Tax & Labor Law Advocate
Presently Working As Dy Manager Hr &
Korgaonkar K A
Human Resources Management
RealCube Technologies Pvt. Ltd.
Issuing appointment letters to all employees is mandatory as per law. The appointment letter should be issued to employee on the date of his joining. All employment terms and conditions shall be affixed with the letter of appointment. It's also recommended for HR to brief the content of 'letter of appointment' while issuing it.
5th May 2013 From India, Delhi
I appreciate the comment of Mr. Umesh choudhary and further add as under.
The person who signs on the appointment order should be / have
(1) Authorised signatory.
(2) You have not mentioned about your status / designation.
However, keeping approvals on the existing manpower from the Chairman and preparing a proper appointment order will be good for both the parties (Employee and Employer).
S Rao / Hyd /9553232308
5th May 2013 From India, Hyderabad
Your statements are contradictory. You said your company is under incorporation. You also said that your CS did the work of registration of company. You also became a member of this forum on your company's name as Pvt. Ltd.
If your company is registered as Pvt. Ltd, company, the incorporation certificate must have issued to you and thereby you are officially and legally transact any business in your company's name including appointing employees and issue of appointment letters to them.
If your company is not yet registered as Pvt. Ltd. Company, you need to have stop gap arrangement as suggested by Sai Kumar ji & Shailesh ji. You need staff or experts to do some preparatory jobs before you start your business. Such staff / experts you can hire as professionals and professional fee can be paid to them after incorporation.
5th May 2013 From India, Mumbai
Just a quick addition, whether the company has been registered or yet to be registered under Registrar of Companies (ROC), If the Organisation has employed even a single employee the appointment letter needs to be issued. The appointment letter is an agreement between the employee and employer therefore it has no relevance whatsoever with the company's registration, office premises allotment, trade certificate, sales tax registration, EPF or ESIC code allotment etc.
5th May 2013 From India, Delhi
Mr.keshav Korgaonkar rightly raised certain pertinent questions for clarification.If the company is to be incorporated and you need to engage some one to do various jobs relating to incorportaion etc, you can, as keshavji suggested,engage them as indpendent professionals and consultants and pay them the professional fees.
HR & labour law Advisor
6th May 2013 From India, Mumbai
I am just giving you what section 34 states in Delhi Shops and Commercial Establishments Act.
34. Employer to furnish letters of appointment to employees.-The employer shall furnish every employee with a letter of appointment. Such letters of appointment shall contain the following and such other particulars as may be prescribed, namely:
(a) The name of employer,
(b) The name, if any, and the postal address of the establishment,
(c) The name, father's name and the age of the employee,
(d) The hours of work,
(e) Date of appointment.
The similar is mentioned in other state's Shops and Commercial Establishments Act. though I don't have a copy of Indian Factories Act, 1948, I am sure same would be written there probably with some other terms or nomenclature.
7th May 2013 From India, Delhi
You CS must be waiting for other formalities, kindly clarify so as to give you proper guidance accordingly by the seniors
9th May 2013 From India, Ahmadabad
As your Company has just started the process and not incorporated. You can't use the Company's name for any action or on any documents till all the fees are paid to ROC and an Incorporation Certificate is issued by ROC. Please understand Company is a legal person and it will born only when ROC sign and deliver the Incorporation Certificate. In no circumstances you can use the name of this Company before it becomes a legal entity. Meanwhile the employees can be recruited but on some other account or firm's name or on a Proprietor Firms letter head.
Once Company is incorporated the Appointment letter can be issued but the signatory should have the authority as per the Articlel & Memorandum of Association apart from fulfilling the minimum paid up capital requirements to conduct the business. One more important point is the Appointment should be related to the Business mentioned in the main clause of Article/Memorandum as Companies are legally authorized to do the business.
10th May 2013 From India, Delhi