Hi,
I have recently joined a company and have a quick query in mind: What is more beneficial for the company, to have workers on the payroll or to have them on a contractual basis?
Awaiting your response.
From India, Gurgaon
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I have recently joined a company and have a quick query in mind: What is more beneficial for the company, to have workers on the payroll or to have them on a contractual basis?
Awaiting your response.
From India, Gurgaon
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Dear Jeevika,
The answer to this query is dependent on the situation. Mostly, the decision to keep people on a contractual basis is made considering costs and to avoid unionized employment. However, one needs to think if this practice is truly valid in the eyes of the law. If you consider ethics and the "LAW," you cannot hire contractual or temporary employees for any permanent nature of work.
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395The answer to this query is dependent on the situation. Mostly, the decision to keep people on a contractual basis is made considering costs and to avoid unionized employment. However, one needs to think if this practice is truly valid in the eyes of the law. If you consider ethics and the "LAW," you cannot hire contractual or temporary employees for any permanent nature of work.
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Hi Manoj - highly appreciated. In addition to the ethics part if you could help me with some more plus and minus points! Thanks
From India, Gurgaon
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From India, Gurgaon
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Dear Jeevika,
The benefits of contract labor are:
1. Labor available at a lower cost
2. No unionized turmoil in many cases
3. No need for one-on-one negotiations with employees for salary hikes
4. Bonus payments can be kept at a minimum
On the downside, there are some drawbacks:
1. Lack of stable employment/loyalty towards the organization
2. The final responsibility for all statutory dues lies with the principal employer
3. Finding the right fit is very challenging while employing workers on irregular contracts.
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The benefits of contract labor are:
1. Labor available at a lower cost
2. No unionized turmoil in many cases
3. No need for one-on-one negotiations with employees for salary hikes
4. Bonus payments can be kept at a minimum
On the downside, there are some drawbacks:
1. Lack of stable employment/loyalty towards the organization
2. The final responsibility for all statutory dues lies with the principal employer
3. Finding the right fit is very challenging while employing workers on irregular contracts.
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