KK!HR
Management Consultancy
+2 Others

Dear Seniors, I have few complicated questions to ask you all.
1) In a Private limited company, Top Management has not given increment for past 3 years. Even there is no increment for current year. That company have Good Profit Level also. Even though Management is not willing to give increment. In this situation Labours and Employees of that concern where they have to approach to receive increment? May be Labour Inspector or some where to approach? and What are the legal things to do to receive increment?
2) For the above issue few of senior employees has decided to resign their job. Due to Unemployment, Management thinks that there are lot of job seekers are there in our society. They are ready to place new employees in the place of senior employees. Is the management decision is correct? Again the Management will do the same increment postponement for new employees also.
3) If a person is contributing ESI for past 2 year. He/She resigns that job and joins some where. That new company does not includes PF and ESI benefits. He/She works in that new concern for past 10 months. Whether He/She can enjoy ESI benefits. If yes means, what should be done from employee side? Is there any annual subscription fee?
4) Same company is not ready to provide Training and Orientation to all workers and employees. Because of management people are not ready to spend amount for the training program. If training is provided how it much it will increase the quality of work?
Please guide me for the above issue.
Thanks,
"What are the legal things to do to receive increment?""
You can only press the management to revise pay scales.
As HR put up a study on pay scales in same industry and attrition rates of your company v/s Similar companies and ill effects.But if management is adamant then persuasion will have limited effect.
"Due to Unemployment, Management thinks that there are lot of job seekers are there in our society. They are ready to place new employees in the place of senior employees."
The perception that job seekers are there may be right to some extent, but it is poor management by owners.Eve for peons job in govt office,laksh of applications are received.
The issue is your management is self centred and do not care too much for employees.
One will go ten more candidates will come is their approach.
They seem to be very poor employers and you can look around for other jobs.
Your situation appears little difficult to believe, but as you have been raising the issues now repeatedly, our sympathies are with you.To answer you
1. Though increment is not a legal right conferred by any statute, yet there is a legitimate expectation particularly since the unit is doing reasonably well, as we understand from your query. In this situation, a demand could be raised by the union or even individual workmen collectively by way of notice of change with copy to Labour Officer so as to bring the management on the negotiating table. The management's perception that even if the senior workers leave the company they will be able to manage with fresh and raw hands is foolhardy as the quality of workmanship and the overall morale would be seriously impaired in the process.
2. Management is certainly wrong in denying the workers their due by exploiting the labour market.
3. The ESI coverage will last till the benefit period corresponding to the last contribution period in which you have contributed gets over.If the new company is not under PF/ESI then the coverage will not get extended there. As these benefits are tied up with the establishment one works for, the individual workman do not have any role in continuing to avail the benefits of the scheme.
4.We agree with your proposition that training is needed and will help improve the quality of work. If these simple axioms fail to impress your management, probably certain worst lessons will teach them so and the day may not be very far off.
Ranjeetha, we empathise with your rather pathetic situation but it appears clear that this is not the right place to continue your career.
Giving increment to employees is neither a legal requirement nor a favor to employees by the employer. The management gives the increments in a market driven economy to retail the good employees who are adding value to the company. If by hiring new and untrained employees the management is getting the same results then it should be a food for thought for existing and senior employees.
Your questions 1,2 & 3 have been adequately answered by learned seniors above.I have nothing to add further thereon. I only alert you to the fact that the top management's understanding of the value of talent is abysmally poor and if it believes that it can run it's business competitively by replacing skilled senior work force with raw and inadequately skilled juniors to save costs of salary hikes, then like a rolling stone, it will never gather moss.It's loss of its skilled work force may be it's competitors gain. The markets work like this.
So far as training is concerned, it will definitely upskill the employees and enhance their productivity but your management may ask you "what if you train and they leave? so, be prepared with a reply for it.
B.saikumar
HR & Labour Relations advisor
Navi Mumbai
Dear Seniors,
Please guide me for my 3rd question.
3) If a person is contributing ESI for past 2 year. He/She resigns that job and joins some where. That new company does not includes PF and ESI benefits. He/She works in that new concern for past 10 months. Whether He/She can enjoy ESI benefits. If yes means, what should be done from employee side? Is there any annual subscription fee?
Thanks.
In my view, the ESI Act does not provide for carrying forward of ESI coverage of an employee in former employment to the new company which is not covered by ESI since the ESI benefits are tied with coverage of an establishment under the Act.
Other views are welcome.
B.Saikumar
HR & Labour Relations Advisor
Navi Mumbai
Dear Ranjeetha,
Your query no.03 on ESI coverage has been answered well by KK!HR,which is the contributory period is taken into consideration for availing the facilities even after losing /leaving such job (with ESI coverage). There is no subscription fee for such continuation.
I doesn't recommend to you. But sometimes in this situation your the senior managers has to force the company head. Reach them and ask to keep a meeting on this as it may work.
In other situation, as per railway - only they will solve issue if they receive a letter with up to 25 signatures request something to take care.
I hope you got how to solve.
Dear Sir,
Our Senior HR Manager has spoken with the Management for plenty of times. But Management is not ready to Increase Salary limit for Workers and Employees of this concern. They are mainly focusing Production and Profit of their concern. In this situation what i have to do. What will be your opinion about these type of concern? What will be the outcome of such activities.
Whether I have to work for this concern or better i have to leave from this concern.
Please tell me your opinion from your experience.
Thanks.
Dear seniors,
Kindly advice me for my above post.
Thanks.
Dear Ranjeetha,
If the Sr.HR Manager has represented and Management has not heeded to his views also, there might be some error in understanding by them.
Let him take up the matter again after collecting the details for profitability/productivity after salary hikes are provided.
You are asking about the outcome of the Management's stubborn attitude, which can be a continued unrest by employees and gradual separation of the employees from such organizations.
For your concern of continuing or discontinuing the job,you need to take a call seriously viewing the pros and cons because it is your job,your career prospects,your family needs which are in question and do it when you have a job offer on hand to accept.
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