Indian contract validity on Onsite deputation - I am working on Japanese land?

I am an employee of an Indian company deputed in Japan. They have a subsidiary in Japan, and I have been sent as an intracompany transferee.

I have a valid Japan work permit. My contract in India has a notice period of 90 days, but as per Japanese labor law, the notice period is 30 days from both sides.

I read somewhere that if you are working in any country on a valid work permit, the local laws supersede any contracts made elsewhere.

Now my question is - Will my notice period be 90 days because I am still an employee of the Indian company, and the original contract is still valid? Or will it be 30 days as per Japanese laws because I am working on Japanese land?

Dear Nathubigha,

As your engagement with the subsidiary in Japan is only on deputation, you still remain an employee of the Indian principal Company. Therefore, any termination of your service, whether through resignation or otherwise, should be accepted or processed by the Indian Company exclusively.

Furthermore, deputation and transfer of an employee's services between two distinct entities are different processes. In the case of deputation, the employee's consent is crucial because despite being deputed to another employer/entity, the deputationist maintains his employment relationship with the parent Company. Additionally, the host company is obligated to cover the costs of deputation, such as proportionate leave salary and terminal benefits for the entire period, in addition to directly paying the deputationist's salary.

Consequently, the parent Company essentially remains the de jure employer of the deputationist throughout the deputation period, even though the host Company acts as the de facto employer.

Therefore, logically and legally, the notice clause regarding unilateral exit in the employment contract with the parent Company would be applicable. Nevertheless, the parent Company retains the discretion to relax this clause.

Actually, the rule to be followed is that both labor laws will apply unless specified otherwise. The more beneficial regulation will be followed (beneficial to the employee).

Furthermore, if an agreement is made, it cannot override statutory rights given by law.