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Conversion of contract employee to permanent

fiha
Member
Thu, 25 Sep 2014 09:20:02 AM  (Last updated: Fri, 26 Sep 2014 09:14:01 AM)

Hi Sir, 

I have few contract employee in out company which is hired with a period of 1 yr. After 1 yr if the employee have a good performance we will convert them to permanent employee. My question is, during the conversion period, do we need to wait at least for 1 day before they can come onboard as permanent employee?

Illustration:

Employee  contract duration 1st January 2014 - 31st December 2014

New appointment letter to permanent, commencement date should be 1st January 2015 @ 2nd January 2015?

If there is cooling period for such conversion, which section in the EA 1955 can i refer to?

Thanks! 

KL Siew
Administrator
Thu, 25 Sep 2014 11:20:07 AM

If your yearly contract workers' contracts have been many times before, the waiting period of one day by you may not be safe if the new permanent contracta were terminated for some reasons. They may be able to claims that their previous periods of contracts should be considered as continuous period of service for purposes of termination benefits and so on. They are employers who give the 'cooling period' of at least one month. I think it would be better for you to consult the Labour Department about the definition of continuous period of service.

fiha
Member
Thu, 25 Sep 2014 03:11:35 PM

Hi Sir, 

Thanks for your prompt reply. But if we don't mind, for termination benefit purposes, to include the tenure even when they as contract employee, the 'cooling period' will not be an issue. Am I correct?

KL Siew
Administrator
Thu, 25 Sep 2014 07:14:35 PM

Yes, if there is no issue then cooling period is also not an issue.

fiha
Member
Fri, 26 Sep 2014 09:14:01 AM

Okay, got it.

Thanks!

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