How Deel vs Remote Stacks Up in Terms of Compliance in India

Compliance is one of the most critical factors when expanding a business to a new market, particularly in a country like India, where labor laws and regulations are complex and subject to frequent changes. Deel and Remote are two of the most popular Employer of Record (EOR) services, offering solutions for businesses hiring employees in India. While both platforms offer compliance services, the level of support and scope can differ. In this blog, we will discuss the key differences between Deel and Remote in terms of compliance in India and help you understand which platform provides better compliance support for your business.

Key Compliance Factors for International Businesses in India

When hiring employees in India, international companies must comply with several labor laws, tax requirements, and statutory benefits regulations. These regulations vary by state and industry, making it crucial to have a service provider that understands the nuances of Indian law. Below, we explore how Deel and Remote compare in terms of compliance management in India.

1. Labor Law Compliance

India has a complex set of labor laws, which includes regulations around wages, working hours, employee benefits, and workplace conditions. Ensuring compliance with these laws is essential for avoiding legal penalties.

Key differences between Deel and Remote in labor law compliance:

• Deel: Deel provides a more comprehensive approach to labor law compliance, ensuring that businesses follow both central and state-specific labor laws. Deel’s platform is designed to address the nuances of local legislation, helping businesses navigate India’s diverse regulatory environment.
• Remote: Remote also offers compliance with Indian labor laws but may provide fewer resources and legal consultations compared to Deel. Remote focuses primarily on the basics of legal compliance, such as statutory benefits and wages, but might not provide the same level of detail for businesses with complex needs.

If your business requires detailed legal support and ongoing updates to comply with India’s labor laws, Deel’s offering may be a better fit. However, Remote provides a solid compliance solution for businesses that need a simpler, more streamlined approach.

2. Statutory Benefits and Employee Rights

Employees in India are entitled to various statutory benefits, including Provident Fund (PF), Employee State Insurance (ESI), and Gratuity. Compliance with these benefits is crucial for businesses to avoid penalties and ensure that employees are treated fairly.

Key differences between Deel and Remote in terms of statutory benefits:

• Deel: Deel offers a wider range of benefits and ensures full compliance with Indian regulations around statutory benefits. Deel’s platform allows businesses to customize benefits offerings, and it provides in-depth assistance with managing employee rights, ensuring that employees receive the correct benefits based on their employment status and location.
• Remote: Remote also handles the essential statutory benefits like PF, ESI, and Gratuity but offers fewer customization options. While Remote ensures compliance with the mandatory benefits, businesses with specific or advanced benefit requirements may find Deel’s offerings more suitable.

For businesses that require flexibility in structuring benefits or need more detailed support around employee rights, Deel is likely the better option. For companies with straightforward benefit needs, Remote provides an effective and cost-efficient solution.

3. Taxation and Payroll Compliance

Managing payroll and tax compliance is a critical part of the hiring process in India. India’s tax system, including the Tax Deducted at Source (TDS), is complex, and businesses must ensure that they calculate, deduct, and remit the correct taxes for their employees.

Key differences between Deel and Remote regarding payroll and tax compliance:

• Deel: Deel offers robust payroll and tax compliance services, ensuring that businesses deduct the correct amount of TDS and remit taxes on time. Deel also handles the intricacies of payroll taxes for employees at different salary levels and ensures compliance with other payroll-related regulations in India.
• Remote: Remote provides payroll compliance as part of its EOR services but focuses on a simpler payroll structure. While Remote ensures that TDS is deducted and remitted, businesses with complex tax situations or varying salary structures may need more support, which Deel offers.

Deel’s platform is better suited for businesses that require detailed payroll management, tax calculations, and compliance assistance for a diverse workforce. Remote, on the other hand, is ideal for companies with more straightforward payroll needs.

4. Contract Management and Employment Agreements

Employment contracts and agreements are crucial for ensuring that both employers and employees understand their rights and obligations. India has specific rules governing the terms of employment, which must be included in every employment contract.

Key differences between Deel and Remote in terms of contract management:

• Deel: Deel offers extensive contract management features, ensuring that all employment contracts are compliant with Indian labor laws. The platform provides tools for customizing contracts, tracking employment terms, and ensuring that all mandatory provisions are included, such as probation periods, notice periods, and severance terms.
• Remote: Remote offers standard employment contracts that comply with Indian labor laws. While it provides essential contract management features, it lacks the level of customization and detail that Deel offers. This can be a limitation for businesses that need to tailor contracts for specific roles or regions in India.

For businesses with specialized contract needs or those hiring employees in multiple regions, Deel’s platform offers greater flexibility and detailed contract management. Remote’s standardized approach works well for businesses looking for simpler contracts and less complexity.

5. Local Expertise and Legal Support

In India, labor laws can vary by state and are subject to frequent updates. Having access to local legal expertise is essential for businesses to stay compliant and navigate the regulatory landscape effectively.

Key differences between Deel and Remote in terms of legal support:

• Deel: Deel provides extensive legal support and guidance, including access to local legal experts who can help businesses navigate the complexities of Indian labor laws. Deel also offers ongoing updates on regulatory changes, ensuring that businesses stay compliant over time.
• Remote: Remote provides compliance support but does not offer the same level of in-depth legal consultation. While Remote ensures compliance with basic legal requirements, it may not provide as much legal insight or proactive guidance regarding regulatory changes in India.

For businesses that require ongoing legal advice and support for their operations in India, Deel’s local legal expertise is invaluable. Remote is a suitable choice for companies that need a more basic level of compliance assistance.

Conclusion

When comparing Deel and Remote in terms of compliance in India, Deel offers a more comprehensive and customizable solution, particularly for businesses that require detailed legal support, flexible benefits packages, and in-depth contract management. On the other hand, Remote provides a simpler, cost-effective solution that meets the essential compliance requirements but may not offer the same level of flexibility or legal support.

The choice between Deel and Remote for hiring employees in India depends on your business’s specific needs. If your company requires extensive legal guidance, customized benefits, and more advanced compliance support, Deel may be the better option. However, for businesses that need a straightforward and affordable solution, Remote provides reliable EOR services with a focus on core compliance.