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

Dear all,

We are a start-up producing food items. Presently, we have a head chef drawing a monthly salary of 50,000/-. However, this appointment is not formalized as we, as a company, have yet to take off. The idea is that if the company performs well in the next three months, all such appointments will be formalized. Now, my chef needs to apply for a personal loan, and she requests a salary certificate. Can we provide that without significant legal implications? I consider the chef to be a contract employee (or consultant) working on an as-needed basis. Can anybody please advise?

Regards,

Please note, we are an Indian company.

Hi,

You want to help your chef by providing a salary certificate, but at the same time, you do not want to get entangled in legal issues. I hope that within the next 3 months, you will be regularizing the whole process, including registering the company. Normally, banks will insist on a salary certificate to ensure repayment of EMIs. Therefore, 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 the specific request from _______ for the purpose of applying for a personal loan with _____ Bank.

for ________________________

Hi, if you are very particular that a legal problem should not arise, by issuing a certificate on your company letterhead, you can include the following line in addition to what my friend LN has mentioned:

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

Nowadays, companies issue certificates to employees (such as experience certificates, income certificates, and salary certificates) using a format similar to the one mentioned above, which is also utilized by my company.

Thanks a lot, Lakshmi Narayanan & Radhakrishnan Nair. I really appreciate the guidance.