Employer of Record in India | EOR India
An Employer of Record (EOR) in India is a third-party organization that acts as the legal employer for a company's employees in the country.
The EOR takes on the responsibilities of hiring, onboarding, payroll management, and ensuring compliance with local labor laws and regulations.
This allows companies to quickly and compliantly hire talent in India without establishing a legal entity.Key benefits of using an EOR in India include:
- Rapid hiring and onboarding of employees without setting up a local entity.
- Handling of payroll, tax withholdings, social security contributions, and statutory benefits.
- Ensuring compliance with complex Indian labor laws and employment regulations.
- Mitigating legal risks and liabilities associated with misclassification or non-compliance.
- Providing local HR expertise and support for managing employees in India.
By partnering with an EOR, companies can focus on their core business operations while the EOR takes care of all employment-related tasks, making it a convenient and cost-effective solution for expanding into the Indian market.
Hiring in India
How to hire employees in India?
There are several effective ways to hire employees in India, leveraging popular job portals and specialized services. Naukri.com, one of the oldest and most widely used job portals in India, boasts over 60 million registered users and receives 180,000+ new resumes daily.
LinkedIn, with its professional networking focus, has over 88 million users in India, making it another powerful platform for job postings.Other reputed job portals in India include:
- Monster India (formerly Foundit) - 70 million registered users
- TimesJobs - 25 million registered users
- Shine - 41 million registered users
- Indeed - 250 million unique monthly visitors globally
For companies seeking top-quality talent, Wisemonk offers specialized hiring services for their Employer of Record (EOR) clients.
Wisemonk has been the trusted hiring partner for many Sequoia and Y Combinator-funded companies, leveraging their extensive network and deep understanding of the Indian job market.Key benefits of using Wisemonk for hiring in India:
- Access to a curated pool of pre-vetted, highly skilled professionals
- Streamlined hiring process, from sourcing to onboarding
- Compliance with Indian labor laws and regulations
- Cost-effective solution compared to setting up a local entity
By combining the reach of popular job portals with the expertise of specialized hiring services like Wisemonk, companies can efficiently build high-performing teams in India while minimizing legal and administrative complexities.
Want to hire talent in India: Let's Talk
Contractors vs Full-time Employees
Employees provide stability, long-term commitment, and are easier to manage and train. However, they require benefits, have higher overhead costs, and are harder to terminate.
Contractors offer specialized skills, flexibility, and lower costs as they don't receive benefits. But they have less company loyalty, require more time to manage, and pose a greater risk of misclassification penalties.
Employees are better for core, long-term roles. Contractors excel in short-term projects needing niche expertise.
The right choice depends on the role, length of engagement, desire for control, and budget. Carefully weigh the tradeoffs for your situation.
Click here to learn more: Remote Hiring in India: Independent Contractor vs EOR Employee Explained
Setting Up an Local Legal Entity vs. Working with an EOR Provider in India
When a company decides to offer employment in India, they must choose between setting up a legal entity or working with an Employer of Record (EOR) provider.
Setting up an legal entity involves establishing a legal presence, registering the business, setting up offices, and complying with local labor laws. This approach provides full control but can be time-consuming, costly, and complex, especially for businesses unfamiliar with Indian regulations.
In contrast, partnering with an EOR provider like Wisemonk simplifies the process. The EOR acts as the legal employer, handling payroll, compliance, and employee benefits administration. This allows businesses to focus on core activities while ensuring adherence to Indian labor laws.
EOR services offer benefits such as compliance assurance, cost-effectiveness, quick market entry, and risk mitigation. The EOR assumes legal responsibility for compliance and employment-related risks, protecting the hiring company from potential liabilities. Ultimately, the choice depends on the company's resources, timeline, and risk tolerance.
Click here to learn more: Detailed Comparison of Entity Establishment vs. Employer of Record (EOR)
Employee Onboarding in India
Welcoming new hires is a critical moment that shapes their first impressions and sets the tone for their employee experience. In India, a well-structured onboarding checklist ensures a smooth transition, compliance with local laws, and integration into the company culture.
