Dear Seniors,
I am a new member. I have a query to you all. Supposing, one is employed on contractual basis, in the appointment letter, it is mentioned that the contract may be renewed after one year on mutual basis and he will be paid a "remuneration" per month (gross) of X Rs.
Now, while receiving his salary, he is given with a voucher to sign off while receiving the said "remuneration", wherein it is mentioned that "being the service charge for the month of X" and he has to sign that off.
His question is, is the word "service charge" applicable in such contractual assignments/employments and in the case where the said employee has to receive the remuneration as "service charge", is the entire contract valid and is he bound to serve a notice period of 30 days? What if denies to serve the notice period, as there is no exit clause pertaining to notice period that if he fails to serve the notice period, salary/payment for the said period will be on hold or forfeited or adjusted against the notice period. Or, the letter of appointment is ambiguous by nature.
Please guide me out as it is my question to you all, the letter of appt is mine only. The scanned copy is attached herewith.
Best Regards
Debashis Roy
From India, Calcutta
I am a new member. I have a query to you all. Supposing, one is employed on contractual basis, in the appointment letter, it is mentioned that the contract may be renewed after one year on mutual basis and he will be paid a "remuneration" per month (gross) of X Rs.
Now, while receiving his salary, he is given with a voucher to sign off while receiving the said "remuneration", wherein it is mentioned that "being the service charge for the month of X" and he has to sign that off.
His question is, is the word "service charge" applicable in such contractual assignments/employments and in the case where the said employee has to receive the remuneration as "service charge", is the entire contract valid and is he bound to serve a notice period of 30 days? What if denies to serve the notice period, as there is no exit clause pertaining to notice period that if he fails to serve the notice period, salary/payment for the said period will be on hold or forfeited or adjusted against the notice period. Or, the letter of appointment is ambiguous by nature.
Please guide me out as it is my question to you all, the letter of appt is mine only. The scanned copy is attached herewith.
Best Regards
Debashis Roy
From India, Calcutta
Dear Mr.Debasis,
If mention in contract letter to serve notice period then you have to abide by it.
Salary and remuneration are two diferent thing. As per my knowledge service chare is not charged from the employees on the basis of employment contract.
Your attachment file containing letter are micro in size, so its not clearly visible.
Better you discuss clearly regarding the same with your employer.
Regard's
Shaikh
From India, Bhubaneswar
135If mention in contract letter to serve notice period then you have to abide by it.
Salary and remuneration are two diferent thing. As per my knowledge service chare is not charged from the employees on the basis of employment contract.
Your attachment file containing letter are micro in size, so its not clearly visible.
Better you discuss clearly regarding the same with your employer.
Regard's
Shaikh
From India, Bhubaneswar
Fixed Term Contract, as it is called, is permitted kind of employment. But it should not be a tool to deter any right of an employee under the Labour enactments. As such, if an employee under FTC is given PF, ESI etc, there is nothing wrong in such appointment. On the other hand, by fixing a "service charge" as "remuneration" he should not be "employed" and that relationship will not be accepted also. Even if his letter of appointment so describes, the remuneration will be treated as salary only. Otherwise there should be proof to show that he is a consultant and he is paid fee for his professional skill. If so, he will have to issue a bill which should also include a service TAX.
Regarding termination of FTC, if the letter so specifies you can insist for notice if he is leaving before the date comes to an end. At the same time, if you want to terminate his contract of employment, you should also give the same notice or pay salary in lieu of notice.
Regards,
Madhu.T.K
From India, Kannur
Regarding termination of FTC, if the letter so specifies you can insist for notice if he is leaving before the date comes to an end. At the same time, if you want to terminate his contract of employment, you should also give the same notice or pay salary in lieu of notice.
Regards,
Madhu.T.K
From India, Kannur
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