Freelancers work independently and are not bound by company policies. Contract employees may have fixed work hours and partial benefits.

Both employees and employers contribute 12% of the employee’s basic salary to PF. The fund serves as a long-term savings plan for employees.

Employees earning up to ₹21,000 per month are eligible for ESI, which provides medical and disability benefits. The contribution is shared by employers (3.25%) and employees (0.75%).

Contract hiring involves employing professionals for a fixed term or project. It offers flexibility and cost savings compared to full-time hiring.

Contracts should clearly define scope of work, payment terms, intellectual property rights, and confidentiality clauses to avoid disputes.

Freelancers are not subject to PF or ESI, but businesses must deduct TDS at 10% if the annual payment exceeds ₹30,000.

Depending on contract terms, they may be eligible for ESI and gratuity if they work for an extended period. However, they usually do not receive full employee benefits like PF.

Companies must draft legally compliant agreements, deduct applicable taxes, and ensure contracts align with labor laws to avoid misclassification risks.

Yes, businesses can offer full-time roles based on performance, project needs, and mutual agreement between both parties.