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Could someone please help me understand how an employee sent to US on H1B visa is treated back in India. Do they need to resign from the Indian company? Since they will be receiving a US salary, do we need to process some minimum salary here to maintain their employment status here in India or do they cease to become our employee from the time they are deputed to US? If the deputation is for a short period, do they come back after that and join the Indian company as a fresh employee or continue as the old employee?
All help will be highly appreciated.
Thank you.

From India, Bangalore
Dear Shymaili,
It depends on the project for which the employee is sent onsite.
I worked for an MNC which was Head Quartered in US . Each time we sent an employee onsite for a long term assignment, we would stop his salary in India , but continue the PF and Gratuity payments to his account. Once he would return, we would resume his salary, as per the decided industry standards.
The employee would join US Headquarters and would be paid by them during the assignment. It would be treated as an internal transfer.
However, there was another firm Head Quartered in India , with its office in US, who used to manage the transition differently. They would continue the salary in India and almost offer per diem for a short term i.e. 3 months assignment. In case of a long term assignment, they had a different payout at the US office where the employee would report.
Hope this answers your question.

From India, Mumbai
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