Key steps include sending a detailed offer letter, completing necessary paperwork like tax forms and employment agreements, setting up payroll, providing equipment and access, and assigning a buddy.
The onboarding process should familiarize new hires with policies, organizational structure, and their role. By investing time in a comprehensive onboarding checklist, companies in India can boost employee engagement, productivity, and retention right from day one.
Click here to learn more: Detailed Onboarding Checklist for Remote Employees in India
Offer Letter & Employment letter for Employees in India
When hiring employees in India through an Employer of Record (EOR), who should send the offer letter - the client company or the EOR partner?
Both the client company and the EOR partner typically send offer letters. The client company sends an initial offer letter to secure the candidate, outlining key terms like position, compensation, and start date. The EOR then sends a second, more detailed offer letter that reiterates the job details and serves as a precursor to the formal employment contract.
Click here to learn more: Creating and Sending Job Offer Letters for Remote Employees in India
Onboarding Responsibilities: Your Company & EOR
What are the specific responsibilities of the client company and the EOR partner during the employee onboarding process in India?
The client company is responsible for conducting interviews, selecting candidates, determining salary and benefits, preparing necessary equipment and access, and providing a comprehensive onboarding plan.
The EOR partner handles background verification, drafts compliant employment contracts, collects necessary documents (ID proofs, tax forms), sets up payroll accounts, and ensures compliance with local labor laws and regulations.
Click here to learn more: Detailed Onboarding Checklist for Remote Employees in India
Payroll in India
Local Payroll Compliances and Reporting
Payroll management in India involves a complex set of processes to ensure employees are compensated accurately and in compliance with the country's labor laws and tax regulations. The payroll process includes calculating salaries, withholding taxes, making statutory deductions, and disbursing payments to employees.The key components of a typical salary structure in India include:
Key components of payroll management in India include:
- Salary Structure: A typical salary structure consists of basic pay, allowances (such as HRA, LTA, and medical allowance), and statutory contributions like Provident Fund (PF) and Employee State Insurance (ESI). Companies must ensure that their salary structures comply with minimum wage laws and industry standards.
- Statutory Deductions: Employers are required to deduct and remit various statutory contributions from employee salaries, such as Provident Fund (PF), Employee State Insurance (ESI), Professional Tax, and Tax Deducted at Source (TDS). These deductions must be calculated accurately and deposited with the relevant authorities within the prescribed timelines to avoid penalties.
- Payroll Compliance: Companies must adhere to a plethora of labor laws and regulations, including the Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, and Payment of Gratuity Act, 1972. Non-compliance can result in legal consequences and financial penalties.
- Leave and Attendance Management: Tracking employee leaves and attendance is crucial for accurate payroll processing. Companies must maintain proper records and ensure that leave balances are correctly calculated and reflected in the payroll.
- Payroll Processing: The payroll process involves gathering inputs from various departments, validating data, calculating net pay after deductions, and disbursing salaries to employees. This process must be completed within the stipulated timelines and in compliance with all statutory requirements.
Click here to learn more: Statutory Compliance and Payroll for your EOR Employees in India
The payroll process in India typically involves three stages:
- Pre-payroll: Defining payroll policies, gathering employee data, and validating inputs.
- Actual payroll processing: Calculating gross salary, making deductions, and arriving at net pay.
- Post-payroll: Ensuring statutory compliance, maintaining payroll accounting, and disbursing salaries.
To streamline payroll management and ensure compliance, many companies in India are turning to specialized payroll service providers like Wisemonk. Wisemonk offers comprehensive payroll solutions tailored to the unique needs of businesses operating in India.To streamline payroll management and ensure compliance, many companies in India are turning to specialized payroll service providers like Wisemonk. Wisemonk offers comprehensive payroll solutions tailored to the unique needs of businesses operating in India.
By partnering with Wisemonk, companies in India can streamline their payroll processes, ensure statutory compliance, and focus on their core business activities. Wisemonk's comprehensive payroll solutions, combined with its deep expertise in Indian labor laws and regulations, make it the preferred choice for businesses looking to navigate the complexities of payroll management in India.
