How Should I Recruit Contract Employees for a Year-Long Promotion Campaign?

Dear Seniors,

I am working in an event management company. Recently, our company got a project on a promotion campaign. The project is for one year. Now our management has suggested recruiting employees on a contract basis.

Please suggest how I should proceed with the recruitment process and what procedures I need to follow.

Awaiting an early response.

Thanks,
Rajesh

Dear Rajesh:-P,

The contract manpower can be recruited in two ways:

1) On company rolls but by signing a contract for a specified period at the time of joining.

2) Through recruitment consultants who outsource manpower for a specific time period.

I find the second option better as the consultants themselves manage their PF and ESI norms, thus no record-keeping is required by you.

Hope this information will help you.

Regards,

Kopal

Dear all,

How to handle contract labor so that they cannot claim employment in the establishment of the principal employer in the future? We are the principal employer and have engaged about 100 workers through various contractors. Please share all the details if anyone has them.

BIJENDRA SINGH SARAYAGROUP.COM:x

Dear Rajesh,

When recruiting employees for short-term positions, certain legal parameters have to be considered and drafted accordingly so that when the term or project concludes, the employee does not claim regularization. If you need help, you can write to [Login to view], and we will provide you with a draft.

Hi Swatik,

As Mr. Kopal advised you, for the second option, which is to hire the manpower from an outsourced manpower supplier. However, don't relax. If you are planning to choose the above option and if the manpower exceeds 21, you have to register under The Contract Labour Act and obtain a registration certificate for employing the manpower on a contract basis. Additionally, you have to maintain certain documents as the principal employer, such as salary records, attendance, loans, advances, deductions, and other registers. Make sure about their salary or wages, whether they are compliant with the Minimum Wages Act or not, among other things.

You need to submit the Annual return on an annual basis and adhere to the rules and regulations specified in The Contract Labour (R&A) Act, 1971. For more information, please refer to the above-mentioned act.

Please note: I don't mean to scare you; I am simply explaining the exact legal process that you will encounter in the future.

Regards,