A Dutch company can employ people in India through its own Indian subsidiary or through an employer of record. Employment is governed by the four labour codes in force since 21 November 2025, state shops and establishments laws, provident fund and employees' state insurance, and the POSH Act on workplace sexual harassment. Contracts, policies and exits must follow Indian law, and non-compete clauses after employment ends are generally unenforceable.
- Document route
- Notaris or municipal legalisation, then apostille from the rechtbank
- Time difference
- India is 3.5 hours (summer) to 4.5 hours (winter) ahead
- Main laws
- Four labour codes, in force 21 Nov 2025
- Local law
- State Shops and Establishments Acts
Employment Law for Foreign Employers from the Netherlands: how it works
We help the Dutch employer decide between an Indian entity and an employer of record, considering headcount, permanent establishment risk for the Dutch company and the cost of running a subsidiary. Once the employer is fixed, we prepare Indian employment contracts and policies: appointment letters, confidentiality and IP assignment, leave, working hours under state law, a POSH policy with an internal committee, and a code of conduct. Registrations follow, including shops and establishments, provident fund, employees' state insurance where applicable, professional tax in some states and labour welfare fund contributions.
Dutch HR teams often expect detailed dismissal procedures and generous notice. Indian law is different: termination for workers covered by the industrial relations code follows statutory notice, retrenchment compensation and, in larger establishments, government permission, while senior managerial employees are governed mainly by contract. Gratuity becomes payable on exit after the qualifying period. Disputes may go to labour authorities or civil courts. We draft separation agreements, handle investigations and advise on restructuring when a Dutch parent reorganises its Indian team.
What clients in the Netherlands should know
- Dutch employees seconded to India need employment visas and may come under Indian provident fund rules unless an exemption applies under a social security agreement.
- Remote workers hired directly by a Dutch company without an Indian entity can create a permanent establishment for the Dutch company in India; an employer of record reduces but does not remove this risk.
- Indian data protection law under the Digital Personal Data Protection Act 2023 applies to employee data processed in India and transferred to the Netherlands.
Step by step from the Netherlands
Video consultation
A call at a time that suits the Netherlands, after we have read your documents.
Documents signed in the Netherlands
Notaris or municipal legalisation, then apostille from the rechtbank
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in the Netherlands where needed.
The full guide
This page covers what changes when you are in the Netherlands. For the law, the documents and the step-by-step procedure, read our main page on Employment Law for Foreign Employers, or see all services for clients in the Netherlands and the Doing Business in India practice area.
Questions from clients in the Netherlands
Can a Dutch company pay Indian staff directly from the Netherlands?
It can, but doing so without an Indian entity or employer of record creates tax, payroll and permanent establishment risks. We recommend a structured route.
Is there a works council requirement in India?
No equivalent to a Dutch works council. Some larger establishments must set up grievance redressal and works committees under Indian law.
How much notice is required to end employment in India?
It depends on the contract, the employee's category and the applicable code and state law. We review each case before notice is given.