Salary Certificate for Consultant/Contract employee - can we give that without much legal implications?

yogic-spandana
Dear all, We are a start-up producing food items. Presently, we have a chief chef drawing a monthly salary of 50000/-; however, this appointment is not formalised as we, as a company, have yet to take off. The thought is if the company performs in the next three months, all such appointments will be formalised. Now my Chef needs to apply for a personal loan, and she requests a salary certificate can we give that without much legal implications? I consider the Chef to be a contract employee (or consultant) working on a need basis. Can anybody please advise?

Regards,
yogic-spandana
Please note, we are an Indian Company
vmlakshminarayanan
Hi,

You want to help your Chef by providing salary certificate but all the same doesn't want to entangled into legal issues. I hope in another 3 months you will be regularizing the whole process including the registration of the Company. Normally Banks will insist for salary certificate to ensure repayment of EMI's. So you can issue a general salary certificate confirming her employment and salary receipt details

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr/Mrs.___________is employed with us as_________ with effect from_____. She is in receipt of Rs______ consolidated salary per month subject to TDS.

This certificate is being issued on specific request from_______for purpose of applying personal loan with _____Bank.


for________________________
rkn61
Hi, If you are very particular that legal problem should not arise, by giving a certificate in your company letter head, you can add below mentioned line, to what my friend LN posted above,

"This certificate has been issued based on sole request of Mr./Ms-----, and does not infer any responsibility, obligation legal or financial claims or undertaking on the part of the Company."

Nowadays, company gives certificate to employees (experience certificate/Income certificate/salary certificate) like this. Above format is used by my company
yogic-spandana
Thanks a lot Lakshmi Narayanan & RADHAKRISHNAN NAIR. Really appreciate the guidance
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute