Dear All,
I am working as an Executive - HR in the Food Industry for the past two years. In February 2008, we engaged 15 workmen on an Eleven-month Fixed-Term Contract. This contract is set to expire at the end of December 2008.
My question is: Can I issue them a renewal letter for a further 12-month period? Are there any legal obligations regarding this matter?
Please advise.
Thanks & Regards,
Ketul
From India, Mumbai
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I am working as an Executive - HR in the Food Industry for the past two years. In February 2008, we engaged 15 workmen on an Eleven-month Fixed-Term Contract. This contract is set to expire at the end of December 2008.
My question is: Can I issue them a renewal letter for a further 12-month period? Are there any legal obligations regarding this matter?
Please advise.
Thanks & Regards,
Ketul
From India, Mumbai
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If you want to engage them for a few more months or years, you can give them renewal letters.
Dear Ketul,
Could you please tell me what this 11-month contract stands for? Is there any special significance to an 11-month contract? As far as I know, there is no legal significance to an 11-month contract. If you want to imply that they are only 'temporary' employees and are not eligible for any leave, bonus, termination compensation, etc., you are mistaken. If you want to deny them these benefits, then make a contract to work for only 239 days in a year. Do not permit them to work for more than 239 days. If during the 11 months with you, they had worked for 240 days, then naturally, they are eligible for leave in the succeeding year and other benefits such as layoff compensation, retrenchment notice, and compensation, etc. In the case of every renewal of the contract where they worked for 5 years with 240 days in each year, they will become eligible for gratuity also. There is no doubt about eligibility for a bonus, for which an employee needs to have worked only for 30 days! In the case of a woman employee, the contract for 11 months will not be maintainable if she asks for maternity leave for 12 weeks provided she had worked for just 80 days in a period of 12 months immediately before the date of delivery.
Regards,
Madhu.T.K
From India, Kannur
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4526Dear Ketul,
Could you please tell me what this 11-month contract stands for? Is there any special significance to an 11-month contract? As far as I know, there is no legal significance to an 11-month contract. If you want to imply that they are only 'temporary' employees and are not eligible for any leave, bonus, termination compensation, etc., you are mistaken. If you want to deny them these benefits, then make a contract to work for only 239 days in a year. Do not permit them to work for more than 239 days. If during the 11 months with you, they had worked for 240 days, then naturally, they are eligible for leave in the succeeding year and other benefits such as layoff compensation, retrenchment notice, and compensation, etc. In the case of every renewal of the contract where they worked for 5 years with 240 days in each year, they will become eligible for gratuity also. There is no doubt about eligibility for a bonus, for which an employee needs to have worked only for 30 days! In the case of a woman employee, the contract for 11 months will not be maintainable if she asks for maternity leave for 12 weeks provided she had worked for just 80 days in a period of 12 months immediately before the date of delivery.
Regards,
Madhu.T.K
From India, Kannur
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