Employment contracts (sometimes called employment agreements) are not merely a legal necessity. Rather, they can provide extra protections towards your business and help your business get going. By securing your recruits through an employment contract, you can formalize the arrangements made with your employees. Such contracts can also contribute towards fostering a positive and professional working relationship between the management and the employees. In this blog, we will discuss everything you wanted to know about casual employment contracts.
Casual employment is one kind of employment where the employment status and the working hours of the concerned employee can be changed by his employer at a moment’s notice. He may be required to work only when required or may have set working hours. Casual employment involves very little commitment either way, from the employee or the employer. The employee can be dismissed from service by the employer without even paying for his notice period. In a similar way, the employee can also resign from his duties without giving proper notice. As a result, there is no provision of probationary periods in casual employment. Also, a casual employee, at times, can receive a higher ‘rate per hour’ as compared to a full-time or ‘on roll’ employee. However, he will not quite enjoy the same leave or travel entitlements as compared to full-time employees.
These days, casual employment contracts have become a preferred choice for companies to hire casual employees. Companies enter into casual employment agreements with employees and while offering employment, document the terms of employment applicable to them. A casual worker contract includes terms related to the place of work, compensation, working hours and so on. They also contain the obligations and rights of both the employee and the employer and other important terms related to non-disclosure of trade secrets, confidentiality clause, timely payment and so on. A casual worker agreement helps companies to ensure clarity and avail a safeguard in case of a possible dispute in the future. The employment contract for a casual employees also provides an effective mechanism for resolution of disputes in the future.
Certain benefits of an employment contract for casual employee are mentioned below-
In general, casual employment contracts should include the following things-
In most cases, the casual employees go into an agreement with the employer as soon as they start working for him, irrespective of whether the contract is in written form or not. Just because you have not entered into a contract with the casual employee, it does not mean that you can avoid paying him. However, it’s desirable that you enter into the agreement with your casual employees as soon as possible. It will provide them a much-needed written statement regarding the terms and conditions for casual employees at the very beginning of their employment with you.
Please consider the following points while entering into an employment contract with your casual employees-
Is an employer legally bound to enter into a written employment contract with his casual employees?
No, he is not. However, it is a good idea to have a written employment contract with casual employees. Such a contract helps the employer to ensure clarity and avail a safeguard in case of a possible dispute in the future.
I am intending to engage some non-permanent workers for my business. Should I go for contractual or casual employees?
Well, it depends. In most cases, it is better to engage contractual employees. As they are usually engaged through registered manpower agencies, they will be more reliable and their responsibility will be shared.
Are casual employees eligible for Provident Funds?
Yes. All casual employees are entitled to receive Provident Funds compensation, ESIC, and other benefits as determined by relevant Indian laws.
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