Liability Of An Employer Toward A Freelancer/ Parttime/ Home Based Worker

Dear Sir I have a website to display the different kind of article/ story of different writer . But the problem is I need few home based typist to make all the article/ story in same format, so that I can display that on my website.
1.So I just want to know what are the liability should I have towards my home based/ part time employee?
2. Law Related to contract labor is applicable to the freelancer worker?
3.What are the things that is necessary to mention in the agreement to be signed by employee?
4.Should I take any refundable security deposit from them so that the can do their work seriously?
a. If yes then should I have to pay tax for this security deposit? Because this is refundable against the good work of freelancer worker/
5.Should I have any liability towards my employee if the are submitting a careless and poor work which I can't use ?
6.Should I pay them full amount of their payment or I have to deduct any tax from their salary?

Hi,
I suggest you team with a Chartered Accountant and Intellectual property Expert/Solicitor who can guide you correctly.
Good Luck

Dear UKMITRA tnx for your reply. Should I meet with a CA or advocate?

Dear Sir
can i join your company if yes
please cont. 9728499023
sandeep Kumar
Gurgaon

There should not be a concept of employment between you and the freelancer.
You should not have any supervision and control over his work.
Have only an agreement of contract for service with him
Varghese Mathew
09961266966

Hi,
You need to meet both. CA will guide you on tax and statutory compliance whereas Advocate/Solicitor will help protect your business interest including local Statutory compliance.
You ofcourse need to have your own QA/QC/Administrator on your team hired by you. All post must pass through your hired QA/QC/administrator, who will be finally responsible for all content including yourself.
Good Luck. .
Ukmitra

Dear Asn6,

Answers to your questions according to my knowledge, are as under:

1. I just want to know what are the liability should I have towards my home based/ part time employee?

Ans: You have no liability towards part time freelancers. However, you should not show them on salary. You should pay them fees for doing freelancing job work.

2. Law Related to contract labor is applicable to the freelancer worker?

Ans: Law relating to CLRA is not applicable to you. The contract between you and them, may be expressed or implied, is a "contract for work". Morever, they are not working in your premises.

3.What are the things that is necessary to mention in the agreement to be signed by employee?

Ans: You must mention that the job work given to them on freelance basis and they will do it at their home. They will be paid as fees for doing freelancing job work. There is no employer - employee relationship, etc.

4.Should I take any refundable security deposit from them so that the can do their work seriously?

a. If yes then should I have to pay tax for this security deposit? Because this is refundable against the good work of freelancer worker.

Ans: You can take deposit as security on refundable basic. No tax liability on it, since it is refundable.

5.Should I have any liability towards my employee if the are submitting a careless and poor work which I can't use ?

Ans: Please do not call them as employees. You can hold them responsible for their careless and poor work. You can make certain deductions from security deposit with you against careless and poor work. However, you are liable for their carelessness and poor work.

6.Should I pay them full amount of their payment or I have to deduct any tax from their salary?

Ans: Please do not mention the word salary anywhere as stated earlier. TDS as per work contract rate applicable but you must have TAN allotted to you.

Hello,
The clarifications given by Mr. Keshav Korgaonkar are to the point and correct. I may add that you need to deduct the TDS @10% on the contract payment and deposit with income tax department as professional fee. You need to have TAN number as well as PAN number of your start up enterprise.