A Swedish company employing people in India must follow central and state labour laws: the labour codes on wages, social security, industrial relations and occupational safety, state shops and establishments acts, provident fund and gratuity rules, and the Sexual Harassment of Women at Workplace Act 2013. Employment contracts, appointment letters and policies should be Indian documents, not translations of Swedish ones. Post-employment non-compete clauses are largely unenforceable in India.
- Document route
- Notarius publicus certifies and issues the apostille
- Time difference
- India is 3h30 (summer) to 4h30 (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 Sweden: how it works
We draft appointment letters, an employee handbook and core policies covering working hours, leave, notice periods, confidentiality and intellectual property assignment. India's four labour codes, brought into force in November 2025, consolidate earlier laws and change items such as the definition of wages, which affects provident fund and gratuity calculations; state rules continue to matter, especially for leave, holidays and working hours. We set up the Internal Committee required under the sexual harassment law where there are ten or more employees, and advise on registration with provident fund and employee state insurance.
Swedish managers often expect a negotiated approach to terminations. In India, termination is governed by the contract, the labour codes and, for workers, rules on retrenchment and notice. Managerial staff usually fall outside worker protections, but documentation still matters. We advise on performance processes, settlement agreements and full and final settlement. Seconded Swedish staff need an employment visa, foreign regional registration where applicable, and payroll tax planning under the treaty.
What clients in Sweden should know
- India has no general works council equivalent to Swedish co-determination, but larger establishments must comply with standing orders and grievance committee rules.
- Restrictions on competition after employment ends are generally void under section 27 of the Indian Contract Act, so rely on confidentiality and non-solicitation instead.
- Swedish style parental leave policies can be offered in India as long as they meet the Maternity Benefit Act minimums.
Step by step from Sweden
Video consultation
A call at a time that suits Sweden, after we have read your documents.
Documents signed in Sweden
Notarius publicus certifies and issues the apostille
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 Sweden where needed.
The full guide
This page covers what changes when you are in Sweden. 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 Sweden and the Doing Business in India practice area.
Questions from clients in Sweden
Can we use an employer of record first?
Yes, many companies do, but the contract with the provider and the risk of a permanent establishment should be reviewed.
What is the usual notice period in India?
It is set by contract; one to three months is common for professionals.
Do we need to register with the provident fund?
Yes, once the establishment reaches the threshold, and many employers register voluntarily from the start.