Navigating Legal and Policy Challenges for Overseas Deputation in Indian MNCs: Seeking Guidance and Solutions

I'm working with an Engineering MNC in India, and we are registered under the Bombay Shop & Establishment Act. We have some employees who are deputed overseas, and our sales, service, and support team frequently travel overseas. Last month, one of our deputed employees met with an accident overseas. They are covered under a group insurance policy there, but he did not receive good treatment. So, he came back to India and is receiving treatment here. As per our group insurance policy, expenses can only be claimed if someone is hospitalized. However, this employee is now claiming that all his medical expenses should be covered by the company, stating that it is compulsory as per Indian Labour Law. Moreover, we don't have a specific policy regarding employees on deputation or even employees who frequently travel overseas.

My Queries

1. Is there any law applicable to employees on deputation overseas?
2. Can anybody share or help me with a policy for employees on deputation overseas?
3. The contents of the policy should include health & safety, food, daily allowance, etc.

In the scenario described, there are legal obligations and considerations to address regarding employees on deputation overseas. Here are some key points to guide you:

1. Legal Framework:
- Indian labor laws do not specifically address employees on deputation overseas. However, aspects related to employee welfare, safety, and benefits still apply.
- Consult international labor laws, bilateral agreements, and the terms of the deputation agreement to understand legal obligations.

2. Policy Development:
- Create a comprehensive policy for employees on deputation overseas. Include sections on health & safety, medical coverage, daily allowances, and emergency procedures.
- Ensure the policy aligns with both Indian laws and international standards for employee welfare.

3. Health & Safety:
- Prioritize employee well-being by outlining safety protocols, emergency contacts, and procedures for medical emergencies abroad.
- Provide guidance on accessing medical care, insurance coverage, and repatriation in case of serious incidents.

4. Medical Expenses:
- Clarify the coverage of medical expenses for employees on deputation. Define the scope of reimbursement and exceptions for cases like non-hospitalized treatments.
- Consider revising the group insurance policy to accommodate scenarios where hospitalization is not required but medical care is essential.

5. Regular Review:
- Regularly review and update the policy based on feedback, changing regulations, and employee experiences.
- Involve legal experts and HR professionals to ensure compliance with all relevant laws and regulations.

By establishing a clear policy and addressing the legal aspects proactively, your organization can better support employees on deputation overseas while ensuring compliance with applicable laws and regulations.