Dear Seniors,
I would like to inquire about the termination of employment for contract/casual workers.
Why do most companies end the employment of contract/casual workers after completing six months of service? Is this a legal right of the employer? If so, under which act or rule does it fall?
I kindly request your valuable suggestions.
#HRD, #IR,
From India, Alwar
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5I would like to inquire about the termination of employment for contract/casual workers.
Why do most companies end the employment of contract/casual workers after completing six months of service? Is this a legal right of the employer? If so, under which act or rule does it fall?
I kindly request your valuable suggestions.
#HRD, #IR,
From India, Alwar
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There is no such right conferred on the employers. By terminating the employment of a casual worker in a six-month period, what the employers get is that they can avoid paying gratuity. However, that is also risky because the right of any worker to get compensation for retrenchment, considering continuity of service for gratuity, etc., is not just six months but it is 240 days in 12 months or 120 days in a six-month period.
Therefore, if the employer is giving a break of one or two days after 6 months of continuous employment, the employer will never earn anything. At the same time, if the employee has rendered 240 days in 12 months, he will get a lien on employment. Though he cannot demand regularization, he can claim compensation if he is asked to leave forever.
From India, Kannur
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Therefore, if the employer is giving a break of one or two days after 6 months of continuous employment, the employer will never earn anything. At the same time, if the employee has rendered 240 days in 12 months, he will get a lien on employment. Though he cannot demand regularization, he can claim compensation if he is asked to leave forever.
From India, Kannur
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf