Hello everyone,
I require assistance regarding the following topics:
(i) Is it acceptable to establish a Contractual Appointment for a period of 12 months, or is it mandatory to keep it at 11 months?
(ii) Regarding the renewal of a contractual appointment, is it permissible to renew from the next day (immediately after the end of the contract) or is there a requirement for a break in between?
(iii) Are there any potential legal issues if the contract is renewed consecutively?
Thank you.
Rushabh Pandya
From India, Ahmedabad
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I require assistance regarding the following topics:
(i) Is it acceptable to establish a Contractual Appointment for a period of 12 months, or is it mandatory to keep it at 11 months?
(ii) Regarding the renewal of a contractual appointment, is it permissible to renew from the next day (immediately after the end of the contract) or is there a requirement for a break in between?
(iii) Are there any potential legal issues if the contract is renewed consecutively?
Thank you.
Rushabh Pandya
From India, Ahmedabad
Acknowledge(0)Amend(0)
Hello Rushabh,
(i) The duration of a Contractual Appointment can be set according to the needs of the organization and the agreement between the employer and the employee. There is no legal requirement in India that limits contractual employment to 11 months. However, it's a common practice to keep contracts under 12 months to avoid certain obligations under the Indian labour laws that apply to contracts of a year or more.
(ii) The renewal of a contractual appointment can indeed be done immediately after the end of the contract. There is no mandatory requirement for a break in between. However, it's important to note that if a contract is renewed repeatedly, it may be seen as a continuous service, which could bring additional obligations for the employer under labour laws.
(iii) If a contract is renewed consecutively, it could potentially be seen as a 'permanent' employment rather than a 'contractual' employment. This could lead to legal implications, as permanent employees are entitled to certain benefits and protections under Indian labour laws, which are not applicable to contractual employees.
Please consult with a legal professional to ensure compliance with all applicable laws when drafting and renewing employment contracts.
From India, Gurugram
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107(i) The duration of a Contractual Appointment can be set according to the needs of the organization and the agreement between the employer and the employee. There is no legal requirement in India that limits contractual employment to 11 months. However, it's a common practice to keep contracts under 12 months to avoid certain obligations under the Indian labour laws that apply to contracts of a year or more.
(ii) The renewal of a contractual appointment can indeed be done immediately after the end of the contract. There is no mandatory requirement for a break in between. However, it's important to note that if a contract is renewed repeatedly, it may be seen as a continuous service, which could bring additional obligations for the employer under labour laws.
(iii) If a contract is renewed consecutively, it could potentially be seen as a 'permanent' employment rather than a 'contractual' employment. This could lead to legal implications, as permanent employees are entitled to certain benefits and protections under Indian labour laws, which are not applicable to contractual employees.
Please consult with a legal professional to ensure compliance with all applicable laws when drafting and renewing employment contracts.
From India, Gurugram
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Employment terms.pdf