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soma das (HR Coordinator)     26 February 2013

Fixed term contractual employment: legality

Dear Experts/Seniors,

I have recently joined an company which is into power grids construction having different projects all over India. On joining it was found that there are approximately 45 employees on their direct payroll and almost 160 employees on contract basis for fixed tenures. There are even office staff doing regular functions like accounts, HR, planning etc. on contract basis. Most of these contracts are not project/task specific and the tenures are specified according to the wish of the management, ranging from 3 months to 3 years. There are instances of more than one renewal of these contracts and FTC employees working for more than 5-6 years with their contracts renewed many times. Though the company is following the statutory benefits like PF, ESI, Bonus, gratuity etc., the other benefits or service conditions like leaves, mediclaim, LTA etc. are different from that of the regular employees. My querries are:

1. Whether FTC employment is applicable to regular jobs ?
2. Is it beneficial for a company to have such a higher ratio of FTCs in comparison to regular employment?
3. Is probationary period applicable for the FTC employment?
4. Whether FTCs without correlation to fixed job/task valid?
5. Whether frequent renewals of such contract legal?
6. What is the maximum advisable limit of FTCs ?
7. Is it legal to have different service conditions, benefits for contract & regular employees?
8. If a contractual employee misappropriates valuables of the company and leaves on the expiry of the contract, whether the company can hold him liable after that?
9.What are the specific conditions required to be mentioned in the standing orders of the company regarding FTC employment?

Kindly requesting all my seniors to advise on these issues and share the rules & regulations to be mentioned for FTC employments in the HR manual .

Thanking you in anticipation.

Regards,
Soma Das


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 1 Replies

soma das (HR Coordinator)     04 March 2013

Dear Seniors & Experts,

Please help me by throwing some light on the above querries.

 

Regards,

Soma.


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