FROM INDONESIA TO INDIA: BUILDING A COMPLIANT WORKFORCE
Key HR & Employment Considerations for Indonesian Companies in India
When an Indonesian company expands into India—whether through a subsidiary, joint venture, GCC or other business presence—establishing the business is only the beginning. Building a compliant and effective workforce is equally important.
Why Is an India-Specific HR Framework Important?
For any Industry domain - An India-specific HR framework provides clarity on matters such as employment terms, working hours, leave, compensation and benefits, probation, performance management, confidentiality, workplace conduct, employee grievances, disciplinary procedures and exit processes.
What Should Indonesian Companies Consider?
1. Employment Documentation
Employment terms should be appropriately documented.
The documentation should be consistent with the organisation's global standards while complying with applicable Indian requirements.
2. HR Policies & Employee Handbook
A structured HR Manual or Employee Handbook should establish the common workplace framework.
A global employee handbook can be the starting point, but it should be reviewed and adapted for India rather than adopted without modification.
3. Statutory Compliance
The applicable requirements may also depend upon the nature of the establishment, workforce and State in which the business operates.
4. Workplace Conduct & POSH
A professional workplace requires more than employment contracts.
Companies should establish appropriate standards relating to workplace conduct, dignity, non-discrimination, grievances and prevention of workplace harassment.
For organisations operating in India, compliance with the Prevention of Sexual Harassment (POSH) framework is an important component of workplace governance, where applicable.
5. Data, Confidentiality & Company Assets
Employees may have access to confidential business information, customer data, intellectual property and company technology - appropriately addressed.
Global Policy + Local Compliance
The objective should not be to create two completely separate cultures—one global and one Indian.
Global Standards + Indian Legal & Regulatory Requirements = A Practical India HR Framework
This approach allows an Indonesian parent company to maintain consistency across its international operations while ensuring that its Indian workforce is governed by an appropriate local framework.
A Continuing Compliance Exercise
HR compliance is not a one-time exercise , periodically reviewed and updated to remain aligned with applicable law and business requirements.
Conclusion
For an Indonesian company entering India, establishing a compliant workforce should be considered part of the initial market-entry and business-governance strategy, rather than an administrative exercise after the business is established.
Adapting global corporate practices to the legal and business environment of the local jurisdiction—without losing the organisation's core identity.
Authored by Adv. Santoshmurthy Vashista
Founder and Partner
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