Navigating Short-Term Contracts: How to Handle Benefits and Terms for a 3-Month Project?

Hi, I have recently joined an export firm. My company is into manufacturing and export of engineering equipment and the setup of entire sugar plants abroad. Now, the company has a new project of setting up a sugar plant in Ethiopia. For this project, a senior person has been selected as a Senior Project Coordinator with a salary package of 1,50,000 per month.

According to the details received, he has to finish the assigned work in 3 months. Now, my queries are:
1. Can we keep him on a contract for 3 months? If yes, will he be covered for benefits like medical claim and insurance policy?
2. How should I frame the contract terms and conditions for him?

Can anyone help me regarding this? Please reply.
Akanksha

Hello Akanksha,

Why not speak to an insurance company that specializes in such policies? They could guide you better since they would have such matters at their fingertips.

Regards,
TS

Hi Akansha,

Usually, a contractual employee is not given benefits like a regular full-time employee on the payroll unless the contract specifies it.

Regards,
Gurpreet

You have selected a person as Sr. Project Coordinator @ Rs.1.50 lakh per month for setting up a sugar plant in Ethiopia, and he has to finish the assignment within 3 months.

Under the circumstances, in my opinion, you may issue a Contract Work Order keeping the following points in mind:

a) Remuneration should be lump sum, not on a monthly basis (which may be given in 3 installments like - 30% at the start of the assignment, 40% upon completion of 50% of the job, and the remaining 30% upon completion of the entire assignment.
b) Period of completion of the project
c) Penalty clause in case of failure to complete the job within the stipulated period
d) Whether TD/DA are to be paid extra or included in the remuneration
e) Whether other benefits like medical, insurance are to be provided extra or included in remuneration. If you have to provide extra, then take benefits from the Insurance Company.

Regards,

Sivadasan