Contract labour wanting to be a permanent labour ? How to handle it ?
From India, Kolkata
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2From India, Kolkata
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Dear Parthagam,
Generally, it is at the discretion of the management whether to regularize the contract labor on the payroll or not. You have not mentioned whether they are being deployed through any contractor or if they are working directly in your company on a contract basis.
In the first case, they can't claim to be permanent because they are the contractor's employees. Make sure the terms are clearly stated in the agreement: "Every personnel of 'contractor' shall continue to be an employee of 'contractor,' and none of the personnel of 'contractor' shall have any claim or right of any nature against PE." Additionally, the contractor should have issued an appointment letter regarding the employment, etc.
In the second case (directly working on a contract basis), if the service period has been continuous for a long time (without any breaks) and they are receiving remuneration similar to permanent employees, they can claim to be permanent employees.
You need to carefully review the documents involved and consult with a lawyer on the matter.
I hope this information will assist you in handling the case; senior members can provide further focus on the issue.
From India, Delhi
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Generally, it is at the discretion of the management whether to regularize the contract labor on the payroll or not. You have not mentioned whether they are being deployed through any contractor or if they are working directly in your company on a contract basis.
In the first case, they can't claim to be permanent because they are the contractor's employees. Make sure the terms are clearly stated in the agreement: "Every personnel of 'contractor' shall continue to be an employee of 'contractor,' and none of the personnel of 'contractor' shall have any claim or right of any nature against PE." Additionally, the contractor should have issued an appointment letter regarding the employment, etc.
In the second case (directly working on a contract basis), if the service period has been continuous for a long time (without any breaks) and they are receiving remuneration similar to permanent employees, they can claim to be permanent employees.
You need to carefully review the documents involved and consult with a lawyer on the matter.
I hope this information will assist you in handling the case; senior members can provide further focus on the issue.
From India, Delhi
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You are in for a potential problem that needs to be solved with a lot of thinking and planning. Every contract employee wants to be made permanent. That is natural. If you don't accept, you may have an industrial relation problem, and if you do, you will have a higher headcount and liabilities.
Whether they are eligible depends on certain factors:
- Are you using them for core production?
- Are you using them for perennial jobs?
- Are they doing work that permanent employees are doing?
- Do you have direct supervision and control over the contract workers?
They don't automatically become permanent workers but can approach the labor court to be made permanent based on the grounds mentioned above or if they can show that the contract is a sham/fraud designed primarily to prevent paying fair wages and benefits.
From India, Mumbai
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Whether they are eligible depends on certain factors:
- Are you using them for core production?
- Are you using them for perennial jobs?
- Are they doing work that permanent employees are doing?
- Do you have direct supervision and control over the contract workers?
They don't automatically become permanent workers but can approach the labor court to be made permanent based on the grounds mentioned above or if they can show that the contract is a sham/fraud designed primarily to prevent paying fair wages and benefits.
From India, Mumbai
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Dear Partha,
I am sorry to say that I have not understood your query regarding "Contract labour wanting to be a permanent labour? How to handle it?" Please furnish the following information:
1. Whether the contract labour has been pressing you to become permanent or if the employer is willing to absorb them as permanent labour?
2. Whether the contract labour is employed by the contractor or if the owner of the company is engaging them directly?
3. How long they have been working with you and whether they have been working in permanent nature of jobs?
4. Whether the contract labour has been doing the same job/work that permanent workers are performing?
BS Kalsi,
Member since August 2011
From India, Mumbai
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I am sorry to say that I have not understood your query regarding "Contract labour wanting to be a permanent labour? How to handle it?" Please furnish the following information:
1. Whether the contract labour has been pressing you to become permanent or if the employer is willing to absorb them as permanent labour?
2. Whether the contract labour is employed by the contractor or if the owner of the company is engaging them directly?
3. How long they have been working with you and whether they have been working in permanent nature of jobs?
4. Whether the contract labour has been doing the same job/work that permanent workers are performing?
BS Kalsi,
Member since August 2011
From India, Mumbai
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf