FAQ
Questions about
hiring in India
Everything US founders, CFOs and HR leads ask us before their first hire. If your question isn't here, write to us — a director answers.
3 questions
Getting started
Do we need to register a company in India to hire through you?
No. Under the EOR model, Aether Blue is the legal employer in India. You need no Indian entity, bank account or registration.
Who controls the employees' day-to-day work?
You do. Employees work under your direction, on your projects and tools. We handle the legal employment, payroll and compliance layer.
Can you employ people anywhere in India?
Yes — we employ across all Indian states and major cities. State-specific items (Professional Tax schedules, Shops & Establishments rules, state holidays, and state Labour Code rules) are applied per each employee's work location, and our compliance calendar tracks them state-wise.
3 questions
Money & pricing
How do we pay you?
One consolidated monthly invoice in USD, covering salaries, statutory contributions and our service fee. As an exporter of services under LUT, our invoices carry no Indian GST.
How does payment work each month?
We invoice once monthly in USD — salaries and statutory contributions at actuals plus our fee — payable by wire before the salary date. Salaries are paid to employees on schedule every month; we maintain the working discipline that your team's payday is never dependent on same-day transfers. Filing proofs and payroll registers accompany every cycle.
What is your pricing model?
A transparent per-employee monthly fee over actual salary and statutory cost, with no setup fee, deposit or platform fee. The rate depends on your headcount, the roles and where they sit, so we quote it per engagement rather than publishing a list price. Ask us for a sample cost sheet for the role you're planning — it is free and usually with you within 24–48 hours.
4 questions
Compliance & law
Are the employees properly covered under Indian law?
Yes — written contracts, Provident Fund, ESI where applicable, TDS on salaries, and all applicable labour-law protections.
Are you compliant with India's new Labour Codes?
Yes. India's four Labour Codes came into force on 21 November 2025, replacing 29 earlier laws. All our employment contracts and salary structures follow the new uniform wage definition (Basic + DA at ≥ 50% of pay), statutory contributions are computed on the new wage base, fixed-term gratuity eligibility is provisioned from year one, and we track central and state rule notifications as they are issued — so our clients never carry transition risk.
How is our data protected?
Employee and client data are handled in line with India's Digital Personal Data Protection Act, 2023: collected only for employment purposes, access-restricted to the Directors and the staff who process payroll, never sold or shared with third parties, and covered by confidentiality undertakings. Payroll and accounting run on established cloud platforms (Zoho) with access controls, and we sign data-protection terms in our MSA where clients require them.
What about confidentiality and IP?
Our agreements include confidentiality and IP-assignment provisions so all work product belongs to you, and employees sign matching undertakings.
3 questions
Employees & benefits
How are leave and time off handled?
Every employee is covered by a written Leave SOP aligned to applicable state Shops & Establishments rules — earned, casual and sick leave with clear carry-forward and encashment terms. Leave records are maintained in proper registers, synced with payroll, and settled correctly in full-and-final at exit. You can layer your own company holidays and leave policy on top.
What happens to gratuity and long-term benefits?
Gratuity under the Payment of Gratuity Act is provisioned for every eligible employee from day one — not left as a hidden future liability. We maintain an approved Group Gratuity Fund structure with a regulated insurer so these dues are funded and ring-fenced, and they're settled transparently when an employee exits or completes qualifying service.
Can you provide health insurance and equipment for our team?
Yes. We can arrange group health insurance cover for your employees (billed at actuals as part of the monthly invoice) and procure laptops and equipment in India on your behalf — purchased, delivered to the employee, asset-tagged and recovered at exit.
3 questions
Risk & continuity
What if we need to terminate an employee?
Indian employment is notice-based, not at-will, but it is entirely manageable when contracts are drafted well. Our employment contracts define probation periods (with shorter notice), clear notice periods thereafter (typically 30–60 days, or pay in lieu), and grounds-based termination procedures. We handle the documentation, final settlement, gratuity and leave encashment, and statutory exits — you make the business decision, we execute it lawfully. We brief every client on termination mechanics before their first hire, not after a problem arises.
What happens to our team if something happens to Aether Blue?
Your protection is contractual and practical. The MSA gives you a transition right: employees can be moved to another EOR or your own entity with full handover of employment records, payroll registers and statutory filings — all of which are shared with you monthly anyway, so you always hold a current copy. Employee dues (PF balances, funded gratuity) sit with government bodies and the insurer, not on our books, so they are protected independently of us.
Can you help if we later want our own Indian subsidiary?
Yes — we advise on incorporation and can transition employees from our EOR to your new entity seamlessly.