A website providing a legal guide for hiring employees abroad from India, covering FEMA rules, PE risk, EOR options, and cross-border employment contracts. It discusses how Indian and host-country laws interact and cautions against using Indian-only contracts.

When an Indian company pays someone sitting outside India for work, two legal systems get triggered at the same time — Indian law and the law of the country where the worker is physically present.

Most Indian companies think they can just apply the same contract they give to their employees in India. That is where the first mistake happens.

Under Indian employment law, specifically under the new Labour Codes (2025), the employment relationship is defined by where the work is performed, not where the employer is registered. This means if your employee is sitting in Germany, German labour law will govern many of their rights — even if their salary comes from an Indian bank account.

A Agarwalla

Hiring Employees Abroad from India: Legal Guide

Hiring Employees Abroad from India. Learn FEMA rules, PE risk, EOR options, and cross-border employment contracts.