Dear Seniors,
In a company, a HR Manager has completed his 58 years and retired but was retained by the company as a consultant (3rd party). Can he sign compliance-related documents? Is it correct? In other words, is a HR Manager hired on a 3rd party role (outsourced) legally eligible to sign compliance-related documents of the 1st party, i.e., the principal company?
From India, Dehra Dun
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4In a company, a HR Manager has completed his 58 years and retired but was retained by the company as a consultant (3rd party). Can he sign compliance-related documents? Is it correct? In other words, is a HR Manager hired on a 3rd party role (outsourced) legally eligible to sign compliance-related documents of the 1st party, i.e., the principal company?
From India, Dehra Dun
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From a contract point of view, any document can be signed by any two parties within the legal domain. For example, you cannot sign a document for an antisocial cause.
When someone becomes a consultant, they are no longer an employee of the company but a person who works for the betterment of the company. Please bear in mind that responsibilities for legal or internal administrative matters will be only with those who are on the permanent rolls of the company.
To protect your company's interests, you can retain the essence of the compliance document suitably modified and have a separate contract signed between your company and the consultant.
V. Raghunathan
From India
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When someone becomes a consultant, they are no longer an employee of the company but a person who works for the betterment of the company. Please bear in mind that responsibilities for legal or internal administrative matters will be only with those who are on the permanent rolls of the company.
To protect your company's interests, you can retain the essence of the compliance document suitably modified and have a separate contract signed between your company and the consultant.
V. Raghunathan
From India
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Generally, companies will not designate a consultant as a manager with statutory responsibility. So, as such, it's a bad idea. There is nothing in the law preventing a consultant from signing a compliance. However, when some problem arises, this fact may be an issue.
Probably, he should then be hired as a Fixed-Term Employee instead.
From India, Mumbai
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Probably, he should then be hired as a Fixed-Term Employee instead.
From India, Mumbai
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Hello Ashe,
Saswats Banerjee's suggestion is BOTH implementable and practical. You can hire him as a Fixed Term Employee, meaning on a contract directly by the Principal Company. His contract should contain the appropriate clauses that clearly define the powers you wish him to have. The contract can be extended periodically as per needs.
I know of a person over 60 years old hired this way at a senior level who also signs international documents.
Regards,
TS
From India, Hyderabad
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Saswats Banerjee's suggestion is BOTH implementable and practical. You can hire him as a Fixed Term Employee, meaning on a contract directly by the Principal Company. His contract should contain the appropriate clauses that clearly define the powers you wish him to have. The contract can be extended periodically as per needs.
I know of a person over 60 years old hired this way at a senior level who also signs international documents.
Regards,
TS
From India, Hyderabad
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Respected Seniors,
It is a good question by the initiator of this thread. Can any third party/outsource employee be authorized to sign any documents on behalf of the Principal? This is the question the initiator has asked. We may be seeing anybody signing anything. But is it legal?
I have another question for you with due respect to you all, as under: What is Fixed Term Employment? Under what law is the term "Fixed Term Employment" written? How can you appoint an employee on his retirement or on his resignation as a Fixed Term Employee? How can you take any senior-level person on an outsource? What is the legal validity to outsource?
Answers to the above questions in the parameter of Indian Laws will be enlightening to all who will be reading it.
From India, Mumbai
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It is a good question by the initiator of this thread. Can any third party/outsource employee be authorized to sign any documents on behalf of the Principal? This is the question the initiator has asked. We may be seeing anybody signing anything. But is it legal?
I have another question for you with due respect to you all, as under: What is Fixed Term Employment? Under what law is the term "Fixed Term Employment" written? How can you appoint an employee on his retirement or on his resignation as a Fixed Term Employee? How can you take any senior-level person on an outsource? What is the legal validity to outsource?
Answers to the above questions in the parameter of Indian Laws will be enlightening to all who will be reading it.
From India, Mumbai
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The "Fixed Term Employment" essentially comes under the Contracts Act Korgaonkar. At least that was the case in the example I mentioned, and it's been working fine since 2012--and I was told it's perfectly legal by the MD of the Company [a Public Limited one].
Rgds, TS
From India, Hyderabad
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Rgds, TS
From India, Hyderabad
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The concept of fixed-term employee is defined in the ID Act, as already stated by others.
Even otherwise, there is nothing in Indian law to prevent any person from working under a specific contract of employment that clearly states his terms of employment and includes a termination clause. The only requirement is that he cannot contract away any of his rights under the labor law. The only one he can contract away is his retrenchment compensation because the ID Act says this is not retrenchment if the contract is not renewed.
On the other part of the question you have posted, the law does not prevent the company from designating any person as authorized to sign any document of the company. And he does not have to be an employee. He can be any person. It is the right of the owner of the business to decide whom he will trust to best represent him. The only place where the option is not available is the position of the occupier of a factory. That has to be a director of the company.
So, it is actually legally correct for the company to designate an employee, a FTE, off-roll/contract employee, or even a non-employee (say a family member). Such a person can be given any designation also, other than an occupier. I think even for the manager of a factory, there is no such restriction.
