Direct Hire

Meaning & Definition

Direct Hire is a recruiting methodology where a company directly hires an employee as an employee of the company, and that person will be a permanent employee of that company. The candidate will not work through an agency or any third party. Typically, direct hire jobs are used for full-time, long-term positions that require a commitment to the company as well as a common alignment of goals and values between the candidate and the company.

Important features of Direct Hire

• Establishes sustained security in the workforce.
• Increases loyalty to the employer as well as employee engagement.
• Decreases dependency on outside third-party staffing sources.
• Facilitates a greater cultural and skill match for talent.
• Provides total authority over employee compensation and benefits.

Compliance Requirements

• Employees who are hired directly by their employers in India are subject to all Indian labour law regulations. 
• These include: Shops & Establishments Act, Factories Act, Employee Provident Fund (EPF), Employees’ State Insurance (ESI), Gratuity, and Income Tax Act. 
• Employers should guarantee they comply with statutory payroll and benefit requirements when employing direct-hire personnel.

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