Employment Types
Version: 1.0.0
Effective Date: January 1, 2026
Last Updated: January 11, 2026
Compliance: Labour Codes 2025
Overview
This document defines the various employment types at OX Infy and under Indian labour law. Understanding these categories is essential for determining applicable benefits, statutory compliances, and employment terms.
Employment Types at OX Infy
1. Permanent Employee
| Attribute | Details |
|---|---|
| Definition | Full-time employee hired for indefinite duration with no specified end date |
| Employment Relationship | Direct employment with OX Infy |
| Payroll | Company payroll |
| Contract Type | Open-ended employment contract |
| Notice Period | As per appointment letter (typically 30-90 days) |
| Benefits | Full benefits - PF, ESIC, Gratuity, Leave, Insurance |
| Termination | As per company policy and labour laws |
Characteristics:
- Receives appointment letter with terms and conditions
- Eligible for annual increments and promotions
- Covered under all company policies
- Full social security coverage
2. Fixed-Term Employee (FTE)
| Attribute | Details |
|---|---|
| Definition | Employee hired for a specific duration or project with a defined end date |
| Employment Relationship | Direct employment with OX Infy |
| Payroll | Company payroll |
| Contract Type | Fixed duration contract (renewable) |
| Notice Period | As per contract or proportionate |
| Benefits | Equal to permanent employees (Labour Codes 2025) |
| Termination | Contract expiry or as per terms |
Labour Codes 2025 Mandate:
- All benefits equal to permanent workers including leave, medical, and social security
- Gratuity eligibility after just 1 year (not 5 years)
- Equal wages for equal work (see clarification below)
- Pro-rated benefits based on contract duration
Equal Wages Clarification:
The principle of "equal wages" means equal pay for equal work - not uniform wages for all FTEs.
| Can Justify Different Wages | Cannot Justify Different Wages |
|---|---|
| Different skill/competency level | Employment type alone (FTE vs Permanent) |
| Different experience/tenure | Assumption that FTE = lower skill |
| Different qualifications | Bargaining power differences |
| Different role/designation | Budget constraints |
| Different performance ratings | Temporary nature of engagement |
| Location-based pay variations |
Example:
- FTE Software Engineer (3 yrs exp) should earn same as Permanent Software Engineer (3 yrs exp) in same role
- FTE Software Engineer (1 yr exp) may earn less than Permanent Software Engineer (5 yrs exp) due to experience difference
Compliance Approach:
- Define role-based pay bands (not employment-type-based)
- Place FTEs in same pay structure as permanent employees
- Document skill/experience-based wage differences
- Ensure no discrimination based solely on FTE status
Common Use Cases:
- Project-based hiring
- Seasonal work requirements
- Maternity/long-leave replacements
- Specialized skill requirements for limited duration
3. Contract Employee (Third-Party)
| Attribute | Details |
|---|---|
| Definition | Worker employed by a contractor/staffing agency but works at OX Infy premises |
| Employment Relationship | Employed by contractor, NOT OX Infy |
| Payroll | Contractor's payroll |
| Legal Framework | Contract Labour (Regulation and Abolition) Act / Labour Codes 2025 |
| Benefits | Provided by contractor; principal employer has obligations |
| Supervision | Day-to-day work supervised by OX Infy |
Responsibility Matrix:
| Obligation | Contractor (Primary) | Principal Employer (OX Infy) |
|---|---|---|
| Wages | Pay wages | Ensure timely payment; liable if contractor fails |
| PF Contribution | Register & contribute | Verify compliance; liable if contractor defaults |
| ESIC Contribution | Register & contribute | Verify compliance; liable if contractor defaults |
| Appointment Letters | Must issue | Verify issuance |
| Leave Benefits | Provide as per policy | Not directly responsible |
| Gratuity | Pay after 1 year | Verify compliance |
Principal Employer (OX Infy) - Direct Obligations:
- Safe working conditions at OX Infy premises
- Welfare facilities: Canteen, drinking water, rest rooms, first aid
- Free annual health check-up for workers aged 40+ working at premises (OSHWC Code 2020)
- Maintain records of contract workers
- Display contractor license and abstract of Act
Contractor Obligations:
- Payment of wages (by 7th of each month)
- PF and ESIC registration and contributions
- Leave benefits as per policy
- Issue appointment letters to all workers
- Maintain wage registers and records
- Provide PPE and safety training
Vicarious Liability: If the contractor fails to pay wages, PF, or ESIC contributions, the principal employer is legally liable to make these payments and can recover the amount from the contractor.
