Managing Employee Overseas Deputation Agreements: Legal Implications and Validity

Hi,

Just to check, if an employee signs an overseas deputation agreement while traveling to the US and then resigns or leaves the organization while overseas, is the overseas deputation agreement that he signed in India still valid?

Hello,

On which visa category has he been sent? If it's H1 or L1, then obviously he would be on the rolls of the US entity and under the purview of the US taxes. So any agreements he signed in India would not be valid.

If he has been sent on a visitor or business visa, then obviously he would still be on the rolls of the Indian entity, and the agreement you refer to would be valid. Having said that, usually any employee being sent on an H1/L1 visa is usually made to sign a similar/equivalent agreement based on the US laws to take care of eventualities while in the USA.

Regards,
TS