Few perks, lay off fears as India Inc steps up hiring of contract workers

The lower cost and easier termination may well be among the reasons that companies seek to have employees on contract

Raj Kumar* (fictitious name for this story), who works in the information technology sector in southern India, has been on contract for five years. He has received lower hikes than his peers who are permanent employees. They now earn more than thrice his wage for similar work.

Employees like Kumar often contend with lower perks and also face the danger of a sudden termination, according to Elavarasan Raja, General Secretary, Forum for IT Employees (FITE) a union for technology company workers.

“Benefits are denied…payroll is entirely with the contractor,” he said.

The lower cost and easier termination may well be