Hi,
I have recently joined a Company, having a quick query in mind, What is beneficial for the Company to have Workers on the payroll of the Company or if it is good to have them on Contractual basis.
Awaiting your response.
From India, Gurgaon
I have recently joined a Company, having a quick query in mind, What is beneficial for the Company to have Workers on the payroll of the Company or if it is good to have them on Contractual basis.
Awaiting your response.
From India, Gurgaon
Dear Jeevika,
The answer to this query is dependent on the situation. As mostly decision to keep people on contractual is been taken into consideration for cost and avoiding unionised employment purpose. But, need to thik if it is really valid in the eyes of law ??? If you think Ethically and as per "LAW" you can not hire contractual / temporary employee for any permanent nature of work.
377The answer to this query is dependent on the situation. As mostly decision to keep people on contractual is been taken into consideration for cost and avoiding unionised employment purpose. But, need to thik if it is really valid in the eyes of law ??? If you think Ethically and as per "LAW" you can not hire contractual / temporary employee for any permanent nature of work.
Hi Manoj - highly appreciated. In addition to the ethics part if you could help me with some more plus and minus points! Thanks
From India, Gurgaon
From India, Gurgaon
Dear Jeevika,
The benefits with the contract labour is :
1. Labor available in lower cost
2. No unionised terror in many cases
3. No one to one negotiation with the employee for salary hike
4. Bonus dues can be kept at minimal
Minus points will be :
1. Lack of stable employment / loyalty towards organisation
2. Final responsibility of all statutory dues lies to the principle employer
3. Finding right fit is very hard while on irregular contractual employment
The benefits with the contract labour is :
1. Labor available in lower cost
2. No unionised terror in many cases
3. No one to one negotiation with the employee for salary hike
4. Bonus dues can be kept at minimal
Minus points will be :
1. Lack of stable employment / loyalty towards organisation
2. Final responsibility of all statutory dues lies to the principle employer
3. Finding right fit is very hard while on irregular contractual employment
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ESI - Construction site workers.pdf