Confused About Deputation Rules in Private Companies? Seeking Clarity on Payroll and Policies

Dear Seniors,

I need some clarification.

What are the rules for deputation in private companies when an employee moves on deputation from ABC Co (Parent Co.) to XYZ Co (Deputed Co)?

1. I believe the payroll continues to be maintained at ABC Co, i.e., Parent Co. Salary cost will be debited to which company, Parent or Deputed?

2. Is there any maximum period for deputation?

3. Such employees will be governed by administrative policies of which company, Parent or Deputed (like office timings, domestic travel, mobile, self-education, sabbatical, etc.)?

4. What about the policies with financial implications (leave, loan, car allowance, etc.)? Which company's policies will be followed, Parent Co or Deputed Co?

I need your help. Kindly clarify.

An early reply is highly appreciated.

Thanks,

Verma HR

Hi,

According to me, since the employee will be on the payroll of the parent company, all policies and rules will be applicable as per the parent company. Regarding timing, it will be in tune with the deputed company. There can't be a minimum or maximum time; it will depend upon the requirement of the deputed company.

Regards,
Harshad

What about the statutory benefits? Will it be as per the parent company?

Will it be possible to get a sample of the deputation agreement that would be applicable in such cases?