Dear Seniors
Seek your help to understand the features of "Contract Employment"
I am in the HR dept. of an electrical trade company into the business of marketing of Fans & water lifting pumps.
As during salary negotiation time every candidate is interested in more cash in hand, I wish to propose to my Mgmt. to start with contract employment too for the reason that to my limited knowledge on subject I know that on contract employment term there are no annual benefit & statutory benefits applicable and whatever monthly fee/salary is agreed is all cash in hand to employee.
Before I propose, I wish to understand the subject of contractual employment better and would appreciate if any of you could aid my learning on following points-
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months?
3) How many times contract can be extended or renewed?
4) Any clause which is suggested to be included in contract letter to safeguard the interest of company? (Attached is on sample of contract letter taken from CiteHR).
If you can suggest some site which can help me enhance my knowledge on contractual employment then pls suggest so.
Warm regards
Shruti
From India, Delhi
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7Seek your help to understand the features of "Contract Employment"
I am in the HR dept. of an electrical trade company into the business of marketing of Fans & water lifting pumps.
As during salary negotiation time every candidate is interested in more cash in hand, I wish to propose to my Mgmt. to start with contract employment too for the reason that to my limited knowledge on subject I know that on contract employment term there are no annual benefit & statutory benefits applicable and whatever monthly fee/salary is agreed is all cash in hand to employee.
Before I propose, I wish to understand the subject of contractual employment better and would appreciate if any of you could aid my learning on following points-
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months?
3) How many times contract can be extended or renewed?
4) Any clause which is suggested to be included in contract letter to safeguard the interest of company? (Attached is on sample of contract letter taken from CiteHR).
If you can suggest some site which can help me enhance my knowledge on contractual employment then pls suggest so.
Warm regards
Shruti
From India, Delhi
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There are advantages as well as disadvantages in the contract employment.
Advantages:
Engaged for a fixed period. No liabilities beyond the specified period. No benefits like gratuity, PF, etc.
Disadvantages:
Less responsibility/accountability of the contract employee. No loyalty to the company during the contract period. As the performance is not linked to his contractual period, the output from him may be limited.
Regards
R.Ponraj
From India, Lucknow
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Advantages:
Engaged for a fixed period. No liabilities beyond the specified period. No benefits like gratuity, PF, etc.
Disadvantages:
Less responsibility/accountability of the contract employee. No loyalty to the company during the contract period. As the performance is not linked to his contractual period, the output from him may be limited.
Regards
R.Ponraj
From India, Lucknow
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Dear Friend,
My view on your queries are as under:
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc : NO
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months? YES
3) How many times contract can be extended or renewed? As many times you require
It is further to be noted that PF and ESI Acts are applicable to Contract Employees also, Factories Act or Shops & Estd Act as the case may be, applicable to Contract Employees. In case the Contract is continuously renewed for 5 years then Gratuity Act is applicable.
Hope this may help!
Regards
more at https://www.citehr.com/310925-all-ab...#ixzz1BNYLUKwh
From India, Vadodara
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My view on your queries are as under:
1) Is there any upper limit to duration of employment on Contractual basis? Like 12 or 11 months etc : NO
2) Can a contract of employee be renewed immediately for another terms (of same no. of months) on expiry? i.e. if contract of 12 months expires on 31 Jan'11 then can it be renewed w.e.f. 1 Feb'11 for another 12 months? YES
3) How many times contract can be extended or renewed? As many times you require
It is further to be noted that PF and ESI Acts are applicable to Contract Employees also, Factories Act or Shops & Estd Act as the case may be, applicable to Contract Employees. In case the Contract is continuously renewed for 5 years then Gratuity Act is applicable.
Hope this may help!
Regards
more at https://www.citehr.com/310925-all-ab...#ixzz1BNYLUKwh
From India, Vadodara
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Dear Kuljit & Ponraj
Thanks for the response, your inputs are much appreciated.
But as I mentioned that motive of opting for contact employment is purely to give candidate benefit of more cash in hand, so is there any way we can avoid statutory benefit application to contractual employees.
Currently we have few employees on retainership basis and for them no statutory benefit is applicable. It is a slumsum figure say Rs 40,000/- payable to concerned on monthly basis. Only deduction is on head of leave if taken any as on retainership no paid leaves are allowed except and only weekly offs & Company holiday are allowed. Retainers raise their bill & they are paid against that bill. Only service tax is applicable.
In my first co. we had good no. of employees working on contract basis (generally site engg. etc) who were paid a fixed amt. monthly under the head of Basic, HRA & Conveyance. For Eg.-
Monthly salary- 20,000/-
So payable as under
Basic- 8000
HRA- 4800
Conv.-7200
No Statutory benefits were applicable to them. They had same leave rules as that of permanent employee. Contract was made for 12 months and was renewed at a gap of 4-5 days.For these 4-5 days emp. were compensated via voucher.
PLS EXPLAIN IS THIS PRACTICE OK & LEGAL? CAN I PROPOSE THIS TO MY MGMT.?
Will truly appreciate a quick response
From India, Delhi
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Thanks for the response, your inputs are much appreciated.
But as I mentioned that motive of opting for contact employment is purely to give candidate benefit of more cash in hand, so is there any way we can avoid statutory benefit application to contractual employees.
