HR Policy for associates who are not on the company's payroll and are only working as associates - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
+1 Other

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If most of the employees in my company are not under my payroll and are only working as associates, what kind of considerations do I must take while framing the HR policy? (Recruitment, Appraisal, Compensation etc.)
Please help me out here.

What do you mean by associates?
Can you run an organisation without employees?
can you run a show without paying salary?
If you pay salary to your associates, how can they be different from employees?
If your intention is to avoid statutory contributions like PF, Bonus, Gratuity etc, it will not work, because, it is the nature of work that will decide whether there exists master servant relationship and as such any person hired to do any work should be an employee within the meaning of labour laws irrespective of the designation you give.

From the posting what I can assess that very few employees are in Co's payroll and rest are associates i.e. engaged through contractor(s). What Madhu T.K. has been recommended - you have to follow ever thing.
If you run the organization with more no. of associates i.e contractual employees years after year, it is essential to have proper partnership concept to get proper output from them. It will also be essential to have HR policy for them to be implemented through Contractors only.
S K Bandyopadhyay ( WB, Howrah)
+91 98310 81531

Thanks Mr S K Bandyopadhyay,
You have rightly understood the situation.
Could you please elaborate a little bit more on how should I go about it; as I am not at all experienced in the field but I have to complete this task
I humbly request you to show me the way here :)

I gather that you are asking for the offroll employees who have been hired through a third party agency. Well, in that case, you become the principal employer and it becomes your responsibility to ensure that the agency is complying to all the mandates related to Labour laws. You even need to audit them to ensure that.
But, since you are not the actual/immediate employer, you cannot impose your organization's policy on them. You cannot show direct supervision as an employer. You need to ensure that the required policy is shared to those employees through their respective agency only. Else, you may end up with legal cases wherein these employees start claiming direct employment with your organization.
Rather, I suggest, you include the said HR policies (Recruitment, Appraisal, Compensation etc.) for them in the agreement/amendment to the agreement with the agency or communicate to them separately.
I have pretty good experience of managing these associates/offrolls.
Pls feel free to call me if you need any further guidance.
A. Gaekwad
9227209777

You cannot frame Personal Policy for the employees, those who are not in your roll. Instead draft your company rules and regulations for those employees and get it signed by the External Agencies.
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