Is Our On-Call Worker an Employee or Something Else? Seeking HR Insights

Hi HR members, we have a person (similar to an office boy) who works for us on a requirement basis, like visiting banks, etc. We ask him to come for work as and when there is a requirement. We pay him monthly in cash, around 5-6k (varies), based on the amount of work. There is no contract or engagement between this person and our organization. Is such a person considered an employee, or does he fall into another category? Appreciate it if someone can guide me on this.

Dear Shilpa,

Understanding the Basis for Engagement

Requirement is the basis for the engagement of the services of a person for hire. If we apply this analogy to all types of hiring, there would be no necessity for employment contracts and employment laws as well.

Approaching the Matter with a Broader Perspective

We have to approach the matter with a broader perspective and in terms of social justice. When the requirement is perennial in nature, the hiring process results in the phenomenon of employment with the inseparable ingredients of the employer, the employee, and the contract of employment.

Integrating Office Roles into Regular Employment

As long as you have an exclusive office for your business/industrial activity, the post of an office boy or office assistant becomes an integral part of the office. Therefore, my suggestion would be to convert it into a regular post and appoint a suitable person under a contract of employment. Initially, you can go in for a fixed-term contract basis and later regularize the post.

Contractual Work Arrangement

Presuming that there is not enough workload for a full-time employee, I would suggest listing all the activities and their frequency in a month. Then, enter into a contract for services to fulfill those tasks with a fixed amount per month. The present system is highly irregular and erratic, which could lead to legal complications later.

Dear Madam,

The nature of work requirements, irregular frequency, and no fixed timings make this arrangement more akin to work contracted out to an outside agency or person. This may be interpreted as falling outside the ambit of employment. His visits to the office at irregular intervals and at different times during the day can be seen as collecting work-related documents/material from the office.

I share the view of KKR that it is better to clearly outline these elements of the requirements in writing, spelling them out as part of the service contract.

As long as this arrangement is not challenged, or no disputes are raised by the concerned person regarding employment, you can proceed. In the event that this is contested, it will be up to the authorities under labor laws to determine whether it constitutes employment or otherwise.

Regards,

Vinayak Nagarkar
HR and Employee Relations Consultant

The person you hire falls under "casual workers," a term typically used to refer to individuals who are called on to attend work on an "as and when required" basis.

It would be better to make a contract or agreement with the person for his engagement as a casual employee.