Compliance Tip:
- Include indemnity clause in contractor agreement
- Verify contractor's PF/ESIC challans monthly
- Obtain undertaking from contractor on statutory compliance
4. Intern
| Attribute | Details |
|---|---|
| Definition | Student or recent graduate engaged for short-term work experience and learning |
| Employment Relationship | Internship agreement (not employment contract) |
| Payroll | Stipend (may or may not be on payroll) |
| Typical Duration | 2-6 months |
| Benefits | As per internship agreement |
| Conversion | Optional, based on performance and business need |
Characteristics:
- Primary purpose is learning and exposure, not productive output
- Usually students or recent graduates
- Stipend paid (not salary)
- Not covered under most labour laws unless stipend exceeds threshold
- No statutory leave entitlement (company may provide)
- Certificate of completion provided
- PPO (Pre-Placement Offer) for exceptional performers
- Often part of academic curriculum or summer break
OX Infy Intern Program:
- Monthly stipend
- Flexible leave as per agreement
- 3-month evaluation period
- Conversion opportunity based on performance (70% minimum score)
- Dedicated buddy/mentor assigned
- Learning-focused with real project exposure
When to Use "Intern":
- College students doing summer/winter internships
- Final year students doing project-based internships
- Recent graduates seeking work experience
- Short-term engagements (typically < 6 months)
5. Trainee
| Attribute | Details |
|---|---|
| Definition | Fresh hire enrolled in a structured training-to-employment program |
| Employment Relationship | Employment contract (trainee category) |
| Payroll | Company payroll (salary, not just stipend) |
| Typical Duration | 6-12 months training period |
| Benefits | Partial to full benefits during training |
| Conversion | High expectation of conversion to permanent role |
Characteristics:
- Hired with clear intent to convert to permanent employee
- On company payroll from day one
- Structured training curriculum with milestones
- Regular assessments and feedback
- Usually receives partial benefits during training period
- Covered under labour laws as employee
- Title reflects training status (e.g., "Management Trainee", "Graduate Engineer Trainee")
Common Trainee Designations:
- Graduate Engineer Trainee (GET)
- Management Trainee (MT)
- Graduate Trainee (GT)
- Technical Trainee
When to Use "Trainee":
- Hiring fresh graduates with intent to build long-term career
- Structured training program exists (6+ months)
- Company invests significantly in skill development
- High conversion expectation (80%+)
- Candidate is on payroll with salary (not just stipend)
Intern vs Trainee - Quick Comparison:
| Aspect | Intern | Trainee |
|---|---|---|
| Primary purpose | Learning/exposure | Job preparation |
| Duration | 2-6 months | 6-12 months |
| Payment | Stipend | Salary |
| Conversion expectation | Low/Optional | High |
| Employment status | Not employee | Employee (trainee category) |
| Benefits | Minimal/None | Partial to full |
| Legal coverage | Limited | Full labour law coverage |
6. Consultant / Independent Contractor
| Attribute | Details |
|---|---|
| Definition | Self-employed professional providing specialized services |
| Employment Relationship | NO employment relationship - B2B/professional engagement |
| Payment | Invoice-based fees (not salary) |
| Contract Type | Service agreement / Consulting agreement |
| Tax | Consultant handles own taxes (TDS deducted by company) |
| Benefits | None - not an employee |
Characteristics:
- Works independently, not under company's control
- May work for multiple clients simultaneously
- Uses own tools/equipment (unless specified)
- Responsible for own PF, insurance, taxes
- No leave entitlement - paid for deliverables/time
- No employer-employee relationship
- Engaged through GST invoice or professional fees
When to Engage Consultant:
- Specialized expertise not available in-house
- Short-term advisory needs
- Project-specific requirements
- Cost-effective for intermittent work
Additional Employment Types (Indian Labour Law)
7. Apprentice
| Attribute | Details |
|---|---|
| Definition | Person undergoing training in designated trade under Apprentices Act |
| Legal Framework | Apprentices Act, 1961 |
| Duration | 6 months to 3 years depending on trade |
| Payment | Stipend (government prescribed minimum) |
| Benefits | Limited - not regular employee |
Key Points:
- Registered with Regional Directorate of Apprenticeship Training
- Not considered employee under most labour laws
- Stipend rates prescribed by government
- On completion, may be absorbed or given certificate
8. Gig Worker (Labour Codes 2025 - New)
