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I
ndia
B
riefing
·
Issue 30
·
February
2016
When drafting contracts, employers should pay
special attention to the Industrial Disputes Act,
which provides a large number of protections
to employees; the Shops and Establishments
Act, which governs the hours of work, payment
of wages, leave, holidays, terms of service and
other conditions; as well as the several wage and
remuneration acts, which regulate the payment
of wages, bonuses, and equalize pay for men and
women. Any termination policy outlinedwithin the
contract should be checked against the current
law prior to it being carried out. For example,
companies that employ more than 100 workers
need government permission to conduct layoffs.
Besides company rules and regulations, employers
are advised to incorporate the following clauses
into contracts:
• Non-disclosure;
• Employee poaching;
• Unfair competition;
• Trademarks, patents and trade secrets.
Employing Foreign Nationals
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.
To obtain an employment visa, Indian authorities
require documentation from the applicant and his
or her employer. While the necessary documents
are dependent on the applicant’s nationality, the
majority are the same for developed economies in
Europe and North America.
Withexceptions for the IncorporationCertificateand
PAN card, which can be scanned or photocopied,
every other document provided by the employer
needs to be an original copy. Each of these original
copies need to be drafted on company letterhead,
signed by a senior manager, and marked with the
company’s official stamp. Due to these stipulations,
overseas applicants need the employer to send
original copies by mail.
Visa Requirements for Foreign Nationals Working in India
• Permission letter that requests approval for the applicant’s visa
• Sponsorship letter
• Tax liability letter pledging responsibility for the applicant’s
income tax in India
• Justification letter confirming that a qualified Indian candidate
was unavailable/unsuitable
• Details of the applicant’s unique specialization and
professional capabilities
• Appointment letter detailing the job role and salary
• Comprehensive employment contract
• Copy of the company’s Permanent Account Number (PAN)
card
• The company’s Incorporation Certificate
• Application form
• A completed visa application form
• A valid passport
• A passport sized photo
• Proof of address, such as a driver’s license or utility bill
• A detailed curriculum vitae
• At least 18 years old
• In good health
• Filling a position unsuitable for a qualified Indian
employee
• Will not be working in a routine, secretarial or clerical job
• Must have an annual salary in excess of US$ 25,000
(with the exception of language teachers, ethnic cooks,
embassy staff and voluntary workers)
6
WEEKS
DOCUMENTS REQUIRED FROM EMPLOYEE
EMPLOYEE ELIGIBILITY
DOCUMENTS REQUIRED FROM EMPLOYER
APPROXIMATE TIME TO COMPLETE