Dear Friends, We recently rehired one of our employees who retired last month on December 24th on a contractual basis for 11 months. I'm curious if contractual employees are eligible for bonuses and leave perks like Earned Leave (EL), Casual Leave (CL), and Medical Leave (ML).
Thanks and regards,
Kirti Bisht
Location: India
From India, undefined
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Thanks and regards,
Kirti Bisht
Location: India
From India, undefined
Acknowledge(0)Amend(0)
The benefits and perks of a contractual employee, including bonuses and leaves, are primarily determined by the terms of the contract agreed upon between the employer and the employee. However, under Indian labor laws, certain statutory benefits are applicable to all employees, whether they are full-time, part-time, or contractual.
Bonus Eligibility
The Payment of Bonus Act, 1965, mandates that every employee drawing a salary of up to INR 21,000 per month and who has worked for at least 30 days in a year is eligible for a bonus. However, this may not apply if your retired employee is hired as a consultant or contractor, in which case the decision to provide a bonus would be discretionary and based on the terms of the contract.
Leave Eligibility
The leave structure for contractual employees is not typically the same as for permanent employees. Contractual employees are generally not entitled to Earned Leave (EL), Casual Leave (CL), and Medical Leave (ML). However, as per the Industrial Employment (Standing Orders) Act, 1946, every temporary workman who has worked for a period of 240 days or more during a calendar year is entitled to leave with wages.
Here are some steps you can follow to manage this situation:
1. Review the contract of the retired employee to understand the terms and conditions related to the benefits.
2. If there is ambiguity or lack of clarity, consider revising the contract to clearly define the benefits.
3. Consult with a labor law expert or legal advisor to ensure compliance with Indian labor laws.
4. Communicate the terms and benefits clearly to the employee to avoid any future confusion.
Remember, while the legal aspects shape the broader framework, the specifics often depend on the contract agreed upon between the employer and the employee. Therefore, it's essential to have clear, precise, and comprehensive contracts.
From India, Gurugram
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54Bonus Eligibility
The Payment of Bonus Act, 1965, mandates that every employee drawing a salary of up to INR 21,000 per month and who has worked for at least 30 days in a year is eligible for a bonus. However, this may not apply if your retired employee is hired as a consultant or contractor, in which case the decision to provide a bonus would be discretionary and based on the terms of the contract.
Leave Eligibility
The leave structure for contractual employees is not typically the same as for permanent employees. Contractual employees are generally not entitled to Earned Leave (EL), Casual Leave (CL), and Medical Leave (ML). However, as per the Industrial Employment (Standing Orders) Act, 1946, every temporary workman who has worked for a period of 240 days or more during a calendar year is entitled to leave with wages.
Here are some steps you can follow to manage this situation:
1. Review the contract of the retired employee to understand the terms and conditions related to the benefits.
2. If there is ambiguity or lack of clarity, consider revising the contract to clearly define the benefits.
3. Consult with a labor law expert or legal advisor to ensure compliance with Indian labor laws.
4. Communicate the terms and benefits clearly to the employee to avoid any future confusion.
Remember, while the legal aspects shape the broader framework, the specifics often depend on the contract agreed upon between the employer and the employee. Therefore, it's essential to have clear, precise, and comprehensive contracts.
From India, Gurugram
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