Bangalore: This release is being issued by Redeem Systems in public interest to serve as an awareness building tool and as a cautionary note to Indian Companies to take due diligence while hiring expats
Redeem Systems Pvt. Ltd., Banglore-based IT company, is asking Indian companies to excercise caution while hiring expats.
According to Redeem Systems, a South Korean company was found as malefactor in deviously using the support of a South Korean national for securing Indian Importer Exporter Code. The expat working at India was expelled from Indian soil for fraudulent practices in obtaining employment visa to work in an Indian IT firm while still being in contractual employment with Redeem Software.
The South Korean national was employed with Redeem Software Private Limited (Engineering R&D & Software development firm) in Bangalore since 2013 on a contractual basis. He was managing the Off-shore Development Centre of Redeem since his appointment. His employment visa to work with Redeem Software Private Limited was renewed in July 2017 up to 18th July, 2018. He had a valid passport until April 2020. But suddenly, in September, 2017 he deserted the company and returned to his country without going through the exit process as laid down by both company/government. After returning to his country, he obtained a new passport and obtained a new employment visa to work in another firm in Bangalore, on the basis of fresh letter of appointment issued by the competing IT firm.
Enquiries made by the authorities, established the fact that the expat had used forged documents including ‘No Objection Certificate’ from the first employer, to obtain the 2nd employment visa to work at the IT firm in Bangalore. Sequel to this, Indian government authorities issued ‘Leave India Notice’ on 4th January, 2018 and the expat left India on 5th January, 2018.
Enquiries revealed that the expat was poached by the rival IT firm to win over the Redeem Software’s clients and business opportunities. Redeem Systems Private Limited (formerly Redeem Software Private Limited) filed a complaint with relevant authorities, with evidences that both the South Korean company employee who was even then in employment with Redeem Software Private Limited has coalesced and secured an Importer Exporter Code (IEC) in the name of the South Korean company by falsely declaring the South Korean national as the employee/representative/signatory of the South Korean company, which is completely illegal. The purpose of this malicious act was to poach away business and employees from Redeem Systems/Redeem Software for the illegitimate benefit of the South Korean company and another company.
After due scrutiny by the concerned government authorities, the orders for cancellation of the Importer Exporter Code allotted to the India-based South Korean company were issued today.
The company had tried changing the course by claiming that being an empanelled company supplying Networking Equipment to a state government, cancellation of their Import-Export code will hamper government interest. But government authorities set aside these excuses and passed the IEC cancellation order.
Dos & Don’ts of Managing Expats without Exasperation to Ensure Exports and not the Erosion of Business:
- Expats should not get privy to outsourcing contract details with customers from foreign countries.
- The Company and Customer relationship must remain strong, personal and on one to one basis.
- Please ensure that the expat is not the sole face of the company handling the customers.
- Confidential documents and information relating to clients and customers should be shared only with due NDA from all employees including expats
- Ensure protocols for communication between expats and local employees. This will help to protect the business interest and securing the confidential information of the company, in addition to maintaining good employee morale and avoiding attrition.
- Value creation and adherence to ethics are important tools to ensure that expats adhere to norms and code of conduct.
