I am going to start an HR Department within a construction company of about 200 people. We currently have only a payroll department. From where can I start please?
From Malta, San Gwann
Where you feel you are stuck in staff management? Identify those things first to make a beginning.However , you need to buld recors employee wise first. Since you have pay roll function in place, I hope, you are taking care of statutory compliance like PF,ESI , Labour Fund deductions etc.
HR & Labour Law Advisor
Navi Mumbai

From India, Mumbai

Greetings .....

Our Good & Learned Friend Mr. Saikumar has touched the chord to vibe right. Yes, statutory compliance is a part of HR activity but, since you are going to create and shape-up HR in a CONSTRUCTION company, I offer & put forward following points and request you to keep watching such happenings as they matter most in success of HR in Construction.

1. A construction Company has to have 2 sets of HR Policies .... For Office setup and for Construction Site setup. While the Policy and Rules framed there under for Office Setup is the same as of any other organisation (may be with minor variations), the same for site setup adds-in series of further conditions to HR Policy making it most complicated. Listing all those here would make it huge and monotonous and I would try to be brief therefore.

2. Staff engaged at a Construction Site are normally stay away from home or setup temporary residence away from home due to basic nature of the industry. They keep moving from site to site and thus hardly have a settled life. This is one reason they call for stronger HR support (like arranging accommodation for Staff, messing facilities etc.. At site some time HR shall have liaison with local schools for admission children of deployed staff, arrange for vehicle for travel of home folks of staff to markets for obvious reasons and so forth)

3. Duty time at Construction sites differs from normal office hours and HR shall have to make arrangements for food for staff or setup Canteens at site.

4. Construction sites are accident prone and in absence of a formal "Safety" department HR is made responsible for safety measures. They are also expected to make arrangement of vehicle/ambulance for shifting of accidentally injured staff to medical care. HR (or Accounts, as the case may be) must have some contingency fund arrangement for accidental cases.

5. Construction Sites always work with "Contract Workers" and HR must take care of all Statutory Compliance.

6. Construction Workers are mostly engaged through Subcontractors and migrated from other states. There is a statutory bar in engaging such migrated workers and a License under Inter State Migrant Workmen Act is essentially be taken to engage such workmen at site.

7. Since Construction sites engage huge volume of workmen, HR have to find places to accommodate them and transportation to & fro site.

8. Leave taken by Construction Site Staff is to be properly planned for not to slowdown the progress of work at site.

9. Client satisfaction too is joint responsibility of Technical and HR staff.

10. Grievance Handling of staff at site too is a big issue causing dissatisfaction.

11. A Construction Site is always Headed by an Engineer who dominates and is pro-techy. HR has to work in harmony with him.

12. HR must handle accidents (fatal/non-fatal) at site and take precautions against Labour agitation.

These are few of typical construction site HR pains which are to be handled properly.


From India, Pune
Dear Sir, 22.12.2016

I thank U for ur query in Cite HR. and pleased to note that U got an opportunity to setup HR Dept. in a Construction Co.with 200+ employees.

Setting up of HR Dept.,needs attending to various HR & Admn. associated works from Recruitment to Separation. There is no one solution/answer fitting to several HR & A works/functions at one time. One need to study present setup, learn, train to deal with HR works as one Dr.cannot cure all diseases & we have to go to Ortho, Optho, Gyno etc.,for dif.ailments. KINDLY GO THRU BELOW POINTS. I hope; it will be useful for ur works.


After serving for 35 years (as PO, PM, AM, Advocate, HR Manager, Sr.HR Manager & AGM Ė HR&A) in HR,IR,LEGAL, & Admn., Depts. of Steel Plant, Power Plant, Chemical Plant, Electronics & Mining Companies (with 2000 employees + CL), I am providing Consultancy on all aspects of HUMAN RESOURCES MANAGEMENT from RECRUITMENT TO SEPERATION (in SOFT-COPY, for easy Presentation & Adoption in New Cos.)

