Quick answer: To switch EOR provider in India, your employees leave the old employer of record and join the new one, so their legal employer changes while the job continues. The old EOR pays final dues within two working days, PF moves under the same UAN, and gratuity service carries over only if the new contract says so.
- Under s.17(2) of the Code on Wages, the outgoing EOR must pay final wages within two working days of each exit.
- The employee keeps one Universal Account Number for life, so PF follows them.
- Permanent staff need five years’ continuous service for gratuity, and a switch can reset that clock.
- Most DPDP Act duties on security and erasure of personal data apply from 13 May 2027.
What actually moves in an EOR migration?
Contracts and accounts move. Some balances need a decision.
| Item | Default position | What to agree |
|---|---|---|
| Employment contract | Ends with the old EOR, new one starts | Same pay, title and joining date in the new letter |
| PF and UAN | Same UAN, old account transferred online | Nothing, if Aadhaar is seeded |
| Gratuity service | Restarts at zero | Whether the new EOR recognises past service, and who funds it |
| Earned leave | Encashed by the old EOR | Or carried over at the new one |
| Notice | Owed to the old EOR under your MSA | Exit date that matches its notice clause |
| Security deposit | Refunded after the final invoice | A refund date in writing |
What is the gratuity trap in an EOR switch?
Lost years. If staff have under five years’ service and nobody agrees continuity, they walk away with nothing and start again.
Let’s say a developer earns ₹60,000 a month in wages and has 3 years with your current EOR. Her accrued gratuity is about ₹1,03,846. But it is not yet payable, because she has not reached five years.
Switch without a continuity clause, and her service clock resets. She notices.
Hence a well-run migration does one of two things. Either the new EOR recognises prior service, with the client funding that liability, or the old EOR pays an agreed amount as part of the exit. Both are contract choices, not statutory rules.
How should employee data move between EORs?
Under a written instruction, with the old provider deleting what it no longer needs. Employment is a legitimate use under s.7(i) of the DPDP Act, so you do not need fresh consent.
The duties remain, though. Section 8(7) requires erasure once the purpose is served, unless another law requires retention, such as tax or payroll records. Ask both providers how they will transfer payroll history, Form 130 data and bank details securely.
Our guide to EOR switch strategies covers the full plan.
How does Remunance handle an EOR migration into India?
Remunance takes over your India team from the outgoing provider and agrees continuity terms with you before anyone resigns. We map salaries and leave balances line by line, reissue Labour Code compliant appointment letters, and register staff under our PF and ESIC codes. As an ISO/IEC 27001:2022 certified company, we receive employee data through a controlled handover. Before you serve notice on your current EOR, book a migration review with Remunance.
What else do people ask about switching EOR providers?
How long does it take to switch EOR provider?
Mostly as long as your current MSA’s notice period. Paperwork for the new contracts can run in parallel during that notice.
Do employees have to resign when you change EOR?
In effect, yes. The old employment ends and a new one begins, so each person must accept the new offer.
Will employees lose their PF when changing EOR?
No. PF stays under the same UAN and the old balance is transferred to the new employer’s account.