Dear Team, Kindly share any circular or documents which say the person who joins on a Retainership or Consultants basis is not eligible for PF deduction as per the PF act or any other retiral benefits.
Thanks
Pradeep
2Thanks
Pradeep
Hi,
Consultants are basically people with some special expertise in one particular field who are hired by Employers on assignment basis for a fixed tenure. Such consultants will act as advisors to the Employers and offer advise to Employers. Thus there is no question of employer employee relationship between them. Those consultants raise invoice on monthly or some tenure based hence their payment will be considered as Retainer fee subject to tax deducted at source. A consultant can work for multiple employers on a same day where as in the case of the employee it is restricted to one employer. As consultants role are assignment basis they are eligible only for the Retainer fee mutually agreed and not any other benefits which is applicable to employees.
Alternatively if employees are hired in the name of consultants and if they spend whole time for the employer then their compensation paid to them in what so ever term will be subject to PF deduction.
From India, Madras
Consultants are basically people with some special expertise in one particular field who are hired by Employers on assignment basis for a fixed tenure. Such consultants will act as advisors to the Employers and offer advise to Employers. Thus there is no question of employer employee relationship between them. Those consultants raise invoice on monthly or some tenure based hence their payment will be considered as Retainer fee subject to tax deducted at source. A consultant can work for multiple employers on a same day where as in the case of the employee it is restricted to one employer. As consultants role are assignment basis they are eligible only for the Retainer fee mutually agreed and not any other benefits which is applicable to employees.
Alternatively if employees are hired in the name of consultants and if they spend whole time for the employer then their compensation paid to them in what so ever term will be subject to PF deduction.
From India, Madras
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PF-Circular-Suc cession Certificate.pdf