Dear Sir/Mam, I wanted to know, is there any difference between Confirmed Employee & Permanent Employee or whether it is Same... Thank you...
From India, Mumbai
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2From India, Mumbai
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Understanding Employee Status: Permanent vs. Temporary
A permanent employee is an employee who is on probation in the company. These employees are mostly not entitled to benefits such as paid leave, mediclaim, etc., in most companies. Neither are they bound to give notice to the company, nor is the company bound to give notice before relieving the employee (although a few companies require a 15-day notice during probation).
Temporary employees are entitled to all benefits, and they also have to serve a notice period of 1, 2, or 3 months (which differs from company to company) before leaving, with the same applying for the employer.
Regards,
Trusha
From India, Vadodara
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A permanent employee is an employee who is on probation in the company. These employees are mostly not entitled to benefits such as paid leave, mediclaim, etc., in most companies. Neither are they bound to give notice to the company, nor is the company bound to give notice before relieving the employee (although a few companies require a 15-day notice during probation).
Temporary employees are entitled to all benefits, and they also have to serve a notice period of 1, 2, or 3 months (which differs from company to company) before leaving, with the same applying for the employer.
Regards,
Trusha
From India, Vadodara
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The terms Permanent Employee and Confirmed Employee are the same. They are awarded all the facilities and benefits. On the other hand, temporary employees are those who are on probation. They may also be provided with some facilities, but not to the extent of confirmed employees.
From India, Delhi
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From India, Delhi
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Dear Trusha,
The term "permanent employee" has been confused with "temporary employee." Permanent employees are entitled to all benefits, whereas temporary employees are the ones who are in a probationary period.
Regards,
[Username]
From India, Bombay
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The term "permanent employee" has been confused with "temporary employee." Permanent employees are entitled to all benefits, whereas temporary employees are the ones who are in a probationary period.
Regards,
[Username]
From India, Bombay
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I would like to add a small note:
Temporary Employee
Temporary employees are those who are in a probation period or are hired by the company for a short term of a specified period to meet an immediate deficiency of manpower on a temporary basis. Statement 2 is correct because sometimes there may be a spike in workload or a deficiency of manpower. Under such circumstances, companies hire short-term employees for 1 month, 2 months, or 3 months to meet the deficiency or spike in workload. This is especially true for blue-collar employees. Temporary employees may or may not be on the direct payroll of the employer.
Permanent Employees
Permanent employees are those who have cleared the probation period and are entitled to facilities like CLs, EL, and Mediclaims. For resignation, a notice period or buyback of the notice period is involved, and most importantly, the tenure of service can be up to the retirement age of employees unless exceptional situations arise during the service period. Here, the employee will always be on the direct payroll of the employer.
Confirmed Employee
This is a special case for permanent employees. Here, the employee may have cleared the probation period and become a permanent employee of the company (on direct payroll), whom we will call a confirmed employee. Again, employees on third-party payroll can also become confirmed employees. For example, a company may hire employees from a third party with a criterion that the employees will work for the first party (employer) for a certain period of time. Once the employee meets the required competency or criteria, the first party will take the employee onto their payroll. This strategy is often used by companies to reduce the attrition rate and overall costs. Employees on third-party pay often receive lower salaries and fewer facilities than confirmed/permanent employees of the first party.
Regards,
Sovik B
From India, Mumbai
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Temporary Employee
Temporary employees are those who are in a probation period or are hired by the company for a short term of a specified period to meet an immediate deficiency of manpower on a temporary basis. Statement 2 is correct because sometimes there may be a spike in workload or a deficiency of manpower. Under such circumstances, companies hire short-term employees for 1 month, 2 months, or 3 months to meet the deficiency or spike in workload. This is especially true for blue-collar employees. Temporary employees may or may not be on the direct payroll of the employer.
Permanent Employees
Permanent employees are those who have cleared the probation period and are entitled to facilities like CLs, EL, and Mediclaims. For resignation, a notice period or buyback of the notice period is involved, and most importantly, the tenure of service can be up to the retirement age of employees unless exceptional situations arise during the service period. Here, the employee will always be on the direct payroll of the employer.
Confirmed Employee
This is a special case for permanent employees. Here, the employee may have cleared the probation period and become a permanent employee of the company (on direct payroll), whom we will call a confirmed employee. Again, employees on third-party payroll can also become confirmed employees. For example, a company may hire employees from a third party with a criterion that the employees will work for the first party (employer) for a certain period of time. Once the employee meets the required competency or criteria, the first party will take the employee onto their payroll. This strategy is often used by companies to reduce the attrition rate and overall costs. Employees on third-party pay often receive lower salaries and fewer facilities than confirmed/permanent employees of the first party.
Regards,
Sovik B
From India, Mumbai
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Confirmed Employee vs. Permanent Employee
A confirmed employee is a special case for permanent employees. Here, an employee may have completed the probation period and become a permanent employee of the company (direct payroll of the employer), whom we will call a confirmed employee. Additionally, employees on third-party payroll can also become confirmed employees.
Imagine a scenario where a company hires employees from a third party with the condition that these employees will work for the first party (employer) for a certain period of time. Once the employee meets this time requirement or fulfills the necessary competencies or other specified criteria, the first party will transition the employee onto their payroll. After this transition, these employees will become confirmed employees of the first party (i.e., the employer).
This strategy is commonly used by companies to reduce attrition rates and overall costs. Employees on third-party payrolls often receive lower salaries and fewer facilities compared to confirmed/permanent employees of the first party.
