Dear Seniors,
I am working with a travel company in Karnataka, and my company is recently registered under Shops & Establishment Act. Till date there were not much deductions in the salary as there was no HR to recommend the basic requirements. Now since I joined i have introduced PF, Gratuity and other statutory amendments in the company. The management gave permission but the employees are not supporting the change as they are not even ready for PF deductions and are threatening the management to resign and saying that they don't want any changes in the organization.
I understand that whenever a company brings any changes, employee's reactions are not always positive. But i really don't know how to handle the situation as my Directors are also on a business trip and i need to handle the scene on my own.
Please suggest how to convenience as they are not ready to understand the Law requirement also.

From India, Chicalim

Hi Smriti,
Appreciate your initiative in regards to put process adherence in your organization. However in any situation, complete transition will not be appreciated by any employees, though that is gonna bring in extra benefits for them. You have mentioned that you tried to bring in Gratuity and other Statutory amendments, are you going to deduct any amount towards those, if so employees will not be happy.
Please make them understand that according to S&E act you need to have PF in place and this is not your initiative and this is an order sent by Labour Inspector. This would help you not getting blamed directly by the employees. Always remember that the all employees who threaten to resign will not resign. Good luck!

From India, Bangalore
Dear Mr. Mahesh,
Thank you for your reply and for your appreciation.
Refer to deductions... we are deducting PF (employee's contribution), PT and IT (which is refundable). in addition to their salary they will be getting PF benefit (Employer's share), Gratuity benefit.
The problem is basically coming from some lower level staff as they are unable to bear even min. deductions. For now i have told them that as per Law it is mandatory but i am hoping for the things to fall in place as smooth as possible.

From India, Chicalim
Hi Smriti,
I would suggest that, when we are making a transition, then there is bound to have opposition. Also it would have been a good idea, if you would have kept the net pay same, even after the deductions, then would have ensured that, we have less resistance at the start. Also subsequently when you have your annual salary revision, this could have been regularized.

From India, Mumbai
Dear Mr. Thakre,
Thanks for your valuable input.
We are doing it with Salary Revision only and regarding net pay... actually company was not having anything like Net or Gross... they were having Monthly CTC from which only PT and TDS deductions were applicable, rest everything was given in hand.

From India, Chicalim
You should convince the employees on having PF/Pension etc.What is to be deducted statutory should be deducted.Instead if you pay from co a/c to avoid resistance you will have to do it always.
Varghese Mathew

From India, Thiruvananthapuram
Dear Vivek,
Please convey your employees the benefits which are received form various acts for them and their family members. Such as ESI,PF and gratuity benefits to employee and their dependents. And also inform them it is to be follow asper norms of the government only. And you also informed that, this is the first time your going to implement the various acts. Hence, you need to educate them on those acts and explain about the benefits.
Uday Kumar

From India, Visakhapatnam

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