| Attribute | Details |
|---|---|
| Definition | Person who performs work outside traditional employer-employee relationship |
| Legal Framework | Code on Social Security, 2020 |
| Examples | Freelancers, project-based workers, on-demand workers |
| Benefits | Social security through government schemes |
Labour Codes 2025 Provisions:
- First time legally defined in Indian law
- Eligible for social security benefits
- Aadhaar-linked Universal Account Number for portable benefits
- Government to frame welfare schemes
9. Platform Worker (Labour Codes 2025 - New)
| Attribute | Details |
|---|---|
| Definition | Person engaged through online platform (app-based work) |
| Legal Framework | Code on Social Security, 2020 |
| Examples | Delivery partners, ride-sharing drivers, service providers |
| Benefits | Social security through aggregator contributions |
Labour Codes 2025 Provisions:
- Aggregators must contribute 1-2% of annual turnover (capped at 5% of worker payments)
- PF, ESIC, insurance coverage
- Portable benefits across platforms
10. Part-Time Employee
| Attribute | Details |
|---|---|
| Definition | Employee working less than standard full-time hours |
| Employment Relationship | Direct employment |
| Hours | Less than 8 hours/day or 48 hours/week |
| Benefits | Pro-rated based on hours worked |
Characteristics:
- Same statutory protections as full-time
- Benefits calculated proportionately
- May have multiple part-time jobs
- Common in retail, hospitality, education
11. Casual / Daily Wage Worker
| Attribute | Details |
|---|---|
| Definition | Worker engaged on day-to-day basis without continuous employment |
| Employment Relationship | Temporary, no continuity guaranteed |
| Payment | Daily wages |
| Benefits | Limited statutory benefits |
Characteristics:
- No guarantee of continuous work
- Paid for days worked
- Minimum wage applicable
- Common in construction, agriculture, manufacturing
12. Migrant Worker
| Attribute | Details |
|---|---|
| Definition | Worker who moves from one state to another for employment |
| Legal Framework | Inter-State Migrant Workmen Act / Labour Codes 2025 |
| Benefits | Equal wages, welfare benefits, PDS portability |
Labour Codes 2025 Provisions:
- Equal wages regardless of origin state
- Portable welfare benefits
- PDS (Public Distribution System) portability
- Journey allowance from contractor
Probation Period
Probation is a phase, not an employment type. It applies to multiple employment types as an initial evaluation period.
Key Points
| Aspect | Details |
|---|---|
| Definition | Initial evaluation period for new hires |
| Typical Duration | 3-6 months (extendable based on performance) |
| Applies To | Permanent, Fixed-Term, Trainee |
| Does Not Apply To | Intern, Consultant, Contract (Third-Party), Gig Worker |
| Notice Period | Shorter than confirmed employees (typically 15-30 days) |
| Benefits | Same statutory benefits as confirmed employees (PF, ESIC) |
| Confirmation | Based on performance evaluation |
Characteristics
- Employment type remains unchanged (e.g., "Permanent" not "Probationary")
- Same statutory benefits as confirmed employees
- Performance monitored closely during this period
- Can be terminated with shorter notice
- Automatically confirmed upon successful completion
- Probation period may be extended if performance is unsatisfactory
In Offer/Appointment Letters
- Employment Type: Permanent (not "Probationary")
- Probation clause: Mentioned separately in terms and conditions
Example:
Employment Type: Permanent
Probation Period: You will be on probation for three (3) months from the date of joining.
Comparison Matrix
| Type | On OX Infy Payroll | Statutory Benefits | Leave Policy | Gratuity | Social Security |
|---|---|---|---|---|---|
| Permanent | Yes | Full | Full | After 5 years | Yes |
| Fixed-Term | Yes | Full (equal) | Full (equal) | After 1 year | Yes |
| Contract (3rd Party) | No | Via Contractor | Via Contractor | Via Contractor | Yes |
| Intern | Stipend | Limited | As per agreement | No | Usually No |
| Trainee | Yes | Partial to Full | Partial to Full | After 5 years | Yes |
| Consultant | No (Invoice) | None | None | No | Self-managed |
| Apprentice | Stipend | Limited | Limited | No | Limited |
| Gig Worker | No | Govt schemes | No | No | Yes (new) |
| Platform Worker | No | Aggregator contribution | No | No | Yes (new) |
Decision Guide: Which Type to Use?
Need someone for indefinite period?
├── Yes → Permanent Employee
└── No → Continue below
Need someone for specific project/duration?
├── Yes, on our payroll → Fixed-Term Employee (FTE)
├── Yes, through agency → Contract Employee
└── No → Continue below
Need specialized expertise occasionally?