In my previous Mfg.Cos. , I had this opportunity. First; I conducted HR Auditing viz:

1. List out what are the Rules, Documents - maintained / followed in the Company Ė Viz.,

Attendance Registers, Leave Card /Records, Statutory Returns/Reports, Licenses-Factories Act, PF, ESI,Bonus, Gratuity etc., MP Statistical Reports, MIS, Personal Files, HR Rules, Policies, Procedures, Processes, Systems, Formats etc.,

2. Compared with List of- Documents -TO BE Maintained as per Factories/S&CEstts Acts etc.,

Registers, Records, Reports, MIS, Documents, Statutory Returns/Reports, Licenses, MP Statistical, Reports, MIS, Files, Rules, Policies, Procedures, Processes, Systems, Formats etc., and

3. Recommended the List of GAP / inadequacies / Steps to Set up HR Dept., for Adoption / Implementation as under:-.


================================================== ==============



As I was to take care of both HR &,

Ist. Designed & Introduced Basic Formats for each Jobs like Advance to draw Cash for Coís works, TA & Expenses Bill, Out-Pass, OOD & Visitors Pass, Gate Pass, Leave Card & Register, Indent for Vehicles, Food, Room, Ticket Booking etc., Collected and Maintained all Statutory Registers like Attendance, Wages, Leave, Adult Workers, Register of Extra Work Done (OT) & Co-Off Availed, Punching (Bio- metric- Face Reader) to regulate In & Out Time and Certify Attendance for Salary, Leave Card, Record, Deduction & Remittances of PF, ESI ,WC Policy, other Insurance Policies for Employees-Medi-claim, Machines & Equipments, Motor Vehicles etc., C.L. Regn, Regrs. Records etc., Implemented Bonus, Gratuity, Superannuation Scheme for Sr.Executives. etc.,



Made NEW Company Application / Bio-Data Form to collect full details of all employees already working and collected filled Forms from 200 employees. ISSUED INDUCTION KIT with New Appointment Order, Standing Orders & Leave Rules, I.D.Card, Emp.Code No., EPF & Gratuity Nomination Form, Bank A/c. Opening for all employees & Provided Uniform & PPE after Safety & Induction Training.



was Introduced and New Personal Files opened for each employee with Company Application/BioData, Interview/Selection Approval Sheet of Competent Authority for Apptt., Offer Letter, Induction Schedule on Joining, Apptt. Order-Ack.Copy, all Certificates Copies of DOB, Qualifications, Past Experience, Salary Slip, P.A.Form, Address Proof, Medical & Blood Group Reports, Photos, I.D.Card, Emp.Code No., EPF & Gratuity Nomination Form etc.,



New Man Power Requisition/Indent Form, Candidates Details for Interview / Selection (Comparative List Form), Interview Assessment Form for Selection, CHECK-LIST FORM for INTERVIEW, CHECK-LIST FORM for APPOINTMENT & APPROVAL introduced.



Master List, Addition & Separation, Man-Power Planning, Succession Planning, HRIS, MIS etc, CATEGORISING / GRADING & PAY-SCALE (Band) for all Levels of employees, Job Description, Security Checks, Safety & Health Ė OHC., as per ISO / Managementís requirement were Introduced and implemented



to Monitor / Control Absence, Advisory Memo, Show Cause Notice, Enquiry, Publication on Company Notice Board, News Paper. If employee fails to respond, Terminate as per A.O.S. under Certified Standing Orders of the Company. P.A. Form to assess Trainees, Confirmation, Promotion, S.I., Annual Increment, Transfer, T&D, All Terminations, Retrenchment, VRS., Superannuation, Extension of Service, Resignation Procedures, Notice Period, Exit Interview, Clearance Certificate / No Due Certificate, Final Settlement, Service Certificate.



Constituted Safety, Canteen, House-Keeping, House Allotment, Works and Grievance Redressal, Transport, Event Organising Committees etc. involving concerned HODs to create awareness, to ensure smooth functioning of all, Harmonious Relations & to attend to Complaints of employees including Sexual & other types of Harassment & Discrimination.



F. CONDUCTED T&D Programs with 50 Slides on Discipline, Attitude, House-keeping, HEALTH TIPS on AYURVEDA, YOGA, PUNCHAKARMA for STRESS, BP, SUGAR Problems etc.,


As we are in December, some of the below Rules may be considered for adoption from Jan.2017.




Some Cos. still use Leave Appn.-(LA)Loose Forms to take Leave every time: As LA is loose, difficulty to Check, Account, Store, keep track; to make Monthly Salary besides PAPER & Printing Cost/WASTE where hundreds of emplís work.

On Checking 500 entries of Bio-metric Attendance in Big Cos., 20 LA was missing. As LA is loose, Seniors donít get time to check each loose LA & so, wages as Certified by Staff though empls. took leave. Hence,

You can PRINT & Use LEAVE CARD (LC)-RECORD & Stop LA:. LC is handy, Seniors can always Check, Find No.of times, days Leave taken; to Calculate Monthly CL, SL,PL/EL to make Salary. LC/RECORD is Statutory. It cannot be manipulated like Loose LA.

