What HR Documents Are Needed for Short-Term Consultants? Seeking Advice!

Hi All,

I need some help regarding contractors who provide consulting services to the company. I would like to know if any documents have to be maintained by the HR department for such consultants, and if so, what are those documents.

Regards,
Simmi

P.S. - The individual joined our firm on Friday and will be here for a month.

Hi,

If you engage contractors, first of all, please ensure the following:

1. The contractor should be registered under the Factories Act or the Shops and Establishments Act and should carry a registration number.

2. He should have extended ESI coverage for all his employees (whoever comes under the purview of the act). You need to get his ESI registration number.

3. Similarly, PF registration number.

Get a list of companies for whom he is providing this service and try to get an opinion about this contractor from them.

Please understand that it is the responsibility of the Principal employer to take care of contract workers. The law will penalize you for any non-compliance, and you may later on step into your contractor's shoes, but that is cumbersome.

If you have finalized on that contractor, every month before paying his bill, get a copy of ESI & PF remitted challan for those employees who are working in your company and after due diligence, make your payment. Of course, this is an activity of finance. Yet, if you enter into a contract with a contractor who does not have registration in the above areas, you may end up in a problem.

Do revert if you need any further assistance.

Dear Hema,

What I understand from your email is that most of the things have to be done by the Finance department (ESI, Registration number, PF account, etc.). There is nothing in particular that HR has to take care of. Is it right?

Simmi

Dear Simmi,

It is not the Finance department that takes care of these matters. It is the primary responsibility of the HR & Admin department to handle the ESI, PF, and insurance details.

Regards,
Vani