I joined this company in 2012. During the interview and signing of papers, I was informed that I was being hired on a contract basis. The only difference between me and other employees was that I would not have PF and medical insurance deductions. We only had a 10% TDS deduction, and we were paid a fixed "fee" every month.
After about 6-7 years of working in the company, following the introduction of GST, we were asked to submit monthly invoices for tax audit purposes. All company rules, regulations, and policies were applicable to me. I was recruited by the head of the department, asked to report to her, and assigned tasks similar to those of anyone else in the team. I was quite young back then and didn't realize that these wordings were simply abused, and recruits were tactfully made to sign them with the clandestine goal of circumventing labor law provisions.
My Role and Responsibilities
My work in the organization is as per the monthly roster prepared by the HOD for both "on rolls" staff and "on contract" staff. Often, within a year or two, "on contract" staff are simply put on payrolls. I was even asked if I wanted to be put on payroll, but I preferred to delay that formality because my salary was quite low at the time. Deductions such as PF and Diwali Bonus would have significantly reduced my monthly take-home pay.
To clarify, I was practically an employee with no rights to do a "come and go as I like" sort of job or to choose the amount of work I wanted to do and demand pay only for that. Not completing any chore or task assigned to me would have led to disciplinary action. Therefore, in practice, the word "independent" was null and void.
Company Policies and Benefits
Until recently, the company did not have well-framed policies and documents defining various employee entitlements and duties. Only recently, with a revamp in the human resources department, have these documents been uploaded on the intranet site. I have been using a magnetized ID card to swipe my attendance daily. I am entitled to annual pay hikes and have been promoted twice. The payslip only shows "consultant fees, number of days worked, LWP days," and no other allowances. There is only a 10% TDS deduction from the "fee."
Exit Interview and Gratuity Benefits
Currently, the exit interview form states that only "on roll" employees are entitled to gratuity benefits. I would only receive the "fee" after deducting the number of days I am unable to serve notice. I am not allowed to exit at my own free will and will have to pay for the notice period not served.
About 3-4 years ago, all "contract" employees were made to sign a letter stating they were voluntarily forfeiting their right to PF benefits. According to many threads, regardless of the agreement's wording, slyly calling wages "fee" and mentioning in the appointment letter that "you will always be an independent contractor and will not approach any labor court" is questionable.
Given that I have "signed" this tacitly worded letter, I see some forum commentators seem to side with the employer, causing me paranoia about whether the labor commissioner may have a divided opinion on this. My company is not ordinary; they have significant influence in high places. It makes me wonder whether this will be an open-and-shut case or if legal recourses will have to be pursued.
After about 6-7 years of working in the company, following the introduction of GST, we were asked to submit monthly invoices for tax audit purposes. All company rules, regulations, and policies were applicable to me. I was recruited by the head of the department, asked to report to her, and assigned tasks similar to those of anyone else in the team. I was quite young back then and didn't realize that these wordings were simply abused, and recruits were tactfully made to sign them with the clandestine goal of circumventing labor law provisions.
My Role and Responsibilities
My work in the organization is as per the monthly roster prepared by the HOD for both "on rolls" staff and "on contract" staff. Often, within a year or two, "on contract" staff are simply put on payrolls. I was even asked if I wanted to be put on payroll, but I preferred to delay that formality because my salary was quite low at the time. Deductions such as PF and Diwali Bonus would have significantly reduced my monthly take-home pay.
To clarify, I was practically an employee with no rights to do a "come and go as I like" sort of job or to choose the amount of work I wanted to do and demand pay only for that. Not completing any chore or task assigned to me would have led to disciplinary action. Therefore, in practice, the word "independent" was null and void.
Company Policies and Benefits
Until recently, the company did not have well-framed policies and documents defining various employee entitlements and duties. Only recently, with a revamp in the human resources department, have these documents been uploaded on the intranet site. I have been using a magnetized ID card to swipe my attendance daily. I am entitled to annual pay hikes and have been promoted twice. The payslip only shows "consultant fees, number of days worked, LWP days," and no other allowances. There is only a 10% TDS deduction from the "fee."
Exit Interview and Gratuity Benefits
Currently, the exit interview form states that only "on roll" employees are entitled to gratuity benefits. I would only receive the "fee" after deducting the number of days I am unable to serve notice. I am not allowed to exit at my own free will and will have to pay for the notice period not served.
About 3-4 years ago, all "contract" employees were made to sign a letter stating they were voluntarily forfeiting their right to PF benefits. According to many threads, regardless of the agreement's wording, slyly calling wages "fee" and mentioning in the appointment letter that "you will always be an independent contractor and will not approach any labor court" is questionable.
Given that I have "signed" this tacitly worded letter, I see some forum commentators seem to side with the employer, causing me paranoia about whether the labor commissioner may have a divided opinion on this. My company is not ordinary; they have significant influence in high places. It makes me wonder whether this will be an open-and-shut case or if legal recourses will have to be pursued.