Employee vs. Independent Contractor: Can You Be Both at the Same Company?

Employee and Independent Contractor Status in the Same Company

Can a person be an employee and an independent contractor at the same time in the same company? What are the legal issues that arise when offering to do contract jobs with manpower, or what should I do?

Regards

If he is a workman, then as per the Factories Act, there is a restriction on double employment. As far as the employee is concerned, it depends on the policy of the organization. Generally, it is clearly stated in the appointment letter that during the tenure with the company, a person cannot take on alternate employment. Again, I would say, it differs from company to company.

Regards

Employee vs. Independent Contractor

If a person is an employee and falls under the terms of employment, they cannot be considered a contractor. If the individual is found to be performing the same work or engaged in another activity, legal complications may arise, and the employer can take action against the employee.

No, it's not possible. At the same time, one person cannot be enrolled in two registers as a contractual employee and in another case as a permanent employee. Either he has to be deemed a contractual or permanent employee to the principal employer. The nexus of two relations with the employer at the same time cannot exist in an engagement of employment.

An employee cannot be an independent contractor in the same company where they work because there are chances of engaging in malpractices in day-to-day company affairs. If the employee focuses on their contract work, they may neglect their office responsibilities.

Questions to Address

Furthermore, please address the following questions that have arisen:

- How has your company awarded a contract to an employee?
- Is this practice acceptable in your company?
- What percentage of profit is given to them for supplying manpower?
- How many individuals have they engaged in your company?
- Are there any issues in your company with directly hiring manpower?
- Has this matter been discussed within your company?
- If so, what is the management's stance on this?

Thank you.