Contractual Employment By PSUs - CiteHR
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Insolvency N Gst Professional
+2 Others

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I have been hired as a contractual employee by a PSU. Can someone please shed some light on such an arrangement as compared to permanent recruitment? It's an entry level position for a metro rail project.
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What is the period of contract?
Contractual engagement has one disadvantage,they may or may not extend on completion of term.
It depends on performance,requirement of vacancy etc.
On the other hand it gives you relative freedom to leave if you get a better job, as per terms of contract.
During period of work, learn the job well and add value to your job skills as well as CV by doing related courses of study.
While working sincerely enough,plan for the time when contract may not get extended.
For those who are conservative minded,there is an element of uncertainity.
1. Sir, the issue raised by you is not clear. Whether you want to know if the contractual employees engaged in any PSU can be treated as regular employees after serving in the capacity as contractual employee on the basis of length of service ?
2. In my opinion, keeping in view the judgment of Hon'ble Supreme Court of India in 2006 in case of State of Karnataka -vs- Uma Devi & Others, there are no chances of any regularisation of services of those employees engaged as either temporary/casual or on contract basis. Hope you will see the said judgment.
3. Even under the Contract Labour (Regulaltion and Abolition) Act, 1970 there is no provision of regularisation of services of employees engaged on contract basis.
In a PSU Regular and contract employees with pay scale enjoying 30 days Earned Leave./Calender year (CY)
However, the HR Department, as a practice since year 2010 deny EL to contract employees (lumpsum pay) including executives viz GM, AGM, DGM at the rate 30 days /Calender Year.
For the contract employees 15 days EL being accounted.
Interestingly in the offer letter the rule applicable is as per "company leave rule".
The HR manual also stipulates EL for all FULL TIME employees as 30 days /CY
Can this discrimination among the employees Contract with Pay scale and /or lumpsum any leagl validity ?
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