Seeking Clarity on Contractual Employment: Is Notice Needed for Automatic End?

Seeking Advice on Contractual Employment Practices

With due respect, I wish to draw your attention and seek your valuable views and suggestions on one of the practices of hiring employees on a contract basis. Employers draft the terms and conditions according to their preferences and convictions. One of the conditions pertains to the renewal/termination of the contract, which may be described as follows:

"The contract would come to an automatic end on the date of expiry of the period of appointment unless otherwise informed in advance."

I seek the advice of all seniors and counterpart members on whether it would be necessary to give any notice when the contract is about to end, or if there is no necessity to give any notice as the condition states that the "contract would come to an automatic end unless otherwise informed in advance."

Additionally, I inquire whether the provisions of the Shop & Establishment Act would apply here for serving a notice in the case of non-renewal of the contract, i.e., automatic end of the contract. Furthermore, I seek clarity on whether compensation would be payable under the Shop & Establishment Act and if the provisions would also apply to persons re-employed after superannuation.

If renewal is required to be informed, then how many days in advance should the written information be given?

I would be immensely obliged, grateful, and indebted for your worthy views, opinions, and suggestions.

Thank you.

Looking forward to your guiding support and cooperation.

Regards,
Chandra Mani Lal

You have not indicated whether you are a contract employee or an employer; nevertheless, from the contents of the post, it appears that you are a contract employee and not an employer. If your contract employment is about to end, you may submit an application requesting an extension. Your application will provide clarity on the continuity of the contract employment. If your employer wishes to discontinue, they may inform you accordingly, and you will be free to search for another job.

If the employer has issued you the appointment letter, then the employer-employee relationship falls within the purview of the Shops and Establishment Act, whether you are a contract employee or a regular employee. Your status as a superannuated employee does not affect the Contract Act or the Shops and Establishment Act. The employers awarded you this contract notwithstanding your superannuated status. If you are above 58, then there will not be PF deductions.

I hope your doubts are settled.

Regards,
Dinesh V Divekar
Bangalore - 560092