Hiring Contract Employees for Short-Term Projects: What Legal Steps Should We Take?

Hi all, we are an IT-based company planning to hire contract-based employees. This is new to us. My query is, what are the procedures I need to follow for hiring contract-based employees for 3 months or 6 months? Do I need to fulfill any legal obligations before hiring contract employees? Kindly suggest.

For appointing employees on a contract basis, you must follow all the recruitment procedures as you would for regular employees. However, when issuing the offer of employment and appointment letter, you must create a contract agreement with the employee and obtain their signature for a maximum period of 1 year only. Upon the expiry of the 1-year period, you can issue a new 1-year contract agreement with revised salary and other allowances for the contract employees.

If you find that the employee's performance meets your satisfaction, you can then include them in your regular payroll.

All the best.

If we hire an employee on a contract basis for one year, and the employee absconds after 3 or 6 months, what action should we take against them? This is a question I have had for a long time. Kindly clarify.

Thank you.