Navigating HR Complexities: How Do You Handle Payroll, Leaves, and Legal Compliance Across States?

Dear HR seniors, please clarify the following queries:

Q1:

The corporate office is established in one state (e.g., Assam), the registered office is established in another state (e.g., Maharashtra), and its project site is located all over India. In this scenario, leave (SL, CL, PL/EL) and state public holidays obviously differ from state to state. How can the employer maintain a common payroll, leave, and holidays for all project sites across India?

Q2:

Is it mandatory to obtain standing orders/service rules certification under the Industrial Employment (Standing Orders) Act, 1946, even if the company is following the Factories Act, 1948, the Shops and Establishments Act, or any other act? Which companies are exempt from standing order certification, and which are not?

Q3:

If an employee has medical health insurance through the employer with a private insurance company, and the employer contributes the insurance amount monthly, is it necessary to comply with the Employees' State Insurance Act, 1948, and the Workmen's Compensation Act, 1923? What are the differences between employee medical health insurance (private) and ESI 1948 & WC 1923, and what are the merits and demerits of each?

Q4:

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, mandates that employers must notify the employment exchange of all vacancies except those in the unskilled, temporary, and promotion categories. If employers advertise employment vacancies on job portals/websites (private), is this legally permissible?

Please provide clarification.

Thanks with Regards,

T. Thirumurugan

Q1: Common payroll

Yes, if the salary you pay is higher than the highest rate of minimum wages of the states in which you operate. Leave and holidays will vary for each state as they will be as per respective state rules.

Q2: Standing orders certification

It is not mandatory to get standing orders certified. The Factories Act, 1948, or the Shops and Establishments Act are separate acts; don't confuse them with the Standing Orders Act.

Q3: ESI and WC Act coverage

If employees work in ESI-covered areas and draw a monthly salary of up to Rs 21,000 per month, they have to be covered under the act; there is no escape from this. The WC Act is for employees not covered under the ESI Act. The ESI Act covers benefits, and this is an act on compensation; a one-time payment.

Q4: Advertising vacancies

As long as you submit ER I and ER II under the Employment Exchange Act, you can advertise vacancies in any manner.