Compliance for Employee Deputation to Abu Dhabi

We are going to depute one employee in Abu Dhabi for 3 to 4 years, and we will pay only the basic salary from India. The rest of the salary will be paid to him by another consultancy over there. Can you please confirm which compliance we need to follow in this case? Also, please suggest on the below-listed questions:

1. Can we show him as a full-time employee continuously, or do we need to change his employment status?
2. Are there any specific compliance requirements that we need to cover for the employee?
3. What will be the employee's location in the record? Can we show him as a remote employee?

We are registered under the Punjab Shop and Establishment Act. Thanks in advance.

From India, Mohali
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Dear Pradeep, this is not unique for Indian companies. Most HR professionals are not familiar with the obligations and administration concerning 'employees deputed abroad' and their split salary aspects. I tried to suggest a few things; I hope this helps you.

Obligations for Employees Deputed Abroad

There are mainly two or three obligations I could point out to you:

1) Statutory obligations under Indian acts and rules, as the employee(s) still continue to be on the Indian company's payroll.
2) Tax implications.

In this quest, the following links will provide insight into these aspects, with text/extracts also attached herein for your ready reference.

- Employer's Duty of Care When Employees Are Deputed...
www.internationalsosfoundation.org › asia-pacific › india
- https://taxguru.in/wp-content/upload...nce-Ruling.pdf

These may provide some information broadly as a cursory look. Expert advice from those with practical experience and guidance from concerned authorities should be availed for better administration.

From India, Bangalore
Attached Files (Download Requires Membership)
File Type: pdf Employers' duty when employees Deputed abroad.pdf (165.2 KB, 53 views)
File Type: pdf NRI Taxation- Case law-In-re.-Texas-Instruments-India-P.-Ltd.-Authority-for-Adavance-Ruling-1.pdf (252.3 KB, 24 views)
File Type: pdf NRI-HR-Indian-regulations-for-expatriates-working-in-India.pdf (162.6 KB, 35 views)

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