Employer of Record for Logistics Companies in India
Hire managers for your warehouses, supply chain leads, fleet managers, and logistics operators from anywhere in India, even without setting up an entity in India. The EOR Service by TankhaPay will manage payroll across multiple states, comply with Contract Labour Act, manage shift wages, and handle PF & ESI so your logistics team is on the ground and running in 2 to 3 days.
Build and Scale Your Logistics Workforce Without Setting Up a Local Entity
Logistics companies can easily employ warehouse managers, supply chain managers, fleet managers, and operational staff throughout India, even if there isn’t a presence on the ground, through TankhaPay, one of the top EOR service providers in India, which also includes compliance with the Contract Labour Act, multi-state payroll services, and PF/ESI from day one. The logistics industry in India is expanding at an unprecedented pace due to several reasons, such as the implementation of the PM Gati Shakti National Master Plan, the Eastern and Western Dedicated Freight Corridors, and increasing demand from the e-commerce sector for 3PL, cold chain logistics, freight forwarding, and last mile delivery. Hiring across all of this will require compliance with the Contract Labour (Regulation and Abolition) Act 1970, the Motor Transport Workers Act 1961, minimum wage requirements under the Minimum Wages Act 1948, and 28 different Shops and Establishment Acts simultaneously.
That's where our Employer of Record (EOR) service becomes handy. We act as your company's legal employer in hiring the manpower required for logistics in India through INR payroll, taking care of PF/ESI and principal employer responsibilities as per the Contract Labour Act and ensuring that your employment complies with all states you work in. Most of the warehouse, supply chain, and operational employees are on payroll within 2 to 3 days of joining.
Why Logistics Companies Choose TankhaPay EOR
With TankhaPay, logistics providers get fast hiring capabilities across state lines along with deep enough compliance to make it possible without principal employer risk.
Contract Labour Act Compliance — The Principal Employer Obligation Most EOR Providers Miss
The Contract Labour (Regulation and Abolition) Act 1970 is the most commonly mishandled compliance obligation in Indian logistics. As per this act, a company which employs labourers through a labour contractor becomes the principal employer, which includes registration with the appropriate licensing authority, maintenance of the Form XIII and XIV registers, making sure that the labour contractor gives statutory benefits to all labourers, and getting personally involved when the labour contractor fails to pay their salaries or PF deposits. Logistics companies, which routinely use contract labour for warehouse loading, last-mile delivery, and fulfilment operations, are among the most exposed businesses in India to this liability. When a contractor fails to pay, the principal employer pays.
TankhaPay fixes this problem by becoming the actual employer of your logistics workers. Rather than employing your workforce via a third-party contractor who exposes you to liability, your logistics workforce will be TankhaPay’s employees, which will result in statutory contributions being made into their accounts, registers being kept up to date, and the risk lying with TankhaPay and not you. There is no problem with liability through a contractor because there is simply no contractor. That is why the logistics HR department always includes TankhaPay in the top EOR companies in India list.
What TankhaPay Handles for Your India Logistics Workforce
Multi-State Payroll and Minimum Wage Compliance
Logistics companies rarely operate in one state. A 3PL running warehouses in Maharashtra, Karnataka, and Delhi NCR faces three different minimum wage schedules, three different Shops and Establishments Acts, and three different Labour Welfare Fund contribution rates before adding Chennai, Hyderabad, or Kolkata to the network. TankhaPay runs payroll and statutory compliance for every location from one platform, applying the correct state rules to each site automatically through our payroll management platform.
Contract Labour and Workforce Classification
In logistics, the line between direct employee and contract worker is where most compliance failures begin. By law, under the Contract Labour (Regulation and Abolition) Act of 1970, using a labour contractor to provide you with employees means you become the principal employer; that role comes with responsibilities that come attached whether there is one contractor or several contractors between you and your workforce. TankhaPay employs your logistics team as your employees while acting as an Employer of Record (EOR).
Shift-Based and 24/7 Operations Payroll
Warehouses and distribution centres don't operate on the traditional nine-to-five schedule; therefore, the payroll for a 24x7 logistics operation must be able to handle night shifts, shift rotations, standby hours, and spontaneous overtime, all of which are difficult tasks for most traditional payroll systems. TankhaPay gets shift-related salaries right from day one so that nothing needs to be corrected in the future, and there are no liabilities lurking under the surface waiting to appear during an audit.
