Dear all,
I have a very typical situation in our organisation.We have two catagorie of employees,i.e one on payroll and the other catagorie on voucher .These voucher employees are off the payroll staff,hired by our company.
Now i want to know that ,whether this voucher catagorie is eligible for bonus or not ?What does the law says about this?
Seniors Plz Help !
Regards
Ranjana
From India, Mumbai
1I have a very typical situation in our organisation.We have two catagorie of employees,i.e one on payroll and the other catagorie on voucher .These voucher employees are off the payroll staff,hired by our company.
Now i want to know that ,whether this voucher catagorie is eligible for bonus or not ?What does the law says about this?
Seniors Plz Help !
Regards
Ranjana
From India, Mumbai
Hi,
I dont know what is the contract terms of your voucher staff.. however if the contract states the mention of bonus then you have to comply. I have not come across any mandatory/statutory clause of pay of bonus to contract staff.
Other views are welcome
Regards,
Partha.
From India, Calcutta
I dont know what is the contract terms of your voucher staff.. however if the contract states the mention of bonus then you have to comply. I have not come across any mandatory/statutory clause of pay of bonus to contract staff.
Other views are welcome
Regards,
Partha.
From India, Calcutta
hi.......
Directly you r not responsible for their bonus. these voucher payment employees must be having contract with any agencies.
So, in this regard we become the third pary and contract agency become 1st party (parent company) for them, who has to pay bonus.
plz correct me if i am wrong.
Regards
Sitaram
From India, Agartala
Directly you r not responsible for their bonus. these voucher payment employees must be having contract with any agencies.
So, in this regard we become the third pary and contract agency become 1st party (parent company) for them, who has to pay bonus.
plz correct me if i am wrong.
Regards
Sitaram
From India, Agartala
Dear All,
Thanks for your valuable suggestions.
Actually our voucher staff is recruited directly by the company and not through any agency.Secondly they are not being provided with any offer or appointment letter.So there is no such contract letter or rules for them.
Now the question arises that whether they are eligible for bonus or not ?
Now i m very much confused whether to give them bonus or not ?
Can anybody guide me please ?
Regards
Ranjana
From India, Mumbai
Thanks for your valuable suggestions.
Actually our voucher staff is recruited directly by the company and not through any agency.Secondly they are not being provided with any offer or appointment letter.So there is no such contract letter or rules for them.
Now the question arises that whether they are eligible for bonus or not ?
Now i m very much confused whether to give them bonus or not ?
Can anybody guide me please ?
Regards
Ranjana
From India, Mumbai
But the parent company is the principal employer and as per almost all the acts principal employer is responsible for all anomalies whether it is committed by himself or through other agency
From India, Calcutta
From India, Calcutta
Dear Ranjana,
I have three points to make -
1. First of all, keeping employees on 'vouchers' is not a good HR practice. If possible, try to understand why this is so and if it is possible to take them on company payroll. As principal employer, your company is obligated to provided them statutory benefits either directly or indirectly. Keeping them on 'voucher' is exposing the company to legal action on account of non-compliance.
2. If your company has a 'headcount' limitation, at least take these employees as outsourced employees through a temp agency so that they can atleast have the statutory benefits. Do ensure that the temp agency is providing them statutory benefits.
3. Broadly speaking from a legal perspective, no employer is obligated to pay bonus to any employee, hired directly or indirectly, if they are drawing a basic pay of more than Rs.6500/- per month.
4. From a goodwill perspective, if budgets allow, paying bonus to 'temp' staff enhances motivation level and increases your rating as 'preferred employer'. So if possible, recommend a bonus payout even if at a lower rate compared to what regular employees get.[/list]
From United States, Iowa City
I have three points to make -
1. First of all, keeping employees on 'vouchers' is not a good HR practice. If possible, try to understand why this is so and if it is possible to take them on company payroll. As principal employer, your company is obligated to provided them statutory benefits either directly or indirectly. Keeping them on 'voucher' is exposing the company to legal action on account of non-compliance.
2. If your company has a 'headcount' limitation, at least take these employees as outsourced employees through a temp agency so that they can atleast have the statutory benefits. Do ensure that the temp agency is providing them statutory benefits.
3. Broadly speaking from a legal perspective, no employer is obligated to pay bonus to any employee, hired directly or indirectly, if they are drawing a basic pay of more than Rs.6500/- per month.
4. From a goodwill perspective, if budgets allow, paying bonus to 'temp' staff enhances motivation level and increases your rating as 'preferred employer'. So if possible, recommend a bonus payout even if at a lower rate compared to what regular employees get.[/list]
From United States, Iowa City
Dear Ranjana,
I will continue ahead from Mehernaz...
