Is There Any Legal Obligation Against Employer For Recruiting Someone For One Year Or Small Period Of Time?

Dear CiteHR members,

Is there any legal obligation under any act against an employer if they hire an employee with their consent for one year, three years, or a limited amount of time? Please do not consider the case of signing a bond.

Regards,
Asmita Das

Dear Asmita,

Whenever you hire any person for one or three years only, there should be an agreement between the two parties highlighting the terms and conditions of the working period clearly, along with the job responsibilities and salary details. One can never guess when the person may demand a permanent job or to be put on the company's payroll. To protect yourselves from potential legal matters, it is important to have a proper agreement or appointment with clearly defined terms and conditions of work. Also, it is crucial to mention that any judicial litigation connected to the contract will be dealt with at your local court (Name).

I hope this clarifies your views.

Regards,
B. Anand Kumar

Mr. B. Anand Kumar,

Thank you for your reply. I want to know under which act can an employee sue the company or demand permanent employment.

Regards,
Asmita

Hello Asmita,

I think you are not giving the complete details. Please provide the full details so that any suggestions can be realistic and practical to implement. Without complete information, any suggestions can only be based on half-knowledge and incomplete inputs, which most likely will backfire.

Anand Kumar has given you some suggestions assuming that you represent the employer and that there is a situation that needs resolving. What is your locus standi in this matter?

Regards,
TS

A person can be employed for a specific period on a contract basis. There is no law that states an employee specifically employed for a set duration needs to be confirmed.

I echo Satheesh, was there any reason why the employee was not hired for a contractual position for three years? If it had been agreed upon right in the beginning, why does the employee need to file a case now? Was there any commitment offered to the employee?

Hello (Cite Contribution) and TS,

This situation is not happening in reality. It's just that someone asked me, "if an employer employs a person for 1 year, will there be any legal obligations on him?" I said, "there should be consent of the person in it." He then said, "yes, the person has agreed to it." So I responded, "then there will be no legal obligations on him."

Thank you, everyone, for clearing my doubt.

Regards,
Asmita

Dear Asmita,

Even though it had been agreed upon, please ensure communication before the term ends to avoid any conflict. Please offer the employee support in finding a new job and provide a supportive reference regarding his work. It may be challenging for him to explain to interviewers and future employers that it was only a one-year assignment. Therefore, as an employer, please offer him all the necessary support.

Wishing you all the best!

The only option you have here is a Fixed-Term Contract (FTC), which will give this intention the required legal sanctity. There will be no complications, and everything will be governed by the terms of the FTC.

Sir,

My focus here is more in this session as I am in the same contract period with a construction company on a project as an Admin Officer. In my contract, it is clear that I cannot demand to be permanent if the post is vacated in the company for my cadre. There is no clear notice period towards termination. No PF or deduction factor is imposed. Could you guide me on whether I should receive any benefits from the company if terminated?

Akshay