Hi Everyone, I would like to congratulate such an awesome platform to discuss and share ideas and queries. Great work! I've read a few threads and found that members here are quite prompt in their replies. This has motivated me to post my query here.
Attendance Calculation Cut-off Date for New Joiners
My query is basically related to the attendance calculation cut-off date with respect to new joiners only. In the current scenario, the attendance cut-off date for the purpose of salary disbursement in the case of new joinings is the 24th of every month. This actually means that anyone who joins on or after the 25th gets paid for the remaining days of that particular month with the subsequent month's salary. For example, if anyone joins on or after the 25th of Aug '14, they will be paid for the remaining 6 days of Aug with September's salary, i.e., they will be paid for 30+6 = 37 days at the end of Sept '14. In order to ensure that no one loses their pay, I make sure we don't make anyone join on or after the 25th until the 30th/31st of that month.
Proposal for Changing the Cut-off Date
Some of my peers think that it would be better if we keep the 20th as the attendance cut-off date for new joiners, which means that anyone who joins on or after the 21st gets paid for the remaining days of that particular month with the subsequent month's salary. For example, if anyone joins on or after the 21st of Aug '14, they will be paid for the remaining 10 days of Aug with September's salary, i.e., will be paid for 30+10 = 40 days at the end of Sept '14. I have also been told that since our bank takes 7 days to activate new salary accounts, it would be beneficial to keep the 20th as the cut-off date. Our MD, who is based outside India, is the only person who has the authority to sign cheques, which means we can't pay through cheques at all. (Note: we have just started with salary accounts and are planning to call bank reps once a month for new joiners and we disburse salaries by the latest by the 1st of every month.)
Reasons Against Changing the Cut-off Date
1. Like everyone, we (HR) push candidates to join as soon as possible, which means they can join anytime, even after the 21st, and telling them that "we are happy that you have joined early but we will pay your 10 days' salary after 40 days" would be weird!
2. When people resign to join another company, their salaries are generally put on hold by their companies and are released after 30 to 45 days in the form of F&F. If their new company will also pay them after 40 days (considering the scenario above), they will be left with absolutely no earnings for more than 1 month. This, to me, does not look employee-friendly and makes no sense.
3. If the bank takes 6-7 days to activate a new joiner's account from the 25th, it is important to note that it is the maximum limit, which means the account will be activated by the 30th/31st. Hence, the salary can be paid by the 1st or the latest by the 2nd of the subsequent month in the case of new joiners.
Having said this, I want to know the pros and cons of the proposal made by my colleagues so I can make an informed decision and advise my peers accordingly. It's kind of urgent, so I request you all to share your opinion on this. Look forward to your replies.
Thanks,
Rati
Attendance Calculation Cut-off Date for New Joiners
My query is basically related to the attendance calculation cut-off date with respect to new joiners only. In the current scenario, the attendance cut-off date for the purpose of salary disbursement in the case of new joinings is the 24th of every month. This actually means that anyone who joins on or after the 25th gets paid for the remaining days of that particular month with the subsequent month's salary. For example, if anyone joins on or after the 25th of Aug '14, they will be paid for the remaining 6 days of Aug with September's salary, i.e., they will be paid for 30+6 = 37 days at the end of Sept '14. In order to ensure that no one loses their pay, I make sure we don't make anyone join on or after the 25th until the 30th/31st of that month.
Proposal for Changing the Cut-off Date
Some of my peers think that it would be better if we keep the 20th as the attendance cut-off date for new joiners, which means that anyone who joins on or after the 21st gets paid for the remaining days of that particular month with the subsequent month's salary. For example, if anyone joins on or after the 21st of Aug '14, they will be paid for the remaining 10 days of Aug with September's salary, i.e., will be paid for 30+10 = 40 days at the end of Sept '14. I have also been told that since our bank takes 7 days to activate new salary accounts, it would be beneficial to keep the 20th as the cut-off date. Our MD, who is based outside India, is the only person who has the authority to sign cheques, which means we can't pay through cheques at all. (Note: we have just started with salary accounts and are planning to call bank reps once a month for new joiners and we disburse salaries by the latest by the 1st of every month.)
Reasons Against Changing the Cut-off Date
1. Like everyone, we (HR) push candidates to join as soon as possible, which means they can join anytime, even after the 21st, and telling them that "we are happy that you have joined early but we will pay your 10 days' salary after 40 days" would be weird!
2. When people resign to join another company, their salaries are generally put on hold by their companies and are released after 30 to 45 days in the form of F&F. If their new company will also pay them after 40 days (considering the scenario above), they will be left with absolutely no earnings for more than 1 month. This, to me, does not look employee-friendly and makes no sense.
3. If the bank takes 6-7 days to activate a new joiner's account from the 25th, it is important to note that it is the maximum limit, which means the account will be activated by the 30th/31st. Hence, the salary can be paid by the 1st or the latest by the 2nd of the subsequent month in the case of new joiners.
Having said this, I want to know the pros and cons of the proposal made by my colleagues so I can make an informed decision and advise my peers accordingly. It's kind of urgent, so I request you all to share your opinion on this. Look forward to your replies.
Thanks,
Rati