Designation as Consultant for an Employee
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Designation as Consultant for an Employee

haneefabd Started The Discussion:

I want to know can we designate an employee as Consultant.He will be given appointment letter and all terns & conditions will be as an employee but his designation only will be given as consultant like Financial consultant.He will also be covered under PF and ESI.
Will it be classified as a consultant or Salaried person under IT.

pon1965 - Member Since: May 2009
If he is on full time basis, he will be classified as employee (salaried person). Regards R.Ponraj

tajsateesh - Member Since: Mar 2009
Hello haneefabd,
Ponraj is right. When you are giving him even PF, etc, he can ONLY be classified as an 'employee'.

But why do you want to designate him as a 'consultant' in the first place? If you can give the details/reasons, maybe someone in this Forum can give you alternate ideas on how to handle the issue.

Rgds,
TS

pon1965 - Member Since: May 2009
He can be designated as "Officer on Special Duty" (OSD) in stead of Consultant. Regards R.Ponraj

Praveen Kumar Kambhampati - Member Since: Jun 2009
There is no problem with the designation as long as you have marked his role against the hierarchy defined for the organization. If you have defined a "Consultant" designation you have to map it to, for example, an "Asst. Manager cadre" or a "Manager" cadre. This would be important to have clarity on into which category he falls for certain benefits as an employee.

Also you have to clearly identify his role and responsibilities. Often it is difficult to define such roles when compared to more accepted designations like Manager, Customer Support Executive, Design Engineer, etc.

You could also consider, if it suits your organization, giving him a designation based on the organizational hierarchy( for example, Manager - production support) for the HR records and have the visiting cards to suit the business needs as "Consultant". For all career discussions, the designation from HR records holds good.
Hope this helps.

bunti - Member Since: Mar 2010
Clearly if pf & Esic is given directly form company account than cannot define him consltant. because their is no provision otherwise define constant. in your stading order otherwise take him through third party...
Regards

shish - Member Since: Feb 2007
Mr.Bunti is right their must be a Standing Order in which it is clerly mentioned the job & responsibility you can give Designation as Consultant but it must be mentioned in Standing Order of the Company.

shish ram

vkokamthankar - Member Since: May 2008
  • Designation can be anything. 'Consultant' designation is being used in many companies for regular employees as well. Efforts should be made to coin such designations which will convey the role, responsibility and place in hierarchy properly.
  • In instant case though person is designated as Consultant, he is a full time employee of the organization, he is paid Salary and not Consultancy Fees, hence his income has to be treated as 'Income from Salary' and needs to be taxed accordingly.
Quote:
Originally Posted by haneefabd View Post
I want to know can we designate an employee as Consultant.He will be given appointment letter and all terns & conditions will be as an employee but his designation only will be given as consultant like Financial consultant.He will also be covered under PF and ESI.
Will it be classified as a consultant or Salaried person under IT.

sachin79hr@gmail.com - Member Since: Feb 2009
Dear Friends, i am looking for some tie ups for our employees, like home loans , credit cards and holiday packages..can you suggets me some more ? Thanks Sachin

shreyas_dave2001 - Member Since: Nov 2007
Dear Haneefabd,

I full agree with our colleagues who have given their opinion above.. See if he is covered by Pf & ESIC also.. then he is employee only(salaried person only) and the income tax slabs applicable to salaried employees will also be applicable to him..

In order to prove him as "Consultant" the company must enter into an agreement with him for providing specific services.. Then and then he will a consultant and his tax will be deducted accordingly..

Regards.

Shreyas Dave
Muscat



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