Contract/Outsourced Employees

Hi Senior,

I have few doubts on the below, please clarify.

  • Is it mandatory to have the manpower contract in manufacturing companies?
  • What are the advantages & disadvantages to have the manpower contractor?



Hi Udhai,

  1. No, its not mandatory to have manpower contract in manufacturing companies.

  2. Advantage For Contract Employee: -

  3. They get an opportunity to work for the big company.

  4. Get an opportunity to learn.
    Disadvantages For Contract Employee: -

  5. It is very hard for the employee to come on the company payroll in the parent and other organisation too.

  6. The person works under the mercy of Permanent employee weather to appoint him/her on payroll or not.

  7. Extended working hours.
    Advantage For Company: -

  8. On of the biggest advantage is that they get the manpower on a very reasonable cost.
    Disadvantage For Company: -

  9. Contract employee can leave any time which can effect the work of organisation.

Hope I have given you required information.


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