New to HR? Seeking Guidance on Employee Classification for Recruitment Policies

Dear Seniors,

I recently joined a company that never had an HR department before. Now, I have started formulating HR policies one by one. When it comes to the recruitment policy, I would like to define the types of employee classification. As far as I know, we have permanent employees, contract-based employees, consultants, apprentices, and trainees. Could anyone please provide a brief overview of the types of employees?

Thanks,
Vissu

6.7 Classification of Employees

· `Regular' employee is an employee who has been engaged on the regular establishment of the ABC and who has satisfactorily completed his probation period of service and whose employment in regular service has been confirmed in writing.
· `Probationer' is an employee who is employed with a view to being considered for appointment on the regular establishment of the ABC. The period of probation is ___ months for all employees.
· `Temporary' employee is an employee who has been engaged on a temporary basis for a fixed term unless extended for work which is essentially of a temporary nature and is likely to be completed within a stipulated period. (Letter of temporary appointment and any extension to be made in writing shall explicitly state the end date)

Appointments to all positions shall be made by the Managing Director and/or his designated authority.

6.8 Probation and Confirmation Policy

The probation period is intended to give new employees the opportunity to demonstrate their ability to achieve a satisfactory level of performance and to determine whether the new position meets their expectations. ABC uses this period to evaluate employee's capability, work habits, and overall performance.

All new and hired employees work for on a probation basis for ____after their date of joining. Any significant absence will automatically extend the probation period by the length of absence. If ABC determines that designated probation period does not allow sufficient time to thoroughly evaluate the employee's performance, the probation period may be extended for a specified period.

Upon satisfactory completion of the probation period, employees enter the “regular” employment classification.

I hope u find it useful...if nt lemme knw i wl try to provide u wid sumthn else.

Contract: people who are working through other vendors

Retainer/direct contract: people who are working on company payroll but working for a specific time

Permanent: who are working on company's payroll, no timelines

Probation period implies, as per the policies; some companies will have a 1-year probation period (Wipro), some companies will have no probation period. From day one, they are treated as permanent employees.

Hi,

Thank you very much for your earlier response. I found this information useful. However, I would like to delve into more details. In general, sometimes a company hires individuals for specific designations on a consultant basis. These individuals are not on the company's payroll and therefore are not eligible for benefits like permanent employees. Do these individuals fall under the temporary category? I believe the company enters into some agreement with these employees.

Regards,
Vissu

They are on contract, i.e., for a specified time period, for some specific project, or as a substitute if some other employee has gone on leave.

Yes, they will come as temporary contractors. The company will hold an agreement with the vendor who deputed these consultants. You have to collect some documents for security purposes.