I am an employee of an Indian company deputed in Japan. They have a subsidiary in Japan and I have been sent as an intracompany transferee.
I have a valid Japan work permit. My contract in India has a notice period of 90 days but as per Japanese labour law, the notice period is 30 days from both sides.
I read somewhere that if you are working on any country on a valid work permit, the local laws supersede any contracts made anywhere else.
Now my question is - Will my notice period be 90 days because I am still an employee of the Indian company and the original contract is still valid?
Or will it be 30 days as per Japanese laws because I am working on Japanese land?

From Korea, Yongsan

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Dear Nathubigha,

As your engagement to the subsidiary in Japan is only on deputation, still you remain to be an employee of the Indian principal Company only. As such any termination of your service either by way of resignation or otherwise should be accepted or effected by the Indian Company only.

Further deputation and transfer of the services of an employee between two distinct entities are different. In deputation, consent of the employee is a must for despite the deputation to another employer/entity, the deputationist retains his lien of employment with the parent Company. Apart from this, the host company is bound to pay the cost of deputation like proportionate leave salary, terminal benefit for the entire period to the parent Company in addition to the direct payment of actual salary to the deputationist.

Thus, virtually the parent Company remains the de jure employer of the deputationist during the entire period of deputation though the host Company being the de facto employer.

Hence logically and legally, the notice clause of unilateral exit in the contract of employment with the parent Company would be applicable. However, the parent Company has the discretion to relax it.

From India, Salem
Actually the rule to be followed is that both labour laws will apply unless specified otherwise. And the more beneficial regulation will be followed (beneficial to the employee)

Further, if an agreement is made, it can not override statutory rights given by law.

From India, Mumbai

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