Madhu.T.K
Industrial Relations And Labour Laws

Dear All, i am working as Executive - HR in Food Industry since last two years. In february2008, we engaged 15 nos of workmen with Eleven month's Fixed term Contacrt. this contract will expire in end of december 2008. Can i give them renewal letter for further 12 months period? Is there any legal bound for this? Please advice. Thanks & regadrs, ketul
17th December 2008 From India, Mumbai
If you want to engage them for a few more months/ years then you can give them renewal letters. Dear Ketul, could you please tell me, what this 11 months contract stand for? Is there any special significance for 11 months contract? As far as I know, there is no legal significance for 11 months contract. If you want to say 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, theyhad worked for 240 days, then naturally, they are eligible for leave in the succeeding year, they are eligible for other benefits such as, lay off compensation, retrenchment notice and compensation etc. In case with every renewal of contract they worked for 5 years with 240 days in each year, they they will become eligible for gratuity also. There is no doubt about eligibility for bonus for which an employee needs to have worked only for 30 days! In case of 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 a period of 12 months immediately before the date of delivery. Regards, Madhu.T.K
17th December 2008 From India, Kannur
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