Recognizing Contractual Staff: Can It Lead to Permanent Employment Expectations?

I had a query... Can a company give a note of recognition to its contractual staff? By this, I mean this contractual staff is not on the company's payroll nor is paid directly by the company but paid through an outside contractor vendor party. Will this have any repercussions in terms of the contractor seeking permanent employment?

In our viewpoint, it is not wrong to give a note of appreciation to a contractor. If you have a policy of not hiring contractors, then you need not worry about whether the contractor will seek employment. A note of appreciation is for doing a task or tasks well. It need not necessarily make it mandatory to offer permanent employment contracts.

ESP think tank

Everything depends upon the merits of the case. One does not know how your contractor is managing and how you are acting. Furthermore, what is the nature of the work they are performing? Details of appreciation also have to be seen.

Dear Member, it is risky to issue an appreciation letter to contractual staff. If their performance is extraordinary, you can recommend regularization of their services on the company's rolls. Repercussions cannot be expected at this moment. Circumstances may become worse when things go wrong. Hence, no one should issue a service certificate.

Do not issue an appreciation letter directly to the contract employee; if you must issue it, address it to the contractor by specifying the 'contract employee's name'.

The contract staff are engaged through a contractor, and this system is regulated under the Contract Labour (Regulation and Abolition) Act. Any contractual staff performing on behalf of the contractor, whether exhibiting good or bad performance, reflects on the contractor. It is advisable not to be swayed by such considerations. However, if you still wish to issue an appreciation letter, it is best to direct it to the contractor, citing the specific instance(s) related to the individual in question.

I am confident that by following this approach, we can avoid any potential legal complications.
Regards