From India, Mumbai
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Even otherwise, there is nothing in Indian law to prevent any person from working under a specific contract of employment that clearly states his terms of employment and includes a termination clause. The only requirement is that he cannot contract away any of his rights under the labor law. The only one he can contract away is his retrenchment compensation because the ID Act says this is not retrenchment if the contract is not renewed.
On the other part of the question you have posted, the law does not prevent the company from designating any person as authorized to sign any document of the company. And he does not have to be an employee. He can be any person. It is the right of the owner of the business to decide whom he will trust to best represent him. The only place where the option is not available is the position of the occupier of a factory. That has to be a director of the company.
So, it is actually legally correct for the company to designate an employee, a FTE, off-roll/contract employee, or even a non-employee (say a family member). Such a person can be given any designation also, other than an occupier. I think even for the manager of a factory, there is no such restriction.
From India, Mumbai
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1. Sir, the initiator of this thread has mentioned the words "legally eligible to sign compliance-related doc of 1st part i.e. principle", whereas learned senior expert Sh. Banerjee ji has mentioned the term "There is nothing in law preventing a consultant from signing a compliance." I could not understand as to which of the documents are called "compliance-related documents". Whether such documents are to be submitted to the principal employer or owners of the unit by the so-called consultant or to any other authority.
2. I request the initiator of this thread or seniors to kindly elaborate on the following aspects for my knowledge:-
(a) Which of the documents are called "compliance-related documents" and under which laws or Acts.
(b) Whether such "compliance-related documents" are submitted by the consultant to the employer or to any government authorities like Factory Inspector, Labour Court, PF Office, etc.
From India, Noida
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2. I request the initiator of this thread or seniors to kindly elaborate on the following aspects for my knowledge:-
(a) Which of the documents are called "compliance-related documents" and under which laws or Acts.
(b) Whether such "compliance-related documents" are submitted by the consultant to the employer or to any government authorities like Factory Inspector, Labour Court, PF Office, etc.
From India, Noida
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Hello Harsh Kumar Mehta,
'Compliance-related documents' essentially mean those docs that need to be submitted to either begin or continue the compliance of any aspect vis-a-vis the company/factory, for example, ISO, AS9100, or CMM certifications, etc.
There is a whole bunch of docs that are needed to be prepared for getting such certifications or once the company has such certifications, to renew periodically. These docs are based on the practices, processes, and systems followed in that company.
What's related to govt bodies are predominantly 'statutory' in nature. So they wouldn't form a part of this definition.
Rgds,
TS
From India, Hyderabad
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'Compliance-related documents' essentially mean those docs that need to be submitted to either begin or continue the compliance of any aspect vis-a-vis the company/factory, for example, ISO, AS9100, or CMM certifications, etc.
There is a whole bunch of docs that are needed to be prepared for getting such certifications or once the company has such certifications, to renew periodically. These docs are based on the practices, processes, and systems followed in that company.
What's related to govt bodies are predominantly 'statutory' in nature. So they wouldn't form a part of this definition.
Rgds,
TS
From India, Hyderabad
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Dear Sh. Tajsateesh ji, thank you for advising me on the meaning of "compliance-related documents." However, the initiator of this thread has not specifically mentioned which documents the CONSULTANT is signing. Therefore, it is difficult to examine the issue accurately. Is the ex-HR Manager, now a CONSULTANT, signing all correspondence sent to government departments such as the Chief Inspector of Factories, EPF Commissioner, Regional Director ESIC, Fire Brigade Office, Estate Office, Police Department, etc.? If so, is the consultant signing these documents as a Consultant, an EMPLOYER, or on behalf of the EMPLOYER?
Are the returns, reports, etc., to be sent to various departments under different labor laws, revenue laws, etc., not considered "COMPLIANCE-RELATED DOCUMENTS"? Are there different types of compliance such as statutory compliance, ISO, AS9100, or CMM Certifications compliance? The discussion on whether the CONSULTANT is in full-time or part-time employment seems unimportant to me. I hope seniors will guide me on the aforementioned issues.
As far as I understand, ensuring compliance for various requirements to obtain ISO certification is an internal matter for any organization. In such cases, the employer/owner of a unit can delegate their authority or functions to any person, even if they are a CONSULTANT. However, regarding statutory compliance matters, I am doubtful if the employer can delegate their authority to a so-called consultant to sign documents under various laws, including revenue laws.
From India, Noida
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Are the returns, reports, etc., to be sent to various departments under different labor laws, revenue laws, etc., not considered "COMPLIANCE-RELATED DOCUMENTS"? Are there different types of compliance such as statutory compliance, ISO, AS9100, or CMM Certifications compliance? The discussion on whether the CONSULTANT is in full-time or part-time employment seems unimportant to me. I hope seniors will guide me on the aforementioned issues.
As far as I understand, ensuring compliance for various requirements to obtain ISO certification is an internal matter for any organization. In such cases, the employer/owner of a unit can delegate their authority or functions to any person, even if they are a CONSULTANT. However, regarding statutory compliance matters, I am doubtful if the employer can delegate their authority to a so-called consultant to sign documents under various laws, including revenue laws.
From India, Noida
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