Stuck in a Contract with No Leaves or Appraisals: How Can We Address This?

Dear Seniors,

I have been working with a limited company on the company's own contract for the past two years. The contract does not contain any information regarding leaves; therefore, we do not get any leaves even though it is the company's own contract. If we take leave, there is a deduction from the salary. Additionally, the appraisal has not occurred, even though it is mentioned in the contract that it will be done from time to time. No other perks such as PF, ESI, LTC, etc., have been provided.

Is there any clause addressing these issues, especially concerning appraisals and leaves? What steps can we take to address this? I understand that leaving the job is an easy solution, but I want to ensure this does not happen to future employees.

Awaiting your reply.

Regards,
Mahesh

Review Contractual Terms Carefully

See the contractual terms formally or informally between the employer and contractor and read carefully. There must be a clause for permanent employment if you serve for some tenure and insist on this.

Regards,
Sudheer
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I believe that yours is a small organization and does not have a certified standing order. If the company's Standing Orders permit, they can have fixed-term appointments. But in no case shall such employees be deprived of benefits like ESI and Provident Fund. It is fortunate that ESI and EPF authorities have not observed that your organization is not covered. You can bring this to the attention of PF and ESI authorities so that you can also be covered by the social security schemes of ESI and EPF.

Regarding leaves, the statutory leaves provided in the Factories Act/ Shops and Commercial Establishments Act/ Plantations Labour Act/ Mine Act, as applicable, are mandatory leaves that should be given to all employees.

With regard to performance appraisals, the law is silent, and I do not think there is any law that governs or makes it obligatory for either the employer or employee to undergo an appraisal. Therefore, if the management desires that only confirmed staff need to be appraised for their performance, it is acceptable.

Regards,

Madhu.T.K

Respected Madhuji,

I believe that your organization is small and does not have a certified standing order. If the company's Standing Orders permit, they can have fixed-term appointments. However, in no case should such employees be deprived of benefits like ESI and Provident Fund. It is fortunate that ESI and EPF authorities have not observed that your employees are not covered. You can bring this to the attention of PF and ESI authorities so that you can also be covered by the social security schemes of ESI and EPF.

Regarding leaves, the statutory leaves provided in the Factories Act/Shops and Commercial Establishments Act/Plantations Labour Act/Mine Act, as applicable, are mandatory and should be given to all employees.

As for performance appraisals, the law is silent, and I do not think there is any law that governs or makes it obligatory for either the employer or the employee to undergo an appraisal. Therefore, if the management decides that only confirmed staff need to be appraised for their performance, it is acceptable.

We are in the education industry, and we are a listed company. Initially, we had open contracts, but now we have closed contracts. We are on the company's one-year contract, and every year a new contract is made with only the date changing while other terms remain the same. The company provides us with a retainer fee instead of a salary.

Is there any clause under which we can inquire about being on-roll, leaves, and other perks?

Regards,
Mahesh

Retainer fees are paid for specialized services such as services of advocates, Chartered Accountants, and similar consultants. However, if the nature of the duties implies that they are regularly employed but the name given to remuneration for the services has been fixed as retainer fees, there is a chance that you will be considered as employees and not consultants. The standing rules of the University to which you are affiliated may have a direct impact on this matter. Therefore, please check with them as well.

Regards,

Madhu.T.K