Madhu.T.K
Industrial Relations And Labour Laws

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Can we give leave encashment to IT consultant? We are giving monthly fees after deducting TDS Please guide me
From India, Pune
A consultant is not an employee. As such he is not expected to follow the leave rules, rules relating to hours of work, office timing etc. His fee will be paid as per the bill raised by him. No PF is deducted from it. He is given form 16A and not form 16 in respect of TDS deducted. As such, he is not an employee and not eligible or leave or leave encashment.

However, many IT Companies who believes that labour laws are not applicable to them, engage employees are consultants! They are designated as consultants but are expected to reach the office in time, remain in the office or 8 to 9 hours, follow the dress codes at par with others, avail leaves, report to somebody on daily basis etc. This is an arrangement to avoid paying PF, Bonus and other benefits available under labour laws. When he leaves the organisation after long service he will not be paid gratuity saying that he was not an employee.

If your Consultant falls under the second type, he should be given leave encashment.

From India, Kannur
Why this question arises to pay or not to pay leave encashment to IT consultant?
You only have to pay the amount as per the contract/agreement signed with the consultant. You have to pay leave encashment, if there is a provision in signed contract/agreement.

From India, Mumbai
Please Login To Add Reply






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™