In a small (as per MSME) manufacturing unit, is it possible to employ someone only for a period of 6 months or 1 year and then renew further if found suitable?
What statutory benefits is the employee entitled to, like PF, Bonus, Leaves, Gratuity, etc.? How many times can such a contract be renewed, or is it necessary to later employ the person full time?
From India, Aurangabad
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What statutory benefits is the employee entitled to, like PF, Bonus, Leaves, Gratuity, etc.? How many times can such a contract be renewed, or is it necessary to later employ the person full time?
From India, Aurangabad
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Short-duration employment is permissible, but define the end date and you have to stick to it. After that date, in case you still need the services, enter into a fresh employment contract. You will have to ensure coverage of all labor legislations provided you have the required minimum numerical strength for the applicability of the respective acts. Prima facie, the Payment of Gratuity Act may not be required. Nowadays, there are a lot of changes in labor laws being implemented, so you will have to periodically verify your status.
From India, Mumbai
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1593From India, Mumbai
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf
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