Dear Seniors,
I am new to this forum and also to the HR in India. So I am hoping to get your expert advice to help me understand more on this. Currently, I am working in a Company in Singapore. We are expandind our business in India so I am tasked to handle overall HR there.I was wondering if you could advice me where to start from. :)
I have some staff who have already started work as contractors. We wanted to give them full time employment but they insisted on getting 10 months renewable contract as according to them, this will get them some kind of taxation relief. Could you please help me elaborate how does it work and will there be any implications if we give them 10 months contract and give them a renewal with 1 day break in service. I have scrached my head to figure out the things but failed...:('
Would appreciate if someone can help me and show me some light.....
Thank you all.
Regrads
Shelly
From Singapore, Singapore
I am new to this forum and also to the HR in India. So I am hoping to get your expert advice to help me understand more on this. Currently, I am working in a Company in Singapore. We are expandind our business in India so I am tasked to handle overall HR there.I was wondering if you could advice me where to start from. :)
I have some staff who have already started work as contractors. We wanted to give them full time employment but they insisted on getting 10 months renewable contract as according to them, this will get them some kind of taxation relief. Could you please help me elaborate how does it work and will there be any implications if we give them 10 months contract and give them a renewal with 1 day break in service. I have scrached my head to figure out the things but failed...:('
Would appreciate if someone can help me and show me some light.....
Thank you all.
Regrads
Shelly
From Singapore, Singapore
Dear Shelly ji,
Welcome to this forum in which we enhance our knowledge by sharing and interacting.
I feel you need services of a person like me on retainableship as an advisor in labour law compliance and liasoning, outsourcing etc. In this forum you can get answer to specific query by you but not on entire fact of law. Law is very vast subject as you know. In law, each word has different meaning and interpretation and implication. Meaning of working as contractor is different in law than what you understood. Each concept you need to understand in proper way.
Hope you understand it. All the best.
From India, Mumbai
2556Welcome to this forum in which we enhance our knowledge by sharing and interacting.
I feel you need services of a person like me on retainableship as an advisor in labour law compliance and liasoning, outsourcing etc. In this forum you can get answer to specific query by you but not on entire fact of law. Law is very vast subject as you know. In law, each word has different meaning and interpretation and implication. Meaning of working as contractor is different in law than what you understood. Each concept you need to understand in proper way.
Hope you understand it. All the best.
From India, Mumbai
Dear Shelly,
Congratulations to get such responsibility from top management , as they have made trusted you to perform, you may proceed with confidence.
Coming to the point according to me Ms.Shelly as a H.R you must make your companies and HR policies , as a HR manager who is responsible for top to bottom activities related to his/her department cant be so flexible to work/change/edit/update according to employees /contractors needs or expectations.
They are trying to escape from tax liabilities some how , but as a company and as a HR also i will not support their point to renew contract after one day leave.
If it is done rarely on at large gap in company it may be welcomed by company but on regular basis and at big numbers ( Contractors Numbers) case it may cause big problem to company some day.
Make your own policies and implement them in company strictly ,
If scared of contractors then search for more options, their are several contractors who can work according to your policies, making renewable contract and its tenure depends on you ,company can not work according to contractors.
You should explore more options for getting contractors for your work, inspite of being flexible company should work on strong policies.
Hope you will definitely deal with it, analyse the things, procedures, companies needs,flexibility limits,resources, i am sure you will prove that top managements decisions was perfectly right.
Best Wishes.
Regards
Manish Srivastava
H.R & ISO Consultant ( QMS/EMS/FSMS)
+91- 96707- 66 888
e mail:
From India, Lucknow
Congratulations to get such responsibility from top management , as they have made trusted you to perform, you may proceed with confidence.
Coming to the point according to me Ms.Shelly as a H.R you must make your companies and HR policies , as a HR manager who is responsible for top to bottom activities related to his/her department cant be so flexible to work/change/edit/update according to employees /contractors needs or expectations.
They are trying to escape from tax liabilities some how , but as a company and as a HR also i will not support their point to renew contract after one day leave.
If it is done rarely on at large gap in company it may be welcomed by company but on regular basis and at big numbers ( Contractors Numbers) case it may cause big problem to company some day.
Make your own policies and implement them in company strictly ,
If scared of contractors then search for more options, their are several contractors who can work according to your policies, making renewable contract and its tenure depends on you ,company can not work according to contractors.
You should explore more options for getting contractors for your work, inspite of being flexible company should work on strong policies.
Hope you will definitely deal with it, analyse the things, procedures, companies needs,flexibility limits,resources, i am sure you will prove that top managements decisions was perfectly right.
Best Wishes.
Regards
Manish Srivastava
H.R & ISO Consultant ( QMS/EMS/FSMS)
+91- 96707- 66 888
e mail:
From India, Lucknow
Dear Shelly,
First of all welcome to India. Normally contract or assignment type of agreements are made for a specific period. If the job warrants a regular assignment it is unfair labour practice and also bad under law to have such agreements with an intention to avoid granting permanent job. But in your case it is the employee who wants it hence you may agree. Yet after working for two forty days (one day or one week break is equally bad in law) they can claim regular employment.
Kannan
From India, Madras
First of all welcome to India. Normally contract or assignment type of agreements are made for a specific period. If the job warrants a regular assignment it is unfair labour practice and also bad under law to have such agreements with an intention to avoid granting permanent job. But in your case it is the employee who wants it hence you may agree. Yet after working for two forty days (one day or one week break is equally bad in law) they can claim regular employment.
