Onboarding Process: Step-by-Step Explanation

Step 1: Job Offer and Acceptance 📩

• Trigger: You’ve completed the interview process and decided to hire the new employee in India.

• Action: Prepare an offer letter outlining the basic terms of employment in India:

  1. Job Title: [Position Title]

  2. Compensation: ₹[Salary Amount] per annum

  3. Start Date: [Start Date]

• Outcome: The employee reviews and accepts the offer, marking the official start of the onboarding process in India.

Step 2: Employment Contract 📝

When Onboarding Comes Into Play: Right after the offer letter is accepted.

Action: You draft the employment contract, which should clearly specify the type of contract. In India, contracts generally fall into one of three categories: indefinite contract, fixed-term contract, or part-time contract.

1. Indefinite Contract:

   This is a permanent employment contract without a predefined end date. Employees on indefinite contracts usually go through a probation period (typically six months in India), during which their performance is evaluated. Both the employer and employee have the flexibility to terminate the contract with shorter notice during this period. After the probation period, the contract automatically transitions to a permanent agreement unless terminated by either party.

2. Fixed-Term Contract:

   A fixed-term contract is for a specific period (e.g., six months or one year). It has a predetermined start and end date, and the contract automatically terminates at the end of the specified period. Fixed-term contracts are often used for project-based roles or when the employment duration is limited by the nature of the job. In India, employees on fixed-term contracts are generally entitled to the same benefits as permanent employees, but the contract ends when the defined period expires unless extended.

3. Part-Time Contract:

   A part-time contract applies to employees working less than the standard full-time hours (usually 40 hours per week in India). This type of contract specifies the number of hours the employee is expected to work each week and may include pro-rated benefits based on hours worked. Part-time contracts are often used for roles with flexible schedules or reduced hours.

Outcome: The employee reviews and signs the employment contract. If the contract is indefinite, they start with a probation period. If it is a fixed-term or part-time contract, they are aware of the specific duration or working hours agreed upon.

Step 3: Background Check Consent Form 🔍

• Purpose: To ensure a thorough vetting process before finalizing their onboarding in India.

• Action: Request a background check and obtain the employee’s consent.

• Outcome: The employee signs the consent form, allowing you to verify their previous employment and education in India.

Step 4: Medical Fitness Certificate (If Applicable) 🏥

• Importance: While not mandatory for all positions in India, a medical fitness certificate may be required for specific roles that involve physical activity or safety-sensitive tasks.

• Action: If applicable, request a medical fitness certificate from the employee in India.

• Outcome: The employee provides the necessary certificate if required for their role in India.

Step 5: Identity and Address Proof 📑

• Legal Requirement: Collecting identity and address proof is crucial for compliance with Indian laws.

• Action: Obtain copies of the employee’s identity and address proof in India. Common documents include:

  • Aadhar Card: A government-issued ID serving as identity and address proof in India.

  • Passport: An additional identification document.

  • Utility Bill: A recent bill verifying their address in India.

• Outcome: The employee submits a copy of their Aadhar card and a recent utility bill.

Step 6: PAN (Permanent Account Number) Card 🏦

• Tax Compliance: Necessary for withholding taxes from their salary in India.

• Action: Request the employee’s PAN card details.

• Outcome: They provide their PAN card, allowing you to register them for tax deductions compliant with Indian tax laws.

Step 7: Bank Account Details 💳

• Payment Setup: To facilitate salary deposits in India.

• Action: Ask the employee for their bank account information:

  • Bank Name: (e.g., HDFC Bank)

  • Account Number: (e.g., 123456789)

  • IFSC Code: (e.g., HDFC0001234)

• Outcome: The employee shares their banking details, ensuring timely salary payments in India.

Step 8: Statutory Compliance Documents 📋

• Legal Compliance: Necessary for adhering to Indian labor laws.

• Action: Prepare the required statutory documents. If the employee’s salary is below the ESI threshold, register them for the Employee Provident Fund (EPF) in India.

• Outcome: Provide the employee with the necessary registration forms for the EPF.

Step 9: Non-Disclosure Agreement (NDA) 🔐

• Business Protection: To protect your company’s confidential information in India.

• Action: Present a non-disclosure agreement for them to sign.

• Outcome: The employee signs the NDA before their start date in India.

Step 10: Employee Handbook 📚

• Cultural Orientation: Familiarizing the employee with your company policies in India.

• Action: Prepare an employee handbook covering:

  • Company Policies: Code of conduct, leave policies, and performance evaluation specific to India.

• Outcome: The employee receives the handbook on their first day, helping them understand their rights and responsibilities in India.