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I hired someone in my team, and this person can start straight away as she is on her father's visa, so there is minimal paperwork. But my finance/HR dept are telling me that they officially cannot start in working until their labor card is processed.

Is this true? Can we start this person and just advise the ministry that the labor card is in progress? Isn't that the way most companies do it??
Are there any implications?

Pls advise

"on her father's visa" is residency permission, not work permission.

Working while on residency visa from father/husband is common but not legal unless the company has provided a work permit / labour card.

If she does start working there before the work permit is processed, telling the labor department that you're breaking the law is probably not a clever idea.