The companies should use valid resolutions and accurate SECP filings where a genuine governance change occurs. Group management should not treat a director's authority as transferable merely by changing the employee's department.

Social security and benefits

Evaluate accrued leave, provident fund, gratuity and statutory contributions under the current and proposed employment structures. The legal continuity of service may matter for long-term benefits. Parties can negotiate assumption of obligations, subject to mandatory law. A secondment agreement should identify which entity is responsible for employee compensation and insurance during the assignment, particularly where work is performed at high-risk industrial premises.

Confidentiality and data transfer

An employee moving to another group company may receive access to a separate customer database or business system. Prior permissions do not automatically authorise every intercompany data transfer. Define permitted access and confidentiality responsibilities. A change in role should trigger a review of credentials and data location, not automatic inheritance of administrative privileges merely because both entities share ultimate ownership.

Family members and expiry

Where dependants' status depends on the principal employee's immigration permission, employer change may require reassessment. The family should track each approval's validity and confirm any updated sponsorship requirements. New travel should not be booked on the assumption that an old work visa automatically remains valid for every activity at the new company. Official documentary confirmation can avoid avoidable disruption.

Example: technology group

A foreign project manager holds work permission supported by a Pakistani software company and is asked to work full-time for a newly incorporated fintech subsidiary. The fintech operates under a separate licence and has its own board. The group should assess new immigration sponsorship, employment terms and any SBP regulatory restrictions. A simple internal transfer email may not be sufficient to authorise regulated work.

Example: temporary plant assignment

An engineering specialist employed by Company A is seconded for eight weeks to Company B's factory to commission machinery. The group should examine the existing visa scope, host site and safety responsibilities. Short duration does not itself guarantee exemption from immigration or professional rules. The host should provide lawful access and safety training while the employment and sponsorship structure is correctly documented.

Planned transition procedure

Prepare a matrix of current versus proposed employer, activity, location, supervisor, payroll and regulated role. Obtain counsel's advice on the correct immigration category and file any required amendment or new application before the change. Document employment continuity, benefits and tax allocations. Keep acknowledgments, approvals and any government communications in the expatriate's compliance file. The company should not rely only on a travel agent's verbal assurance.

Opinion and recommended course

An expatriate's transfer between related companies can require immigration and employment adjustments because group membership does not remove separate legal personality. Review the visa's actual conditions, new duties and regulatory role; make any required application and document employee consent and benefit continuity. Internal group authority cannot substitute for government work permission.

Principal sources: Board of Investment official Work Visa guidance; Pakistan Online Visa System; Companies Act, 2017; Income Tax Ordinance, 2001; relevant employment, immigration and sector-specific licensing requirements.