Hi all, I need some help. I wanted to know whether contractual employees working with the company for more than a couple of years without any break are liable to claim a permanent status with the company. Is this kind of rule stated anywhere in the labor books?
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Understanding Contractual Labor
What do you mean by contractual labor? Is it employees on the roll of the company but on a fixed-term contract or employees engaged by an outside contractor? The status of these two is different. The former is an employee of the establishment, but unlike other permanent employees, his employment will be terminated on a prefixed date as mentioned in the contract of employment. When his service is so terminated, he will not be eligible for any retrenchment compensation. However, having been employed for more than one year, he is eligible to get all other benefits like leave with salary, notice for premature termination of service, gratuity (if he has been in service for at least five years), and so on.
In the latter case, the relationship between the employer (principal employer) and the employee is not present in many situations, and therefore, he cannot claim permanency provided he has been employed to do work of a non-perennial nature and there has been no direct interference by the principal employer in his salary negotiations and similar matters connected with his service conditions with his employer, i.e., the Contractor.
Regards,
Madhu.T.K
From India, Kannur
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4556What do you mean by contractual labor? Is it employees on the roll of the company but on a fixed-term contract or employees engaged by an outside contractor? The status of these two is different. The former is an employee of the establishment, but unlike other permanent employees, his employment will be terminated on a prefixed date as mentioned in the contract of employment. When his service is so terminated, he will not be eligible for any retrenchment compensation. However, having been employed for more than one year, he is eligible to get all other benefits like leave with salary, notice for premature termination of service, gratuity (if he has been in service for at least five years), and so on.
In the latter case, the relationship between the employer (principal employer) and the employee is not present in many situations, and therefore, he cannot claim permanency provided he has been employed to do work of a non-perennial nature and there has been no direct interference by the principal employer in his salary negotiations and similar matters connected with his service conditions with his employer, i.e., the Contractor.
Regards,
Madhu.T.K
From India, Kannur
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Amended Labor Laws.doc
Labor Laws Modified.pdf