├── Yes → Consultant
└── No → Continue below
Need someone for learning/training?
├── Yes, student (short-term, 2-6 months) → Intern
├── Yes, fresh graduate (training-to-hire, 6-12 months) → Trainee
├── Yes, trade/skill certification → Apprentice
└── No → Continue below
Need flexible, on-demand work?
├── Yes → Gig/Platform Worker arrangement
└── Reassess requirements
Key Comparisons
Gig Worker vs Consultant
These categories may seem similar but have important distinctions under Labour Codes 2025.
| Aspect | Gig Worker | Consultant |
|---|---|---|
| Definition | Person performing work outside traditional employment, often task/project-based | Self-employed professional providing specialized expertise |
| Skill Level | Varies (low to high) | Typically high/specialized |
| Engagement Type | Short-term, task-based, on-demand | Advisory, project-based, may be long-term |
| Payment | Per task/project/hour | Professional fees (invoice) |
| Platform Dependency | Often works through platforms/aggregators | Works independently, direct client relationship |
| Social Security | Yes - Government schemes (Labour Codes 2025) | No - Self-managed |
| Legal Recognition | Newly defined under Labour Codes 2025 | Existing - Contract Act / Professional services |
| Company Obligation | May need to contribute to welfare schemes | Only TDS deduction |
| Examples | Freelance designers on Fiverr, content writers on Upwork | Management consultant, Legal advisor, Technology architect |
Classification Guide:
| Question | If Yes | If No |
|---|---|---|
| Provides specialized professional expertise? | Likely Consultant | Continue below |
| Works through online platforms/aggregators? | Likely Gig/Platform Worker | Continue below |
| Task-based, on-demand, or short-term work? | Likely Gig Worker | Continue below |
| Has own business/firm? | Likely Consultant | Likely Gig Worker |
Practical Examples:
| Scenario | Classification | Reason |
|---|---|---|
| Freelance developer on Toptal | Gig Worker | Platform-based, project/task-based |
| Senior architect advising on system design | Consultant | Specialized expertise, advisory |
| Content writer on Fiverr | Gig Worker | Platform-based, task-based |
| Ex-CFO advising on financial strategy | Consultant | Professional expertise, B2B |
| Legal firm on retainer | Consultant | Professional services |
Important: Under Labour Codes 2025, engaging Gig Workers may trigger obligations to contribute to government welfare schemes. Consultants remain outside this framework as self-employed professionals.
Compliance Checklist by Employment Type
Permanent / FTE / Trainee
- Appointment letter issued
- PF registration and contribution
- ESIC registration (if applicable)
- Professional Tax deduction
- TDS on salary
- Gratuity provision
- Leave records maintained
Contract Employee
- Valid contractor license
- Contractor agreement in place
- Principal employer registration
- Verify contractor's statutory compliance
- Maintain muster roll
- Ensure welfare facilities
Intern
- Internship agreement signed
- Stipend payment records
- Insurance coverage (if provided)
- Completion certificate process
Consultant
- Service/Consulting agreement
- GST compliance verified
- TDS deduction on payments
- No control over working hours/methods
- Clear deliverables defined
Frequently Asked Questions
Q: Can an FTE be converted to permanent?
A: Yes, upon contract completion, FTE can be offered permanent employment.
Q: Do interns get PF?
A: Generally no, unless stipend exceeds PF wage ceiling and they are treated as employees.
Q: Can a consultant become an employee?
A: Yes, but the engagement must genuinely change - new employment contract required.
Q: What if contract employee works for more than 3 years?
A: May be deemed permanent in some cases; consult legal counsel.
Q: Are FTEs eligible for bonus?
A: Yes, if they meet the eligibility criteria under Payment of Bonus Act.
Q: What is the difference between Intern and Trainee?
A: Interns are students/recent graduates on short-term (2-6 months) learning engagements with stipend and low conversion expectation. Trainees are fresh hires on payroll (6-12 months) in structured training-to-hire programs with high conversion expectation.
Q: Can a Trainee be terminated during training period?
A: Yes, based on performance evaluation, but standard termination procedures apply as trainees are employees.
Contact
For classification queries or employment type guidance:
- HR Email: hr@oxsoftwares.com
- Legal/Compliance: [Internal Contact]
This document is for informational purposes. For specific cases, consult HR or legal counsel.
Document Control
| Version | Date | Changes | Approved By |
|---|---|---|---|
| 1.0 | January 11, 2026 | Initial Document | Management |