Korgaonkar K A
+1 Other

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Who should, in an organization, ideally take care of PF, ESI, Gratuity and other financial aspects related employees? Is it the job for HR department or Finance department? Thanks Avinash
Dear Mr. Avinash,
it is the tasks of HR and personnel department. The Personnel department maintains the wage roll and deduct the statutoryies such as PF and ESI, PT, IT etc., It is the wage section that prepares the wage roll ad maintain the attendance. Hence, they have all the records to account for PF, ESI, PT, IT etc.,
Based on the working of the Personnel Department, the finance department's roll is to make payments to the authorities in time.
Sr. Manager-HR

In a medium to large organization, following is normally practiced
1.. Submission of returns by HR
2. Interpretation regarding definition is always by HR
3. Deduction and maintaining accounts by Accounts
4. Liasioin with Departments is always by HR
5. Maintaining of Registers by HR
6. Appearance before Judicial authority by HR
HR will be accountable for all ESI and PF related issues.
Accounts will be playing a support role and will be responsible for payment related issues

Dear Sivasankaran, When you say "Interpretation regarding definition is always by HR", what do you mean by that, please? May you please elaborate? Thanks Avinash
There are many definitions like Wages, employee, benefits etc. HR is supposed to have knowledge of Case laws pertaining to these definitions and implement correct definitions across. For example, discussion will arise as to whether Conveyance allowance will be included as part of wages. HR should cite definitions, Case laws and advise the correct position.
What is the best place to find these definitions and case laws please? Pardon my naivety on this topic. I have just begun the role and need as much inputs as possible.
Deaf Mr Avinash

I am in sync with all the replies given by friends on your doubt. Right practice and convention is for HR department to handle all the matters concerning employees such as welfare and statutory compliance, except TDS under Income tax. HR, department send requisition for cheques after making all the calculation and preparing challans etc. It is HR department who should understand the correct meaning of various terms under the labour laws for which they should have latest edition of books and be in touch with the concerned departments attend works shops and seminars arranged by them or industry association. Web site like this have some limitation as often the replies given by some contributors may not be correct or latest. Hence be careful and selective. No HR profession can avoid reading original laws and latest edition of reputed books on the subject and where needed should consult legal advisors well versed on the subject. All those claiming to be consultants need not be knowledgeable on the latest law and many are only liaison man who could even complicate matters.

O. Abdul Hameed

Formerly Addl.Commissioner ESIC

Dear Avinash ji and entire HR fraternity,
While endorsing Abdul Hameed ji to fullest extend, I would say that if HR is not handling this jobs means HR is not strong enough and competent enough, in my views.

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