Contract Agreement Contract Agreement

4 months ago

Dear Respected Sir,

I have a query regarding contract employees

Can agreement be made between "X organization and an employee" and salary be paid by Y company. In that case what type of agreement to be made between X organization and the employee, will it be contract agreement or appointment letter.

Legal Counsel Vidhikarya

Responded 4 months ago

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A.Dear Client,
You being a contractor engaged by your principal employer, should issue an appointment letter to your ex-worker as per the provision of the Contract Labour (R & A) Act, The Contractor shall be held liable for the non-issue of appointment letter or Identity Card to your employee/worker. Once the worker makes a mass petition before the region of both workers may face legal consequences for violation of statutory provisions of CL (R & a) Act. 1970.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 4 months ago

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A.Dear Client,

Yes the said situation is possible and it is commonly known as "Third Party Payrolling" here the company outsources its required funds to another company who takes care of the paying the employees and of the documentation for the same.

To establish Third-Party Payrolling there should exist a contractual agreement between the company outsourcing the payrolling task and the company taking care of the same. The employ will have the obligations to be followed based on the rules and regulations of the original company only.

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