Procedures And Policies Of A Pvt Ltd Company

Hello to all,

I am a businessman. Recently, I made my company a Pvt. Ltd. firm. I am a little confused about "Policies & Procedures" which a Pvt. Ltd. company should follow as per Govt. norms. Can anyone brief me about it?

Secondly, I request some guidance on "Salary structure for Employees" and "Number of CL, SL, medical leave" etc. to be given to employees in a year. Please guide... :mellow:

I have formed a new private limited (PVT LTD) company and started operations since April 1, 2009. The total staff strength is 20, including myself and my wife as Directors. We are involved in software distribution. I wish to know:

1. Whether Provident Fund (PF), Employee State Insurance (ESI), and any other such benefits are compulsory or if we can provide a flat lump sum salary. If yes, what is the ideal salary structure for employees?

2. How many casual leaves (CL), sick leaves, medical leaves, etc., are mandatory to provide to the staff while operating as a PVT LTD company?

As per my knowledge:

1. PF is compulsory for the organization where employees' basic salary is less than $6,500.00. For basic salaries above $6,500.00 (not gross), PF can be exempted.

2. 21 days of leave is compulsory as per the Bombay Shops & Establishment Act.

3. ESI is applicable to employees whose GROSS salary is less than $10,000.00.

4. Workmen's compensation policy/Mediclaim is applicable to employees whose GROSS salary is more than $10,000.00.

5. An offer letter should be given before joining, so employees are sure of their joining.

6. ID cards should be given on the first day of joining.

Probation can be kept for 3 months. After 3 months, employees can be given a confirmation cum appointment letter.

Notes: All benefits are applicable only after the completion of the probation period and depend upon mutual understanding.