Employment in MSME Manufacturing: Can Short-Term Contracts Be Renewed and What Benefits Apply?

Employment Duration in MSME Manufacturing Units

In a small (as per MSME) manufacturing unit, is it possible to employ someone only for a period of 6 months or 1 year and then renew further if found suitable?

Statutory Benefits for Temporary Employees

What statutory benefits is the employee entitled to, like PF, Bonus, Leaves, Gratuity, etc.? How many times can such a contract be renewed, or is it necessary to later employ the person full time?

Short-duration employment and contract renewal

Short-duration employment is permissible, but you must define the end date and adhere to it. After that date, if you still need the services, you should enter into a fresh employment contract. You will need to ensure compliance with all labor legislations, provided you meet the required minimum numerical strength for the applicability of the respective acts. Prima facie, the Payment of Gratuity Act may not be required. Nowadays, many changes in labor laws are being implemented, so you will need to periodically verify your status.

Contract Creation for Daily Wage Workers

How do we make such a contract? Do we need to appoint a labor consultant, or can we do it ourselves? What is the procedure? I hope this is applicable to daily wage workers.

Process of Creating a Contract

I would like to know the process of creating a contract. Do we have to hire a labor consultant for this task, or can we handle it internally? Could you please outline the procedure for me? Also, I am specifically interested in understanding if this process is relevant for daily wage workers.

Thanks in advance for your guidance.