What is a contract employee?

A contract employee is an individual hired by a company or a contractor to perform certain tasks related to a project for a specific duration and fixed compensation.

Is contract employee payroll more expensive?

Compared to permanent employment, contract employee payroll is less expensive. However, the skill level and quality of work may not be as good as permanent employees therefore more suitable for non-core activities.

Who is responsible for managing contract employee payroll?

Typically, a contractor or staffing agency manages payroll for contract employees, including payments, taxes, payslips, and compliance, though the hiring company must ensure these responsibilities are fulfilled properly.

Are contract employees entitled to employee benefits?

Contract employees are usually not entitled to benefits enjoyed by permanent employees. Their compensation, facilities, and other requirements are outlined in the contractual agreement signed before employment.

What laws govern contract employee compliance in India?

Contract employee rights and payroll compliance are primarily governed by the CLRA Act (Contract Labour (Regulation and Abolition) Act 1970), along with applicable labour and tax regulations.