Is It Legal to Pay an Employee in Indian Rupees While They Live in Dubai?

An employee who has been working with us for the past four years now wants to settle in Dubai. However, we have convinced him to continue working with us with an Indian rupee salary. Is this legal? Are there any specific procedures we need to follow?

Hi, If the employee is currently on the regular payroll and signs the Attendance Register, it would be better to move the employee to a Retainer Contract. You may credit the salary after adjusting the TDS in his Indian Bank Account. A TDS certificate should be issued on a yearly basis, and it is up to the employee to file income tax returns.

Confidentiality and Work Timings
If the employee is going to use his own system/laptop, include company confidentiality terms in the contract letter. Specify the work timings. It is advisable to discuss whether the employee will be working as a full-time consultant or a part-time consultant.

Thanks for the input. Do we need to register legally in Dubai for it?

Hi, the employee can choose to settle in Dubai at their own discretion or move there. The company is not relocating him/her to Dubai, so there is no need for any legal registration process.