Onsite Policy Challenges in IT: Seeking Advice on Wages, Insurance, and Contracts

Onsite Policy Implementation for IT Employees

I am an HR professional in an IT company that is about to implement an onsite policy for our employees. Can anyone provide assistance with the following questions:

1) Are there any standard rules for minimum wages/per diem during onsite deputation?
2) Is it mandatory to pay overtime, bonus, and local medical insurance to the employees?
3) What happens to an employee's existing medical insurance in India during the deputation period?
4) Are there any binding rules or agreement clauses that can ensure the employee does not leave while onsite or immediately after returning?

If possible, could anyone share a sample onsite contract from an IT company? Your help would be greatly appreciated.

Thanks,
Maniratna

Guidance on Onsite Deputation Policy in the Software Industry

1. Minimum Wages/Per Diem:
- There are no specific standard rules for minimum wages or per diem during onsite deputation in India. However, it is advisable to ensure that the compensation provided meets or exceeds the minimum wage requirements set by the respective state government. Per diem rates can vary based on the location and should cover reasonable expenses incurred by the employee while on assignment.

2. Overtime, Bonus, and Local Medical Insurance:
- Overtime payment, bonuses, and local medical insurance are not mandatory during onsite deputation unless specified in the employment contract or company policy. It is recommended to clearly outline these aspects in the onsite deputation agreement to avoid any ambiguity.

3. Existing Medical Insurance:
- The status of an employee's existing medical insurance in India during the deputation period depends on the terms of the policy and the company's policies. Some companies may continue to provide coverage in India, while others may suspend it during the deputation. It is essential to communicate this clearly to the employee and provide necessary support for any healthcare needs during the assignment.

4. Employee Retention Measures:
- To ensure employee retention during and after onsite deputation, companies can include clauses in the agreement such as a minimum tenure requirement post-return, financial penalties for early termination, or a commitment to career development opportunities upon completion of the assignment. However, it is crucial to ensure that these clauses are legally compliant and fair to the employee.

5. Sample Onsite Contract:
- While sharing a specific sample onsite contract may not be feasible due to confidentiality reasons, you can refer to industry best practices and customize a template that includes all relevant terms and conditions specific to your company's onsite deputation policy. Ensure legal review to align with labor laws and regulations.

By addressing these key aspects in your onsite deputation policy, you can establish a clear framework for managing employee assignments effectively and ensuring compliance with relevant regulations.