Starting as an HR in an IT Firm: How Do I Tackle Unpopular Leave and Bonus Policies?

Hi Everyone,

I am pursuing my MBA in HRM through correspondence. I am in the third semester. Additionally, luckily, I have secured a job as an HR in an IT firm in a SEZ. Can anyone advise me on how to start? I mean for the documents and records to be prepared and other formalities as there is no previous record, and the employees don't seem convinced with the leave policy and bonus policies being followed by the company.

Please advise.

Thanks,
Meenakshi

In that case, you have to start preparing the employee personnel files, which include their resume, educational qualification certificates, experience certificates, joining formalities, application form, appointment letter, induction letter, joining intimation form, etc.

Also, you have to ensure the statutory requirements for your organization such as ESI, PF, PT, etc., and should check the relevant certificates, etc.

You may have to start initiating the policies such as recruitment policy, attendance policy, dress code policy, etc., and then slowly you can implement further activities.

Can you please also advise me on a few things? Here, employees do not want the PF to be deducted from their salary, so no deduction for PF. However, there are still many other issues as follows. If you can suggest:

1. The bonus provided on Diwali is deducted each month from the employee's salary. How acceptable is this practice?

2. The value of earned leave (EL), the equivalent amount, is deducted each month from the salary. At the year-end, the balance for the EL not availed is refunded. How is it considered as EL then?

3. The TDS is deducted each month, which I think is acceptable.

Due to the reasons mentioned above, the salary received by employees each month is significantly less than what was offered at the time of joining, making them feel cheated. Please advise me on what I should tell them and whether the company's procedure is justified.

I would also like to inquire about leaves. Apart from Saturday and Sunday off, there are only 8 leaves. The conditional ELs (as explained above) and even CLs are also treated as EL occasionally.

Thank you.

Dear Meenakshi, Looks like you have a tough job ahead of convincing not only employees but also management on the HR practices to follow. You really need to get acquainted and interact frequently with your fraternity to understand what the regular practices are in other companies within your industry and outside.

For Your Earlier Post

1. It is not a bonus if it gets deducted from your salary. It is simply a deferred payment of an allowance. A bonus can be part of annual compensation (what we call CTC), but it should not be deducted from the monthly salary. Employers need to make provisions taking into account the CTC.

2. I personally have not come across any company policy that deducts the value of EL (although our Finance heads will be happy anyway). This, again, is a benefit provided to the employee, and the company needs to make provisions for EL encashment as per the policy and time of payout. This should not be deducted from the employee as, in effect, you are paying your company to provide you leaves, which is incorrect.

3. TDS will always be a reality of life, but does the company take into account individual investments for tax saving?

Do reflect on these. You have come to the right space and can seek advice from others and explore the site to know more details on various HR practices.

Regards,
Nayana