Hr & Administrative Manager
Human Resource Manager Providing Business
Hr Manager,compensation & Benefit Manager,
Accountant - Compansation
Dont keep any employee without appointment letter,esi,pf since you are in Maharashtra wherein the PULP Act is very serious.
Issue appointment order to them with a clause of Probation period for one year/six months and the confirmation is based on his best performace with the ultimate satisfaction of the management.
In case they found suitable after a year/sixmoths probation, issue them with a confirmation of service letter + an increment in pay - let them continue in service as permenant employee.
otherwise, terminate them with a letter stating their performance during the period was not satisfactory to the management.(here you may have a documentary proof for their poor performance by keeping a test)
Every company has the different mode of action on employee recruitment process. As your problem has part of this process.
As from law point of view it is not the good practice as you adopted. But Ya.. there may be some instance where I also have to recruit some temporary staff, on contract basis.
In that case our organization hire’s the people through the resource companies with a mutual agreement.
Agreement: The main two points which is noticeable in this agreement is -
1) The sole responsibility will be undertaken by the service provider, &
2) We can also recruit the same person into our organization after paying the said contribution (contribution money will be varied according to the profile of the employee working in our organization on good faith).
I can send you the copy of agreement if you required so.
Well in this case you need to give them offer letter saying that u will in probationary period for this many months and based on your perfromance you will be given appointment letter and other benefits
But yaa if something goes wrong during working hours then you will be caught example if your employee meet with an accident etc so better not to take chance i would suggest.
I am not much found of the labour laws but through my regular learning I can accept with the answers given by few of our HR Mates.
What would you do if something mischief happens by the employee whom you cannot prove as your employee?
Usually in most of the companies, eventhough if the employee is on contract basis - an offer letter has to issued which states that he will be on contract pay rolls for sometime and then he could be made permanent based on the performance.
There is not harm if you could release an offer letter to the employee(contract).
Once the employee joins your Hotel, you can get the relevant signatures - ofcourse not much paper work is required for this. Its just to ensure that you will not face any legal issues.
Eventhough the employee is off role, companies are suppposed to pay PF and ESI or whatever .. that is a mandate now-a-days and for this there is salary grid also...its better if you could refer any of the postings related to Provident Fund by our CITEHR Mates...so that you can have a much more clarity on this....
This is complete exploitation of workmen....and also not a good organisation for you to learn fair HR practices .
See, its very true that attrition rate is very high in Hotel Industries.
There are so many reasons behind of this type of environment :
a. Not very High Eductated
b. Belongs to low middle class
c. Ambition for Fiver Star Hotels
So, for these kinds of reasons they joind only for little exposure they joined small hotels and after few months they move on some big hotel like in mumbai if take instance Leela, Hayat etc.