Dear Sir,
We have a case of an employee joining post maternity leave. She would like to work some days whenever possible in office and other days from home. This arrangement is for long term or till she is working in the company.
Question
1. Can the employee be considered on pay roll? if yes for how long?
2. Does the company still have the professional tax liability towards the employee in case payment is on hourly basis for work done?
3. Will this arrangement be a considered as break of employment towards gratuity benefit and other long term benefits of employee?
4. Will she have to resign and company have to do full and final settlement and start all over with the same company?
As of now the company needs her skill and she needs some financial support. The company is Pvt Ltd. company with employees less than 10.
thanks and regards
From India, Mumbai
3We have a case of an employee joining post maternity leave. She would like to work some days whenever possible in office and other days from home. This arrangement is for long term or till she is working in the company.
Question
1. Can the employee be considered on pay roll? if yes for how long?
2. Does the company still have the professional tax liability towards the employee in case payment is on hourly basis for work done?
3. Will this arrangement be a considered as break of employment towards gratuity benefit and other long term benefits of employee?
4. Will she have to resign and company have to do full and final settlement and start all over with the same company?
As of now the company needs her skill and she needs some financial support. The company is Pvt Ltd. company with employees less than 10.
thanks and regards
From India, Mumbai
hi,
Please find response as below :
Question
1. Can the employee be considered on pay roll? if yes for how long? - There are many MNC's now a days who allows their employees to work from HOME which finally saves cost to the employer. The tenure is finally is call of the management.
2. Does the company still have the professional tax liability towards the employee in case payment is on hourly basis for work done? - Yes, If you show her as an employee on your role then you need to deduct professional tax from her salary.
3. Will this arrangement be a considered as break of employment towards gratuity benefit and other long term benefits of employee? - If you do her full and final and rehire her as consultant then, you need to close her accounts as employee and treat her as fresh consultant for your company.
4. Will she have to resign and company have to do full and final settlement and start all over with the same company? - Answer given in 3 question.
Please find response as below :
Question
1. Can the employee be considered on pay roll? if yes for how long? - There are many MNC's now a days who allows their employees to work from HOME which finally saves cost to the employer. The tenure is finally is call of the management.
2. Does the company still have the professional tax liability towards the employee in case payment is on hourly basis for work done? - Yes, If you show her as an employee on your role then you need to deduct professional tax from her salary.
3. Will this arrangement be a considered as break of employment towards gratuity benefit and other long term benefits of employee? - If you do her full and final and rehire her as consultant then, you need to close her accounts as employee and treat her as fresh consultant for your company.
4. Will she have to resign and company have to do full and final settlement and start all over with the same company? - Answer given in 3 question.
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tax liability gratuity benefit full and final settlement professional tax maternity leave City-India-Mumbai Country-India
Maternity Leave Policy - posting.doc
Office Order regarding Maternity Leave for Contractual employee as per Amendment Act 2017.pdf
