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
From India, Mumbai
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36Is 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
From India, Mumbai
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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
From United Kingdom, London
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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
From United Kingdom, London
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Mr. B. Anand Kumar, Thank you for your reply I want to know under which act can an employee sue the company or demand for permanent employment. Regards, Asmita
From India, Mumbai
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From India, Mumbai
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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
From India, Hyderabad
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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
From India, Hyderabad
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A person can be employed for a specific period on a contract basis. There is no law which says that an employee specifically employed for a specific duration need to be confirmed.
From India, Chennai
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From India, Chennai
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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?
From India, Mumbai
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From India, Mumbai
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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
From India, Mumbai
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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
From India, Mumbai
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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!
From India, Mumbai
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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!
From India, Mumbai
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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.
From India, Chennai
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From India, Chennai
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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
From India, Bongaigaon
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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
From India, Bongaigaon
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Dear Akshay,
As regards termination, you are an administrative officer and not a workman as defined in the ID Act. You cannot challenge this termination in the Labour court. Your option is to file a civil suit, and re-employment is not permitted in a civil suit. Furthermore, since you agreed to certain terms and conditions upon entering employment, there is a lower possibility of receiving compensation in a civil suit.
Regarding PF, you may file a complaint with the PF office.
A workman who has completed 240 days can challenge issues related to permanency/termination, etc.
Thanks and regards,
SDP
From India, Kolhapur
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As regards termination, you are an administrative officer and not a workman as defined in the ID Act. You cannot challenge this termination in the Labour court. Your option is to file a civil suit, and re-employment is not permitted in a civil suit. Furthermore, since you agreed to certain terms and conditions upon entering employment, there is a lower possibility of receiving compensation in a civil suit.
Regarding PF, you may file a complaint with the PF office.
A workman who has completed 240 days can challenge issues related to permanency/termination, etc.
Thanks and regards,
SDP
From India, Kolhapur
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Dear CiteHR,
I know many companies that are offering contract appointments for a period of only 10 months. Nearly 80% of these employees are women, and the total number exceeds 2000 altogether. This practice continues with the same group of employees year after year. Unfortunately, these employees are unable to claim regularization, yearly increments, PF, and other benefits.
Is there any forum or NGO that can assist them?
Thanks
From India, Raipur
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I know many companies that are offering contract appointments for a period of only 10 months. Nearly 80% of these employees are women, and the total number exceeds 2000 altogether. This practice continues with the same group of employees year after year. Unfortunately, these employees are unable to claim regularization, yearly increments, PF, and other benefits.
Is there any forum or NGO that can assist them?
Thanks
From India, Raipur
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Hi Dear Seniors, I have doubt shall we take as a trainee for one year? is there any obligation in the law? is yes pls provide brief explanation. Regards, Shivananda VD
From India, Bangalore
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From India, Bangalore
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With due respect to the questioner, I think it is a very tricky question.
First and foremost, the term "employment" has a definite and wider connotation apart from the mere engagement of one's services by the other for hire or reward. It creates a lasting relationship between the hirer and the hired. Depending upon the lasting effect of the relationship, the mutuality of obligations imposed on both, prevailing norms of social justice governing interpersonal relations between the haves and the have-nots, gradual but steady scientific advancement culminating in technological innovations and the consequential growth in commerce and trade compatible with changing consumption patterns all put together have effected considerable changes in the relationship between the hirer and the hired from "master-serf" to "master-servant" and finally to "employer-employee."
Secondly, why is the questioner more concerned about the legal implications of the so-called "short-term or fixed-term" appointments? While interpreting the meaning of the term "retrenchment" under section 2(oo) of the Industrial Disputes Act, 1947, with specific reference to the newly added sub-clause (bb), the Punjab and Haryana High Court [1990(1) LLJ.443] observed: "In fact, cl(bb), which is an exception, is to be so interpreted as to limit it to cases where the work itself has been accomplished and the agreement of hiring for a specific period was genuine. If the work continues, the non-renewal of the contract on the face of it has to be dubbed as mala fide. It would be fraud in law if it is interpreted otherwise."
So, if such a practice is adopted to circumvent the common law principles of employer and employee in respect of the cadre of workmen, it would be void ab initio; in other cases? Please consider what AKIO MORITA says in "Made in Japan": "Management must consider a good return for the investor, but he also has to consider his employees or his colleagues, who must help him to keep the company alive and he must reward their work. The investor and the employee are in the same position, but sometimes the employee is more important because he will be there a long time whereas an investor will often get in and out on a whim in order to make a profit. The worker's mission is to contribute to the company's welfare, and his own, every day all of his working life. He is really needed. Basically, there has to be mutual respect and a sense that the company is the property of the employees and not of a few top people. But those people at the top of the company have a responsibility to lead that family faithfully and be concerned about the members."
