Contract Employment - Manufacturing Company

hi I am working in manufacturing company .My company wants to engage some person those who completed 58years of age.So my question is suppose we engage them on contract basis with fixed tenure on consolidated salary ,then is there any PF and other liabilities are there or not.Please advise in this type of reqruitment what is the best solution. regards mantu71

hi mantu.... there are compliaces that ur company would need to adhere to....the other best option would be to keep him / her on third party payroll...in this way u can avoid all the hassled of maintaining his files, returns, etc..... should you need more help do contact me.... regards, imran

Dear Mantu, I dont understand for which post you want to employ, There is salary limit for PF Salary if you are paying more than that salary, U can treat them as exempted employee. U can also appoint them as Consultatnt. in that case thease people will be Individual Contractor & U have to deduct TDS only. Durgadas

dear if you hire him as consultant no need to pay PF otherwise if hire him as employee than pf will be paid to him. tks j s malik

Dear You can enter into an Independent Contractor Agreement by deducting TDS.The test is that you cannot have any control on how he works but you can only see his out put.If you retain control then the Authorities may construe him as an employee.Pls take specialist localised legal advice. With Regards V.Sounder Rajan E-mail : [Login to view]

Why don't you take them as "Consultants" on an yearly basis and keep the consultancy agreement renewed every year. rgds rj nair Management Consultant Bangalore 988 65 23 182

On contract basis and a fixed term there is no requirement of paying the PF Regards VC Prakash