1 Card for 1 Employee for 1 year.

You can introduce LC in Jan.2017. After one year, keep old LC- in Per.File as Record to verify in future. Easy for P&A to work out Entitlment, Balance- Leave Management. It is cheap & easy to maintain. Empl. will know how often he is taking Leave & HOD can caution, Mis-use/approve on need basis. Custody-P&A. Each HOD to keep LC to facilitate his take Leave. HR to call LC when Reqd., to update Leave Regr , Month-end, Decmbr. - Statutory.




For Continuous Working Cos.,(Mines, Plants) -for uninterrupted Works, 2 Optional Holidays can be given with National & Festival Holidays to ensure Min.MP to man Essential Services like Prodn., O&M, A/c.s, HR etc., as most emplís donít observe all Festivals at 1 time & so, when 1 set of emplís take Holiday, other set can work & vise-versa. Thus, HODs can plan min.MP for Shift duty/ maintain Essential Services by adjusting MP to suit his needs & avoid OT or stop work due to Holidays (without increasing Declared Holidays-10-12).



. ============

Most HR/P&A Dept. have Per.Files on all emplís.Still,

many emplís current Infn. is missing when HOD wants it; i.e.

1. Present Address to send Notice to X,

2. Mobile No. would have changed to contact X

3. Nominees detls. to Notify accident etc.

4. Nominees detls. to send payment of deceased X

5. To know Marital / dependents detls,

6. To verify latest Addnl. Qlfcn. etc.,

As the above infn. have changed after giving Ist BIO-DATA -on joining, they can be collected by Dec.2016 using above Form to update MIS, MP dtls. For Per.File, PF, ESI & other Stat.Returns,ISO Recordsfor Promotion, S.I./A.I. in Jan.2017 etc.



Recruitment work starts when User Dept. sends MPI/R.F. to HRD/P&A. This Single Sheet Form has many Columns for HOD to Indent several posts- like Name/No.of Post tobe filled, J.D., Qlfcn, Exp.,Grade etc. (of the Person to be recruited). After Competent Authority, send to HR Dept. HRD to compare MP Appl. with MP Planning & Succession Planning Statements to Check Internal Candidates+CL etc. If no suitable match, take MDís appl. to recruit. Follow Recruitment Procedures. Notify to Employment Exchanges under CNVAct, Employees referrals, Data Base. If no candidate, Issue Paper/TV Ad./ Contact Recruiting Agents to Sponsor suitable Candidates.




Absenteeism is becoming a serious problem in some Cos. HRM is blamed for laxity. It can be controlled by using above Form. HRM to take Action against erring employee or when a HOD sends A.N.F. to him. Proper Disc.Procedure tobe followed for AOS lest; Court may nullify it as void.

SAMPLE CIRCULAR + FORM for Adoption, are given below: (1 50 RP&F available).




A Certified S.O. under Indus.Employment(S.O) Act; empowers the Co. to take Disc.Action against its Emplís for violating T&C in S.O. BUT; the Co. cannot punish Emplís for Acts not included in S.O - SUPREME COURT.


Hence, Imp.Acts/Conducts involving Discipline of emplís; MUST be included in ďMIS-CONDUCT LISTĒ in S.O. & PROCEDURES of NATURAL JUSTICE MUST be OBSERVED to make Coís. action LEGAL.

Doís, Donítís, Duties of emplís -100 Points,

Mis-conducts forwhich emplís LIABLE FOR DISCI.ACTION-80 points, Co.Appn/BioData Form-40Points, Imp.t& Appt.Order.-for Sk-20, Suprvsrs &above-35. (Pl.check t&c in ur Co.Appn., A.O, S.O.etc.)- Effect of Non- inclusion.

I hope; you will find the above useful . Will be happy to share more on hearing from U.

Thanking you & awaiting to hear from U.

With Kind Regards,

C.Neyim Khan,

HR Consultant & Advocate, Ex- AGM (HR&A),

HOSPET/ HIRIYUR / BANGALURU, Karnataka, S.India. /

Mobile No. 9535470460 Email:

Email: , Qualification: BA,LLB, PGDPM, MBA-HR-Xaviers),

Ex-Member, NIPM, Calcutta, Ex- Trainee-Member, Indian Institute of Management, B;lore.

Languages Known:- Kannada, Tamil, Telugu, Malayalam + English & Hindi

From India, Mumbai

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