How Can Employers Transition Long-term Contract Workers to Permanent Payroll?

Hi, can somebody advise me on how the employer can regularize the contract workers who have been working in an organization for the past 2-3 years under different contractors into their payroll? Can the employer give them a Trainee/Probation period appointment letter if they have decided to make them permanent, or should we give them a break?

Regards,
Smita

If the employer deems it appropriate, they can issue an appointment letter as a trainee based on the past record of the contract worker.

Regards,
Bipin Supekar

Somebody told me that workers must show a minimum of a 6-month break; otherwise, the vendor will interfere. The salaries are given by the vendor, not directly by the employer.

Regards,
Smita

Contract laborers are not your employees. Although they are working with you on behalf of the contractor, they are not considered regular employees. Therefore, the regularization of their service is not applicable.

Steps to Regularize Contract Laborers

If you intend to bring them under the company's employment, you must provide them with fresh appointments as probationers for a period of 6 to 12 months. This should follow the receipt of their applications and conducting new interviews for different job roles. Subsequently, you can confirm their services upon the successful completion of the probation period.

Regards,
D. Gurumurthy
Advocate/HR & IR Consultant.

But, sir, they have already exceeded their work for more than 240 days. However, other manufacturing companies are following the practice of giving a break of 6 months and then rehiring them. There are contractual laborers who have continuously worked for more than 2-4 years without a break. In between, a contractor is also involved who is charging a commission. Is it necessary to give them a break for 3-6 months?

Hi Smita, please give them a 1-month break. Afterward, you can issue an appointment (probation) letter. In the meantime, discuss with your contractor before making a decision.

If you mean to say that you (the Principal Employer) would like to absorb the contract labor, then only you should issue your appointment letter. On the other hand, if they continue to be on the rolls of the contractor, please do not issue an appointment letter. That will make the contract a sham! A sham contract is one which is made just for namesake, in order to deprive the employees of the status of regular employment. If that is proved, you will have to absorb the contract labor into your rolls. There were quite a lot of cases on this matter. Please follow the link below.

[Madhu.T.K: Contract Labor](http://www.madhu-t-k.blogspot.in/2010/11/contract-labour.html)

Regards,
Madhu.T.K

Procedure for Regularizing Contract Workers

The contract workers are working in the core function of the organization, and they have exceeded 240 working days. Now, they can claim permanent benefits in the organization. However, the employer wants to hire them on their payroll. What would be the correct procedure?

Regards

Please obtain a No Objection Certificate from the current contractor so that you can hire him as a new employee in your organization.

Thank you.