Can your employee move to India and stay with the company?
Yes, an employer can retain an employee who moves to India when the move is approved, the person has permission to do the proposed work, and a workable Indian employment and payroll route is ready. Those are separate decisions. An employment arrangement does not grant immigration permission, and a residence document does not necessarily authorize every job or employer.
A permanent move may require local employment through an Indian subsidiary or, where suitable, an employer of record (EOR). The route depends on permission, employer, role, work state and registrations. An employer-specific Employment Visa may restrict a change, so settle that and first-pay readiness before work.
Establish the facts before approving the move
Before approving a permanent move, record the facts that change the answer:
- The employee's current country, actual legal employer and proposed last day there.
- Their current India permission category and its employer, work and location conditions. Confirm status through the company's secure process.
- The India city and state, primary worksite, job duties, expected duration and planned start date. Review any origin-country notice, consultation or termination obligation before choosing an end date; this article's worked case assumes a freely chosen employee resignation.
- Whether the role involves managing an Indian operation, negotiating or signing local contracts, serving local clients, regulated work, or handling sensitive information from India.
- Whether the group already has an Indian entity, who would sign the local contract, and which entity would run payroll.
- Existing service date, accrued leave, bonus and equity terms, benefits, probation, notice and any consultation or employee-agreement steps in the origin country.
A temporary assignment and a permanent move are different cases; duration alone creates no universal work or tax safe harbor. For a foreign national, check the Employment Visa conditions against the job and employer. Business visits and e-Visas do not generally authorize employment. See Indian mission guidance and official e-Visa conditions.
India's Labour Codes are in force, but state, establishment and worker category still matter, as the commencement notice confirms. For Mumbai, verify applicable leave coverage under the Maharashtra Shops Act and the employer's separate professional-tax registration.
Choose the destination employment arrangement
Choose the legal employer and permission route together. A payroll vendor or contract label cannot solve an immigration restriction.
An Employment Visa requires an eligible role and sponsor. Official mission guidance says a foreign firm without an Indian project office, subsidiary, joint venture or branch cannot itself sponsor one. An Indian project customer may sponsor a foreign vendor employee only for its genuine project, not an ordinary remote move. Employer changes are restricted; any qualifying group change needs prior Ministry approval, otherwise arrange appropriate fresh permission. See MHA guidance. The immigration owner must confirm and calendar the current visa-specific FRRO/FRO registration requirements, deadline and exemptions, including the visa endorsement. Post-arrival filings are separate from work permission and employer payroll registrations; mission instructions identify the registration authority and online services.
An EOR does not resolve client-authority, regulated-role or tax-presence questions.
Agree what happens to pay, benefits and existing rights
In this hypothetical case, Ontario Parent Inc. employs a technical individual contributor for 4 years and 6 months. The employee freely requests a permanent move to Mumbai, Maharashtra, resigns from the parent effective 30 November 2026, and starts with the group's existing Indian subsidiary on 1 December. The premise is that the employee already has independent permission for this specific job, employer and location. The parties use a new India contract, with no probation; the company recognizes earlier service only for its named internal promotion and recognition band. The parent pays the verified earned Ontario vacation balance, which does not become Indian leave. Assume Ontario health cover ends on 30 November and Indian cover begins on 1 December, with written insurer acceptance secured beforehand. These are hypothetical facts.
Apply Indian leave and gratuity rules to the actual entity, location, role and service. The Social Security Code distinguishes statutory eligibility from internal service credit. A permanent subsidiary transfer is not automatically a temporary Canadian detachment. See the CRA certificate criteria.
Coordinate approval, documents and first payroll
This hypothetical calendar assumes permission and readiness gates clear before work; it is not a timeline promise.
- By 2 November 2026, confirm the decision facts. The employee and manager confirm Mumbai worksite, duties, duration, permission, current employer, client authority, existing rights and dates. This is a planning target. If permission or role scope is unknown, do not approve the move unconditionally.
- By 16 November, clear readiness. India HR/payroll confirm entity, contract, applicable registrations, tax setup, PF/ESI decision and state professional-tax workflow. Benefits obtains written insurer acceptance for 1 December. Finance funds both payrolls. If a required gate is missing, agree a later start while Ontario employment remains lawful.
- By 25 November, document the employee's choice and both employment records. The employee has requested the move and freely agrees to end the Ontario job. The parent confirms final wages, leave, bonus and equity. The Indian subsidiary issues a separate local contract. If the employer directs the exit or consent is absent, analyze termination or transfer rights, not resignation.
