Setting Up an HR Department in a Small Manufacturing Company: Where Do I Start?

I'm Ganesh, working in a small-scale manufacturing company as an HR professional. Currently, there is no HR department established by the employer, but now there is a plan to set up an HR department. We have two factories, one in Gujarat and one in Mumbai, with a total of 31 employees, out of which 18 are based in Mumbai.

At present, we do not implement PF or ESIC schemes, nor do we provide salary slips to employees. Additionally, there are no identity cards issued to employees. Our attendance system relies on manual processes, involving the maintenance of a register where we record the login and logout times of employees.

Responsibilities and Challenges

My current responsibilities include recruiting employees for the company and establishing the HR department. I kindly request assistance on how to set up the HR department effectively.

Thanks and Regards,
Ganesh

Starting an HR department from scratch is not an easy job. I think you will first have to study the rules for employment, as these rules may vary between states. By doing this, you will gain a better idea of how to carry out activities that are legally correct.

Regards,
Leena

I do agree with nivs_9485. Talk to management and take service from a consultant. There are many consultants who develop HR departments (not necessary to hire those who are on a Google list). If the company spends now, they will only enjoy the results of it.

I am glad that you want to introduce some HR procedures. It is really good.

Ideas for Setting Up HR Procedures

1. Start assigning an Employee Number to everyone who has joined the organization permanently. Assign this number based on the date they joined.

2. Have a separate file for each employee. File a copy of the appointment letter issued, if any, to each of them.

3. Subscribing to PF & ESI are statutory obligations. Enlighten the management on this and take steps to contact the PF/ESIC Department for the procedure for remittance.

4. Since you are a manufacturing company, you have to comply with a number of provisions in the Factories Act 1949 and other connected laws. Otherwise, any Inspector of Factories can prosecute the firm for violations and may even order the stoppage of production. The law does not treat violations of enactments leniently. A law is a law and is for everyone.

5. If you have some familiarity with labor laws, you can guide the firm in taking the necessary steps to function in line with the law.

6. Otherwise, you can identify a local labor law consultant and take their help in complying with the legal requirements. Many labor law consultants do not charge much.

Regards,
R Sundararajan

Dear all, I am Babita and working as an admin and HR in a small company. It is an A&F company (Accounts & Finance), which is a subsidiary with its head office in the U.S. I am a fresher and have very little idea about how to handle the HR department. I do not have any seniors to instruct or guide me, but I want to do some HR-related work and create some HR policies. Please give me some suggestions.

Best regards, Babita

Document enclosed. Please check it out.

Thank you.

Regards