Taxes in India
Taxes are a critical aspect of the Indian financial system, and employees in India are subject to various types of taxes. The primary taxes that employees need to be aware of are income tax, Tax Deducted at Source (TDS), and professional tax. Understanding these taxes and their respective brackets is essential for financial planning and compliance.
Income Tax
Income tax is a direct tax levied by the government on an individual's income. In India, the income tax rates for the financial year 2023-24 are based on a progressive tax system, where the tax rate increases as the taxable income increases. The tax slabs for individual taxpayers below 60 years of age are as follows:
- Up to ₹2,50,000: Nil
- ₹2,50,001 to ₹5,00,000: 5%
- ₹5,00,001 to ₹7,50,000: 10%
- ₹7,50,001 to ₹10,00,000: 15%
- ₹10,00,001 to ₹12,50,000: 20%
- ₹12,50,001 to ₹15,00,000: 25%
- Above ₹15,00,000: 30%
For example, if an employee's annual taxable income is ₹8,00,000, their income tax calculation would be:
- First ₹2,50,000: Nil
- Next ₹2,50,000 (₹2,50,001 to ₹5,00,000): 5% of ₹2,50,000 = ₹12,500
- Next ₹2,50,000 (₹5,00,001 to ₹7,50,000): 10% of ₹2,50,000 = ₹25,000
- Remaining ₹50,000 (₹7,50,001 to ₹8,00,000): 15% of ₹50,000 = ₹7,500
Total income tax payable: ₹12,500 + ₹25,000 + ₹7,500 = ₹45,000
Tax Deducted at Source (TDS)
TDS is a mechanism where the tax is deducted at the source of income by the payer and deposited with the government. Employers are required to deduct TDS from their employees' salaries based on the applicable tax slab rates. The deducted amount is then remitted to the government on behalf of the employee.For example, if an employee's monthly taxable salary is ₹1,00,000, and their annual taxable income falls in the 30% tax bracket, the employer will deduct ₹30,000 (30% of ₹1,00,000) as TDS every month and remit it to the government.
Professional Tax
Professional tax is a tax levied by state governments on salaried individuals, professionals, and businesses. The tax rates and slabs vary from state to state. In most states, employers are responsible for deducting professional tax from their employees' salaries and remitting it to the state government.
For instance, in Maharashtra, the professional tax slabs for salaried individuals are:
- Up to ₹7,500 per month: Nil
- ₹7,501 to ₹10,000 per month: ₹175 per month
- Above ₹10,000 per month: ₹200 per month (maximum limit)
Deductions and Exemptions
The Indian tax system offers various deductions and exemptions that can help employees reduce their taxable income and, consequently, their tax liability. Some of the common deductions and exemptions include:
- Section 80C: Deductions up to ₹1,50,000 for investments in Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), life insurance premiums, and more.
- Section 80D: Deductions for health insurance premiums paid for self, spouse, children, and parents.
- House Rent Allowance (HRA): Exemption on a portion of the HRA received from the employer, subject to certain conditions.
- Leave Travel Allowance (LTA): Exemption on travel expenses incurred for self and family within India, subject to certain conditions.
- Standard Deduction: A flat deduction of ₹50,000 from the taxable salary income.
For example, if an employee invests ₹1,00,000 in PPF and pays ₹25,000 towards health insurance premiums, they can claim deductions of ₹1,25,000 under Sections 80C and 80D, respectively, thereby reducing their taxable income.
In conclusion, understanding the various taxes applicable to employees in India, along with the available deductions and exemptions, is crucial for effective tax planning and compliance. Employees should consult with tax professionals or use reliable tax calculation tools to determine their tax liability accurately and take advantage of the tax-saving opportunities provided by the Indian tax system.
