Contractual staffing refers to hiring the manpower on the roles of the contractor. The contractor has to be registered under various labor laws like EPF, ESI, Shops and Establishment Act, contract labor ( regulation and abolition) act,1970 and various others. The contractor, in this case, is the one manages and abides by various laws on a regular basis. However, this does not mean that the contract provider is released from his duties. He becomes the Principal employer and is equally responsible in case of defaults. Here comes the need of regular labor audits of contractors by the principal employer.
The contract staffing is of prime importance in cases where recruitment is difficult or it is expensive, the projects are of short duration, no clear visibility of future of project or certain niche talent required.
The sectors in which contract staffing is heavily used are manufacturing, construction, infrastructure, power and IT sector. The types of manpower required in contractual staff primarily constitute blue collared staff, entry level sales professionals, IT talent, basic data entry people and others that do not form the core team of the organization. Both the private and government sector equally avail the services of contractual staff. Contractual staff is cost effective as compared to permanent staff.
The contractual staffing as per recent survey is poised to grow at a decent pace.Contractual staff has various benefits like reduced Hiring cost, quick scaling-up and down option without losing on brand image. But,is it all risk free? Answer is big, "no". Major risks are your internal environment being sacrificed and you being non-compliant as PRINCIPAL EMPLOYER. Backed up by matching algorithms and compliance softwares, we supply for your demands quickly and ensure 100% compliance.