Agreement with contract employee

Hi,
On of our employee is now above 60 yrs, now our company make an agreement with him as an contract employee. Pls help me out what we should be in agreement with contract employee. Is he now eligible for PF or leave salary. ESI should be deducted from his salary , that is clear to me. need the draft for contract agreement
Rgds...

Hi Sonika,

For a consultant at 60 yrs, No ESI, no PF, just sign the contract, draft of the same I hv enclosed which yu may go thru and customize according to your need.

Only Mandatory thing in that is PAN card/ number of the concerned.
Do pay attention to :
Salary, PAN card, Duration, Leaves, other perks, travel allowance/ limits.

Rest may be ascertained from the attachment pls

Any queries do revert at

Regards

Neeraj

Attached Files

contract_for_cite_hr_159.doc (30.5 KB, 381 views)

pl send me a draft appointment letter for regular employees, with ESI & PF entitlement included, to


p v rao

hi Neeraj,
Thanks for the reply. i have contacted to ESI department also, i big confussion has been created , according to them a person above 60 yrs on the contract basis is eligible for ESI. According to ESI rule, if a person has worked in a company for only one day that person is also eligible for ESI. i will be very thankful if u solve this problem. i am working in jammu
Rgds...
sonika

Hi Sonika,

First of all for ESI omission yu need to do following things

1. Sign the contract with the employee.
2. Dont put him on the rolls (of course this is bcos he is not on-roll employee)
3. He shall hv to raise monthly bill to the company, from whcih your accounts deptt shall deduct TDS. PAN card requirement.
4. Accounts deptt shall in the end of year shall issue the TDS certificate

If this procedure is followed no necessity of ESI is there. We hv been doin the same since long. Yu h v to treat this employee as a consultant who is hired only for providing the consultancy and shall not do the job as regular employee do. Certainly in this way yu shall anytime answer to ESI officials if any time asked that this is not your employee and is just hired for consultancy.

Secondly I hope the fee for such consultant is going to be more than Rs 10000.00 which itself shall make the concern ineligible for the ESI

Regards

Neeraj