Kannan
From India, Madras
Dear Manish,
Thanks a lot for your advise and I greatly appreciate your words of motivation. The labour law in S'pore are quite straight forward compare to India and in my company we normally don't encourage to make exceptions like this. But these (2) guys are handling key positions which requires some Niche skills so we agreed to their terms.
BUT at the same time, we don't want to get into anykind of legal trouble. I was going through some income tax exemption clause but couldn't find anything related to this so I can't figure out how are they able to evade the tax if they don't complete the full year. Their income tax will be calculated based on the total earning in that year and eventually the next contract will also fall into that year...I can't see any escape..Think I need to read more Tax these days...sigh!!
Regards
Sherry
From Singapore, Singapore
Thanks a lot for your advise and I greatly appreciate your words of motivation. The labour law in S'pore are quite straight forward compare to India and in my company we normally don't encourage to make exceptions like this. But these (2) guys are handling key positions which requires some Niche skills so we agreed to their terms.
BUT at the same time, we don't want to get into anykind of legal trouble. I was going through some income tax exemption clause but couldn't find anything related to this so I can't figure out how are they able to evade the tax if they don't complete the full year. Their income tax will be calculated based on the total earning in that year and eventually the next contract will also fall into that year...I can't see any escape..Think I need to read more Tax these days...sigh!!
Regards
Sherry
From Singapore, Singapore
Dear Kannan,
Thanks a lot for your advise. The staff are not willing to take up permanent position but they assured us (verbally) to stay with us for 4 years for on renewable contract basis. Can we put some clause in our contract to say that they are bound with the contract for full term. As of now, we are giving them just 10 months contract trusting on their words...I know its so complicated and not right in any way but we can't afford to loose them. So have to bear with them and their unreasonable conditions.
Regards,
Shelly
From Singapore, Singapore
Thanks a lot for your advise. The staff are not willing to take up permanent position but they assured us (verbally) to stay with us for 4 years for on renewable contract basis. Can we put some clause in our contract to say that they are bound with the contract for full term. As of now, we are giving them just 10 months contract trusting on their words...I know its so complicated and not right in any way but we can't afford to loose them. So have to bear with them and their unreasonable conditions.
Regards,
Shelly
From Singapore, Singapore
In addition to the wonderful suggestions by the respective members above, would like to share the following links which will help you to understand the concept and basics of an HR Department and the setting up procedure ...
https://www.citehr.com/136789-how-se...y-started.html
https://www.citehr.com/108493-how-do...new-human.html
https://www.citehr.com/249203-setup-...anisation.html
https://www.citehr.com/65299-how-set...epartment.html
https://www.citehr.com/2069-starting...ve-action.html
https://www.citehr.com/6382-how-star...ve-action.html
From India, Gurgaon
https://www.citehr.com/136789-how-se...y-started.html
https://www.citehr.com/108493-how-do...new-human.html
https://www.citehr.com/249203-setup-...anisation.html
https://www.citehr.com/65299-how-set...epartment.html
https://www.citehr.com/2069-starting...ve-action.html
https://www.citehr.com/6382-how-star...ve-action.html
From India, Gurgaon
Dear Sherry..
Welcome any time, if i can help you out at any point..
Exactly i put my self at your place for a a while and assumed which kind of pressure you might been facing this time, yes exactly it is really very tough when you have to faith on others persons words to maintain those ( Such Important ) persons at their own conditions, but the line exactly suits here that life must go on, as you do not have other options to continue the things you have to move ahead with their conditions,
Still i suggest if you can make a judicial bond to not leave your company for next 4 years then it will be best deal from your side, its tough,any type of written agreement official/unofficial with one or two important witness will prove your competency and long term vision approach while performing your role and responsibility.
There are always some hidden ways to get out, it might be smallest but it may take you out if you re revise the options.
Hope your next reply will intimate us that you have sorted out this problem at your own level and with your own conditions..
Eager to hear from you the same..
Best Wishes..
Regards
Manish Srivastava
+91- 96707- 66 888
From India, Lucknow
Welcome any time, if i can help you out at any point..
Exactly i put my self at your place for a a while and assumed which kind of pressure you might been facing this time, yes exactly it is really very tough when you have to faith on others persons words to maintain those ( Such Important ) persons at their own conditions, but the line exactly suits here that life must go on, as you do not have other options to continue the things you have to move ahead with their conditions,
Still i suggest if you can make a judicial bond to not leave your company for next 4 years then it will be best deal from your side, its tough,any type of written agreement official/unofficial with one or two important witness will prove your competency and long term vision approach while performing your role and responsibility.
There are always some hidden ways to get out, it might be smallest but it may take you out if you re revise the options.
Hope your next reply will intimate us that you have sorted out this problem at your own level and with your own conditions..
Eager to hear from you the same..
Best Wishes..
Regards
Manish Srivastava
+91- 96707- 66 888
From India, Lucknow
DEAR ALL. Pls. Help me . .i am planning to resiGn oN my work nOw i already emaileD them my formal resiGnatioN letTer buT they are nOt replying it 2days ago since i emaileD my agency ..i am asking for advice to alL if it wilL be ok to leave my work withouT their reply or do i neED TO Wait for their reply. .thankyou and godblesS.
From Philippines, Olongapo City
From Philippines, Olongapo City
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