In a small (As per MSME) manufacturing unit, is it possible to employ someone only for a period of 6 months or 1 year and then renew further if found suitable? What all statutory benefits is the employee entitled to, like PF, Bonus, Leaves, Gratuity etc? How many times can such a contract be renewed or is it necessary to later employ the person full time?
From India, Aurangabad
Management Consultancy


Short duration employment is permissible, but define the end date and you have to stick to it. After that date, in case you still need the services, enter into a fresh employment contract. You will have to ensure coverage of all labour legislations provided you have the required minimum numerical strength for applicability of the respective acts. Prima facie Payment of Gratuity Act may not be required. Now a days there is lot of changes in labour laws being implemented so you will have to periodically verify your status.
From India, Mumbai
@KK!HR, how do we make such a contract? Do we need to appoint a labor consultant or can we do it ourselves? What is the procedure? I hope this is applicable to daily wage workers.
From India, Aurangabad

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