Jeevarathnam
Sr. Manager Hr/admin
Adoni Suguresh
Sr.executive (per & Adm)
Govindsagar.hr97@gmail.com
Hr And Labour Law Consultant
NamrataRanjan
Hr Outsourcer
+2 Others

PRIME SPONSOR - FACTOHR - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Hi Everyone,
We are about to incorporate an outsourcing organisation (providing finance, hr & ops support) in Bangalore which will have only 3 staffers. I have a few labour law related questions and request you to please help me out
- Can we hire 3 people as "employees" and not as "consultants"?
- If we have all these 3 staffers as "employees" and not as "consultants" do we need to provide them with PF/ESI/Gratuity?
- Are there any mandatory labour laws/practices that we absolutely need to follow? For e.g. sexual harassment policy
- Are there any Bangalore specific regulations that apply to us?
Thanks a lot for your help!!
Shilpa
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hi Shilpa
If you are incorporating any organisation in Bangalore(Karnataka)
- Can we hire 3 people as "employees" and not as "consultants"?
Yes you can hire any number of employees or even consultants
- If we have all these 3 staffers as "employees" and not as "consultants" do we need to provide them with PF/ESI/Gratuity?
No. Not applicable. As for as ESI minimum employee strength is 10 & for PF it is 20
- Are there any mandatory labour laws/practices that we absolutely need to follow? For e.g. sexual harassment policy
For below 10 employees there are no major labour practices has to be followed. Only thin is you may have to follow the minimum wages act & Leave with wages act.
- Are there any Bangalore specific regulations that apply to us?
Yes. You may have to enroll with Professional Tax & Shops & Commercial Establishment act
If need any more information you may please reach me
Thanks a lot Jeevarathnam! If we go ahead with contract staff only, do we still need to follow minimum wages ACT and the Leave ACT? or will there be other basic things that we'll need to take care of?
Also, in question number 2 above, I wanted to know if we have an employee - employer relationship with staff don't we have to provide PF, ESI Gratuity? I understand for 10 or more employees the employer absolutely has to provide PF and Gratuity.
Hi
Even if you are employing the contract staff then you have to ensure that they are being paid not less then minimum wages act
Yes. If you have more than 10 employees then only there are provisions. Other wise its not mandatory
Regards
Jeevarathnam P
Dear Shilpa,
You need to take Karnataka shops and commercial establishments licence and professional tax licence, it is mandatory.
As of your current head count, PF,ESI, Gratuity,Maternity.. Will not be applicable.
Regards,
Govind Sagar
MPower HR and Labour Law Solutions
Bangalore
9036368502
Dear Shilpa,
Mr. Jeeva and Mr Govind have provide best solutions to you.
But so far as I m getting your querry, "You are about to incorporate an outsourcing organisation (providing finance, hr & ops support)".
After you start outsourcing the staff for your co., if the personnel exceeds the desired Nos of any Act. Pls make sure the outsourcing agency must provide the benefits to the individual. (Though they will claim all that from you in monthly/running bills).
But being a Principal Employer the last responsibility will be yours. If in any case the outsourcing agency make any defaults in Statutory Compliance, MW Act, local state regulation etc. than you will also held responsible.
Mrs.Shilpa,
Our learned members are given their opinion in right manner. First you do the registration of your establishment under Shops and Establishment Act and show maximum strength in the application although you are engaging less and also see that the Wages should be paid in compliance with the Minimum Wages Act as applicable to Karnataka If the strength is in creased above the limitation irrespective of executives, consultants, employees or contractual basis you have to follow the PF and other .applicable enactments.
Adoni Suguresh
Labour Laws Consultant
Dear Shilpa....Hi taking this opportunity i would like to introduce ourselves.we are AstraIndia,we are into the field of outsourcing,recruitment,payrolling and other statutory compliances.
We strive for excellent services which has helped us winning the trust and confidence of our clients.
Please allow us a chance to serve your organisation.we have our presence in PAN India.
Regards
Namrata
Thank you so much everyone for helping me in my query!
I am still confused on one thing - I understand that as per law with 3 people in the team we do not need to mandatorily provide the PF ESI & Gratuity. My question is - If we would like to hire these 3 people as 'employees' then irrespective of the law do we need to provide the benefits just because we have hired them as "employees" and not as consultants?
thanks for your time!
Shilpa
If an employer wish to give voluntary benefits., they can provide or else not required.
But needs to give minimum wages and should pay salary before 7the of every subsequent month.
As per Karnataka shops Act. You are bound to maintain following registers and forms.
APPOINTMENT LETTER IN FORM -Q
Wage Cum musterroll., FORM -T
LEAVE BOOK AND REGISTER, FORM -F AND H.
Equal Remuneration act, FORM -D
Need to file Quarterly annual return to local employment exchange in FORM - ER -II
Need to file annual returns - Form -U before 30th Jan 16.
Regards
Govind Sagar
MPower HR and Labour Law Solutions
Bangalore 9036368502
PRIME SPONSOR - TALENTEDGE "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
Add Reply Start A New Discussion






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™