What is the law of termination of a contract employee?? Can we terminate an employee immediately without notice on the basis of non performance? Please help Siddharth
From India, Raipur
From India, Raipur
I hope by contract employee you mean employee on fixed term contract and not an outsourced employee.
A contract employee is also an employee having the same legal relationship with the employer as do the other permanent employees. Yhe only difference is that an employee appointed for a fixed term is not required to be served any notice to terminate his employment on the expiry of the period of contract. It is implied that if you want to terminate his employment before the date of actual cessation of employment you are required to give him notice.
An employer who hires an employee whether on a permanent basis or not has every right to terminate him if he does not satisfy the required performance standard fixed by the employer. The only thing to be noted is that before such termination the employer should give the employee an opportunity to improve or he should be given adequate time to prove that he performs well to the expectations. It should not be a termination by victimisation. Therefore, he should be given one month notice or salary in lieu of such notice. In the similar way an employee on fixed term contract can also be terminated before his contract ends by offering salary for one month or giving notice.
Regards,
Madhu.T.K
From India, Kannur
4193A contract employee is also an employee having the same legal relationship with the employer as do the other permanent employees. Yhe only difference is that an employee appointed for a fixed term is not required to be served any notice to terminate his employment on the expiry of the period of contract. It is implied that if you want to terminate his employment before the date of actual cessation of employment you are required to give him notice.
An employer who hires an employee whether on a permanent basis or not has every right to terminate him if he does not satisfy the required performance standard fixed by the employer. The only thing to be noted is that before such termination the employer should give the employee an opportunity to improve or he should be given adequate time to prove that he performs well to the expectations. It should not be a termination by victimisation. Therefore, he should be given one month notice or salary in lieu of such notice. In the similar way an employee on fixed term contract can also be terminated before his contract ends by offering salary for one month or giving notice.
Regards,
Madhu.T.K
From India, Kannur
Outsourced contract employees are not directly reporting you. Their primary employer is the contractor who hired him. So if there any issue, pls report to the concern contractor for further process.
From India, Madras
From India, Madras
Hi Madhu and all seniors,
Thanks for your update about termination of contractual employees ,But I would like to know about the terms or conditions about the outsorced employees in case of termination,
I would like to know about the Advantages or Disadvantages of Outsourcing Employees, and Vice versa by being an Outsourced employee,
Please provide me the information regarding the same,
Thanks & Regards,
AMU .R.SHETTY
From India, Bangalore
Thanks for your update about termination of contractual employees ,But I would like to know about the terms or conditions about the outsorced employees in case of termination,
I would like to know about the Advantages or Disadvantages of Outsourcing Employees, and Vice versa by being an Outsourced employee,
Please provide me the information regarding the same,
Thanks & Regards,
AMU .R.SHETTY
From India, Bangalore
Since the employer employee relationship is between the employee and the contractor, the contractor should give notice and follow the procedures for terminating his employees.
There are both merits and demerits associated with such arrangements. From the point of view of Principal employer with whom the employees actually work, he is freed from the day to day management of these employees, initiating disciplinary action against these employees etc. In case any employee engaged is found to be not following the expected standards he can just ask the contractor to replace him. On the other hand, had he been a direct employee the employer should follow a set of procedures, like issuing show cause notice, taking his reply and conducting domestic enquiry etc. There is a general feeling that contract labour donot indulge in strikes and similar kinds of protest and we can ensure proper production. The social security matters connected with the contract labour will be taken care of by the contractor and the Principal employer is free from such hassles.
The system has a few demerits also. From my understanding and experience, I have found that contract workers do not shoulder any responsibility which a direct employee shoulders. Therefore, the productivity of these employees would be lower. Though advocates of outsourcing system do not agree this, I strongly feel that the productivity of direct labour will be far more than that of indirect labour. Though contractor should take care of the social security coverage (like ESI, EPF etc) of contract workers, the Principal employer is ultimately responsible for the coverage. That means if the contractor fails to pay, minimum wages, PF, ESI etc, then the principal employer should pay it. Though the amount so paid shall be recovered from the contractor, many times this will not happen and the principal employer will have to spend his precious time before the Enforcement Officers.
From the point of view of employee, outsourcing system does not have any benefits. At the same time being in direct rolls of the company where he is working or for whom he is working would have much benefits also.
Madhu.T.K
From India, Kannur
There are both merits and demerits associated with such arrangements. From the point of view of Principal employer with whom the employees actually work, he is freed from the day to day management of these employees, initiating disciplinary action against these employees etc. In case any employee engaged is found to be not following the expected standards he can just ask the contractor to replace him. On the other hand, had he been a direct employee the employer should follow a set of procedures, like issuing show cause notice, taking his reply and conducting domestic enquiry etc. There is a general feeling that contract labour donot indulge in strikes and similar kinds of protest and we can ensure proper production. The social security matters connected with the contract labour will be taken care of by the contractor and the Principal employer is free from such hassles.
The system has a few demerits also. From my understanding and experience, I have found that contract workers do not shoulder any responsibility which a direct employee shoulders. Therefore, the productivity of these employees would be lower. Though advocates of outsourcing system do not agree this, I strongly feel that the productivity of direct labour will be far more than that of indirect labour. Though contractor should take care of the social security coverage (like ESI, EPF etc) of contract workers, the Principal employer is ultimately responsible for the coverage. That means if the contractor fails to pay, minimum wages, PF, ESI etc, then the principal employer should pay it. Though the amount so paid shall be recovered from the contractor, many times this will not happen and the principal employer will have to spend his precious time before the Enforcement Officers.
From the point of view of employee, outsourcing system does not have any benefits. At the same time being in direct rolls of the company where he is working or for whom he is working would have much benefits also.
Madhu.T.K
From India, Kannur
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Contract Labour Law.pdf
TERMINATION CONTRACT.doc