Please find response as below :
1. Can the employee be considered on pay roll? if yes for how long? - There are many MNC's now a days who allows their employees to work from HOME which finally saves cost to the employer. The tenure is finally is call of the management.
2. Does the company still have the professional tax liability towards the employee in case payment is on hourly basis for work done? - Yes, If you show her as an employee on your role then you need to deduct professional tax from her salary.
3. Will this arrangement be a considered as break of employment towards gratuity benefit and other long term benefits of employee? - If you do her full and final and rehire her as consultant then, you need to close her accounts as employee and treat her as fresh consultant for your company.
4. Will she have to resign and company have to do full and final settlement and start all over with the same company? - Answer given in 3 question.
Appreciate your response, so we can conclude that as of now we do not have any basic law for work from home employees, it is the management call, to treat them as a payroll employee or consultant.
Have I understood it correctly?
thanks and regards
From India, Mumbai