Employment Duration in MSME Manufacturing Units
In a small (as per MSME) manufacturing unit, is it possible to employ someone only for a period of 6 months or 1 year and then renew further if found suitable?
Statutory Benefits for Temporary Employees
What statutory benefits is the employee entitled to, like PF, Bonus, Leaves, Gratuity, etc.? How many times can such a contract be renewed, or is it necessary to later employ the person full time?
From India, Aurangabad
In a small (as per MSME) manufacturing unit, is it possible to employ someone only for a period of 6 months or 1 year and then renew further if found suitable?
Statutory Benefits for Temporary Employees
What statutory benefits is the employee entitled to, like PF, Bonus, Leaves, Gratuity, etc.? How many times can such a contract be renewed, or is it necessary to later employ the person full time?
From India, Aurangabad
Short-duration employment and contract renewal
Short-duration employment is permissible, but you must define the end date and adhere to it. After that date, if you still need the services, you should enter into a fresh employment contract. You will need to ensure compliance with all labor legislations, provided you meet the required minimum numerical strength for the applicability of the respective acts. Prima facie, the Payment of Gratuity Act may not be required. Nowadays, many changes in labor laws are being implemented, so you will need to periodically verify your status.
From India, Mumbai
Short-duration employment is permissible, but you must define the end date and adhere to it. After that date, if you still need the services, you should enter into a fresh employment contract. You will need to ensure compliance with all labor legislations, provided you meet the required minimum numerical strength for the applicability of the respective acts. Prima facie, the Payment of Gratuity Act may not be required. Nowadays, many changes in labor laws are being implemented, so you will need to periodically verify your status.
From India, Mumbai
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