Legal Question in Employment Law in India

Change in employment contract

I am working for a private ltd company as a consultant, with a monthly retainer. Every month the company deducts TDS from the gross amount to be paid to me. This TDS is deposited with the govt. and Form 16 showing tha same is given at year end. All other applicable taxes have to be paid by me.

Recently they have proposed a change in the contract agreement, giving me 'regular employee status'. this agreement however does not stipulate any deductions in the form of EPF, FDA, HRA, conveyance reimbursement, DTA, LTA, medical, etc. the new contract only gives basic allowance, housing allowance, communication allowance and misc allowance.

I want to know whether this is acceptable as a 'regular employee contract', or whether it would be beneficial for me to insist on the previous agreement as a consultant.


Asked on 6/28/07, 1:26 am

2 Answers from Attorneys
kavitha balakrishnan kpp associates

Re: Change in employment contract

it all depends upon the actual amount you will be receiving! and then if you are interested for a regular job you have to talk to the employer! when the company is engaging more than 100 persons it will automatically have EPF, FDA, HRA, etc., all this depends upon on - which company you are working and as what? some time the regular jobs may be blunt end ones without any scope of promotion etc., - check it out!

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Answered on 6/29/07, 3:15 am
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Change in employment contract

When the company appoints more than 100 persons it will have an EPF, HRA etc. it matters which company you are working for and on what designation.

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Answered on 9/26/07, 3:33 pm


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