Dear HR professional,
Greetings!
Firstly to start the HR Department, you need to first understand the people management and organization culture.
As it is Important to understand that whatever you create and set polices or procedure it is for the team and the HR polices must carry values and human touch at it.
Before you form any rules and regulations, it is important to do the reserach and what are the best practices at current time the other companies are following so that it can be beneficial for employees and employer both as well.
To fix salary it is important to understand and you must the compliance required for your organization as per the below..
1) Type of firm..
a) Is your company is under the proprietorship
b) Is your company is Private Limited
c) Is your company is Limited
According to all three the applicability of all legal compliance are to be there....
2) Number of Manpower
PF & ESI applicability becomes liable as per the number of employees with or without the aid of power...Once your company is an Private Limited company so applicability of Employees Provident Fund Act 1952, Employees State Insurance Act 1948, Bonus Act, Gratuity, Factory Act, which all come under the Shops & Establishment Act are to be applicable.
Apart from all these, there are other things also required to be noted down at your Engineering company site..
a) At your company how many male & female workers are there,
b) How many are the skilled, Semi skilled & Unskilled workers are there
c) You need to create a Salary & Wages chart
d) You should be knowing what is the minimum wages of skilled, Semi skilled & Unskilled workers for state wise, city wise and time to to time you need to update the same.
e) For PF & ESIC, you need to first get the PF & ESIC registration number from the office of Regional Provident Fund of Commissioner Office & same for ESIC office...
g) If there are female workers more then 30 numbers then your company must have the provision of one creche with trained care taker.
h) There must be a medical room with one medical in-charge nurse.
i) Lockers, Canteen, tranport, proper working conditions should be there...
This is a very vast area, so please tell your friend to coordinate with me for detailed understanding as this I mentioned as per the factory or production unit.
But if this a a service industry then there applicability are little different....
If you need any further detail for PF & ESI then one needs to coordinate with me as this is very vast topic...like nomincation form, declaration form, PF & ESI code, monthly, half yearly and annual return with 3CA form..