Contract Labour/Probationers terms of appointment

Keerthana Chandrasekar
Hello Team,

We are a manufacturing sector and registered under Factories Act.

We have an R&D unit for which we hire 5 to 10 labour on contract basis.
We face many problems like shortage of manpower because our projects are non continuous.(seasonal requirement)
Can someone suggest me ideas to overcome this labour shortage.

Also I got to know that we can hire few persons as probationers or trainees, in this case we are not necessiated to pay PF or ESI.

I need a guidance for this issue.

Thanks & regards
Keerthana Chandrasekar.
KK!HR
You have the option to appoint on 'Fixed Term Appointment' (FTA) basis and the appointment automatically lapses after the period is over. Keep the freshers and on a salary of above Rs. 21000/- pm so that both PF & ESI coverage are automatically over. Keeping contract labour or appointing on probation or training is not going to help from the statutory liability.
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