A German national is working in UAE (with contract and visa), part of his work is to oversee projects in India - under a sister company of the UAE company. His salary is all inclusive, so his package in Dubai includes the work in India
Questions:
Does the employee have any tax liability in India
If he signs documents under the sister company - will it be binding
Is there any provision of the labor law in India covering remote workers - outside country
No I think, because no compensation paid in India. Also the person is not visiting India/staying in India
Important and critical - require consultation with a specialist in this area
Organizations in India still engage Foreign Nationals in various capacities including remote ind contractors. The Governement of India (GOI) has not introduced any labour laws or guidelines around remote working. However, GOI is in the process of including this in the new labour laws - codes ( International Employment Lawyer, Nishith Desai Associates also made a note on this)
One of our current female employee (working with us from past 5 years) is moving to Dubai as she is getting married and she would like to continue working with us from home as we don’t have any office in Dubai as full time employee, we have office only in Bangalore, Karnataka.
Is that okay to continue as full time employee and working from Dubai home?
Is there any provisions need to be followed like any changes in PF, TDS, PT and others? or can we continue the same?
Is it fine to pay the salary in INR to her Indian Bank account only?
If she is relocating in Dubai - I believe she will be under her husband’s visa - so no issues with Dubai policies.
Just sharing my limited knowledge on the salary part - if the company will pay her in Dirhams, there might be banking issues that will be encountered as India is very concern on outward transfers. So maintaining the salary in her Indian bank will be beneficial to the company - less headache.
I assume her citixenship will continue as Indian, going to Dubai with spouse and not on employment visa. If infrastructrure is not a problem (like internet), for a temporary arrangement, you can treat the person as your employee at the locaton India - Bengaluru, working remote. Not seeing an hurdle as such because you are not paying any compensation in AED or USD.
It is almost ike how temporary onsite employment in IT sector work - Software Engineers work onsite (Eg:- Employee work at client place or HQ in US but only allowance will be paid in USD to take care of the expenses onsite, salary will be paid in INR as usual in their salary accounts.
However as per UAE records, the person will be unemployed and can not take up employment I guess until exit from this job. Suggest to get some clarity in this from an expert legal professional.
Also need valuable inputs from experts in this forum. As more organizations are getting distributed worforce including overseas manpower, it is good to have better clarity in this area.
If I may add, in UAE once you are under a spouse visa - you can work with that visa. And since the company is outside UAE, it will all be fine - legally wise, as long as the visa of the husband will be active, her visa (right to stay in UAE) will also be fine.
Yes, her citizenship will be continued as Indian and going to Dubai with Spouse on family visa. Is there any extra tax related or legal formalities that we need to do?
