Clarification On Working Of Contract And Permanent Workmen - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Kishorkulkarni
Law Practice
+2 Others

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Can we have different service condition and wages for the contract and permanet employees doing same or similar job? Please clarify.
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The simple answer to your query is No. You can not have two sets of rules for the permanent workers and workers of Contractors. You have to have same set of rules, conditions of service and benefits as both are doing the same job and work.
Dear Pratap,

This is in addition to what Adv Kulkarni has said. I would like to ask you following questions:

a) What is the nature of your industry? What is your finished product?

b) What is the ratio of permanent: contract workers?

c) What additional benefits you would like to give permanent workers? What savings will your organisation accrue by not providing these benefits to contract workers?

d) By keeping two sets of rules, will it create "us and them" divide among the workers? By the way is there any provision for contract workers to become permanent and if yes, then after how many months or years?

e) Have you studied the impact of treating few workers as second-class workers? Will it impact your organisation's culture? Will the impact be positive or negative? If it is negative then what is the cost of negative impact? Is this cost more or less than savings that you would accrue by depriving the contract workers from certain benefits?

f) Will the contract workers be able to maintain same motivation level as that of permanent workers? If not then will you be able to measure the cost of their low motivation or cost of lost opportunities?

g) Lastly, have you conducted survey of organisations who maintain this dual status? What the survey report says?

The question is not 'yes' or 'no'. The more important question is whether this dual status is 'advisable' or 'not advisable'. Therefore, study the above questions carefully and then take the decision.

Thanks,

Dinesh V Divekar


Generally in it is difficult that your permanent workers and contractual workers performing same task boz first one mainly performing
the task relevant prime objective of company and second one performing supporting one not in nature of permanent.
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