New to HR in an Auto Dealership: Seeking Factories Act Guidance for Rajasthan

Dear all, I have recently joined the HR department at an automobile dealership firm. I am requesting senior individuals from the same industry to share general guidelines to be followed as per the Factories Act. This firm has 35 employees and is located in the state of Rajasthan.

Thanks in anticipation!

Regards.

Hi, thanks for responding. I have been asked to systematize HR practices as per labor laws. Hence, this query: What points should I keep in mind while finalizing work hours, leave, and salary structure with reference to PF & ESIC implications? Are there any good HR practices specific to the automobile sector? What points should be remembered in the case of contractual labor? What documents are compulsory for the employee folder, etc.?

Formalities to Consider

What rules should be followed if an employee leaves with proper/improper notice served, etc.? I hope you can share your views. These details shall also help me in drafting a policy for this firm. Please let me know what major heads should be covered in drafting an HR policy document.

Thanks & regards

As you mentioned, the staff consists of 35 members. According to government regulations, the standard working hours per day are 8 hours. When it comes to leave entitlement, it varies by company policy but typically includes 1 casual leave per month. Salaries are determined based on factors such as the company's annual turnover, the employee's position and qualifications, and the prevailing market rates. The salary calculation can differ based on the state in which you are located, so please factor that in when making calculations.

Salary Deductions

For salary deductions, Provident Fund (PF) contributions should amount to 12% of the basic salary, while Employee State Insurance (ESI) should be at 2.75% of the basic salary. For contractual labor with daily wages, the salary structure is based on the hours worked per day, and there are no PF or ESI deductions in such cases.

Regards,
Sravanthi