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Hi All,

Can anyone give me some details about the appointment letter for contract employees? Is it necessary to provide a letter or not? Kindly advise me on this and other related information.

Regards,
Ramakrishna

From India, Bangalore
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Dear Ramakrishna,

A contract employee is an individual recruited by an external party and hired by your company. When an employee is recruited by an agency or an external party, that agency or party issues an appointment letter to the employee. Since the employee is not on your company's payroll or employed by your company, you cannot issue them an appointment letter. Additionally, the ESIC and PF amounts are shown or submitted by the agency or party to the respective ESIC and PF Inspector's office.

It is possible that your company may pay the salary to the contract employees, or it can be done by the agency or external party. I am also attaching a copy of the Contract Labour Act which might be helpful for you.

Regards,
Ankit
09869851356

From India, Mumbai
Attached Files (Download Requires Membership)
File Type: zip Contract_Labour_Act.zip (94.5 KB, 198 views)

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Hi Ankit, Thank you for the information and i want to know if we want to take an employee as contract employee directely then what is the rules advice please. Regards, Ramakrishna
From India, Bangalore
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A contract employee is an individual recruited by an external party and hired by a company. When an employee is recruited by an agency or an external party, that agency or party issues an appointment letter to the employee. Since the employee is not on your company's payroll or employed by your company, you cannot issue them an appointment letter. Additionally, the ESIC and PF amounts are shown or submitted by the agency or party to the respective ESIC and PF Inspector.

It may happen that the company pays the wages to the contract employees, or it may be done through the agency or external party.

Regards,
Venkatesan

From India, Chennai
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Hi Ramakrishna, If you are hiring a contract employee directly to your company then The company should issue an appointment letter and also you should deduct PF and PT for them. Thanks, Vimala
From India, Hyderabad
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