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Dear Seniors, Please tell me what will be the maximum duration of contract of employment legally. With Regards, Vineet Deshmukh
From India, Yavatmal
Hi,

1.Employment agreement is the key document on which the employee-employer relation is based It contains all key terms and conditions relating to the work in terms of - exchange of service, compensation, designation, place of work, list of benefits during employment, working hours and restraint on trade (if any).

So, a must for all employees to sign this document. However, it may take different shapes depending on certain clauses that may be exclusive to a particular employee.

2. In regards to piece of information I had came across an article in business magazine there is no such upper limit for the duration of employment on a fixed-term contract but as per a Supreme Court directive, it is advisable to keep it within eight years. There is also no law capping the times a contract can be renewed, but, again, it is advisable to not do so beyond two times.

3. Broad categories for such employment agreement could be – Contract Agreement/Bond , Permanent Job (including initial probabtion period usually of six months), Consultant.

From India, Mumbai
Appointment letter itself a kind of contract. No time duration. It can be of any duration. Pon
From India, Lucknow
Thank You Sonal & Pon.
But I have certain queries regarding the same that after completing of 240 days of continuous work any employee get permanent. So, If we make a contract for two years, then Is it valid contract????????
With Regards,
Vineet Deshmukh

From India, Yavatmal
If you make a contract for 2 years it is very much valid contract. It is termed as Fixed Term Contract (FTC)
From India, Ahmadabad
Hi,
working for 240 days does not make an employee permanent. It depends upon the satisfactory performance also and rating.
Usual appointment letters mention that " you will be under probation period for 6 months and only upon satisfactory performance you will be permanent"
Hope it helps..
Regards,
Kanika

From India, Delhi
Thank You Saji & Kanika.
As per overall above discussion I am clear that we will be make contract even for two years. But my another question is can we extend the contract?
With Regards,
Vineet Deshmukh

From India, Yavatmal
Yes Contract can be renewed after the expiry of the contract period, or can issue fresh contract for another period, you can change the terms and condition if required, the benefit of all Leaves, PF, ESI etc. will be same as that of a regular employee.
From India, Ahmadabad
Dear Vineet ,
I could see from you mails that you seems little bit confused between service contract or appintment on regular basis. These two terms are different but hold one thing common is Employee-Employer relationship,which exist in both the eventualities.
Regarding your querry about completion of 240 days of continuous work by an employee and getting permanancy in Job, I wish to clarify that provisions of the Industrial Disputes Act,1947 are applicable to the persons,who are employed on permanent basis and not otherwise.
I do not see any problem in giving service contract to some one for more than one year and even extending it, if need be.
BS Kalsi
Member since Aug 2011

From India, Mumbai
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