Hi. As of now, if an organization plans to hire a contractual employee for a set period of time, they are hired on a third-party payroll, and the contract is renewed after the set time frame. I would like to know if any recent amendments have been made under which a company can hire a contractual employee on its own payroll and renew the contract after a set period of time. In this case, the company is not liable to give any notice to the employee upon the completion of the contract. Please help.
From India, Gurgaon
From India, Gurgaon
Hi Shilpakipl,
You can hire employees on your payroll with a contract period mentioned, which is a regular one, or else you can hire them through a contractor, who shall be their immediate employer. Taking contractual employees on company rolls, if you want, do it with proper no objection from the contractor to avoid future complications. Your version is similar to contract-to-hire, which ends in a set period; try out the available options.
From India, Hyderabad
You can hire employees on your payroll with a contract period mentioned, which is a regular one, or else you can hire them through a contractor, who shall be their immediate employer. Taking contractual employees on company rolls, if you want, do it with proper no objection from the contractor to avoid future complications. Your version is similar to contract-to-hire, which ends in a set period; try out the available options.
From India, Hyderabad
I hope you are talking about 'appointment on Fixed Term Contract Basis. You can hire an employee by issuing an appointment order under a fixed-term contract, and once he completes the period of the contract, he ceases to be out of your employment on the last working day of the contract. No notice is required. This is allowed.
From India, Madras
From India, Madras
Dear Colleague,
You want to take a contract employee on the Company's payroll. Yes, you can, and there is no legal barrier. However, you have to ensure that the person must receive full and final settlement upon properly ending the employment with the Contractor. If you hire him as a 'Fixed-term contract employee' for a specified duration, no notice is required, and the contract comes to an end with the expiration of time.
But the question you should ask is why you want to switch over the present employment relations and what distinct advantage it holds for both the company and the employee.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
You want to take a contract employee on the Company's payroll. Yes, you can, and there is no legal barrier. However, you have to ensure that the person must receive full and final settlement upon properly ending the employment with the Contractor. If you hire him as a 'Fixed-term contract employee' for a specified duration, no notice is required, and the contract comes to an end with the expiration of time.
But the question you should ask is why you want to switch over the present employment relations and what distinct advantage it holds for both the company and the employee.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
Dear Shilpa,
Let me provide you with an explanation of why it is necessary to keep contractual workers under a contractor. There is no need to transition contractual workers to company roles; it is actually a welcome step.
Please inform us if the hired contractual employees are engaged in any perennial or core work. It is possible to hire them for a fixed term with a fixed payment for one project. However, repeated or renewed contracts may lead to future issues if the workers file a case with the labor department. Therefore, it is crucial to proceed with caution in this matter. It is advisable to let them continue under a third-party contractor unless there are significant issues that need to be addressed.
Thank you.
From India, Mumbai
Let me provide you with an explanation of why it is necessary to keep contractual workers under a contractor. There is no need to transition contractual workers to company roles; it is actually a welcome step.
Please inform us if the hired contractual employees are engaged in any perennial or core work. It is possible to hire them for a fixed term with a fixed payment for one project. However, repeated or renewed contracts may lead to future issues if the workers file a case with the labor department. Therefore, it is crucial to proceed with caution in this matter. It is advisable to let them continue under a third-party contractor unless there are significant issues that need to be addressed.
Thank you.
From India, Mumbai
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