What are the advantages of contract employees over permanent in smaller firms (software consulting)?

Hi, I am new to this HR field and wanted to know details.

1. An organization with less than 10 employees has no leaves for them, and any leave taken can be deducted from wages (even on a contract basis, will they have leaves).
2. What are the advantages of contract employees over permanent employees in smaller firms (software consulting)?
3. What is the maximum probation period, and during this period, are they entitled to leaves?

The firm will be covered under the Shop & Establishment Act of the respective state. You may consult it regarding the issues raised by you.

I do not know where your firm is located. In AP & Telangana, contract workers are entitled to one day of leave for every 20 working days. There is no probation period for contract workers. You need to assess for yourself the advantages based on your pay structure, etc. It will be difficult to advise in this regard.

Today, there is no difference between the employee of an establishment, contract employee, and employees provided by labor supplier agreement. All the applicable laws are applied. If the contract employee is a piece-meal worker as per production, then no leave, etc., will be accrued to them. But if they work like a company employee, then weekly holiday and other leave entitlement as per Labour Law, that is the minimum, is applicable.

Please buy Bare Laws of all the connected laws and get yourself familiar with this. If the law prescribes a minimum, then it is the establishment that decides whether to follow the labor laws and give additional benefits. For example, as per labor Law holidays are declared as per Factories and Establishment Act. The government also declares holidays that are applicable to labor from time to time. Many companies follow whenever banks are closed during festivals (except the weekly holidays they follow for normal working).

So, these are connected things to discuss with the company and what the law stipulates.