Except 10% TDS no statutory implications on consultants. Consultants requirement will be timebound, no permanancy, they will not be on company rolls. The rules and regulations of the company are not applicable to the consultants. Even the working hours & days will be as per the agreement.
in my opinion Employee is a person who perform his/her duties according to rules n regulations of company on permanent base and the company allows some benefits to the employee, on the other hand consultant is appointed for a specific project or to solve any problem consultancy is not a full time job so the consultant is not eligible for such benefits
It appears from the query raised by him that, The co. has appointed him as regular employee but instead
of giving appointment letter, Co. has made agreement with him as Professional for rendering his Services.
Neither Co gave proper information nor he gone in detail at the time of appointment.
He might not aware the difference between Professional/Consultant and Employee. The understanding
and Paper work differ.
Now a days such arrangement is taking at many places to avoid the Statutory liabilities, compliance, and legal headache.