Regards, Sovik B
From India, Mumbai
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A confirmed employee is a special case for permanent employees. Here, an employee may have completed the probation period and become a permanent employee of the company (direct payroll of the employer), whom we will call a confirmed employee. Additionally, employees on third-party payroll can also become confirmed employees.
Imagine a scenario where a company hires employees from a third party with the condition that these employees will work for the first party (employer) for a certain period of time. Once the employee meets this time requirement or fulfills the necessary competencies or other specified criteria, the first party will transition the employee onto their payroll. After this transition, these employees will become confirmed employees of the first party (i.e., the employer).
This strategy is commonly used by companies to reduce attrition rates and overall costs. Employees on third-party payrolls often receive lower salaries and fewer facilities compared to confirmed/permanent employees of the first party.
Regards, Sovik B
From India, Mumbai
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If we limit our attention to the focal point of the question, I think the answer will be very simple and clear. Confirmation is the process of declaring an employee's permanency to his/her post of employment after the successful completion of the period of probation. Therefore, a confirmed employee is also a permanent employee.
From India, Salem
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From India, Salem
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(Fact Checked)-[The user's reply is correct.] (1 Acknowledge point)
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You are 100% correct. I agree with you, sir, on what you said: "Confirmation is the process of declaring an employee's permanency to his/her post of employment after the successful completion of the period of probation."
Question on Employment Classification
But I have one question, just for my personal interest. I would be highly obliged if you could clarify.
Say X (employer) hires employee Y, who is on the payroll of Z. This means that Y will perform tasks allocated to him/her by X, but he/she is receiving a salary from Z as X pays directly to Z. Z is a third-party vendor of X.
After a certain amount of time (let's say 6 months), X takes Y into their own payroll and provides a sum of money to Z. Consequently, Y becomes a confirmed/permanent employee of X. Throughout this process, Y learns the basic tasks he/she needs to perform under X, gains the required competencies, and his/her stability is also confirmed.
We are witnessing such scenarios especially in the ITES, IT, and Telecom sectors (especially in maintenance and all divisions).
Probationary Status Clarification
My question to you is, can we call Y a probationary employee when he/she is on the payroll of Z and not X? Y could also become a permanent employee of Z. In case Y does not meet the parameters and terms of service under X, Z can place him/her in their own work or assign to another company, say A (another employer).
Would the same laws and rules that apply to probationary employees also be applicable to Y?
Legal Perspective in India vs. USA
In the case of the USA, classification is straightforward, and they have established categories for such employment. However, in India, if a complaint is raised by Y, how would the Commissioner of Labor view the situation? Which party would face action, X or Z? Y might work on X's premises alongside X's regular employees, but he/she does not receive a salary directly from X. Y may have problems or severe compliance allegations against X rather than Z.
If you can provide clarification, it would greatly help me understand this dilemma. If necessary, please use legal sections/labor laws as you see fit so that I can grasp how such issues are dealt with legally. I have had this question in my mind for a long time, and I would be very grateful if you could clarify my doubts.
Regards,
Sovik B
From India, Mumbai
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Question on Employment Classification
But I have one question, just for my personal interest. I would be highly obliged if you could clarify.
Say X (employer) hires employee Y, who is on the payroll of Z. This means that Y will perform tasks allocated to him/her by X, but he/she is receiving a salary from Z as X pays directly to Z. Z is a third-party vendor of X.
After a certain amount of time (let's say 6 months), X takes Y into their own payroll and provides a sum of money to Z. Consequently, Y becomes a confirmed/permanent employee of X. Throughout this process, Y learns the basic tasks he/she needs to perform under X, gains the required competencies, and his/her stability is also confirmed.
We are witnessing such scenarios especially in the ITES, IT, and Telecom sectors (especially in maintenance and all divisions).
Probationary Status Clarification
My question to you is, can we call Y a probationary employee when he/she is on the payroll of Z and not X? Y could also become a permanent employee of Z. In case Y does not meet the parameters and terms of service under X, Z can place him/her in their own work or assign to another company, say A (another employer).
Would the same laws and rules that apply to probationary employees also be applicable to Y?
Legal Perspective in India vs. USA
In the case of the USA, classification is straightforward, and they have established categories for such employment. However, in India, if a complaint is raised by Y, how would the Commissioner of Labor view the situation? Which party would face action, X or Z? Y might work on X's premises alongside X's regular employees, but he/she does not receive a salary directly from X. Y may have problems or severe compliance allegations against X rather than Z.
If you can provide clarification, it would greatly help me understand this dilemma. If necessary, please use legal sections/labor laws as you see fit so that I can grasp how such issues are dealt with legally. I have had this question in my mind for a long time, and I would be very grateful if you could clarify my doubts.
Regards,
Sovik B
From India, Mumbai
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The term "probation" is derived from the Latin word "probatio," which means critical examination and evaluation or subjection to such examination and evaluation. In the realm of employment, it is the initial period soon after the appointment of a new employee during which their suitability for the job as well as the organization is tested and evaluated. If their performance is not up to the satisfaction of the employer, their services can be simply terminated as per the terms of their appointment orders. A permanent employee is one who has been declared to have completed their period of probation successfully.
From India, Salem
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From India, Salem
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf
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(Fact Checked)-The information provided is generally correct regarding the differences between Temporary, Permanent, and Confirmed Employees. However, it's essential to ensure compliance with labor laws and contractual obligations for all employee categories. (1 Acknowledge point)