Contractual Staff

I had a query...can a company give a note of recognition to its contractual staff? By this i mean this contractual staff is not on the Company's payroll nor is paid directly by the Company but paid through an outside contractor vendor party. Will this have any repurcussions in terms of the contractor seeking permanent employment?

In our viewpoint, It is not wrong to give a note of appreciation to a contractor. If you have a policy of not hiring contractors then you need not worry about the fact whether the contractor will seek employment. A note of appreciation is for doing a task or tasks well. It need not necessarily make it mandatory to offer permanent employment contracts.
ESP think tank

Everything depends upon merits of case. One does not know how your contractor is managing and how you are acting. Furthermore what is the nature of work they are performing. Details of appreciation have also to be seen.

Dear Member,
It is risky to issue appreciation letter to a contractual staff and if at all his performance is extraordinary, you can recommend for regularisation of his services on Company's rolls.
Repercussions cannot be expected at this moment. Circumstances may become worst when thing go wrong. Hence, no one even issue service certificate also.

Do not issue appreciation letter directly to the contract employee; if you must issue it, issue it to the contractor by naming 'contract employee name'.

Hi,
the contract staff is engaged through a contractor and this system is regulated under Contract Labour [Regulation and Abolition ] Act. Any contractual staff is performing on behalf of the Contractor,good or bad performance is that of the Contractor.Better if we are not carried away by such things. Still if you feel like issuing an appreciation letter,then it would be best to issue appreciation letter to Contractor citing instance/s of that particular person.
I am sure in this way there is no possibility of any legal complication.