Respected Sir and Madam,
In my organization, workers were given a monthly appointment letter. For another six months, they were put on a voucher basis. However, now the management is reluctant to provide six-month appointment letters and is stating that they will only receive a voucher salary without any accompanying letter. Is it acceptable to make such a decision, or is there a law regarding the issuance of appointment letters? We have been following this practice for the last 4 to 5 years. Please provide us with guidance.
How can an administration hire a worker without issuing an appointment letter?
From India, Mumbai
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1In my organization, workers were given a monthly appointment letter. For another six months, they were put on a voucher basis. However, now the management is reluctant to provide six-month appointment letters and is stating that they will only receive a voucher salary without any accompanying letter. Is it acceptable to make such a decision, or is there a law regarding the issuance of appointment letters? We have been following this practice for the last 4 to 5 years. Please provide us with guidance.
How can an administration hire a worker without issuing an appointment letter?
From India, Mumbai
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Hi,
To evade statutory obligations, your employer wants to keep all the employees on regular rolls. How big is your organization? You cannot keep the whole staff on regular rolls. Even employees serving for long years without an appointment letter have the right to claim benefits. Therefore, the issuance of an appointment letter with defined terms and conditions will be beneficial for both the employer and employee.
In the absence of any appointment terms, either party can terminate the employment without notice. You cannot question an employee if he/she abruptly leaves after receiving the voucher payment.
From India, Madras
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To evade statutory obligations, your employer wants to keep all the employees on regular rolls. How big is your organization? You cannot keep the whole staff on regular rolls. Even employees serving for long years without an appointment letter have the right to claim benefits. Therefore, the issuance of an appointment letter with defined terms and conditions will be beneficial for both the employer and employee.
In the absence of any appointment terms, either party can terminate the employment without notice. You cannot question an employee if he/she abruptly leaves after receiving the voucher payment.
From India, Madras
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Appointment letter or offer letter duly accepted by the employee is a basic document that regulates the service conditions attached to the employment. It is a contract between the employer and the employee. Since no employer can engage any person without a contract, employing persons without any proof of employment or contract of employment is bad in law. The Shops and Commercial Establishments Acts of some states, like Kerala, have mandated that every employee should be given an appointment letter in a prescribed form with particulars of wages, etc., in it.
Many employers consider that giving appointment orders would make them covered by various labor laws or the employees would get a lien on employment. Yes, even if you don't issue appointment orders, the lien on employment is there with the employees. Similarly, the non-issue of an appointment order will not make the employer free from coverage of labor laws. For coverage of labor laws, what is material is whether a person is engaged as a worker or not. At the same time, in the absence of an appointment order, it will be difficult for the employer to defend an employee who demands a wage higher than what was promised to be given. In various industrial disputes, it will be the appointment orders that will prove against the employee. Therefore, never think that not giving appointment orders is good for the employer.
From India, Kannur
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Many employers consider that giving appointment orders would make them covered by various labor laws or the employees would get a lien on employment. Yes, even if you don't issue appointment orders, the lien on employment is there with the employees. Similarly, the non-issue of an appointment order will not make the employer free from coverage of labor laws. For coverage of labor laws, what is material is whether a person is engaged as a worker or not. At the same time, in the absence of an appointment order, it will be difficult for the employer to defend an employee who demands a wage higher than what was promised to be given. In various industrial disputes, it will be the appointment orders that will prove against the employee. Therefore, never think that not giving appointment orders is good for the employer.
From India, Kannur
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The procedure adopted by your employer is nothing but an illegal and unfair practice. They are exploiting the unemployment conditions of the country and the helpless economic conditions. All the employees have to take a stand against this system. All this is happening because of pseudo-political and poor governance.
From India, Mumbai
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From India, Mumbai
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This kind of 'unfair' labor practices are prevalent not only in MSME but also in major corporates where for years together 'contract' employees are engaged using registered 'contractors' even for work on a regular basis such as 'housekeeping', security, loading & unloading, canteen, and so on as 'off-loading or outsourcing'. This is resorted to by Principal Employers in order to avoid carrying a considerable workforce on their 'Muster/Payroll', thereby keeping employee costs at minimum levels. Under this pattern, there is no possibility of evolving as 'continuous employment' of the very same person as no one gets employed continuously throughout the month. And there won't be any assurance to such persons of any 'continuity'. For example, person 'A' gets to work only say, 20 days in a month. In other words, he is not employed permanently. Another form of such practices spreading fast is 'gig workers' under which there exists no 'employer-employee' relationships. They are paid for the work assigned/carried out against job-to-job invoices.
Regarding the present query, issuing an appointment order on a daily basis is very strange and should be dispensed with immediately.
From India, Bangalore
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Regarding the present query, issuing an appointment order on a daily basis is very strange and should be dispensed with immediately.
From India, Bangalore
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