Employers must register under the Shops and Establishment Act of the state where the remote employee resides, and ensure PF, ESI, and professional tax compliance for that location—treating the home as a place of work. For home injury during work hours, it should be covered under the Employees' Compensation Act. My own high income meant my company was meticulous about these interstate registrations for my Pune payroll while I worked from Kerala, which they stressed was to avoid legal exposure. So, from my experience, the duty is clear-cut for any serious employer, not chumma optional.
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