Wednesday, August 27, 2008

Huawei in india staffing Controversy

The Indian government has accused Chinese telecoms solutions company Huawei of employing Chinese staff without proper work and resident permits, Indian media reports.

The report quotes India's Ministry of Labour and Employment as saying that Huawei has employed "Chinese workers in India without proper work permits in large numbers, much beyond the permissible limits." The government says that these "expatriates are not paying applicable income tax, for which they do not have immunity. This is in complete disregard to the law of the land, and a misuse of liberty leading to indulgence in fraudulent act."

The notice adds that "in the event of non-compliance and continued abuse of government regulations, the Directors of the company, including the CEO, will be reprimanded by financial penalties/imprisonment, and the government may ask the firm to close its business premises."

A Huawei spokesperson said the company currently employs 200 Chinese expatriates in India. "Huawei strictly complies with Indian tax regulations, and all of our employees have valid business visas," the spokesperson said. Indian media sources claim Huawei employs up to 500 workers from China, and "very few have valid work permits."

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