Are Individual Contracts for Housekeeping Staff Legal? Exploring Potential Issues and Concerns

Dear All, I have heard that phone or telecommunication companies appoint their call center staff on individual contracts. It is mentioned in their contracts that this agreement is valid for a limited period and does not come with any additional benefits like that of an employee. I wanted to know if this is true. If we were to appoint housekeeping staff on individual contracts similar to the scenario mentioned above, what legal, statutory, or labor issues would be involved?

Regards, Geetanjali

There are two types of contracts:

1) Contract of Labour
2) Contract of Job or Service

In the first type, labor is hired through a third-party contract to perform the job. In the second type, the contractor is paid a lump sum amount to complete the job, regardless of the number of laborers employed. At the end of the day, the company is concerned with the output and results produced (the number of employees is the contractor's responsibility).

Therefore, services like housekeeping, gardening, and security are considered job contracts. In your situation, a company hiring an individual employee on contract is considered a fixed-term contract. This practice can have negative implications in the future.

Regards,

I think, no. As per the law, every employee is liable for all the benefits like employees, but the way is different, like ESIC. If the employee is under FTC, then he is liable for some percentage of ESIC contribution. However, if we appoint the staff for a short period, such as 10 days or 15 days, as well as variable staff, then they come under the group insurance. So, there are many conflicts.

Best Regards,
Vikas Varma
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