Legal Question in Business Law in India

Hello everyone...

I run a Small Business and I am a Proprietor/Owner of a small Firm which is related to IT. And I also have a legal License of my Firm. I design websites, logo, business cards etc. Along with it I also develop some Linux Software too.

Now I want to start a Department in my Company let's say Linux R&D Department where I want to hire few members which will work with me and we will research and develop new Linux Software. Employee's payment will not be on monthly basis. It will be Project basis. After completing Project when client gives all the payment then we will share it as per decided. And I also decided to give services regarding Linux to clients, colleges etc with my team.

Basically I gave you brief idea about what exactly I have decided to do. So I want to ask that is it possible to do so. Being a Proprietor, Is it possible to hire people and give them designation say like, Linux Developer or Software developer etc...

And I also want that they should sign the bond / agreement before getting employed in my company. And then I will give them Offer Letter on my Letterhead with my Proprietor Stamp.

So is it possible to do so. Please help me regarding this.


Asked on 4/01/15, 6:30 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

01.04.2015

Dear Sir / Madam,

Yes, it is possible. If you decide not to pay any money on monthly basis, you cannot term the person(s) you hire as an employee. You should term the person(s) you hire as "Project freelancers" with mutually agreed terms and conditions and predetermined ratio of sharing interim and final payments received from clients on Projects in your Offer Letter. Since the agreement is purely project performance based, I don't think these freelancers will ever agree to sign a bond before you engage them.

Regards,

Read more
Answered on 4/01/15, 7:08 am


Related Questions & Answers

More Business Law questions and answers in India