Service provider complains that he is an employee - threatening to complain and go to court - CiteHR


The person used to work for a factory on a fixed charge basis until last year. Example - He used to take his charges for his skills on a per piece basis and leave.
In May 2020, the factory gave him a permanent job. Now he wants to leave and settle and is complaining that he is working from April 2019. The appointment letter of May 2020 is available but the employee says he has call record proofs with other employees and MD and photos he took when he worked in 2019. Factory said that yes proofs are correct, but we only called you for specific work and you used to charge us as a service provider. Also, the factory said it is not the right practice to take photos of our work without permission but still employee is threatening to complain and go to court.

From India, Bengaluru
Management Consultancy
Nagarkar Vinayak L
Hr And Employee Relations Consultant
+1 Other


Though he was a piece rated worker from April 2019 to April 2020, he was a paid employee of your concern. Moreover he has proofs too. Now that he wants to leave, is there anything extra he is asking for? The point to note is that even if he is a piece rated worker, was he getting less than notified minimum wages for the work he was doing. If it is not so, then there is no cause for any worry. Since he has accepted the offer of April 2019, he cannot now claim that his appointment on full time basis is from April 2019. Piece rate appointment is not invalid in law, if the wages thus paid were not less than the Minimum Wage
From India, Mumbai
Learned professionals. The following contains the fact of this case and some queries of my own. It would help to gain knowledge regarding this from this forum members.

Person was called whenever wood log cutting machine breakdown happens. He was not called everyday. Breakdown repairs take about 3 days so then he was asked to work. He was never an employee. He charged 20/- for per piece of wood cutting and used to cut in a range of 30 to 50 pieces. Generally used to come 5-6 days a month. So he got around 600/- to 1000/- per day depending on the pieces he cut. He used to complete his task within 2-3 hours and leave. It was just, we want this service. Please come and complete it. If you do so we will pay these charges. If he was not available, another person was contacted regarding the same.

In May 2020 the AP factory (in guntur) gave him permanent job so that he can look after his work plus other activates also.

Firstly, factory wants to know, how can he be an employee before May 2020 because it was purely a specific work for a small time. Nothing like full day work. Secondly, another person was contacted for said work when employee was unavailable but he was never given a job. So, is 2nd person also an employee?

So, for example if someone comes for a painting job/puja pandit/etc for 1 day at a shop, is he an employee?

Also KK!HR Sir, what is the notified min. wage for this work and where can i find it?

From India, Bengaluru

Based on the additional inputs being given now, it can be very well established that he is a self employed contractor (meaning he is contractor as well its worker) so he cannot claim now to have been employed since April 2019. He has accepted the regular appointment given from May 2020 without any protest, so his effort to now link it with a posterior date is clearly an afterthought and has no legal standing. His insistence to count the joining from back date is not understood as it is not making any practical difference on the financial pay out for his F&F settlement now.
From India, Mumbai
Sir, can you inform me what is the notified minimum wage for this work or similar works and where can I find these notified minimum wages?
Also, how can factories protect themselves from such false claims?
I have to come know that the employee is taking this route since he is leaving the job and wants to start his private work and found out that he can get earned leaves wages and maybe mint out some more cash if he claims that he is working from 2019.

From India, Bengaluru
Dear colleague,

This matter is pinning on whether you issued any letter before engaging him stating applicable piece rate , timings , working hours.
If not and terms were verbal, then it is open matter.

Whatever his motives are for demanding back service , which he cannot, don't yield any pressure. He has accepted permanent job from April, 2020 without any protest.

From the nature of his engagement which like giving skilled service on as and when required and no fixed timings/ hours of work, it cannot be regarded as employment.

As regards Minimum Wages , you have to refer to the Minimum Wages Act , State rules in which Schedule of covered employments given . Check your type of business is covered and if yes, applcable minimum wages.

But at this stage , that is not the issue so don't bother about it.

If the person takes legal route , your side appears strong. So stay put at this stage.


Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai

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