Hi,
In case we're giving extra work as a project to an on-roll employee, can we pay extra money to him/her? If yes, under what head? In some cases, I've seen a contract drawn up with an existing employee specifically for the project. Is this valid?
Regards
From India, Mumbai
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In case we're giving extra work as a project to an on-roll employee, can we pay extra money to him/her? If yes, under what head? In some cases, I've seen a contract drawn up with an existing employee specifically for the project. Is this valid?
Regards
From India, Mumbai
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If you have extra work, engage the same employees for overtime and pay overtime wages until the project is over. Alternatively, employ new individuals on a fixed-term basis until the project is completed. Once the project concludes, their employment will terminate automatically. There is no need to provide alternative employment or compensation.
The second option is preferable because demanding employees to work overtime may not yield the desired results due to various reasons. For instance, you cannot compel employees to work overtime, especially on weekends and the first day of the week. There are statutory limitations on the maximum number of overtime hours that can be worked per month or quarter, which cannot be exceeded. Additionally, overtime wages should be set at double the average rate of salary.
It is always advisable to hire individuals on fixed-term contracts that clearly specify the employment duration and state that the employment will end once the project is completed.
From India, Kannur
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4490The second option is preferable because demanding employees to work overtime may not yield the desired results due to various reasons. For instance, you cannot compel employees to work overtime, especially on weekends and the first day of the week. There are statutory limitations on the maximum number of overtime hours that can be worked per month or quarter, which cannot be exceeded. Additionally, overtime wages should be set at double the average rate of salary.
It is always advisable to hire individuals on fixed-term contracts that clearly specify the employment duration and state that the employment will end once the project is completed.
From India, Kannur
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