State and National Government Tax Filings in India
India has a complex tax system that involves both state and national level filings. The primary taxes that employers must account for include:
- Income Tax (TDS): Employers are required to deduct Tax Deducted at Source (TDS) from employees' salaries and remit it to the government. The tax slabs for the financial year 2023-24 range from 0% to 30%, with additional surcharges and cess applicable based on the total income.
- Provident Fund (PF): Both the employer and employee contribute 12% of the basic salary towards the employee's retirement savings. The employee's contribution is eligible for tax deduction under Section 80C of the Income Tax Act.
- Employee State Insurance (ESI): ESI is applicable to employees earning up to ₹21,000 per month. The employee contributes 0.75% of their salary, while the employer contributes 3.25%.
- Professional Tax: Professional Tax is a state-level tax, and the amount varies by state. It is deducted from the employee's salary based on predefined slabs.
- Goods and Services Tax (GST): Companies providing services may be required to register for and pay GST if their annual turnover exceeds the prescribed threshold (₹20 lakhs in most states, ₹10 lakhs in special category states).
When hiring employees in India through an Employer of Record (EOR) partner, companies can benefit from a streamlined process for managing state and national government tax filings. The EOR partner acts as the legal employer of record and assumes responsibility for ensuring compliance with Indian tax laws and regulations on behalf of the client company.
By partnering with an experienced EOR provider like Wisemonk, businesses can streamline their tax compliance processes, ensure adherence to local regulations, and minimize the risk of penalties. The EOR acts as an extension of the client company, handling all aspects of tax filings and allowing them to focus on their core operations. This arrangement provides peace of mind and enables companies to leverage the vast talent pool in India without the burden of tax complexities.
Wisemonk's Employee Tax Optimization
In the post-pandemic world of remote work, skilled professionals in India have exciting opportunities to work for foreign firms. However, a significant portion of their income is lost to taxes. Did you know that salary earned for services rendered in India is taxable, regardless of residential status or where payment is received? With the new tax regime, individuals earning above ₹15 lakhs per annum fall into the 30% bracket, meaning ₹30 of every ₹100 earned goes to income tax.
Wisemonk, as your Employer of Record (EOR) in India, acts as the legal employer, optimizing employee taxes and enhancing take-home pay. Our expert team handles complex tax regulations, statutory contributions, and compliance on your behalf. We provide personalized tax planning services, leveraging deductions, exemptions, and benefits under Indian laws. Partner with Wisemonk to ensure your employees receive maximum tax benefits while reducing liabilities and simplifying compliance.
We ensure your employees receive the maximum tax benefits available under Indian regulations.
Click here to learn more: Employee Tax Optimization in India
Leaves in India
Leaves are an essential aspect of employee welfare and work-life balance in India. The country's labor laws mandate various types of leaves to ensure the well-being of employees and compliance with international standards. This brief will provide an overview of the different types of leaves available to employees in India, along with their key features and legal provisions.
Types of Leaves in Indian employment laws
- Earned Leave (EL) or Privilege Leave:
- Employees are entitled to a minimum of 15 days of earned leave per year, which can be carried forward.
- Earned leave is credited to the employee's account at a rate of 1.25 days per month.
- Casual Leave (CL):
- Employees are usually entitled to 7-10 days of casual leave per year.
- This leave is meant for unforeseen circumstances and cannot be carried forward.
- It is often used for personal emergencies or short-term needs.
- Sick Leave (SL):
- Employees are typically entitled to 12 days of sick leave per year.
- This leave is meant for short-term illnesses and can be accumulated in some organizations.
- The Indian Shops and Establishment Act allows up to 7 days of paid sick leave.
- Maternity Leave:
- As per the Maternity Benefit (Amendment) Act, 2017, female employees are entitled to 26 weeks of paid maternity leave.
- This includes 8 weeks of pre-natal and 18 weeks of post-natal leave.
- Paternity Leave:
- While there is no statutory requirement for paternity leave in the private sector, some companies offer it as a benefit.
- Some progressive companies, such as Zomato, offer up to 26 weeks of paternity leave, similar to maternity leave.
- Bereavement Leave:
- In the event of the demise of a family member, employees are entitled to bereavement leave.
