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contract labourer

(Querist) 15 October 2009 This query is : Resolved 
KINDLY LET ME KNOW THE MAJOR DIFFERENCE BETWEEN ENGAGING A CONTRACT LABOUR AND APPOINTING AN EMPLOYEE

WHAT ARE ALL THE POSITIVE AND NEGATIVE POINTS IN ENGAGING A CONTRACT LABOURER

CAN I ENGAGE A PERSON WITH QUALIFICATION OF BE (MECH) WITH 5 YEARS EXPERIENCE UNDER CONTRACT BASIS
H. S. Thukral (Expert) 15 October 2009
An employee in simple term is a person to do work for another person who is called employer. An employee can be regular and permanent employee as well as a contractual employee. A contractual employee would be a person who is employed either for a fixed period and or to do a time bound project. It can further be employed directly or through a contractor. When it is employed directly the employer is responsible for all the consequences/legal obligations and formalities in respect to his employment. In the case of an employee employed through contractor the employer( Principal) liabilities are in alternative, when the contractor( immediate employer ) fails in his legal obligations. A contractual employment can be brought to an end when the contract period is over or the project comes to an end without paying any compensation to the employee. The terms of employement shall determine the status of the employee.
You can engage a person with any qualification on contract basis for a fixed period or for a specific project. Employing person continuously in perennial nature of jobs, in order to avoid payments of benifits to employees under various social legislations, shall be improper. The courts can look behind the veil and see the real status of the employee, when challenged.
joyce (Expert) 15 October 2009
Do agree with above answers.
Sachin Bhatia (Expert) 15 October 2009
Agree with Mr.Harbhajan Singh Thukral
Raj Kumar Makkad (Expert) 15 October 2009
The opinion of Thukral sir is perfect.
DD Sathe (Expert) 15 October 2009
In the case under consideration you can hire as a professional service contract and not as a employee in other words person hired will be contractor!


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