Legal liability of the company if the company transfers contract employees to permanent employees?

Hi everyone, I need to know about the legal liability of the company if the company transfers contract employees to permanent employees?

With out knowing the size of your company, employee strength, total no of permanent workers, contract workers, staff and other details, we cannot speak a lot on this context. However, for permanent employee our country employment laws provide more job security and compensation comparing to contract labour.

Dear Vinithakkar,

Contract employees are of two types i.e., Fixed Term Contract Employees and Out-sourced Contract Employees or Contract Labor.

As per the amended provisions of the Industrial Employment ( Standing Orders) Central Rules which is in force as of now as well as the provisions of the yet to be enforced Code on Industrial Relations,2020, there is no difference in the statutory liability of the employer towards his regular employees and the contract employees on fixed term contract but for the calculation of terminal benefits.

In both the cases of contract employees, taking them to the regular rolls of the establishment creates a new contract of employment. Therefore, the statutory liability of the employer towards this new regular employees vis-a-vis the existing regular employees in respect of the various aspects of employment like probation, confirmation, scales of salary etc., remains the same.

Thank you very much for the reply....