Reimbursement of payroll costs

Rashmi Singh (Querist) 23 November 2022 This query is : Resolved
Hi, The director of an Indian entity has started another company in Dubai. This Dubai entity has utilized some employees on the rolls of the Indian entity to work for the Dubai entity. The salaries for these indian employees for the duration that they were working for the Dubai entity have been processed through the Indian Entity. Now, we want to transfer these employees legally to Dubai Entity. And, Dubai Entity wants to reimburse the Indian entity for the salaries for these employees for the period they were on the rolls of Indian entity but were working for the Dubai Entity. What is the best hassle free way to settle this payment for these employees with the Indian Entity?

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An Indian company's employees have been working for a newly established Dubai entity, with their salaries initially processed through the Indian firm. The Dubai entity wishes to reimburse the Indian entity for these payroll costs before legally transferring the employees. The best approach involves a clear agreement between the two entities, potentially requiring legal consultation to ensure a smooth and compliant settlement.

kavksatyanarayana (Expert) 23 November 2022
I think it will be between the Indian Entity and Dubai Entity. The terms and conditions between both entities will depend on the issue.

Sudhir Kumar, Advocate (Expert) 10 May 2023
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