Are Retail Employees in India Being Unfairly Labeled as Consultants? Let's Discuss the Legalities and Impacts

I would like to know the legality behind employees being shown as consultants by a retail company in India. I work with a retail firm as a Retail Sales Executive, where I am employed as a consultant. I receive a debit note with my monthly salary along with a cheque labeled "Consultant." All employees working in various branches of the company are in the same condition.

Here, employees work like tea vendors, and there are no statutory employment benefits like Casual Leave (CL), Privilege Leave (PL), Employees' Provident Fund (EPF), Sick Leave, or minimum working hours, etc. Even the remunerations are not as per the Minimum Wages Act, especially for lower-level employees. The company operates under the Shop & Establishment Act. According to the Shop & Establishment rules, employees have the right to receive all employment benefits as stated above. How are all full-time workers shown as "Consultants"? This seems like an injustice and ill-treatment towards the employees.

I request you to kindly clear my doubts so that some initiatives can be taken for the betterment of the affected employees.

Regards,
Kanish

Firstly, write an email to your HR regarding this and ask them to clarify their policy on this. Then we'll be able to help you. Just because you are designated as a consultant, it doesn't mean you can't receive benefits. There are job profiles within the organization that end with the title "consultant," such as career consultant. So, the issue is not about the designation; it should be about unfair treatment.

Dear Seniors, I would appreciate your guidance and suggestions on the above-mentioned matter. We are full-time employees, but on the company's papers, we are consultants (providing consultancy services as per company records, we are not listed as employees). They deduct TDS from our salary and provide us with yearly TDS certificates (paying salary as consultancy fees for the month of ...).

Understanding Employment Law for Consultants

I just wanted to know under which law this type of employment falls. They only pay monthly wages/salary without providing any other benefits to the employees. The company's HR or management never provides clarity on this matter, and they treat it as if it's a 'work if you want to, otherwise leave' policy.

Kindly advise on the same.

Thank you.