Who's Responsiable ?????????????

Hello Friends,
Having some query about Hr Authorities & Responsibility.
I would like to know that payment of PF, ESIC, PT is the resposiblilty of HR dept?
Also Sal. Submission for staff to the bank is the responsibility of HR Dept.?
In our orgnisation A/c dept is interested in doing these things , is it the right way?
Regards

Dear Madhu,
Each of the activity that you have mentioned falls within the purview of HR Department.
However, of late the trend is to outsource the activities that you have mentioned and HR concentrates more on hardcore HR issues like training and development, career planning, performance management, talent management etc.
If your accounts is interested to handle the routine activities then instead of outsourcing better allow them to handle these. This will give you two benefits. One is that you can save outsourcing costs and second is that you will be able to handle high-end HR activities.
Thanks,
DVD

Hi,
The remittance of these amounts to respective authority can be done by accounts dept. meaning, the payroll process can be split into two. 1. Preparing attendance, LOP etc. 2. Salary calculation and deductions.
The later part can be done by accounts dept. with all necessary remittances.
Jay

Hello Mr. Dinesh,
We are not submitting it to any outsoucing we are submitting it to bank through our office boys.
From last 2 yr i was doing the same , but all of sudden another dept. would like to do this.
Regards.

Of course enrollment of employees for PF, ESIC, PT, etc. and monitoring for their payment to the respective organizations is the sole responsibility of the HR. On the other hand while payment is the responsibility of the department which disburses the salaries and other day to day payments. If the accounts department is also saddled with the work of disbursements, payment of those amounts also would become the responsibility of the accounts department.
If disbursements are already being handled by the HR, but the accounts department is willing to undertake that responsibility also, there is no harm in delegating the disbursement job also to the accounts department.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of management & Educational Consultants
New Delhi

Dear friends

There is nothing called "authority and responsibilty" in working culture. Please rephrase it "accountabilty and responsibility"

Since you have specified about ESI PF I will try to relate for this particular role.

1. Who is responsible to cover employees under PF or ESI.

Responsibilty is that of the person who prepares Payroll If the Payroll is prepared by Accounts then they are responsible

2. Who is accountable for the coverage?

This is decided by who recruits him or her. As the coverage question will be decided at the time recruitment itself and the department who completes joining formalities will be accountaable. They shall advise the payroll accordingly. If a person is not covered they are primarilty accountabloe for the lapse.

3. Who is responsible to make the payment of contribution

Payroll and accounts are responsible for any payment. They need to prepare the challans and make payment on time.

4. Who is accountable for the payment?

HR Dept is generally accountable if the payment is not made on time. HR is answerable hence monitor whether the responsible person is doing or not.

If you try to answer the questions on accountability and responsibilty for every role, there will smooth process flow. The word authority invariable blocks the smooth flow in any process

The word authority should be more linked to critical decsions.

Examples

1. Whether an employee has to be is covered under ESI or not based on salary structure is to be decided by HR Head and if there is a dispute he is accountable.

2. Company does not have enough funds to pay PF contribution on the due date and there will be delay by 15 days. It is purely Treasury decision and HR can not take a decision. FCinanace Head probably in consultation with Board will take a decision

Please look at accountabilities and responsibilities rather than authority and responsibilty.

Thanks

T Sivasankaran

Having some query about Hr Authorities & Responsibility.

I would like to know that payment of PF, ESIC, PT is the resposiblilty of HR dept?
Also Sal. Submission for staff to the bank is the responsibility of HR Dept.?
In our orgnisation A/c dept is interested in doing these things , is it the right way?
Normally all these activities come under HR. To start with the organisations will not have HR dept. At that time, all these will be handled by Accounts, which starts with organisation But when the organisation grows, the function will be divided to departments.
If it is labour oriented organisations, normally to retain power the account dept will handle salary disbursement and preparation will be by HR. The accounts dept that they are the custodian of money, so they try to take over the finer portion. The difficult portion like preparation, clarification etc will come to HR. But in principle, it is for HR
In other organisations, normally it will be done by HR alone.
nagaraj
S N Associates

• Different companies follow different practice and processes, however most commonly followed practice is given below:
• HR Dept. looks after time office function and computes salary days payable for each employee for each month.
• Based on Salary Days given by HR Dept. Accounts Dept. will compute and disburse salaries to employees after effecting all statutory deductions.
• In Companies using good HR MS & Payroll Software, all the Master Details of Employee and his salary are updated and edited by HR Dept. HR Dept. alone will have Rights and login for master updations. Accounts Dept. will be only having rights to update things like Income Tax Deductions, Loan Recovery etc.
• Accounts Dept. is responsible for deduction and timely payment of contributions to ESI and PF. They handover the payment challans to HR Dept. for filing returns and maintaining records.
• HR Dept. is responsible for Legal Compliance only deduction and payment of contributions is done by Accounts Dept.

Thanks & Regards