- On 30 November, close Ontario employment. This is the assumed last day with the parent. Confirm the final pay period and vacation ledger; a resignation does not waive Ontario minimums.
- On 1 December, begin India employment only after the gates hold. The Indian subsidiary is the new legal employer. Permission, required registrations, payroll and insurer acceptance are confirmed. If a gate fails before the start, defer by agreement; if Ontario employment has ended, it does not automatically resume.
- On 4 December, make the assumed Ontario closeout payment. Ontario's ESA requires final wages and accrued vacation by the later of seven days after the end or the next payday. The assumed payday, Friday 4 December, is before the Monday 7 December outside date. Pay then, issue the statement and reconcile earned amounts. Confirm bank and holiday clearing. See the Ontario wage-payment guide and vacation-pay guide.
- On 31 December, verify the first Indian payroll. Pay the assumed full-month INR salary with applicable deductions. Monthly wages are generally due before expiry of the seventh day of the next month, making 7 January 2027 the ordinary outer date for December, subject to applicable rules. Salary withholding is payment-triggered; check the Income Tax Department FAQ and Code on Wages. Finance must confirm funding and bank readiness against the agreed payroll calendar.
Two relocation cases and the costs that change
Case A: independent permission. Under the stated premise and cleared setup gates, the parent closes and pays its own balances; the subsidiary starts a new contract and INR payroll. The company recognizes internal service only for the named benefit, settles leave at origin and starts India benefits after acceptance. This is hypothetical, not a verified worker or visa.
Assume CAD 100,000 annual gross on fixed semi-monthly payroll and CAD 2,000 earned vacation. CAD 100,000 divided by 24 is CAD 4,166.67; with vacation, closeout is CAD 6,166.67 gross before lawful deductions, paid 4 December. The new contract pays INR 300,000 gross for December on 31 December. INR is an independent assumption, not a CAD conversion, salary benchmark or equal-net promise. Actual records control.
Case B: a second hypothetical worker needs permission. Another Ontario employee proposes the same Mumbai move, but lacks independent work permission and performs a routine clerical role. Official Employment Visa guidance excludes routine, ordinary and secretarial/clerical jobs. Decline this move as proposed unless a genuinely qualifying alternative permission is confirmed; an EOR contract cannot change the role restriction. Keep the Ontario job and work location unchanged where lawful while alternatives are considered. For someone already holding an employer-specific Employment Visa, a qualifying group change instead requires prior MHA approval before the new work.
PF, ESI, state professional tax, gratuity, benefits and currency costs depend on the employee and worksite. Confirm them in the case budget; do not use a universal percentage or treat employee deductions as employer cost. Budget one-time contract, registration, enrollment and settlement work separately.
What stays with your company after the move
The employee can remain with the same manager and team if the company plans system access, HRIS records, performance, promotion and escalation. Explain what changes in the legal employer, payslip, benefits contact and HR record.
The company still directs the work and must review local contract authority, client contact, team management, regulated duties, data/IP access and tax presence. Record who owns the Indian contract, payroll, benefits and complaints. For deeper statutory detail, see the India employment-law guide.
Questions about keeping an employee in India
Does living in India mean the employee can work for any foreign employer?
No. Residence and work permission are separate. For a foreign national, check the current permission's employer, role and location conditions. A business visit or e-Visa is not a general employment route.
Can an Employment Visa move to a different employer?
A change is restricted. For a qualifying group-company change, get prior Ministry approval; otherwise arrange appropriate fresh permission before work starts. Check the current visa conditions and MHA's employer-change guidance before setting a start date.
Can an EOR solve the visa issue?
Do not treat an EOR contract as work permission. First confirm that the employee's current permission covers the proposed employer, role and location, and obtain any required approval or fresh permission before work. Separately ask the proposed local employer to confirm in writing that it accepts the specific employment case.
Does the employee keep the same service date and vacation balance?
Not automatically. The Ontario parent must settle earned Ontario wages and vacation according to its records and applicable law. The new Indian employer can recognize internal service for specified company benefits, but that promise is separate from statutory continuity and local leave eligibility.
Can we keep the same gross pay and guarantee the same take-home amount?
You can agree a gross salary, but you cannot infer equal net pay from the old salary. Currency, tax withholding, employee deductions, benefits and employer contributions depend on the new arrangement and the employee's facts.
If an employee is considering a move to India, Borderless can review the proposed route, role and country combination with the employer. Its global mobility team describes support for existing employee moves, with availability confirmed for the specific countries and case. That discussion is an eligibility assessment, not immigration approval or a guarantee that a particular route is available.
