Rajsawster
Hr Specialist - Policy,compehsation &
Rajeev Verma
Hr Professional
Jagdishraoc
Professional Consultant
+1 Other

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Dear Seniors,
I am in dilemma in hiring a candidate for front office & office assistant, who will be a direct employees but would be in a contractual basis.
Say we hire a employee on contract appointment valid for 1 year.
Do we have to give the employees all benefits like PF,ESI,Gratuity etc..
Please let us know if any more points left out.
I would also request to forward me a sample appointment letter on the same at
Looking forward to hear from you!
Regards
Jagdish

Dear Jagdish,
It doesn't make any difference whether you hire an employee directly or through some contractual terms, you have to comply with the statutory requirements like PF, ESI, Gratuity ...etc....

Why not outsourced this function to outside agancy and route through professional contractor. Because anyway you can enter into contract for one year and can renew for subsequent years but if employee completes 120days un interrupted service he can challenge your contract employment for permenant nature of job the day you terminate him or her he is legally protected to be considered in regular employment of your company as per Industrial Disputes Act and Bombay Industrial Relations Act the day dispute is raised before labour commissioner. Moreover your contractor has to obtain license and you also have to register for certification of establishment under contract Labour Act.
Choice is yours.
Is it OK?
Regards,
Sawant

If Candidate has completed his services un-interrupted for more than 120 days than it sounds good, as we are looking for a reliable & potential candidates.
However if candidate is good we can always look forward to hire him on our regular company rolls.
Please advice us on the same....
regards,
Jagdish

It requires no advice, you can go ahead as per the requirement of the company, but keep the power of regularising the potential candidate up to you, it should not be by default.
I think I have cleared my self.

i am outsourcing staff in a company and now i want to sign a agreement letter from my employee, mention with 1 month prior notice for leav the job otherwise company not giving him said month salary and other benefits.
Hi Kamal, By simply mentioning in the agreement letter is not sufficient, you should also make the full and final settlement on the due date.
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