Why companies now-a-days prefer appointing the employees on a contractual basis?
From India, Pune
Dear HR Member
Present seenario of competativeness and in the presence of
advanced IT Culture the scope for manual works are deciminated.
Companies are on the run for surviability and in the survivability there is
only one issue, that corporates speak is 'profitability'. Gone are those
days Mayo's concepts. The dependance on machine culture is incresing
day to day and in which we are forgetting the human element.
Further with the avialability of much litterte work force, hiring on the
continuence will become burdonsome and thereby opting temporary

From India, Visakhapatnam
Hi! I would like some more inputs.whether contract is all or only workers or workmen.or contract for technical personal or administrative staff,please specify.the said contract for whom.
From India, Hyderabad
I would like add some more inputs.whether contract is all or only skilled workers orunskilled workmen.or contract for technical personal or administrative staff,please specify.the said contract for whom.

From India, Hyderabad
Dear Mihika
Companies appoint employees on contractual basically because in contract the job is defined. it covers the term, responsibility and scale. Secondly it gives the employer a change to review and decide to take decisions of whether to renew the contract or terminate depending on the Performance Appraisals of employees.

From Kuwait
Dear All
I am from an IT industry and my employee turnover is hugh, just like everyone, we are hoping to start hiring employees on contractual basis or on bond so that we know they will be with for a specific time.
Biggest problem is to find an effective contract agreement sample and or bond letter/agreement so that I can start using it.
Can someone help me with this and pass on the contracts if possible.
Looking forward to hear from you all

Entering contract thru Staffing Company is much better as they take care of complete Employee Adminstiration on your behalf.
They also provide benefits like Mediclaim and Personal Accident Insurance etc.....

From India
Dear mihika,
Thats true. Now a days employer prefer to hire employee on contract basis. It reduces the work load and necessary headache of Human Resource Department.
Main Benefits are
1) You need not comply with Employees Provident Fund Organization and Employees State Insurance Corporation. your only responsibility is to check whether the Principle is deducting their PF and ESI or not.
2) You need not follow the long procedure of Job appraisal. You need to evaluate contractual employees performance, but not for salary increment.
3) Its easy to sack contractual Employees.
4) Distribution of payment (salary) is easy.
There are lots more.

From India, Gurgaon
Dear Alex Here is a contract letter ....check if it supplies your needs. regds Fay
From Kuwait

Attached Files
File Type: doc contract_letter_100.doc (39.0 KB, 1436 views)

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