Under employment laws in India can a CEO employ a Driver in his personal capacity without having him on the Payroll of the Company?

Keeping the overall cost in mind, the present trend is to employ a personal driver who is on the payroll of the executive and looks after the transportation needs of the executive even for official work. In case the Executive wants to employ a Driver as his Personal Employee he should pay salary to the Driver as per the prevailing salary rates in the market. The details are available with Travel Agencies, Operators, Undertakings and Travelling Contracts. The Drivers are to be hired by the concerned Executives and are their employees. The Company is not responsible for the arrangements between the Driver and the Executives.

Such an employment is within the framework of employment laws in India and if certain precautions are taken, the driver cannot claim lien on the Company.

Insurance Policy of the vehicle covers Driver also, therefore all Executives should make sure that the Motor Vehicle Policy is covering the Driver not only for risk of accident but also for medical treatment.

In few cases such drivers have approached the Court seeking permanency with the Company; therefore certain precautions such as not providing uniform with the Company logo are essential.