Contractual vs. Permanent Jobs in PSUs: What Should I Expect in My New Role?

Hi,

I have been hired as a contractual employee by a PSU. Can someone please shed some light on such an arrangement as compared to permanent recruitment? It's an entry-level position for a metro rail project.

Contractual Engagement: Understanding the Period and Implications

What is the period of the contract? Contractual engagement has one disadvantage; it may or may not extend upon completion of the term. It depends on performance, the requirement of the vacancy, etc. On the other hand, it gives you relative freedom to leave if you get a better job, as per the terms of the contract.

During the period of work, learn the job well and add value to your job skills as well as your CV by taking related courses of study. While working sincerely enough, plan for the time when the contract may not get extended. For those who are conservative-minded, there is an element of uncertainty.

Clarification on Contractual Employees in PSUs

1. Sir, the issue raised by you is not clear. Do you want to know if contractual employees engaged in any PSU can be treated as regular employees after serving in the capacity as contractual employees based on their length of service?

2. In my opinion, considering the judgment of the Honorable Supreme Court of India in 2006 in the case of State of Karnataka vs. Uma Devi & Others, there are no chances of regularization of services for those employees engaged as temporary, casual, or on a contract basis. I suggest you review the mentioned judgment.

3. Even under the Contract Labour (Regulation and Abolition) Act, 1970, there is no provision for the regularization of services for employees engaged on a contract basis.

Earned Leave Discrepancy in PSU

In a PSU, regular and contract employees with a pay scale enjoy 30 days of Earned Leave per calendar year (CY). However, the HR Department, as a practice since 2010, denies Earned Leave to contract employees (lump sum pay), including executives such as GM, AGM, DGM, at the rate of 30 days per calendar year. Contract employees are only accounted for 15 days of Earned Leave.

Interestingly, the rule applicable in the offer letter is as per the "company leave rule." The HR manual also stipulates that all full-time employees are entitled to 30 days of Earned Leave per calendar year.

Legal Validity of Leave Discrimination

Is there any legal validity to this discrimination among the employees, contract with pay scale, and/or lump sum?

What kind of training facilities are provided to contractual employees in PSUs and private companies? What are the policies for providing training to contractual employees in PSUs and private companies?

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