Motor Transport Workers Compliance
The Motor Transport Workers Act 1961 imposes specific obligations on employers of drivers, helpers, conductors, and vehicle crew that are almost entirely absent from generic EOR provider agreements. Hours of work, mandatory rest intervals, overtime rates, leave entitlements, medical allowances, and uniform provisions are all defined under this Act and must be reflected in every transport workforce employment contract. TankhaPay builds these obligations into onboarding for any logistics role that falls under the Act's scope.
Data Security and Compliance Reporting
A logistics company operating across six states must comply with the regulatory requirements of six labour departments that each work on their own inspection schedule, register maintenance, and file submission deadlines. TankhaPay makes sure that all of the files are prepared according to audit standards for all acts at each state and facility location, since an inspection notification from a labour department would not prompt a frantic search for missing records.
Built for Every Decision Maker in Your Logistics Organisation
Different stakeholders in logistics need different things from an EOR, and TankhaPay covers all of them without the compliance load landing on anyone internally.
Why Logistics Companies Choose TankhaPay for EOR Services
Why speed matters in logistics hiring.
India's logistics sector is expanding faster than most markets can staff for. However, due to the availability of the PM Gatishakti National Master Plan, Eastern & Western Dedicated Freight Corridors, and the presence of an e-commerce ecosystem, which tends to double its fulfilment staff in the fourth quarter every year, the hiring process is becoming time-sensitive enough that it is weeks, not months, that determine whether you hire your necessary manpower in time. For instance, if a logistics firm requires hiring a Distribution Center Manager in Bengaluru or Last Mile Operations in Delhi NCR, the three to six month process involved in setting up a business and registering under the EPFO and Contract Labour Act will be too slow. TankhaPay onboards logistics staff in 2 to 3 days from offer acceptance to live payroll.
Why logistics compliance cannot be managed generically.
Logistics compliances in India include more than one act, and none of these can be disregarded. For example, in case a site involves the use of contract labourers, then the principal employer will have to register himself and keep Form XIII maintained under the Contract Labour (Regulation and Abolition) Act, 1970. Again, the Motor Transport Workers Act 1961 has certain requirements of hours of work, rest periods, and benefits for the motor transport workers employed by the firm. The Interstate Migrant Work Men Act 1979 is another requirement related to interstate movement of workers for logistics operations. State minimum wages under the Minimum Wages Act 1948 depend upon different categories of employees in different states where the logistics company operates. Failure to file ECR, incorrect classification of a worker, or non-inspection of Form XIII leads to penal provisions under Section 14B of the EPF Act. TankhaPay manages this seamlessly with its compliance team with no penalty for over 1,000 clients since 2000.
Why India's specialisation beats global EOR platforms for logistics.
The Global EOR portals put India on the list of 150 to 180 countries, but it is generally taken care of by a local partner, who does not hold any accountability for the relevant issues that come into play. Logistic compliance can include anything from Contract Labour Act registrations to Motor Transport Workers Act responsibilities or even minimum wages applicable for workers employed at a cold chain warehouse in Pune compared to those at the fulfilment centre in Bengaluru. TankhaPay has been solely operating in India for over 26 years under AKAL Information Systems Ltd, which is a CMMI-appraised organisation and also accredited by ISO standards 9001, 27001, 20000, and 14001. Our services cater to logistics businesses located in Mumbai, Delhi-NCR, Bangalore, Chennai, Pune, Hyderabad, and Kolkata; we cover 3PL, last mile, freight forwarding, cold chain, and e-commerce logistics. As opposed to international marketplaces, TankhaPay keeps Form XIII registers, monitors the responsibilities of principal employers, and pays state minimum wages for every logistics location. These capabilities cannot be delivered through a platform designed for 180 countries.
Ready to Build Your India Logistics Team?
From a single operations lead to a full distribution centre team, put warehouse managers, supply chain staff, and logistics professionals on the payroll across India in 2 to 3 days. Multi-state compliance managed. Contract Labour Act obligations resolved. No entity required.
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Frequently Asked Questions About EOR for Logistics Companies in India
01.What is an Employer of Record for logistics companies in India?
Employer of Record (EOR) in Logistics is an officially registered Indian company through which your warehouse manager, supply chain manager, operation team, and transport teams are hired in your name. TankhaPay acts as your Employer of Record in hiring these employees in your name to handle all the employment laws, including payroll in INR, PF, and ESI, Contract Labour Act requirements, and multi-state compliance without losing your control of the activities in your warehouse or on your logistics performance.