As per Bonus Act any employee who has worked for more than 30 days is eligible for bonus.Now the Bonus act is also applicable to contract employees . Rest as rightly advised by others try as early as possible, &/or Convince your management to hire a contractor & route all these personnel through him who are paid on voucher. Right now in this particular case pay them minimum bonus i.e. 3500/- on voucher & tell them that this is your bonus.If possible after diwali festival give them a break & take new personnel if the old ones have completed 6-7mths.Dont wait for 240days for them to complete.
Regards,
Ashish.
From India, Mumbai
I will continue ahead from Mehernaz...
As per Bonus Act any employee who has worked for more than 30 days is eligible for bonus.Now the Bonus act is also applicable to contract employees . Rest as rightly advised by others try as early as possible, &/or Convince your management to hire a contractor & route all these personnel through him who are paid on voucher. Right now in this particular case pay them minimum bonus i.e. 3500/- on voucher & tell them that this is your bonus.If possible after diwali festival give them a break & take new personnel if the old ones have completed 6-7mths.Dont wait for 240days for them to complete.
Regards,
Ashish.
From India, Mumbai
Hi Ranjna
It seems that the topic is ended over but I also want to give my view in this issue.
I am working in an garment manufacturing export hosue and when order comes in a huge quantity manager think that they can’t complete the orders with the present manpower so they employed the TEMPORARY WORKERS but only for a limited period like for 5 days for maximum for one week. These workers are not on the rolls of the company as you said the appointment letter is also not provided for them, these workers are being paid in cash and there is no personnel or any other type of records maintained by the company for them. These types of workers are not entitled for the bonus legally. If your company permits you can give them bonus.
Ranjana if you think that you need these workers for long time so take them on rolls because Voucher or Temp workers is not a good practice. I think you also don't have their records like personnel file right? If your don't have then you should have the records of each and every employee working in your organization like his personnel record or legal record like Payroll etc.
Thanks
Sushma
From China, Beijing
It seems that the topic is ended over but I also want to give my view in this issue.
I am working in an garment manufacturing export hosue and when order comes in a huge quantity manager think that they can’t complete the orders with the present manpower so they employed the TEMPORARY WORKERS but only for a limited period like for 5 days for maximum for one week. These workers are not on the rolls of the company as you said the appointment letter is also not provided for them, these workers are being paid in cash and there is no personnel or any other type of records maintained by the company for them. These types of workers are not entitled for the bonus legally. If your company permits you can give them bonus.
Ranjana if you think that you need these workers for long time so take them on rolls because Voucher or Temp workers is not a good practice. I think you also don't have their records like personnel file right? If your don't have then you should have the records of each and every employee working in your organization like his personnel record or legal record like Payroll etc.
Thanks
Sushma
From China, Beijing
Thanks Sushma,
Actually you are right.
We usually do not keep any record of their association with company except personal file,which is again not very systemantic.I have joined recently and came across such practices.
Also ,we have employees who have worked for years ,but still they are not on payroll,and nobody ever thought about it also.............!
I will make sure that we switch on to legal practice now.
Thanks anyway....all of you for your guidance.
Regards
Ranjana
From India, Mumbai
Actually you are right.
We usually do not keep any record of their association with company except personal file,which is again not very systemantic.I have joined recently and came across such practices.
Also ,we have employees who have worked for years ,but still they are not on payroll,and nobody ever thought about it also.............!
I will make sure that we switch on to legal practice now.
Thanks anyway....all of you for your guidance.
Regards
Ranjana
From India, Mumbai
You may note that in the event of any of these voucher payment employees filing case for regularisation in your company, it will be difficult for you to defend. Pl. note that you are not keeping any records, but they may keep some or other records which may be helpful for them in their legal cases.
You may also note thae, if your company is having employees more than 10/ 20, and have ESIC and EPF coverage, they can give information to these inspectors and have your company probed thoroughly. Though these inspectors check only the balance sheet in their inspections, they can find out.
Same is the case with Labour inspectors, Labour Welfare Fund etc. How many departments can you defend?
It will be in the best interests, if your company takes them as employees. If fear of Union exists, pay them through some registered contractor who complies all the statutory requirements of these staff.
Thanks
Shiv
From India, Mumbai
You may also note thae, if your company is having employees more than 10/ 20, and have ESIC and EPF coverage, they can give information to these inspectors and have your company probed thoroughly. Though these inspectors check only the balance sheet in their inspections, they can find out.
Same is the case with Labour inspectors, Labour Welfare Fund etc. How many departments can you defend?
It will be in the best interests, if your company takes them as employees. If fear of Union exists, pay them through some registered contractor who complies all the statutory requirements of these staff.
Thanks
Shiv
From India, Mumbai
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