We would like to employ a few persons on a temporary basis, for say 6 months, in our factory. We already employ 25 people on daily wages with all statutory requirements fulfilled. I understand that we need to pay EPF which is acceptable. However, we need the freedom to relieve them after that period. Is this possible and what is the procedure for the same.
Are they eligible for leaves & bonuses? Can we extend the employment for say another 6 months?
Can we give them a break for a few months and again employ them on a temporary basis if they are available, in case the need arises.
In short, we want temporary employment within the ambit of the law. The reason is that business is quite uncertain and if we give permanent employment it is difficult to remove anyone, irrespective of what anyone may say. We have seen examples of workers being removed due to non-attendance / non-performance but going on to file a case against the company and being reinstated with full back wages. We do not wish to get into such a mess in the future and neither can we afford to employ people full time in such circumstances.
From India, Aurangabad
Are they eligible for leaves & bonuses? Can we extend the employment for say another 6 months?
Can we give them a break for a few months and again employ them on a temporary basis if they are available, in case the need arises.
In short, we want temporary employment within the ambit of the law. The reason is that business is quite uncertain and if we give permanent employment it is difficult to remove anyone, irrespective of what anyone may say. We have seen examples of workers being removed due to non-attendance / non-performance but going on to file a case against the company and being reinstated with full back wages. We do not wish to get into such a mess in the future and neither can we afford to employ people full time in such circumstances.
From India, Aurangabad
Dear HBJ If you have appointed them on fixed term contract then all statutory compliances like PF, ESIC, Bonus will be applicable. Yes you can rehire them after the completion of fixed term services.
From India, New Delhi
31From India, New Delhi
Dear @hr-revolution. We have not yet appointed them as we are not aware of the procedure to do so. Can you please let me know how to make the contract in such a case? Are they eligible for leaves such as CL/PL etc?
From India, Aurangabad
From India, Aurangabad
Dear HBJ What will be the nature of work for them. Kindly elaborate. If you hire them on fixed term employment contract they will be eligible for all applicable leaves.
From India, New Delhi
From India, New Delhi
@HBJ
employer has option to keep the employees rotating on interval of 90 days as trainees, but between two such employments one minimum 30 days gap should be maintained,
if the employees are recruited for a term of 6 months even they are eligible to get all standard benefits,
employer has option to keep the employees rotating on interval of 90 days as trainees, but between two such employments one minimum 30 days gap should be maintained,
if the employees are recruited for a term of 6 months even they are eligible to get all standard benefits,
Dear HBJ
It will be simple contract can be drafted by your legal team.
Mentioning the below points.
Tenure
Nature of work
Termination clause
Designation
Remuneration
Extension
Working Hours
Notice Period
Code of Conduct (if applicable)
Leaves & Holidays
Rules & Regulations
For further query please feel free to write @
From India, New Delhi
It will be simple contract can be drafted by your legal team.
Mentioning the below points.
Tenure
Nature of work
Termination clause
Designation
Remuneration
Extension
Working Hours
Notice Period
Code of Conduct (if applicable)
Leaves & Holidays
Rules & Regulations
For further query please feel free to write @
From India, New Delhi
@Glidor, thank you for the message. In case of trainee is PF/Bonus/Leaves/Gratuity applicable?
Is 90 days maximum or can we do it for 3 months, since June+July+Aug=92 days? Or is it 90 working days?
For how many years can such an arrangement continue?
Do we have to give a letter to the worker in some standard format?
@hr-revolution, thanks again. We are a small company in a small town and have no legal person or even HR expert in-house. Does the contract need to be on stamp paper or just our letterhead? Can you share the format for the same as well as any sample letters if at all possible.
From India, Aurangabad
Is 90 days maximum or can we do it for 3 months, since June+July+Aug=92 days? Or is it 90 working days?
For how many years can such an arrangement continue?
Do we have to give a letter to the worker in some standard format?
@hr-revolution, thanks again. We are a small company in a small town and have no legal person or even HR expert in-house. Does the contract need to be on stamp paper or just our letterhead? Can you share the format for the same as well as any sample letters if at all possible.
From India, Aurangabad
@HBJ
as mentioned in original post, your establishment already have 25 employees, so the basic benefits of ESIC and EPF is auto extended to all employees, right from the date of joining
one side your version is that your establishment is seasonal and may not have work for employees for whole the year, and another side you seek extension of their employment tenure, one can not ride on two boats at single time, you have to fix your time limit for temporary employees and during the appointment you have to clearly mention that this amount is CTC, including wages, bonus and all other benefits.
90 days terminology is used as general three months maximum, whereas it should not get over 26x3=78 days, but one have to ensure that the same person did not continued in 4th month attendance register, viz one employee joined on 27th jan, but as a trainee his full jan is counted, ( wages are for fraction of month) jan feb march, is the training span, and if he continue in april then he would be regular employee of establishment
maximum trainee span can be reduced but not increased.
another glitch which we have to point,
if the same person come again after few days and at the end of time he claim that he was on GRANTED leave for this time span, then keep replies ready to produce, otherwise the breaks would not be valid and whole end to end service would get counted
Gratuity is not applicable on trainees as their training period is too small, but once they get regular , the training period is also get calculated
for casual and seasonal workers, most of establishments prefer to get manpower through Contractors, which may cost a little more, but all obligations remain with contractor
as mentioned in original post, your establishment already have 25 employees, so the basic benefits of ESIC and EPF is auto extended to all employees, right from the date of joining
one side your version is that your establishment is seasonal and may not have work for employees for whole the year, and another side you seek extension of their employment tenure, one can not ride on two boats at single time, you have to fix your time limit for temporary employees and during the appointment you have to clearly mention that this amount is CTC, including wages, bonus and all other benefits.
90 days terminology is used as general three months maximum, whereas it should not get over 26x3=78 days, but one have to ensure that the same person did not continued in 4th month attendance register, viz one employee joined on 27th jan, but as a trainee his full jan is counted, ( wages are for fraction of month) jan feb march, is the training span, and if he continue in april then he would be regular employee of establishment
maximum trainee span can be reduced but not increased.
another glitch which we have to point,
if the same person come again after few days and at the end of time he claim that he was on GRANTED leave for this time span, then keep replies ready to produce, otherwise the breaks would not be valid and whole end to end service would get counted
Gratuity is not applicable on trainees as their training period is too small, but once they get regular , the training period is also get calculated
for casual and seasonal workers, most of establishments prefer to get manpower through Contractors, which may cost a little more, but all obligations remain with contractor
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Enforcement of negative covenants in employment terms.pdf