Deputation letter template
Copy the text below and replace everything in square brackets with your company details.
[Company Name]
[Office Address]
[City], [State] [PIN Code]
Date: [Date]
Ref: [Company Code]/HR/DEP/[Year]/[Number]
To
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Deputation to [Host Company, Client or Unit Name], [Host Location]
Dear [Employee Name],
You are deputed to [Host Company, Client or Unit Name] at [Host Address] for the period from [Start Date] to [End Date] for [Purpose, for example: commissioning the new packaging line / supporting the payroll migration at our Hyderabad group company]. You will remain an employee of [Company Name] throughout the deputation.
- Day-to-day reporting: [Host Coordinator Name], [Designation], for work allocation at the host location.
- Administrative reporting: [Parent Manager Name], who will continue to approve your leave and review your performance.
- Working hours and holidays: as followed at the host location, [Timings and Weekly Off].
- Salary: continues to be paid by [Company Name] on the usual date.
- Deputation allowance: ₹[Amount] per [day or month] for the deputation period.
- Travel and stay: [Company-arranged accommodation / hotel stay up to ₹[Amount] per night], with travel to and from the host location reimbursed as per the travel policy.
During the deputation you will follow the safety rules, site discipline and confidentiality requirements of the host location, in addition to the policies of [Company Name]. Information about the host's business that you see during the deputation must not be shared outside the assignment.
The deputation may be extended or ended early by a written communication from the company. At the end of the deputation, you will report back to [Parent Location] on [Return Date] and submit a short report on the work completed to [Parent Manager Name].
Yours sincerely,
For [Company Name]
[Signatory Name]
[Signatory Designation]
Copy to: [Host Coordinator], Payroll
Acknowledgement by employee
I accept the deputation on the terms stated above.
Name: [Employee Name]
Signature: ____________
Date: ____________
What to include
Employer stays the same
State plainly that the employee remains on the parent company's rolls, with salary paid by the parent. This keeps PF, ESI, gratuity service and payroll continuous and avoids any suggestion of a change of employer.
Two reporting lines
Separate day-to-day work reporting at the host from administrative reporting to the parent manager, who approves leave and reviews performance. Deputed employees otherwise fall between two managers.
Whose hours and holidays apply
Say which schedule applies. A deputee at a plant in another state usually follows the host's hours and holidays, and attendance must be recorded where the work happens.
Allowance and stay
Write the deputation allowance and what the company pays for travel and accommodation. Deputation is often unpopular because these are left vague.
Fixed return date
A return date and a short report on completion close the deputation cleanly. Extensions need a written note, so the assignment does not drift into an informal transfer.
Common mistakes to avoid
- Treating an open-ended deputation as temporary for years instead of issuing a transfer.
- Leaving leave approvals with the host site, where nobody is responsible for them.
- Not recording attendance at the host location, which causes salary deductions later.
- Paying the deputation allowance late or without a written rate.
- Deputing an employee to a client site without a confidentiality instruction.
Run it in ZeniaHR
The employee stays on the parent company's record and payroll in ZeniaHR. If the host is a group company or branch set up in the organization masters, set the host's check-in spot or kiosk for punching, or allow mobile punches with location, and use a roster to give host timings for the period. Leave requests still go to the reporting manager and then HR. Add travel and stay costs as reimbursement payroll inputs, and keep the signed letter in the employee's documents.
See it on your own data
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Book a free demoSee pricingFrequently asked questions
What is deputation in a private company?
Deputation is a temporary assignment of an employee to another unit, group company or client site for a fixed period, while the employee stays on the parent company's rolls and is paid by it. At the end of the period the employee returns to the parent location. It is used for projects, launches and audits.
Is a deputation allowance mandatory?
In private companies the deputation allowance is set by company policy rather than a fixed statutory amount. Most companies pay a daily or monthly allowance, plus travel and stay, because the employee works away from home. Write the rate in the deputation letter.
Who approves leave during deputation?
Leave is normally approved by the parent reporting manager, after checking with the host coordinator so the work is covered. The deputation letter should state this. Attendance is recorded at the host location and shared with the parent HR team for payroll.
Can a deputation be extended?
Yes, by a written extension from the company, stating the new end date and any change in allowances. If a deputation keeps being extended with no end in sight, consider whether a transfer letter is more appropriate and discuss it with the employee.