- While there are no laws mandating such leave, most companies provide it on the grounds of compassion.
- The duration of bereavement leave varies across organizations.
- Marriage Leave:
- Some companies offer marriage leave to employees getting married or attending a family member's wedding.
- The duration and eligibility criteria for marriage leave vary across organizations.
- Sabbatical Leave:
- Sabbatical leave is offered to employees for pursuing higher education, career breaks, or dealing with family/health crises.
- There are no legal provisions for sabbatical leave, and it is granted at the discretion of the employer.
Legal Provisions and Compliance
The Factories Act, 1948, sets the general guidelines for leave policy in India. However, there are also state-specific laws that govern leaves. Employers must ensure compliance with both central and state regulations to avoid legal consequences.
The Shops and Establishment Act of each state also prescribes leave entitlements for employees in commercial establishments. These acts typically mandate a certain number of earned leaves, sick leaves, and casual leaves per year.
Employers are required to maintain proper records of leave taken by employees and ensure that leave balances are correctly calculated and reflected in the payroll. Non-compliance with leave regulations can result in legal penalties and damage to the employer's reputation.
List of General Public Holidays in India
Employee Benefits in India
Employee benefits are a crucial aspect of the compensation package offered by companies in India. These benefits not only help attract and retain top talent but also contribute to employee well-being and job satisfaction. In India, employee benefits can be broadly categorized into statutory and supplementary benefits.
Statutory Benefits in India
Statutory benefits are mandated by various labor laws and are compulsory for employers to provide. Some key statutory benefits include:
- Employees' Provident Fund (EPF): Both employers and employees contribute 12% of the basic salary to this retirement savings scheme.
- Gratuity: Employees who have completed at least five years of service are entitled to gratuity, calculated as 15 days' salary for each completed year of service.
- Employees' State Insurance (ESI): This provides medical benefits to employees earning below a certain threshold. Employers contribute 3.25% of the salary, while employees contribute 0.75%.
- Maternity Leave: Female employees are entitled to 26 weeks of paid maternity leave under the Maternity Benefit Act.
- Bonus: Companies with 20 or more employees must pay a bonus of 8.33% to 20% of the salary to eligible employees under the Payment of Bonus Act.
Supplementary Benefits in India
In addition to statutory benefits, many companies offer supplementary benefits to enhance their employee value proposition. Common supplementary benefits include:
- Health Insurance: Group health insurance policies cover employees and their dependents for hospitalization and medical expenses.
- Life and Accident Insurance: Companies often provide term life insurance and accidental death and disability coverage.
- Retirement Benefits: Voluntary retirement savings schemes like the National Pension System (NPS) are gaining popularity.
- Flexible Work Arrangements: Many companies now offer remote work options and flexible schedules to promote work-life balance.
- Meal and Transportation Allowances: Employers may provide meal vouchers, subsidized cafeteria facilities, or transportation allowances.
- Wellness Programs: Some companies offer gym memberships, health check-ups, or wellness workshops to promote employee well-being.
Wisemonk's Flexible Benefits Plan for EOR Employees
Wisemonk offers a comprehensive Flexible Benefits Plan (FBP) that allows employees to customize their salary components according to their personal needs, resulting in significant tax savings. The plan includes a range of benefits such as meal cards, fuel allowances, gift cards, and reimbursements for telecom, attire, and books. Wisemonk's integrated payroll system simplifies the management of these benefits, making it easy for employees to avail tax savings of up to ₹40,000 annually.
For employers, the FBP helps increase employee satisfaction and retention without raising CTC. With a 100% compliant platform, Wisemonk's Flexible Benefits Plan offers a win-win solution for both employees and employers.
Terminations in India
The termination process for employees in India differs depending on whether they are independent contractors or hired through an Employer of Record (EOR). For contractors, termination is primarily governed by the terms outlined in their contract, which should specify notice periods, circumstances for termination, and any applicable penalties. Immediate termination is possible for cause, such as contract breaches. In contrast, terminating EOR employees is subject to Indian labor laws.
