Hi, I am working in a manufacturing company. My company wants to engage some individuals who have completed 58 years of age. So, my question is, if we engage them on a contract basis with a fixed tenure and a consolidated salary, will there be any PF and other liabilities involved? Please advise on the best solution for this type of recruitment.
Regards,
mantu71
From India, Calcutta
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21Regards,
mantu71
From India, Calcutta
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Hi Mantu,
There are compliances that your company would need to adhere to. The other best option would be to keep him/her on third-party payroll. In this way, you can avoid all the hassles of maintaining his files, returns, etc. Should you need more help, do contact me.
Regards,
Imran
From India, Mumbai
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There are compliances that your company would need to adhere to. The other best option would be to keep him/her on third-party payroll. In this way, you can avoid all the hassles of maintaining his files, returns, etc. Should you need more help, do contact me.
Regards,
Imran
From India, Mumbai
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Dear Mantu,
I don't understand for which post you want to employ. There is a salary limit for PF. If you are paying more than that salary, you can treat them as an exempted employee. You can also appoint them as a Consultant. In that case, these people will be Individual Contractors, and you have to deduct TDS only.
Durgadas
From India, Pune
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I don't understand for which post you want to employ. There is a salary limit for PF. If you are paying more than that salary, you can treat them as an exempted employee. You can also appoint them as a Consultant. In that case, these people will be Individual Contractors, and you have to deduct TDS only.
Durgadas
From India, Pune
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dear if you hire him as consultant no need to pay PF otherwise if hire him as employee than pf will be paid to him. tks j s malik
From India, Delhi
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From India, Delhi
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Dear,
You can enter into an Independent Contractor Agreement by deducting TDS. The test is that you cannot have any control over how he works, but you can only see his output. If you retain control, then the Authorities may construe him as an employee. Please take specialist localised legal advice.
With Regards
V. Sounder Rajan
E-mail: rajanassociates@eth.net
From India, Bangalore
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You can enter into an Independent Contractor Agreement by deducting TDS. The test is that you cannot have any control over how he works, but you can only see his output. If you retain control, then the Authorities may construe him as an employee. Please take specialist localised legal advice.
With Regards
V. Sounder Rajan
E-mail: rajanassociates@eth.net
From India, Bangalore
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf