Globaloverseas144
Soical Compliance Auditing
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Malikjs
Gm (hr)
Josresh
Hr Manager In Hospital Adminstration
+1 Other

Hi
all
please guide me, i want to appoint a worker as Trainee for the period of 11 months on stipend of Rs. 3500/- thereafter i will be appointing him on probation on 3 months and later on he will be confirmed.
Now in this how do i go about it please explain.
1) Is it legal or illlegal ?
2) During Trainee period PF & P.T. should be deducted or not ?
3) if i am paying him 3500/- then am i allowed to pay as 2000/- Basic and 1000/- D. A. or it should be paid as consolidated ?
please revert back asap.
Raj
26th June 2009 From India
Raj,
The appointment letter must clearly state the terms of employment and that the person will be considered for probation after completion of the initial training period and thereafter the Confirmation.
It is best to stick to the statutory payments - viz. Minimum wages applicable at the place where you wish to hire.
Also, PF/ESIC (as applicable)/PT applicablity must be spelt clearly in the appointment letter to handle any disputes later.
Regards
Manoj
26th June 2009 From India, Mumbai
Dear Manoj thanks for your reply, i have not understood about Statutory payment do you mean that i can pay them as Basic + D. A as i have mentioned earlier. ( 2000 + 1500 ). is it legal? Raj
26th June 2009 From India
Dear Raj,
Basic + Da + HRA + Leave Encashment + Bonus + PF ( Emplyer ) + ESI/ WC ( Employer )
This should be paid to the employees. I am from Pune ( Maharashtra ).
Please call me Prashant - 09850401160. I can clarify your doubts.
Regards,
Prashant
26th June 2009 From India, Pune
Why cant u take an employee on contract basis on the rolls of a consultant..??
U need not think about any other legal issues.
U can list your conditions of employement with u..
The consultant will pay the employee and take his commission from what ever u pay.
I hope this is a best option for u.
Reply me if any corrections needeed.
Kamal- hr
hyderabad
27th June 2009 From India, Hyderabad
dear kamal
it is unfair legal practices we are following.how the consutant can be employeee.there shuold be some logic when we are hiring consultant.
can a one company will have say 80% consultant.
will consutant raises bill for his consutancy charges..
what type of consutancy will be provided by these consultants
consutants are servicwe provider ,so they are required to take
service tax number and will aslso chage service tax from employer.
i feel it is misuse of the name consultancy.oters can also put their views
regards
j s malik
j s malik

27th June 2009 From India, Delhi
Dear Raj,
Yes ,you can appoint a trainee workers,but the salary should not be less than the grade rate decided by state govt(means minimum wages of ie. skilled,semiskilled,unskilled,clerk etc....).
For duration of training period ,please refer to your company standing order(standing orders certified by deputy labour commissioner),it must have the condition of employement of trainee,probation,permanent etc....
You can appoint trainee worker for six months period & if training not effective you can extend it for further 3 months & then further 3 months(complete cycle for 1 year).
Trainee worker should get all legal benefits.
:: Global Overseas - Home :: Compliance Audit, ISO certification, BFSI Audit, Export, Jem, Jewellery, chemical Industry. for more detials of HR/legal/Social compliance.
Best Regards
Sajid Ansari
27th June 2009 From India, Delhi

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Dear Mr. Malik
Actually i didnt get u..how can "hiring of employees on contract basis" be an illegal practice
can u be more descriptive for my understanding.
let me know something from u in this topic
other Seniors pls give ur suggestions
regards
kamal
29th June 2009 From India, Hyderabad
dear kamal
i got confused as you have used word consultant.dear you can hire worker from contractor on contract basis there is no problem.
get you self registered if numer is more than 20.i replied for some other query,sorry for inconvienance.
regards
jas malik

29th June 2009 From India, Delhi
Dear Malikji
You were right in your earlier response too.
These days it is very common to see drivers, peons etc. being put on the rolls of a "consutant", who'll just put up a consolidated bills of services (and pay a pittance to these poor wretched souls). This way the company reduces headcount, as well as expenses; resuting in the improvement of bottom-line (which is what matters to private sector companies).
How far is it illegal under the Minimum Wages Act, Contract Labour Act, ID Act(unfair labour practice) is the headache of the "consultant' (that is why he is called the consultant).
i hope you are able to understand what Mr. kamal is trying to say.
Earlier it was not done so openly, but now this has become an Standard Operating Practice. :p
Coming back to the original query; there are various kinds of trainees like stipendiary trainee, summer trainee, apprentice trainee under the Apprentices Act) etc. Each have to be dealt in specific ways which are legal.
Regards.
29th June 2009 From India, Delhi
has a trainee ( legal as per govt order) appointed for one year can join the strike called by permanent employees
6th July 2017 From India, Kannur
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