Human Resources & Payroll

Traveling in India – Business Etiquette and Culture

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By Dezan Shira & Associates

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India is a land of cultural diversity. It is one of the oldest civilizations in the world, and is a complicated mixture of old and new traditions from the West and East. The vivacity of its large cities, the variety of people, the mêlée of sounds, the richness of colors and smells, and the unpredictable nature of day-to-day life – all defines India. If you are planning to do business with or in India, it is important to try and understand the astonishing richness of this vibrant culture.

Given India’s complexity, it is important to avoid generic conclusions on how to do business here. Regionalism, industry, and people are all factors to be taken into account when doing business in India. One’s behavior, etiquette, and approach may need to be modified, depending on whom you are working with.

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GST Impact on the Flexi-Staffing Industry in India

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By Srinivas Raman

The introduction of the Goods and Services Tax (GST) regime has increased the demand for temporary jobs and organized flexi-staffing firms in India. The flexi-staffing industry in India is worth approximately US$280 billion (Rs 27,000 crores), and is expected to develop in a positive way due to the impact of GST.

How does the flexi-staffing model work in India?

Flexi-staffing or contract labor refers to an employment model where employees are hired by a staffing agency (contractor), and lent out to work at and under the supervision of a user company (principal employer). In such a model, the principal employer does not have any direct employment relationship with the flexi-employees, although they may be liable to fulfill certain limited legal obligations.

In India, the flexi-staffing industry employs more than two million workers in the organized sector – the majority of whom are aged 21-30 years. Most flexi-employees are employed in jobs such as data operations, accounts, sales, back end operations, administration, and marketing.

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Registering Your Indian Employment Visa

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CB-illustrationBy Dezan Shira & Associates

Expatriates first in-country encounter with Indian bureaucracy often occurs at the Foreign Regional Registration Office (FRRO). After obtaining an Indian visa, registering the visa at an FRRO is often an afterthought for expatriates. Unfortunately, however, registering a visa is a cumbersome process.

If the duration of the visa exceeds six months (180 days), the visa holder must register the visa within 14 days of arrival at a FRRO. An exception to this is for Pakistan nationals, who must register within 24 hours. However, expatriates should note that the rules might differ in different jurisdictions, such as the Chennai FRRO that requires registration procedures be initiated withing 24 hours. 

Long-term visa holders should plan to register their visa as soon as possible; failing to register a visa within the specified time period can result in a fine, and in some cases, an investigation. An investigation can take several weeks – the visa holder is not permitted to leave the country during this time period. In addition, investigations may complicate any future visa applications or renewals. 

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India Hikes Wage Ceiling under Payment of Wages Act

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By Srinivas Raman

India’s federal government recently increased the monthly salary ceiling from US$280 (Rs 18,000) to US$375 (Rs 24,000) – widening the ambit of workers covered under the provisions of the Payment of Wages Act of 1936.

The Payment of Wages Act is a federal law that regulates the disbursement of wages and salaries to certain categories of employed persons in India. These categories broadly cover any person employed in any factory or industrial establishment as well as any other class of establishment, which the federal government may prescribe.

The Act fixes the wage-periods, time of payment of wages, the manner and mode of making deductions (employee’s provident fund contribution, life insurance premium, fines, deductions for absence from duty, deductions for damage or loss of goods of the employer), and mandates the maintenance of registers and records. Employees who earn a monthly salary as specified under the Act are covered under its provisions.

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India’s Minimum Wage Structure: A Brief Explainer

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By A&A LAW

Businesses in India have to contend with multiple sources of wage and employment regulation.

These include the constitution, labor statutes, judicial precedents, and collective and individual agreements.

Further, Indian labor law comes under the jurisdiction of both federal and state governments, complicating matters such as the computation of minimum wage.

This article intends to throw light on some of the most frequently asked questions on the application and calculation of minimum wages in India.

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Outsource Payroll Processing and Optimize your Business Operations in India

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By Dezan Shira & Associates

Small and medium enterprises (SMEs) in India may find it challenging to keep track of the country’s changing social security, tax, and regulatory norms when computing payroll for its employees.

This is why it becomes advisable to outsource payroll – which is a functional mix of human resources and accounting – to a qualified third-party service provider. Such a policy frees the company to focus on its core business functions and profit-making operations.

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India’s Employment Visa Procedures

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By Dezan Shira & Associates

Employment visas are an annual headache for foreign businesses and businesspeople in India – Indian authorities typically issue one-year multiple entry visas that can be renewed for up to five years. To ensure a quick turn-around time on a successful application, applicants and employers should take a collaborative, hands-on approach

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Due Process in Terminating an Employee in India

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By Dezan Shira & Associates

Employers are exposed to a number of legal and reputational risks resulting from wrongful termination, or not following due process. Employers should, therefore, plan to construct contracts and human resource (HR) materials to ensure that senior management, HR personnel, and employees are fully apprised of their rights and responsibilities.

There is no standard process to terminate an employee in India. An employee may be terminated according to the individual labor contract signed between the employee and the employer, if the contract defines a process for termination. Employers should be aware, however, that labor laws supersede the provisions of labor contracts – any termination policy or clause outlined within a contract should be checked against the law by a professional.

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