What Formalities and Documents Are Needed for Hiring Temporary Workers for 2 Months?

Hiring Temporary Workers: Formalities and Documentation

Kindly let me know what formalities need to be completed for hiring temporary workers (4-6 individuals) for a short period of 2 months. We have already issued a purchase order to the labor supplier for the engagement of temporary workers.

Additionally, please advise on the legal documents that need to be maintained from our end and the documents required from the labor supplier before the hired workers can start.

If you have any templates related to this process, I would appreciate it if you could share them.

Thanks & Warm Regards,
Vinayak Sonawane

If you are engaging only 6 to 19 contract workers or temporary workers in your firm, there are no legal formalities to be done. In case you are engaging more than 20 workers, then all the legal formalities will bind with you. First, you should register your firm under The Contract (A&R) Act, and the contractor should obtain a license from the appropriate government. You will need to provide all welfare measures, and records and registers should be maintained.

Thanks,

Shunmugaraj.S

If you are engaging only 4-6 temporary workers in your firm through any other labor supplier on their roll, then you are advised to ask the labor supplier to issue them a letter of appointment for a specific period. The employee/workman should be covered under the provisions of the ESI Act and EPF & MP Act if your company is covered under the above-said Acts.

If you want to employ/engage temporary workers in your firm with more than 20 workers, then you have to obtain registration under the provisions of the Contract Labor (Regulation & Abolition) Act, 1970. Your labor supplier should obtain a license from the concerned authority, and the labor supplier should issue them a letter of appointment for a specific period. The employee/workman should be covered under the provisions of the ESI Act and EPF & MP Act if your company is covered under the above.

Please ensure compliance with the above regulations for the proper management of temporary workers in your firm.

Thank you.

Contract Labor Licenses and Responsibility

I am totally opposed to this. If you are not registering any contractor due to less manpower, then those employees will fall under the principal employer's responsibility. So, it's better to modify the contract labor licenses and include them in the contractor list.