Currently we have few employees on retainership basis and for them no statutory benefit is applicable. It is a slumsum figure say Rs 40,000/- payable to concerned on monthly basis. Only deduction is on head of leave if taken any as on retainership no paid leaves are allowed except and only weekly offs & Company holiday are allowed. Retainers raise their bill & they are paid against that bill. Only service tax is applicable.
In my first co. we had good no. of employees working on contract basis (generally site engg. etc) who were paid a fixed amt. monthly under the head of Basic, HRA & Conveyance. For Eg.-
Monthly salary- 20,000/-
So payable as under
Basic- 8000
HRA- 4800
Conv.-7200
No Statutory benefits were applicable to them. They had same leave rules as that of permanent employee. Contract was made for 12 months and was renewed at a gap of 4-5 days.For these 4-5 days emp. were compensated via voucher.
PLS EXPLAIN IS THIS PRACTICE OK & LEGAL? CAN I PROPOSE THIS TO MY MGMT.?
Will truly appreciate a quick response
From India, Delhi
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Dear all
Good Day!
I am Elizabeth Antony, i need to give one contract letter to and Designer to whom we are bearing education cost. Hence we need to hold that staff for three years to share his knowledge in our business. So i have to prepare him employment contract for those 3 years. Kindly help me in this way and kindly do the needful.
Ours is IT Pvt Ltd Concern, has no ESI and PF.
Thanks and Regards
Elizabeth Antony
From India, Madras
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Good Day!
I am Elizabeth Antony, i need to give one contract letter to and Designer to whom we are bearing education cost. Hence we need to hold that staff for three years to share his knowledge in our business. So i have to prepare him employment contract for those 3 years. Kindly help me in this way and kindly do the needful.
Ours is IT Pvt Ltd Concern, has no ESI and PF.
Thanks and Regards
Elizabeth Antony
From India, Madras
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Hi, First you have to understand the diff btwn GET & FTE (graduate engr trainee & fixed term employment) then try to make up the objectives for this (why it is required, what problem it solve, wat benefit we are getting fromit). Try to establish some SOP s for this like start with wat is FTE , who are all eligible for this ( diploma comes under GET, here u hav to follow the laws & BE people comes under FTE) fix the tenure, terms & conditions , when they comes to the end of the period we can take them as trainee with that we can run the show for some time. Then based on their performance we can put them on rolls. Its all cost cutting efforts which an org undertakes. During the elevetion period we have to keenly watch their performance , attendance details. Regards. Gengaraj.P
From India, Madras
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From India, Madras
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Dear Shruti, You want to hire employees on contract or fixed term? You may go for consolidated remuneration for your employees. Members have given thir views and are appreciable.
From India, Bhubaneswar
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From India, Bhubaneswar
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Senior Professional,
I have been working at the central university on a contract basis without any breaks from September 2001 to April 2005. After this period, from May 2005 to November 2011, I worked continuously for three months, with a three-day break in between, and continued in a similar pattern. Last year, I applied to have my contract period counted towards my qualifying service, but I was not successful.
I previously inquired about this matter on this website, and the response indicated that it is possible. I am in need of assistance as I am unsure of the process, but I am determined to succeed.
C. Lalfela
From India, Aizawl
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I have been working at the central university on a contract basis without any breaks from September 2001 to April 2005. After this period, from May 2005 to November 2011, I worked continuously for three months, with a three-day break in between, and continued in a similar pattern. Last year, I applied to have my contract period counted towards my qualifying service, but I was not successful.
I previously inquired about this matter on this website, and the response indicated that it is possible. I am in need of assistance as I am unsure of the process, but I am determined to succeed.
C. Lalfela
From India, Aizawl
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Senior Professional,
I have been working at a central university on a contract basis without a break from September 2001 to April 2005. After this, from May 2005 to November 2011, I continued for three months, occasionally taking short breaks of 3 days, and then resumed my contract. On November 14, 2011, I was offered a regular appointment. Last year, I applied to have my contract period counted towards my qualifying service, but unfortunately, I was not successful.
I have previously inquired about this matter on this website, and the response indicated that it is possible. I am seeking guidance on the next steps as I am unsure of the process, but I am determined to succeed.
C. Lalfela
Today from India, Aizawl
From India, Aizawl
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I have been working at a central university on a contract basis without a break from September 2001 to April 2005. After this, from May 2005 to November 2011, I continued for three months, occasionally taking short breaks of 3 days, and then resumed my contract. On November 14, 2011, I was offered a regular appointment. Last year, I applied to have my contract period counted towards my qualifying service, but unfortunately, I was not successful.
I have previously inquired about this matter on this website, and the response indicated that it is possible. I am seeking guidance on the next steps as I am unsure of the process, but I am determined to succeed.
C. Lalfela
Today from India, Aizawl
From India, Aizawl
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Hello All,
My name is "Ziona." I work as a BDM in a manpower consulting firm, and I am looking for a good proposal email format for my clients. I am trying to find one here but haven't found any, except for a few PDFs and DOCX files of proposal letters! So, can anyone help me with what I am looking for?
I will be grateful for it.
Thanks and regards,
Ziona
From India, Patna
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My name is "Ziona." I work as a BDM in a manpower consulting firm, and I am looking for a good proposal email format for my clients. I am trying to find one here but haven't found any, except for a few PDFs and DOCX files of proposal letters! So, can anyone help me with what I am looking for?
I will be grateful for it.
Thanks and regards,
Ziona
From India, Patna
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf