Dear Seniors
Seek your help to understand the features of "Contract Employment"
I am in the HR dept. of an electrical trade company into the business of marketing of Fans & water lifting pumps.
As during salary negotiation time every candidate is interested in more cash in hand, I wish to propose to my Mgmt. to start with contract employment too for the reason that to my limited knowledge on subject I know that on contract employment term there are no annual benefit & statutory benefits applicable and whatever monthly fee/salary is agreed is all cash in hand to employee.
Before I propose, I wish to understand the subject of contractual employment better and would appreciate if any of you could aid my learning on following points-
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months?
3) How many times contract can be extended or renewed?
4) Any clause which is suggested to be included in contract letter to safeguard the interest of company? (Attached is on sample of contract letter taken from CiteHR).
If you can suggest some site which can help me enhance my knowledge on contractual employment then pls suggest so.
Warm regards
Shruti
From India, Delhi
7Seek your help to understand the features of "Contract Employment"
I am in the HR dept. of an electrical trade company into the business of marketing of Fans & water lifting pumps.
As during salary negotiation time every candidate is interested in more cash in hand, I wish to propose to my Mgmt. to start with contract employment too for the reason that to my limited knowledge on subject I know that on contract employment term there are no annual benefit & statutory benefits applicable and whatever monthly fee/salary is agreed is all cash in hand to employee.
Before I propose, I wish to understand the subject of contractual employment better and would appreciate if any of you could aid my learning on following points-
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months?
3) How many times contract can be extended or renewed?
4) Any clause which is suggested to be included in contract letter to safeguard the interest of company? (Attached is on sample of contract letter taken from CiteHR).
If you can suggest some site which can help me enhance my knowledge on contractual employment then pls suggest so.
Warm regards
Shruti
From India, Delhi
There are advantages as well as disadvantages in the contract employment.
Advantages:
Engaged for a fixed period. No liabilities beyond the specified period. No benefits like gratuity, PF, etc.
Disadvantages:
Less responsibility/accountability of the contract employee. No loyalty to the company during the contract period. As the performance is not linked to his contractual period, the output from him may be limited.
Regards
R.Ponraj
From India, Lucknow
Advantages:
Engaged for a fixed period. No liabilities beyond the specified period. No benefits like gratuity, PF, etc.
Disadvantages:
Less responsibility/accountability of the contract employee. No loyalty to the company during the contract period. As the performance is not linked to his contractual period, the output from him may be limited.
Regards
R.Ponraj
From India, Lucknow
Dear Friend,
My view on your queries are as under:
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc : NO
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months? YES
3) How many times contract can be extended or renewed? As many times you require
It is further to be noted that PF and ESI Acts are applicable to Contract Employees also, Factories Act or Shops & Estd Act as the case may be, applicable to Contract Employees. In case the Contract is continuously renewed for 5 years then Gratuity Act is applicable.
Hope this may help!
Regards
more at https://www.citehr.com/310925-all-ab...#ixzz1BNYLUKwh
From India, Vadodara
My view on your queries are as under:
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc : NO
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months? YES
3) How many times contract can be extended or renewed? As many times you require
It is further to be noted that PF and ESI Acts are applicable to Contract Employees also, Factories Act or Shops & Estd Act as the case may be, applicable to Contract Employees. In case the Contract is continuously renewed for 5 years then Gratuity Act is applicable.
Hope this may help!
Regards
more at https://www.citehr.com/310925-all-ab...#ixzz1BNYLUKwh
From India, Vadodara
Dear Kuljit & Ponraj
Thanks for the response, your inputs are much appreciated.
But as I mentioned that motive of opting for contact employment is purely to give candidate benefit of more cash in hand, so is there any way we can avoid statutory benefit application to contractual employees.
Currently we have few employees on retainership basis and for them no statutory benefit is applicable. It is a slumsum figure say Rs 40,000/- payable to concerned on monthly basis. Only deduction is on head of leave if taken any as on retainership no paid leaves are allowed except and only weekly offs & Company holiday are allowed. Retainers raise their bill & they are paid against that bill. Only service tax is applicable.
In my first co. we had good no. of employees working on contract basis (generally site engg. etc) who were paid a fixed amt. monthly under the head of Basic, HRA & Conveyance. For Eg.-
Monthly salary- 20,000/-
So payable as under
Basic- 8000
HRA- 4800
Conv.-7200
No Statutory benefits were applicable to them. They had same leave rules as that of permanent employee. Contract was made for 12 months and was renewed at a gap of 4-5 days.For these 4-5 days emp. were compensated via voucher.
PLS EXPLAIN IS THIS PRACTICE OK & LEGAL? CAN I PROPOSE THIS TO MY MGMT.?
Will truly appreciate a quick response
From India, Delhi
Thanks for the response, your inputs are much appreciated.
But as I mentioned that motive of opting for contact employment is purely to give candidate benefit of more cash in hand, so is there any way we can avoid statutory benefit application to contractual employees.
Currently we have few employees on retainership basis and for them no statutory benefit is applicable. It is a slumsum figure say Rs 40,000/- payable to concerned on monthly basis. Only deduction is on head of leave if taken any as on retainership no paid leaves are allowed except and only weekly offs & Company holiday are allowed. Retainers raise their bill & they are paid against that bill. Only service tax is applicable.
In my first co. we had good no. of employees working on contract basis (generally site engg. etc) who were paid a fixed amt. monthly under the head of Basic, HRA & Conveyance. For Eg.-
Monthly salary- 20,000/-
So payable as under
Basic- 8000
HRA- 4800
Conv.-7200
No Statutory benefits were applicable to them. They had same leave rules as that of permanent employee. Contract was made for 12 months and was renewed at a gap of 4-5 days.For these 4-5 days emp. were compensated via voucher.
PLS EXPLAIN IS THIS PRACTICE OK & LEGAL? CAN I PROPOSE THIS TO MY MGMT.?
Will truly appreciate a quick response
From India, Delhi
Dear all
Good Day!
I am Elizabeth Antony, i need to give one contract letter to and Designer to whom we are bearing education cost. Hence we need to hold that staff for three years to share his knowledge in our business. So i have to prepare him employment contract for those 3 years. Kindly help me in this way and kindly do the needful.
Ours is IT Pvt Ltd Concern, has no ESI and PF.
Thanks and Regards
Elizabeth Antony
From India, Madras
Good Day!
I am Elizabeth Antony, i need to give one contract letter to and Designer to whom we are bearing education cost. Hence we need to hold that staff for three years to share his knowledge in our business. So i have to prepare him employment contract for those 3 years. Kindly help me in this way and kindly do the needful.
Ours is IT Pvt Ltd Concern, has no ESI and PF.
Thanks and Regards
Elizabeth Antony
From India, Madras
Hi, First you have to understand the diff btwn GET & FTE (graduate engr trainee & fixed term employment) then try to make up the objectives for this (why it is required, what problem it solve, wat benefit we are getting fromit). Try to establish some SOP s for this like start with wat is FTE , who are all eligible for this ( diploma comes under GET, here u hav to follow the laws & BE people comes under FTE) fix the tenure, terms & conditions , when they comes to the end of the period we can take them as trainee with that we can run the show for some time. Then based on their performance we can put them on rolls. Its all cost cutting efforts which an org undertakes. During the elevetion period we have to keenly watch their performance , attendance details. Regards. Gengaraj.P
From India, Madras
From India, Madras
Dear Shruti, You want to hire employees on contract or fixed term? You may go for consolidated remuneration for your employees. Members have given thir views and are appreciable.
From India, Bhubaneswar
From India, Bhubaneswar
Senior Professional,
I am working central university on contract basis without break from Sept. 2001 - April,2005; after this, (from May 2005 - Nov. 2011)I continued for three months and I have break 3 days and continued like that. Last year I applied to count my contract period for qualifying service but I am not success.
In this website I had already asked about this and reply me it is possible. I need to help, I do not know how to do, but I want to success.
C. Lalfela
From India, Aizawl
I am working central university on contract basis without break from Sept. 2001 - April,2005; after this, (from May 2005 - Nov. 2011)I continued for three months and I have break 3 days and continued like that. Last year I applied to count my contract period for qualifying service but I am not success.
In this website I had already asked about this and reply me it is possible. I need to help, I do not know how to do, but I want to success.
C. Lalfela
From India, Aizawl
Senior Professional,
I am working central university on contract basis without break from Sept. 2001 - April,2005; after this, (from May 2005 - Nov. 2011)I continued for three months and I have break 3 days and continued like that, and 14 Nov.2011 I got regular appointment. Last year I applied to count my contract period for qualifying service but I am not success.
In this website I had already asked about this and reply me it is possible. I need to help, I do not know how to do, but I want to success.
C. Lalfela
Today From India, Aizaw
From India, Aizawl
I am working central university on contract basis without break from Sept. 2001 - April,2005; after this, (from May 2005 - Nov. 2011)I continued for three months and I have break 3 days and continued like that, and 14 Nov.2011 I got regular appointment. Last year I applied to count my contract period for qualifying service but I am not success.
In this website I had already asked about this and reply me it is possible. I need to help, I do not know how to do, but I want to success.
C. Lalfela
Today From India, Aizaw
From India, Aizawl
Hello All,
My name is "ziona" I work as a BDM into manpower consulting firms, and i am looking for a good proposal email format for my clients. I am trying to get one from over here but didn't got any except few Pdf's and Docx file of proposal letter ! So... can any one help me with same which i am looking for???
I'll be so great to it.
thanks and regards...
Ziona
From India, Patna
My name is "ziona" I work as a BDM into manpower consulting firms, and i am looking for a good proposal email format for my clients. I am trying to get one from over here but didn't got any except few Pdf's and Docx file of proposal letter ! So... can any one help me with same which i am looking for???
I'll be so great to it.
thanks and regards...
Ziona
From India, Patna
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf