HR Outsourcing Services for Growing Indian Businesses
HR outsourcing means handing the paperwork side of people management to a team that runs it every month: onboarding documents, payroll, PF and ESIC, leave records and labour-law filings. We take that admin off your desk and keep it inside the Labour Codes.
What it is
HR outsourcing is a service where an outside firm runs defined HR functions for your business under a written scope. For most small and mid-sized employers in India, the heavy part is not culture or hiring. It is the repeating admin: joining formalities, salary processing, statutory deposits, registers, returns and employee queries.
The four Labour Codes have been in force since 21 November 2025, and the older laws they replaced are being phased out. Central rules were notified in May 2026, while state rules, including Haryana’s, are still catching up. We keep your HR admin aligned with both. Where a point is still open, we say so.
What we handle and what stays with you
| Area | Taxhint handles | Stays with you |
|---|---|---|
| Joining | Appointment letter and joining checklist drafts, employee file set-up | Hiring decisions, final offer terms |
| Pay | Monthly payroll, payslips, salary TDS working, PF and ESIC contributions | Approving the payroll and releasing funds |
| Compliance | Registrations, challans, returns, registers and a due-date calendar | Signing documents that need an authorised signatory |
| Policies | Leave, attendance and conduct policy drafts for your review | Adopting and enforcing policy |
| Exits | Full and final settlement working, PF exit support | Decision to terminate or accept resignation |
We do not run recruitment or supply staff. If you need contract labour through a contractor, that sits under a separate licence, covered in contract labour licence.
Who it applies to
Startups and growing teams
Picture a Gurugram software startup that has just hired its tenth person. The founder still approves salaries by hand, and nobody owns PF, ESIC or leave records. This is where mistakes begin.
Owner-run factories and shops
Think of a Faridabad workshop. The accountant runs the books, but HR admin is scattered across a supervisor, a register and a WhatsApp group. One structured process fixes it.
Companies with multiple locations
Different states mean different shop and establishment rules and welfare fund dates. One calendar and one payroll cycle keep every branch on the same page.
Why it matters
Wage and filing dates stop slipping
The Code on Wages requires monthly wages before the seventh day of the next month. PF and ESIC contributions fall due by the 15th. A fixed calendar protects you from these two clocks.
Employee files hold up in an inspection
Appointment letters, wage records and registers are what an inspector-cum-facilitator asks for first. We keep them current and retrievable.
Your time goes back to the business
You stop chasing challans. You review one monthly summary and approve it.
Documents required
Business papers
- PAN, GST and incorporation documents
- PF, ESIC and shop establishment registrations, if held
- Bank details for salary and statutory payments
- Authorised signatory details
Employee data
- Employee master list with joining dates
- PAN, Aadhaar and bank details of each employee
- UAN and ESIC IP numbers where they exist
- Previous employer details for new joiners
Pay and policy
- Current salary structures and offer letters
- Attendance and leave records for the month
- Existing HR policies and standing rules
- Last PF, ESIC and TDS returns filed
How it works
Review your current HR set-up
We look at registrations, salary structure, contracts and past filings, then list gaps with a priority order. You get a short written findings note.
Agree the scope in writing
We fix which functions we run, the monthly input dates, who approves and how queries are answered. Anything not in the scope stays with you.
Bring payroll and records into one cycle
We clean the employee master, set up payroll and registers, and run the first month in parallel so you can compare before switching fully.
Run the monthly cycle
Inputs come in by the agreed date. We process payroll, prepare challans and returns, and send you a summary for approval before any payment or filing goes out.
Timelines
Wages
Monthly wages must be paid before the expiry of the seventh day of the succeeding month. On removal, dismissal, retrenchment or resignation, dues are payable within two working days.
PF and ESIC
PF and ESIC contributions are due by the 15th of the following month. PF applies at 20 or more employees and ESIC at 10 or more, subject to wage ceilings.
Salary TDS
TDS on salary is deposited by the 7th of the next month, with March deposited by 30 April. Quarterly returns follow on the dates under the new Income-tax rules.
What happens if HR compliance slips
Interest and damages on PF and ESIC
Late PF attracts interest at 12% a year on arrears, and late ESIC attracts 12% simple interest, with damages in both cases. Small delays add up across employees and months.
Penalties under the Labour Codes
Contravening the OSH Code can attract a penalty of ₹2 lakh to ₹3 lakh, with ₹2,000 a day for continuing breaches. Wage and registration lapses can draw their own penalties.
Disputes and morale
A wrong payslip, a missed gratuity entitlement or a missing appointment letter is how a small grievance becomes a formal one.
Frequently asked questions
What does HR outsourcing include?
It covers the administrative side of HR: onboarding paperwork, appointment letters, payroll, PF, ESIC and TDS working, leave and attendance records, policy drafts and labour-law filings. Recruitment and staff supply are separate services. We write the scope into an agreement so both sides know exactly who does what each month.
Is HR outsourcing the same as payroll outsourcing?
No. Payroll is one part of HR outsourcing. HR outsourcing also covers employee files, joining and exit formalities, registers, policies and the full labour-law calendar. If you only need salary processing, we can start with payroll and add other functions later as your team grows.
Do appointment letters matter under the new Labour Codes?
Yes. The Labour Codes in force since 21 November 2025 require employers to issue appointment letters to employees. We draft them for your review. For sensitive terms such as notice period and probation, we suggest a lawyer reads the final version. Your files will then be ready for any inspection.
Who is responsible if the outsourced work has a mistake?
The employer stays legally responsible to the employee and the authority. That is why we send a monthly summary for your approval before payments and filings go out. Our agreement sets out our duty of care on accuracy and timelines. Clear approvals protect both sides.
How much employee data do you need?
Only what the work needs: identity, bank, PF and ESIC numbers, salary and attendance. Under the Digital Personal Data Protection Act, 2023, the employer remains the data fiduciary and the processor should work under a written contract. We keep data limited to the task and put those terms in the agreement.
At what size should I start outsourcing HR?
Ten employees is a natural point, because ESIC starts at 10 or more employees. PF follows at 20. Many owners start earlier because payroll errors begin as soon as salaries vary month to month. Tell us your headcount and we will say what applies to you today.
Can you also handle PF and ESIC registration?
Yes. We register your establishment on the PF and ESIC portals when the thresholds apply, link employees and begin monthly contributions. See our pages on PF registration and ESIC registration for the detail. We can take over the filings even if you are already registered.
Will switching to you disrupt this month’s salaries?
Not if we plan it. In practice, a parallel run catches most errors. We run the first cycle in parallel with your current method, compare payslips and fix differences before you approve. Only then do we take over fully. Pick a start date right after a salary cycle closes. That gives the cleanest handover.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Statutory dues such as PF, ESIC and TDS are payable by you in any case. Our fee covers the work of preparing, filing and tracking them.
Ready to begin?
Send us your headcount, location and current payroll method. We will show you what we would take over and what stays with you.