Hi,
Could someone please help me understand how an employee sent to the US on an H1B visa is treated back in India? Do they need to resign from the Indian company? Since they will be receiving a US salary, do we need to process some minimum salary here to maintain their employment status in India, or do they cease to become our employee from the time they are deputed to the US? If the deputation is for a short period, do they come back after that and join the Indian company as a fresh employee, or do they continue as the old employee?
All help will be highly appreciated.
Thank you.
Shyamili
From India, Bangalore
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Could someone please help me understand how an employee sent to the US on an H1B visa is treated back in India? Do they need to resign from the Indian company? Since they will be receiving a US salary, do we need to process some minimum salary here to maintain their employment status in India, or do they cease to become our employee from the time they are deputed to the US? If the deputation is for a short period, do they come back after that and join the Indian company as a fresh employee, or do they continue as the old employee?
All help will be highly appreciated.
Thank you.
Shyamili
From India, Bangalore
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Dear Shymaili,
It depends on the project for which the employee is sent onsite. I worked for an MNC which was headquartered in the US. Each time we sent an employee onsite for a long-term assignment, we would stop his salary in India but continue the PF and Gratuity payments to his account. Once he would return, we would resume his salary as per the decided industry standards. The employee would join the US Headquarters and would be paid by them during the assignment. It would be treated as an internal transfer.
However, there was another firm headquartered in India, with its office in the US, that used to manage the transition differently. They would continue the salary in India and almost offer per diem for a short term, i.e. 3 months assignment. In case of a long-term assignment, they had a different payout at the US office where the employee would report.
Hope this answers your question.
From India, Mumbai
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1872It depends on the project for which the employee is sent onsite. I worked for an MNC which was headquartered in the US. Each time we sent an employee onsite for a long-term assignment, we would stop his salary in India but continue the PF and Gratuity payments to his account. Once he would return, we would resume his salary as per the decided industry standards. The employee would join the US Headquarters and would be paid by them during the assignment. It would be treated as an internal transfer.
However, there was another firm headquartered in India, with its office in the US, that used to manage the transition differently. They would continue the salary in India and almost offer per diem for a short term, i.e. 3 months assignment. In case of a long-term assignment, they had a different payout at the US office where the employee would report.
Hope this answers your question.
From India, Mumbai
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