Key steps involved in terminating employees in India:
Notice Period:
- Typically, a one-month notice or one month's salary in lieu of notice is required for employees employed for at least one year.
- The notice period can be mutually agreed upon in the employment contract.
Termination for Cause:
- Immediate termination is possible for serious misconduct such as insubordination, fraud, or theft.
- In such cases, the employer must follow proper disciplinary procedures and have strong evidence to justify the termination.
Full and Final Settlement:
- The employer must provide the terminated employee with a full and final settlement, including outstanding salary, unused leave encashment, reimbursements, and any other statutory dues.
- The settlement should be completed and paid out along with the employee's last drawn salary.
- Employees with at least five years of continuous service are eligible for gratuity upon termination, except in cases of serious misconduct.
Documentation:
- The employer should issue a termination letter stating the reason for termination and the last working day.
- Other key documents include a relieving letter, experience certificate, and a full and final settlement statement.
Employer of Record (EOR) Responsibilities:
- If the employee is hired through an EOR, the EOR is responsible for ensuring compliance with Indian labor laws during the termination process.
- The EOR will manage the notice period, calculate the final settlement, issue necessary documentation, and ensure the employee receives all statutory payments.
Key Considerations:
- Companies must have a valid reason and follow due process when terminating an employee in India to avoid legal disputes.
- Employers should maintain proper documentation and records related to employee performance, disciplinary issues, and the termination process.
- Seeking legal counsel is advisable to ensure compliance with Indian labor laws and to handle any potential disputes or litigation.
In summary, terminating an employee in India involves serving proper notice, providing a clear reason, paying out the full and final settlement, and complying with applicable labor laws. Employers, or their EOR partners, must follow due process to mitigate legal risks and ensure a smooth offboarding.
Visa and Work Permits in India
Navigating the complex landscape of visas and work permits in India can be a daunting task for foreign companies looking to hire talent in the country. Wisemonk simplifies this process by providing comprehensive support for obtaining the necessary visas and work permits for your employees. Our experienced team guides you through the entire process, ensuring compliance with Indian immigration laws and regulations. We handle the paperwork, document verification, and liaising with relevant authorities, allowing you to focus on your core business objectives.
If you prefer to handle the visa and work permit process independently, here's a step-by-step guide:
Visa Application Process:
- Determine the appropriate visa category (e.g., Employment Visa, Business Visa) based on the purpose of your visit.
- Apply online through the official Indian Visa Online website (https://indianvisaonline.gov.in/visa/). Fill out the application form, upload required documents, and pay the visa fee.
- Schedule an appointment at the nearest Indian Visa Application Center (IVAC) or Indian Mission/Post to submit your physical application, passport, and supporting documents.
- Attend the visa interview, if required, and provide biometric information.
- Track your application status online using the visa enquiry feature on the Indian Visa Online website.
- Collect your passport with the visa stamp from the IVAC or Indian Mission/Post, or receive it by post.
Work Permit (Employment Visa) Requirements:
- Applicant must be a highly skilled professional, employed by a company registered in India.
- Annual salary should be at least US$25,000, with some exceptions for certain professions.
- Visa must be issued from the applicant's country of origin or domicile.
- Applicant must comply with all legal requirements, such as payment of taxes.
- Supporting documents include passport, photos, proof of employment, registration documents of the Indian company, and proof of professional expertise.
Foreigner Registration:
- Foreigners staying in India for more than 180 days must register with the Foreigners Regional Registration Office (FRRO) or Foreigners Registration Officer (FRO) within 14 days of arrival.
- Registration can be done through the e-FRRO portal (https://indianfrro.gov.in/eservices/home.jsp).
- Required documents include passport, visa, proof of residence, employment contract, and photographs.
- A Residential Permit and Registration Certificate will be issued upon successful registration.
