Navigating Compliance for US Clients Hiring Part-Timers in India: Direct Hire or Contract Staffing?

Would appreciate if someone can shed some light on compliance, pertinent clauses that should be included in the offer letter, attendance, and any other relevant information.

Situation Overview

The situation is as follows: our client in the US needs a part-timer; the client does not have a registered office in India yet. How can we proceed with this contract with the part-timer? Should my client sign up directly or should we use a contract staffing model?

Thank you in advance for any pointers in addressing the above two queries.

Regards

As you mentioned, your client doesn't have any registered office in India, which means they are not registered under the Company Act of India. Therefore, as a service provider/contractor, you have to hire employees onto your payroll and provide services to the client.

Thank you.

Thank you, Tushar. By any chance, would you have inputs for the first part of my query on part-time employees? For many years, we have been contracting full-time employees, and we are totally compliant. I would like to know the various nuances while dealing with part-timers.

Thanks again & regards,
Parvathy

In the case of part-time work, I would suggest you consider a retainership arrangement rather than traditional employment. A retainership does not attract the same social security benefits as regular employment, and it can also reduce your costs in project work. However, there are certain responsibilities and time constraints associated with this profile that you can manage through this relationship.

I hope this information is helpful to you.

Best regards,
[Your Name]

Thank you so much. I will take the retainership route. Your timely suggestion is much appreciated. I now look forward to being of some service to you and others in this forum.

All the best and regards,
Parvathy