02.Can a foreign logistics company hire operations staff in India through EOR?
Yes. A foreign 3PL, freight company, or supply chain operator can hire warehouse managers, distribution centre leads, and operations professionals in India through TankhaPay without establishing an Indian subsidiary or branch office. TankhaPay becomes the legal employer on record, which also neutralises the permanent establishment risk that arises from having employees in India without a compliant employing structure. Most logistics operations staff are onboarded within 2 to 3 days of offer acceptance.
03.How does EOR handle Contract Labour Act compliance for logistics companies?
The Contract Labour (Regulation and Abolition) Act 1970 makes any company that engages contract workers the principal employer — requiring principal employer registration, Form XIII register maintenance, and ensuring workers receive statutory benefits. When these obligations go unmet, liability falls on the principal employer, not the contractor. TankhaPay resolves this by becoming the direct legal employer of your logistics workforce, removing the contractor-principal employer structure and the liability that comes with it.
04.How does TankhaPay manage multi-state minimum wage compliance for logistics?
According to India's Minimum Wages Act 1948, states have their own wage rates depending on the classification of employees. In the context of logistics operations, there are varying minimum wage rates applicable to warehouse, operative, supervisory, and transport workers based on the specific state. In the case of a 3PL running its business in Maharashtra, Karnataka, and Delhi NCR, there are essentially three minimum wage schemes that it has to manage at the same time. TankhaPay does the job correctly.
05.Does EOR cover Motor Transport Workers Act obligations for drivers and fleet staff?
Yes. The Motor Transport Workers Act 1961 imposes specific obligations on employers of transport workers — including drivers, helpers, and vehicle crew — covering hours of work, mandatory rest intervals, overtime rates, leave entitlements, medical allowances, and uniform provisions. TankhaPay builds all of these into employment contracts for transport workforce roles, ensuring obligations under the Act are reflected in payroll and employment terms from Day 1, not discovered during a labour department inspection.
06.How does EOR handle shift-based payroll for 24/7 logistics and warehouse operations?
The TankhaPay solution incorporates provisions for night shift premium, shift allowance, and overtime pay in every employee's CTC right from Day 1, as per the provisions of the relevant Shops and Establishments Act in the states concerned. The amount of overtime pay is calculated as 1.5 to 2 times the basic pay rate, as per applicable state guidelines, and is calculated automatically by the payroll software. The procedures relating to on-call/standby duty schedules are also incorporated within the payroll system.
07.Can TankhaPay hire staff for e-commerce logistics and fulfilment operations in India?
Yes. TankhaPay hires people to fill all positions within e-commerce logistics, including fulfilment centre managers, last-mile delivery supervisors, inventory control supervisors, return management supervisors, and warehouse operations supervisors. E-commerce logistics in India is a nationwide operation that runs on a shift basis and is thus a challenge when it comes to payroll and shift compliance issues. TankhaPay takes care of those, enabling seasonal hires of fulfilment centres. See contract staffing services for high-volume floor-level hiring.
08.What is the Interstate Migrant Workmen Act and does EOR cover these obligations?
The Interstate Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979 requires employers recruiting workers from one state to work in another to register, maintain records, and provide displacement allowance, home journey fare, and suitable accommodation. Logistics companies drawing warehouse workers from Bihar, Jharkhand, or Odisha into Maharashtra, Karnataka, or Delhi NCR facilities frequently engage interstate migrant workers without meeting these obligations. TankhaPay manages compliance with this Act for all EOR-employed logistics workers where it applies.
09.How does EOR compare to setting up an entity for logistics expansion in India?
EOR through TankhaPay is operational in 2 to 3 days with zero setup cost and full compliance liability managed from Day 1. Registering a private limited company in India takes 3 to 6 months, which includes MCA incorporation, GST, TAN, EPFO, Contract Labour Act principal employer registration, and state-wise Shops and Establishments compliance, with your company bearing full liability from the first hire. See EOR pricing for logistics for a cost comparison.
10.Why choose TankhaPay over global EOR providers for logistics in India?
TankhaPay has operated exclusively in India for 26 years, directly owning its compliance team, not routing through a local aggregator. That means direct accountability for Contract Labour Act registers, Motor Transport Workers Act obligations, and multi-state minimum wage management across 28 states. Certified to ISO 9001, 27001, 20000, and 14001, with zero compliance penalties across 1,000+ client companies since 2000, serving logistics companies across Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Hyderabad, and Kolkata.