Asso.prof.(commerce & Management)
Hr Assistant

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Hi, Our company registered under Factories Act and no registration/License for Contract employment.
1. is it possible to appoint a candidate as a 'Contract employee' for period of three months?
2. what are the procedures to appoint a candidate in contract.
3. what about the PF and ESI for the contract employees

Hi Md.Asif,
How many employees in your factory? and how many you are going to engage on contract basis on temporary for 3 months?
I presume you are going to take persons on temporary basis directly without involving a 'contractor' whose business is supplying persons on contract basis to you, indirectly. There is no need to have a registration in your name as a 'contractor' as you are directly taking them, whose status is also 'employee' for a limited period (fixed term). They can be directly recruited by you thru' an advt. specifying 'temporary basis-only for 3 months'. However they will be eligible for EPF/ESI like any of your regular employee who are also expected to adhere to all the rules of your factory like any other employees. However reg.gratuity, bonus and leave different provisions will apply.

@ loginmiraclelogistics: We have 65 employees at present (regular) . maximum 3 employees is planned to take as contract. as per your comment, we have to take candidates as regular but mentioning as "3 months only" .
Yes, you are free to follow regular recruitment process but the employment notification or can be appointed from among the apprentices/trainees who have completed in your factory or from the employment exchange and should clearly state - i) temporary & only for 3 months ii) not eligible for termination compensation & other benefits iii) proportionate leave encashment & gratuity, bonus can be considered. Will not be eligible for a claim to permanency.
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