Quick answer: A master services agreement (MSA) is the framework contract between you and a service provider. With an employer of record in India, it sets the fee, invoicing, GST, liability, IP, data protection and exit terms once. Each new hire is then added by a short order or schedule, with no need to renegotiate the whole contract.
- The MSA governs your relationship with the EOR. Each employee’s appointment letter governs the EOR’s relationship with them.
- Under s.8(2) of the DPDP Act, a data fiduciary may use a data processor only under a valid contract.
- EOR services attract 18% GST unless the supply meets all five export conditions in s.2(6) of the IGST Act.
- Post-employment non-competes are void under s.27 of the Indian Contract Act, 1872, so the MSA cannot fix that for you.
What is the difference between an MSA, SOW and SLA?
Three layers, three jobs. The MSA sets the rules, the SOW lists the work, and the SLA sets the standard.
| Document | What it covers | How often it changes |
|---|---|---|
| MSA | Fees, liability, IP, data, termination, governing law | Rarely |
| SOW or order form | Named roles, start dates, salaries, location | With every hire |
| Service level agreement | Payroll date, response times, onboarding time, credits | Yearly, or on renewal |
Some EORs fold the SLA into the MSA as a schedule. Fine. Just make sure the numbers, the measurement method and the remedy for a miss are all written down, not promised on a sales call.
Which clauses matter most in an EOR master services agreement?
The ones that decide what happens when something goes wrong. Check these eight.
- Fee: flat or percentage EOR fee, with costs passed through at cost.
- GST: export zero-rating, and who bears GST if it fails.
- Deposit: amount, top-ups and refund date for any security deposit.
- IP: a written chain from employee to EOR to you.
- Data: DPDP roles, security duties, deletion at exit.
- Liability: who pays for a misclassification claim or a missed filing.
- Exit: notice to end, plus your right to move staff to your own entity.
- Price changes: notice before any fee rise.
The DPDP Act text published by MeitY sets the processor contract rule. Our guide to the employer of record contract walks through sample wording.
What do foreign companies get wrong in an Indian EOR MSA?
Copying a home-country template. A US-style MSA often assumes at-will termination and a post-exit non-compete.
Neither works in India. Notice and exit terms are set by the employment contract and Indian law, and post-employment non-competes are void. So the MSA should focus on what you and the EOR owe each other, and leave employee terms to compliant Indian documents.
How does Remunance structure its master services agreement?
Remunance keeps the commercial core short. You pay a flat fee from USD 99 per employee per month, and employment costs pass through at cost. We onboard in as little as 2 working days from a signed contract and answer queries within 2 working days. And when you outgrow EOR, our India subsidiary formation team can move your whole team onto your own company. To go through the terms clause by clause, review our contract terms with an EOR specialist.
What else do people ask about master services agreements?
What is an MSA in a contract?
It is the umbrella agreement that sets general terms between two businesses. Later orders or statements of work sit under it.
Is an MSA legally binding in India?
Yes. Once both parties sign, it is a contract under the Indian Contract Act, 1872, and courts enforce it like any other commercial agreement.
Who signs the MSA in an EOR arrangement?
You and the EOR. Employees never sign it. They sign appointment letters with the EOR instead.