Useful Websites:
- Indian Visa Online: https://indianvisaonline.gov.in/visa/
- e-FRRO Portal: https://indianfrro.gov.in/eservices/home.jsp
- Ministry of Home Affairs (Visa Division): https://www.mha.gov.in/division_of_mha/visa-division
It is essential to check the latest requirements and guidelines on the official websites, as regulations may change over time. Consulting with the nearest Indian Embassy, High Commission, or Consulate is also recommended for the most up-to-date information and assistance with the visa and work permit application process.
Choose Wisely, Choose Wisemonk!
Wisemonk is also a leading Employer of Record (EOR) service provider, enabling global companies to hire, pay, and manage talent in India effortlessly, without local entities or bank accounts. We offer best-in-class EOR services with features like local payments, equipment integration, lowest FX rates, and employee tax-saving options.
As a comprehensive platform, Wisemonk provides EOR services, payroll management, equipment procurement, and expert support, all powered by advanced technology.
Wisemonk stands out with its transparency, value, and local expertise. With pricing starting at just $100 per employee per month, we are affordable for businesses of all sizes. Enjoy the industry's lowest FX markup (<0.6%), expense reimbursements, employee gifting, and bonus payouts at no extra cost.
Ready to elevate your business with top Indian talent? Contact Wisemonk today to see how our Employer of Record EOR services can help you achieve your goals while minimizing costs and compliance risks.
Click here to speak to an expert and start building your world-class team in India!
FAQs
Q: How does an Employer of Record ensure compliance with local labor laws in India?
A: An Employer of Record (EOR) in India stays up-to-date with the complex and ever-changing local labor laws and regulations. They handle all legal aspects of employment, including contracts, payroll, taxes, and benefits, ensuring full compliance with Indian labor laws on behalf of the client company.
Q: What are some key Indian labor laws that an EOR helps navigate?
A: Some important Indian labor laws an EOR assists with include the Minimum Wages Act, Payment of Wages Act, Employees' Provident Funds and Miscellaneous Provisions Act, Employees' State Insurance Act, Maternity Benefit Act, and various state-specific Shops and Establishments Acts governing work hours, leave, and employee welfare.
Q: How does an EOR act as the legal employer for a company's workforce in India?
A: An Employer of Record (EOR) in India becomes the legal employer of record for a company's employees. The EOR assumes all legal responsibilities and liabilities associated with employment, while the client company maintains day-to-day control over the employees' work and performance.
Q: What are the benefits of using an employer of record in India?
A: Using an employer of record (EOR) in India allows companies to hire and manage employees without setting up a legal entity. The EOR ensures compliance with Indian employment laws, handles payroll, taxes, and benefits administration, and reduces the company's legal and financial risks.
Q: How does an EOR help companies comply with Indian employment laws when hiring international employees?
A: An Employer of Record (EOR) in India assists companies in hiring international employees by ensuring compliance with Indian employment laws, including obtaining necessary work visas and permits, drafting locally compliant employment contracts, and managing payroll and taxes as per Indian regulations.
Q: Can an EOR help manage employment contracts for a company's remote workers in India?
A: Yes, an Employer of Record (EOR) in India can draft and manage employment contracts for a company's remote workers in compliance with Indian labor laws. The EOR ensures that the contracts include all necessary clauses and provisions, protecting both the company and the employees.
Q: How does an EOR support companies in providing employee benefits to their Indian workers?
A: An Employer of Record (EOR) in India helps companies provide statutory and supplementary employee benefits to their Indian workers. The EOR ensures compliance with mandatory benefits such as Provident Fund and Employee State Insurance, and can also assist in offering additional benefits like health insurance and leave policies.
Q: What are the advantages of partnering with an EOR for legal compliance when managing a global workforce?
A: Partnering with an Employer of Record (EOR) for legal compliance when managing a global workforce offers several advantages. The EOR ensures adherence to local labor laws, reduces the company's legal and financial exposure, and allows the company to focus on its core business activities while the EOR handles the complexities of international employment compliance.
Is there a minimum or maximum number of employees I can onboard using Wisemonk?
Wisemonk is designed to cater to businesses of all sizes. Whether you're looking to onboard a single employee in India or set up a team across multiple countries, we've got you covered.
