Navigating Labor Laws: Which Rules Apply to HR Policies for Collection Agency Staff?

Hi,

I am seeking your help. I am working as an HR Manager in a collection agency. We have telecallers, field executives, and field supervisors. I am preparing HR policies for them. I want to know which section of labor law will be applicable here. Please give me a quick reply.

Regards,

Hi Prashant,

We do not have laborers in our organization. While preparing HR policy for the company, I am confused about which law I should follow. We are providing PF, Mediclaim, Insurance, etc.

Please guide me.

Regards,
Mamta

Dear Mamata,

Looking at today's scenarios regarding the status of workmen as stated in the Industrial Disputes Act or other related labor laws, it is very challenging and is often influenced by unionism. You are very fortunate as your company has no laborers but employs officers or executives. These individuals are not classified as workmen and are excluded from that definition.

However, it is important to prepare your HR policy for their appointments, salary structure, biographical information, amenities, facilities, and more.

Please remember, Mamata, that they are covered under The Payment of Wages Act, Payment of Gratuity Act, Payment of Bonus Act if their salary is below 10,000/-. In the case of female employees, The Maternity Benefit Act, Workmen/Employee's Compensation Act, ESI Act (if applicable in your area - where ESI coverage is enforced, the Maternity Benefit Act and Workmen/Employee's Compensation Act are automatically excluded), Employee's Provident Fund & Miscellaneous Provisions Act, 1952, along with other state-specific acts that may be in effect.

Regards,
KIRAN KALE

Dear Mamata,

It is not the designation of an employee that is considered by the law to determine whether the concerned employee is a workman or not; rather, it is the nature of the work that matters (as per the Industrial Disputes Act, 1947). Therefore, please first examine the nature of the work being performed by them. Refer to the definition of a workman in the ID Act.

Thank you.

Ya, I agree with Sunil Sadar. The nature of work is an important aspect to decide whether it is executive, clerical, or labor work. The manager of a small hotel should not be an officer if he is involved in supplying work.

Regards, KIRAN KALE