I have two query regarding HR policy and Statutory Act.
1) Difference between HR policy for labour working at plant and employees working in corporate office for the same company
2) Difference of Statutory act for labour or plant and Statutory Act for Employees or corporate office or give me a list of Act for labour or plant and Statutory Act for Employees or corporate office.
Can anyone give me update regarding above queries.
From India, Vadodara
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Senior Manager - Human Resources
yes their can be difference working in the different places but he basic law behind the policy will meet to the leagel acts.
so it can be possible and the policy all made should be acceptance by top management in accepted of the workmen( union) . then their will not be problem in implement of polices different in different places.
From India, Hyderabad
Kritarth ConsultingDear Seeker
Your Query: 1) Difference between HR policy for labour working at plant and employees working in corporate office for the same company
2) Difference of Statutory act for labour in plant and Statutory Act for Employees in corporate office or give me a list of Act for labour or plant and Statutory Act for Employees or corporate office.
Position: An Organization /Company/Establishment Policy for Human Resources (read Energy & Intelligence if you may) is scripted for one and all its Members devoid of discrimination on account of Gender, Caste or Creed, Nationalities and or such description.
Statutory Provisions are distinct for Factories and Non-Factory Commercial Establishments and in good no of cases the Central and the respective State Acts & Rules made thereunder apply. As far as Corporate Office premises are concerned, their location ( within or outside the Factory premises) determines the application of either the Factory Act and or the Shops & Commercial Establishment Act & Rules
Any Compilation of all the Acts and the State Rules in Single Volume/Book will be elephantine. Instead go for a Compendium
Kritarth Consulting Pvt Ltd
20.11.13, 9 p.m
From India, Delhi
Thanks for your valuable inputs.But still I am confused because my main concern is which policies may differ? for example leave policy/Internal and external policy etc. and same for act like Minimum wages act etc are applicable to non-factory offices?
From India, Vadodara
Madhu.T.KThere is hardly any difference between HR policies of factory and that of its Corporate Office. If at all there is any difference it will be n the registration part, say, factory will come under Factories Act and is registered under Factories Act and will follow the provisions relating too health, safety, welfare of employees as provided under Factories Act whereas the HO will be registered under the State Shops and Commercial Establishments Act and will follow the provisions relating to health, safety, welfare etc as provided in that Act. There is no much difference in these provisions also. There may be difference with regard to leaves, working hours or similar minor things, but both are Acts to take care of health, safety and welfare of persons employed.
With regard to payment of minimum wages, both factories and HO come under the same Act and should follow the notifications of minimum wages. Both workers in factories and HO are eligible for bonus, maternity benefits, gratuity, PF, ESI etc. Employees of both are given protection under Industrial Disputes Act. Industrial Employment (Standing Orders) Act which was earlier applicable to factory workers only has been extended to employees in the HO also in many states. Both employees in factories and HO have equal right to take membership in Trade Union. The procedure that the management should follow inorder to take disciplinary action should be the same for workers in factory and HO.
In practice, what is confusing is that we generally believe that factory people are unionised whereas the people sitting in the Corporate Office cannot form or take membership in the Union. This is not true. The scope of all Labour Laws is same for all people. There can be exception like supervisors and managerial persons do not come under Industrial Disputes Act, and while reading this, we should say that managerial persons at Factory are also out of scope of ID Act. That means there can be different HR Policy for workmen category of employees and managerial category of employees but we cannot have policy for HO people and factory people. Of course, depending upon the nature of work there can be different conditions of service, say, plant workers shall work in shifts and in some department the work cannot be stopped through out the year and employees of that department, emergency department, may not be given the holidays as per schedule, HO people shall work for 5 days a week with daily spreadover of 9 hours etc.
In practical, therefore, we will have Standing Orders for workers/ employees who are not having supervisory or managerial authority and Service Manual/ HR manual for those who come under Managerial category. The former is a legal requirement whereas the latter is not mandatory. But instead of writing everything in the appointment order/ contract of employment with a manager, if we have a Service Manual for Managers, we can just say that the 'other terms and conditions of service will be as per Service Manual'.
From India, Kannur
What Madhu T.K said is absolutely correct, there is no huge difference between the laws and procedures for Factories and HOs, where as all the enactments were drafted to safeguard the interests of employees or workers.
The main objective of all the statutes is to provide safety and healthy work environment. so there may not be difference in between HO and a Factory in regards to Govt.statues like ESI,PF,Gratuity and Bonus.
With Warm Regards
From India, Hyderabad
vanajaramDear parul ji,
all the above members in detail explained the relation between the company policies and acts.
Company policy is formed on the basis of act as base only. Company policy framed on the nature of work of the company, it may be manufacturing unit or intermediate unit. The nature of workmen is also taken into consideration for providing the provisions of the act. The unionism is also plays vital role in making the policy.
There is no static hardline for policy and act, but only thing between these two are welfare of the employees.
From India, Visakhapatnam
BSSVMadhu has explained it well,but I may understand your confusion, it is very simple, just like being in the house and working at the kitchen, hence all the members belong to a same family hence same rules and laws apply generally, but one who work in the kitchen here implies "working at the plant" where actual production is done, so needs more precaution, this is considered for the purposes of safety precautions, work accident, and work hazards........ hence the rules differ when it comes to safety, instead of the word differ, "applicability" suits well, so those precautionary measures prescribed by law applies to those who work in certain prescribed conditions, there is no point of its applicability to those work at the corporate/head office of the company, or outside the production premise, the kind of work they do differ hence the kind of rules or clauses prescribed in the rules differ........
All you need to understand is that the Act or Rules, the Law is same for all, but it has chapters and sections/clauses, they apply as per their applicability, which will be mentioned in such sections itself....... just like out of kitchen groceries, you chose the specific one suitable for your dish.......... (I believe I did not confuse you!)
If you wanna understand it thoroughly, just go through an Act or a Rule once and observe......
From India, Bangalore
JayDGThe members have more or less provided the correct answer. The 1st question is whether the employee is a "worker" as defined in the The Factories Act, 1948 and working within the "Factory" (as defined) premises. Such workers are governed by the Standing Order of the Company. Other employees/workers who are not working inside the factory (say. Corp Office, H.O., Sales Office etc) is governed by other Rules which could be that of the other employees including Officers of that Organisation. The only difference could be the difference in the leave applicable to that class of employee. Hope this helps.
From India, Purulia
Different act applies to Corporate office and plant, your question is very general
Location, nature of work, industry , number of employees, formation of company, registration etc are numbers of factors which differentiate the applicability of laws and policies
From India, Udaipur