vrushali-pawar1
Hi All, I need assistance on the Consultant role. We are hiring people for the contractual role in our organisation. What is the Maximum duration that one person can be in consultant role? What will be the leave policy for them? And Are they eligible for any statutory benefits?
From India, Chennai
vmlakshminarayanan
942

Hi,

Part time consultants work on assignment basis or for a fixed tenure as mutually agreed between Employer and Consultant. Even it can be fixed for certain period subject to extension for specific period based on work requirement. For such part time consultants statutory requirement like PF are not applicable. only Tax Deducted at Source will be applicable @ 10% on the total Retainer fee.

However to evade statutory requirement if you are hiring as Consultant then it is not advisable. If the hired employee is going to spend whole time at office like regular employee then all statutory benefit including leave benefits should be made applicable to them like other employee on regular rolls.

From India, Madras
Madhu.T.K
4242

There is no maximum period for engaging any consultant. You can engage a consultant for a particular project or for a particular period but there is no limit for the period.

A consultant is not governed by the HR rules of the organisation and as such the leaves are not admissible to a consultant. The period of his absence should not be considered as 'absent' from 'work'. A consultant is a professional who can be 'consulted' for guidance, advises and opinion and should not be put to work with a reporting structure, following the protocols of 9 am to 6 pm from Monday to Friday work schedule etc.

From India, Kannur
vrushali-pawar1
Hi Sir, Thanks for your response, Also is the consultant or gig workers are eligible for the statutory benefits from the company side like PF, ESIC medical insurance etc.
From India, Chennai
Madhu.T.K
4242

If the above criteria are satisfied, the consultants will be eligible for all statutory contributions. At the same time, if the consultant is genuine consultant with independent of all the HR practices and procedures of the company, no need to cover him under any ESI/PF or pay him bonus like payments. Gig workers are yet to get a separate employment status. But in the present scenario, I am of the opinion that they are employees of the company for which they work and as such you cannot avoid them from statutory payments like ESI. PF, Bonus, Gratuity etc.
From India, Kannur
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