What is an employer of record (EOR) service and how does it work in India?

If you are reading this, you have likely accepted an offer from a global company. The role, team, and work are exactly what you expected. Then you receive your employment contract and notice something unexpected: the employer name on the contract is wunderhire, not the company you will be working with day to day.

This is common in global hiring. This guide answers the questions that typically come up.

The core problem this model solves

Why the global company cannot legally employ you directly in India

Without an Indian entity, most global companies can’t employ someone on an Indian payroll and meet ongoing compliance obligations directly.
What compliant payroll in India typically includes:

• TDS: deducted from salary and deposited, and you receive annual tax documents (for example Form 16)
• EPF: contributions are handled where applicable
• ESI: handled where applicable (coverage depends on eligibility rules)
• Professional Tax: applied where relevant (varies by state, we follow Telangana)

The Employer of Record model exists to solve this problem in a lawful and structured way.

Why is wunderhire listed as your official employer?

To employ someone in India, there must be a locally registered employer that can issue an Indian employment contract and run compliant payroll. Without an Indian entity, an international company usually can’t employ you on an Indian payroll and be the legal employer. An EOR solves that by employing you locally.

Wunderhire plays this legal-employer role. This means wunderhire appears on your contract and payslips, and we handle payroll processing and required statutory compliance. Your day-to-day work, team, and performance are still managed by the global company.

How it works

What wunderhire is responsible for

Wunderhire handles everything related to lawful employment, including:

• Issuing Indian-compliant employment contracts
• Running monthly payroll in INR with proper deductions
• Managing statutory benefits, filings, and audits
• Handling resignations, terminations, and final settlements

Why your actual work relationship stays with the global company

Legal employment and day-to-day work are separate by design. While wunderhire is your legal employer, your functional relationship remains entirely with the global company.

• Your role, responsibilities, and goals come from the global company
• You report to their managers and work with their teams
• Performance reviews, growth, and career progression are driven by them

Legally, wunderhire employs you in India. Functionally, you work as part of the global company’s team.

How your employment works day to day

Your contract, salary, and benefits are designed to align with Indian employment requirements and standard full-time employment practices.

• Payroll and benefits
• Salary is paid on time in INR
• Taxes and statutory contributions are deducted and deposited correctly
• Mandatory benefits and leave entitlements apply
• Notice periods and employment terms are enforceable

All payslips, tax documents, and employment records are available through the wunderhire platform.

Who is responsible for what?

Common questions answered

Who do I say I work for?

Functionally, you work for the global company. Legally, you are employed by wunderhire. This distinction is common in global hiring, and can be explained to recruiters, banks, or institutions. It does not reduce the validity of your role.
Many employees list the global company as their employer on resumes and LinkedIn, with wunderhire as the employment entity if clarification is needed.

Who gives my experience or reference letters?

The global company confirms your role, responsibilities, and performance. Wunderhire confirms your employment duration and legal records. Both together support your professional history.

What happens if I resign or my role ends?

Your exit is handled under Indian law. Notice periods are honoured, final settlements include dues and accrued leave, and compliance protects you during the transition.

What happens if my visa goes through and I relocate?

When relocation becomes possible, wunderhire coordinates with the global company to transition your employment appropriately. Until then, you remain legally employed in India and continue working without interruption.

Where do go for help?

Payroll, payslips, tax documents, employment letter: wunderhire

Role scope, tasks, feedback, performance: your manager at the global company

Equipment access, tools, day-to-day IT: global company (usually)

Why this is safer than informal arrangements

This model gives you full-time employee status with legal protections, statutory benefits, and clear documentation, while allowing you to continue working productively even during delays such as visa processing.

Wunderhire's EOR model exists to enable global work without legal shortcuts. Our role is to protect your employment in India through compliant contracts, payroll, and labour law coverage. Your career, work, and growth remain with the global company you joined.

Disclaimer: This guide is for general information and does not constitute legal advice.