I have around 2.7 years of experience. I switched from my first company about 8 months ago. The offer letter states that I will be working as a consultant/partner. There's also a FAQ section that explains why they hire as consultants and not as employees. However, I feel like I am working as a regular employee, and many people have mentioned that this setup might be to avoid Indian tax laws like EPF, etc.
All this time, I believed I was working as a full-time employee, but is it any different? I am concerned now as I fear it might create problems when I switch companies in the future. A significant issue is that they are not contributing to my PF account.
Can someone please clarify if I should be worried about this? Will this experience count? If not, how can I convince the HR of a potential new company to consider this experience? Also, my payslip mentions "Invoice/Retail."
I am considering a few options:
1. Inform the recruiter upfront that I transitioned to a consultant role temporarily to work from home due to an illness (fictitious). However, I am ready to return to regular work now.
2. Initially, do not disclose to the recruiter that it's a consultant role. If asked later, attempt to explain that it's the company's policy.
Are there better strategies than these? Please advise me on the most effective approach to persuade the new HR team.
From India, Guwahati
Acknowledge(0)
Amend(0)
All this time, I believed I was working as a full-time employee, but is it any different? I am concerned now as I fear it might create problems when I switch companies in the future. A significant issue is that they are not contributing to my PF account.
Can someone please clarify if I should be worried about this? Will this experience count? If not, how can I convince the HR of a potential new company to consider this experience? Also, my payslip mentions "Invoice/Retail."
I am considering a few options:
1. Inform the recruiter upfront that I transitioned to a consultant role temporarily to work from home due to an illness (fictitious). However, I am ready to return to regular work now.
2. Initially, do not disclose to the recruiter that it's a consultant role. If asked later, attempt to explain that it's the company's policy.
Are there better strategies than these? Please advise me on the most effective approach to persuade the new HR team.
From India, Guwahati
Acknowledge(0)Amend(0)
I don't know what benefit the employer is getting by designating an employee as 'consultant'. A consultant attending to regular work is an employee only, and he is entitled to all statutory benefits and social security benefits available to an employee of his salary band. It is really stupid on the part of the employer to designate an employee as a consultant who works from 9 am to 5 pm from Monday to Friday/Saturday, following all reporting hierarchies for leaves and other HR matters. If PF is not given, the EPFO can initiate action against the employer and recover both the employee's share as well as the employer's share with retrospective effect of joining together with interest and damages. If such a 'consultant' is leaving the organization after five years of service, the employer is bound to pay gratuity also. If denial of employee benefits is the sole intention of hiring as a consultant, he is wrong.
It is better you leave the employment as soon as possible. You should disclose the actual facts to any prospective employer, that the employer has given you the position of a consultant just to avoid employee benefits as per statutes, and that you came to know about this very late. Since you have been working with a different designation, your service or skill will be accepted by the prospective employer during the selection process.
From India, Kannur
Acknowledge(0)Amend(0)
4771It is better you leave the employment as soon as possible. You should disclose the actual facts to any prospective employer, that the employer has given you the position of a consultant just to avoid employee benefits as per statutes, and that you came to know about this very late. Since you have been working with a different designation, your service or skill will be accepted by the prospective employer during the selection process.
From India, Kannur
Acknowledge(0)Amend(0)
Thank you for the advice @Madhu. Also another question, should I inform the potential recruiter at an early stage (during first call stage) or later on ?
From India, Guwahati
Acknowledge(0)Amend(0)
From India, Guwahati
Acknowledge(0)Amend(0)
You should mention the designation as "Consultant" with a detailed scope of work in the CV itself. Otherwise, the service certificate will not match your CV, and you may have to provide clarifications for that. During the initial discussions, you can brief the employer that although your designation was "consultant," you were a full-time associate with a reporting hierarchy. When the HR person asks for details of EPF, you can explain that you were not given PF due to two reasons: your salary was above Rs 15,000, and you were designated as a Consultant.
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.