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Dear Jiten,
You have now clarified the situation much better.
As you have a union please make an agreement that for administrative purpose you need details of employees who are opting for tea and not opting for tea. Ask the employees to sign and record their choice.
Please add a rider that the option cannot be changed during the duration of the settlement. It is easier said than done. But make an effort, we succeeded in our effort to withdraw canteen facility which was not statutorily required by compensating money in place. We got rid of a host of problems.
Eventually you will find many employees finally opting for payment and not tea because it will be Rs.8/- X the number of days they work and it will also be easy for you to monitor. A matter of caution in my opinion if anything is paid in cash to employees including fringe benefits it attracts provision of IT act i.e it is taxable. Please consult with your finance department on this aspect.
M.V.Kannan

Hi Jiten, I am completely agree with Mr. Kannan. He has given you a practical solution, which will help you in long run. Regards, Akatrap
Dear Jiten,
You can have a manual system in place for this as well as an online system for eg you must have outsourced your canteen facility to a vendor. You can give him the list of employees with their employee id and name and tell him to take signature who comes to have lunch, dinner or snacks.
Other thing is the online system were a swap card is given to the employees for attendance you can install a machine at the canteen and tell all employees to swap their punch card and issues lunch to them accordingly.
In this way at the end of the month you will get the entire report of how many employees have eaten food, snacks etc..
Hope it will help you.
Regards, Derek Gomes

Dear Jiten, Kannan, Akatrap, Derek, et al, On going through your problem and the suggestions being made, I venture out to add a few of my thoughts: It will not be possible every time to verify whether one has opted for tea or snack each time the item is served. Your concern as to whether it will work fine in the long run is real. Probabably you can serve one item at a time, tea and snacks could be served at different periods of time. On the other hand, there need not be any restriction, one can have both - tea and snacks. Management, as you pointed out, would be happy to pocket the difference between the money generated from the employees towards the items and the money paid to the canteen contractor. Employees also would be happy to get proper food and hopefully their worries are over on this account. Hence it is to be seen as to how to raise the satisfaction level although as per your agreement with the union there is no such need to serve both the items. The rate appears reasonable or rather comfortable, tea Rs. 2.5 to 3 and snacks @Rs. 8

Canteen, although is a hotbed of problems in many organisations, if managed well it could help much in increasing the productivity. Hence , for the latter objective you need to treat it as an investment and try to provide a satisfying response to the hungry employees.

Dear Mr. Jitendra,

Don't worry its not a big problem. You just go by following canteen process :

First you explain them that you will be entitle for on working days only.

Example, August Month = 26 Working Days, 4 Weekly Off, 1 Paid Holiday

So, if a price of Tea Rs.3 * 2 = Rs.6. Then Rs.6 * 26 = Rs. 156 per month.

Now, take a list of employees and calculate in following format -

EC No./ Name of Employee(s)/ Worked Days/ Amount.

As per above format distribute them in the next month of 10th. When you start this system employee will put their different issues like -

1. Night Shift Duty - Pay by Cash of Night Days only.

2. Sickness - Take Doctor's Certificate of a particular period and pay him in cash for such period only.

3. Ladies - Allow ladies 50% cash & 50% coupen

4. Outdoor Duty - Regular o/d employees will be paid by cash only.

In the future rates are increasing if you think employees are not being paid by minimum wage then add it in salary as Food Allowance and explain them -

- Its lead to increase in their salary which is good for their external personal purpose like bank loan etc.

- As increase in gross leads to increase in SBR rate of employee under ESIC. Hence if they get ill will be benefitted a good per day salary from ESIC.

Dear seniors, Please suggest how to make a canteen committee.

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