From India, Salem
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First and foremost, the term "employment" has a definite and wider connotation apart from the mere engagement of one's services by the other for hire or reward. It creates a lasting relationship between the hirer and the hired. Depending upon the lasting effect of the relationship, the mutuality of obligations imposed on both, prevailing norms of social justice governing interpersonal relations between the haves and the have-nots, gradual but steady scientific advancement culminating in technological innovations and the consequential growth in commerce and trade compatible with changing consumption patterns all put together have effected considerable changes in the relationship between the hirer and the hired from "master-serf" to "master-servant" and finally to "employer-employee."
Secondly, why is the questioner more concerned about the legal implications of the so-called "short-term or fixed-term" appointments? While interpreting the meaning of the term "retrenchment" under section 2(oo) of the Industrial Disputes Act, 1947, with specific reference to the newly added sub-clause (bb), the Punjab and Haryana High Court [1990(1) LLJ.443] observed: "In fact, cl(bb), which is an exception, is to be so interpreted as to limit it to cases where the work itself has been accomplished and the agreement of hiring for a specific period was genuine. If the work continues, the non-renewal of the contract on the face of it has to be dubbed as mala fide. It would be fraud in law if it is interpreted otherwise."
So, if such a practice is adopted to circumvent the common law principles of employer and employee in respect of the cadre of workmen, it would be void ab initio; in other cases? Please consider what AKIO MORITA says in "Made in Japan": "Management must consider a good return for the investor, but he also has to consider his employees or his colleagues, who must help him to keep the company alive and he must reward their work. The investor and the employee are in the same position, but sometimes the employee is more important because he will be there a long time whereas an investor will often get in and out on a whim in order to make a profit. The worker's mission is to contribute to the company's welfare, and his own, every day all of his working life. He is really needed. Basically, there has to be mutual respect and a sense that the company is the property of the employees and not of a few top people. But those people at the top of the company have a responsibility to lead that family faithfully and be concerned about the members."
From India, Salem
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Fixed term appointment, i.e., an appointment for a fixed period, is recognized under the ID Act and IE (SO) Act. However, there should be a term in the appointment order of workmen to terminate him on non-renewal of the contract of that employment at the expiry of the contract or a provision in the contract to terminate the same during the contractual period. Such termination will not be retrenchment. Except for the escape from retrenchment, all other laws will be applicable to him.
He is eligible for MW, bonus, EPF, ESI, gratuity, leaves, holidays, etc., just like regular employees.
Keeping employees on FTA for a long time is an unfair practice that will boomerang on the employer if an ID is raised in the Labor Court/Tribunal. They will be counted for the applicability of labor laws.
Nothing is wrong in taking employees as Trainees. Trainees are employees for ESI if they are not taken as per the Apprentices Act. They are employees for EPF also if they are not taken under the Apprentices Act or under Standing Orders of the Company. Again, continuing this system for a long time is bad.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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He is eligible for MW, bonus, EPF, ESI, gratuity, leaves, holidays, etc., just like regular employees.
Keeping employees on FTA for a long time is an unfair practice that will boomerang on the employer if an ID is raised in the Labor Court/Tribunal. They will be counted for the applicability of labor laws.
Nothing is wrong in taking employees as Trainees. Trainees are employees for ESI if they are not taken as per the Apprentices Act. They are employees for EPF also if they are not taken under the Apprentices Act or under Standing Orders of the Company. Again, continuing this system for a long time is bad.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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Dear Akshay,
Unfortunately, you will have to abide by the contract letter issued to you. One thing you could do is, if you have performed well and have good relations with the company where you are deputed, then the HR and your Line Manager can do something to get you on the payroll; however, you cannot demand or impose the same thing strictly.
The notice period has to be mentioned in the contract period. It would be included somewhere in the termination part. Please check.
For PF, you would need to check with your Contractor. Only they would be able to provide some details on the same.
As far as any help is concerned, the company where you are deputed might provide references to other companies. But, as I said, they might do so, but they will not be under any legal obligation to do so.
Thanks,
Kamlesh
From India, Mumbai
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Unfortunately, you will have to abide by the contract letter issued to you. One thing you could do is, if you have performed well and have good relations with the company where you are deputed, then the HR and your Line Manager can do something to get you on the payroll; however, you cannot demand or impose the same thing strictly.
The notice period has to be mentioned in the contract period. It would be included somewhere in the termination part. Please check.
For PF, you would need to check with your Contractor. Only they would be able to provide some details on the same.
As far as any help is concerned, the company where you are deputed might provide references to other companies. But, as I said, they might do so, but they will not be under any legal obligation to do so.
Thanks,
Kamlesh
From India, Mumbai
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