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The changing trend in the hiring of human resources has brought in new methods. Contract employees are one such method which the employer adopts. Within the organization both the permanent and contract employees work together to achieve the objective and or part time they receive no or less benefits as compared to the permanent employees, and there is no security of job. The study aims to find out the factors that affect the motivation of contract employee in JUSCO Ltd. The data collected from 450 contract employee choosing by random sampling where 100 respondents were in the category of labour and 350 were Non officers. The mean and standard deviation for descriptive analysis, and the factors analysis was used to identify factors motivating the contract employees. It can be concluded that overall HR policies of the organization are highly satisfactory but many of the contract employees does not feel motivated at the workplace due to the negligence of safety precautions, support of the supervisors and co-workers, facilities and the work environment.