Dear All,
I am an Assistant Manager HR working with an edible oil industry. This is a 40+ year-old organization with a turnover of some thousand crores.
My question is, how can we convince the management that we should issue an appointment letter to each employee we hire? Is issuing the appointment letter beneficial to the organization? The costs related to this are an investment, not an expense.
The management feels that issuing these letters would bind them to all legal obligations towards the employees, leading to increased expenses that serve no purpose for them.
Is there a law stating that an employee hired should receive an appointment letter? If so, where is this law mentioned? What are the key points that could help convince my management to issue appointment letters to existing and new employees?
I look forward to your response.
Regards,
Sujeet
From Nigeria, Lagos
I am an Assistant Manager HR working with an edible oil industry. This is a 40+ year-old organization with a turnover of some thousand crores.
My question is, how can we convince the management that we should issue an appointment letter to each employee we hire? Is issuing the appointment letter beneficial to the organization? The costs related to this are an investment, not an expense.
The management feels that issuing these letters would bind them to all legal obligations towards the employees, leading to increased expenses that serve no purpose for them.
Is there a law stating that an employee hired should receive an appointment letter? If so, where is this law mentioned? What are the key points that could help convince my management to issue appointment letters to existing and new employees?
I look forward to your response.
Regards,
Sujeet
From Nigeria, Lagos
Hi Radhika Srinivasan,
Please refer to the Appointment Letter or Offer Letter for a Person covering the following:
- Designation offered to the candidate
- Salary Annexure
- Documents submitted by the candidate
These are the documents signed by the candidate and the Chief of the Company, in two copies. It is proof that the candidate has accepted the offered pay. What other proof do you have, signed by the management and the candidate?
Every company has its own format of offer letters.
Regards,
IT Recruiter
From India, Bangalore
Please refer to the Appointment Letter or Offer Letter for a Person covering the following:
- Designation offered to the candidate
- Salary Annexure
- Documents submitted by the candidate
These are the documents signed by the candidate and the Chief of the Company, in two copies. It is proof that the candidate has accepted the offered pay. What other proof do you have, signed by the management and the candidate?
Every company has its own format of offer letters.
Regards,
IT Recruiter
From India, Bangalore
Dear Sujeet,
Try to convince your management by telling them that if we hire an employee, for example, at $10,000, but after joining, he states that during the interview, it was agreed upon as $12,000, then we lack any proof. We will either have to terminate his employment or provide him with a raise. However, this situation does not appear professional. Furthermore, the same issue could arise regarding job designation. By issuing an appointment letter, we will have a signed document containing all the agreed-upon terms, which nobody can dispute. This practice will help us avoid numerous problems.
Regards,
Fahd Khan Sherani
From Pakistan, Karachi
Try to convince your management by telling them that if we hire an employee, for example, at $10,000, but after joining, he states that during the interview, it was agreed upon as $12,000, then we lack any proof. We will either have to terminate his employment or provide him with a raise. However, this situation does not appear professional. Furthermore, the same issue could arise regarding job designation. By issuing an appointment letter, we will have a signed document containing all the agreed-upon terms, which nobody can dispute. This practice will help us avoid numerous problems.
Regards,
Fahd Khan Sherani
From Pakistan, Karachi
Dear Sujeet,
Try to convince your management by telling them that if we hire an employee, for example, at $10,000, but after joining, he claims that during the interview, it was agreed upon as $12,000. In such a situation, we lack proof. We would then need to decide whether to terminate his employment or offer a salary increase. However, this scenario does not reflect professionalism. Furthermore, the same issue could arise with job designations. If we issue an appointment letter, we would possess a signed document outlining all the agreed terms, which would prevent any disputes and save us from potential problems.
Regards,
Fahd Khan Sherani
Dear Fahd,
First of all, Id - Mubarak. Thank you for your valuable thoughts. The concern lies with the employees who have been with the organization for many years without any official documentation provided by the management. The management seems content with this arrangement, believing they are not responsible for potential complications. However, my Managing Director envisions a more structured HR system and aims to implement it. To persuade other members of the management team, we need to link this initiative with legal requirements to emphasize its necessity. Is there any specific law or regulation I can reference to convince my management?
Regards,
Sujeet
From Nigeria, Lagos
Try to convince your management by telling them that if we hire an employee, for example, at $10,000, but after joining, he claims that during the interview, it was agreed upon as $12,000. In such a situation, we lack proof. We would then need to decide whether to terminate his employment or offer a salary increase. However, this scenario does not reflect professionalism. Furthermore, the same issue could arise with job designations. If we issue an appointment letter, we would possess a signed document outlining all the agreed terms, which would prevent any disputes and save us from potential problems.
Regards,
Fahd Khan Sherani
Dear Fahd,
First of all, Id - Mubarak. Thank you for your valuable thoughts. The concern lies with the employees who have been with the organization for many years without any official documentation provided by the management. The management seems content with this arrangement, believing they are not responsible for potential complications. However, my Managing Director envisions a more structured HR system and aims to implement it. To persuade other members of the management team, we need to link this initiative with legal requirements to emphasize its necessity. Is there any specific law or regulation I can reference to convince my management?
Regards,
Sujeet
From Nigeria, Lagos
probably going with Law is not going to be really helpfull You can make them to understand the HR policies and Say that its Just For Database for future purpose
From India, Bangalore
From India, Bangalore
Usage of Appointment Letter & Appointment Order
Lately, it has been noticed that some members and officials use "Appointment Letter" instead of "Appointment Order." I think, as this is an important document binding the employee and employer and is often reviewed by several courts when the relationship strains, it should be worded as "Appointment Order" and not "Appointment Letter." By referring to it as an "Appointment Letter," the significance and value of such an important document are reduced. The Purchase Department uses terms like "Purchase Order," "Materials Order," "Work Order," etc. Whereas this appointment concerns the life of an employee when it goes to the Labour Court and other courts, hence, it is worth mentioning as "Appointment Order" and not "Appointment Letter." An offer letter can be okay like other normal letters, though it also has significant value. As the appointment document is a binding contract, it can be termed as "Appointment Order." Senior members' comments/opinions are requested to adopt a uniform word.
Leave Card/Record (L.C) Form
Some companies still use Leave Application (LA) loose forms to take leave every time. As LA is loose, it is difficult to check, account, store, and keep track, which complicates making the monthly salary besides saving paper and printing costs where hundreds of employees work. On checking 500 entries of biometric attendance in big companies, 20 LAs were missing. As LA is loose, seniors don’t get time to check each loose LA, and so, companies pay wages as certified by staff even though employees took leave. Hence, you can print and use Leave Card (LC) Record and stop using LA. LC is handy; seniors can always check and find the number of times and days leave taken to calculate monthly CL, SL, PL/EL to make salary. LC/Record is statutory and cannot be manipulated like loose LA. One card for one employee for one year. You can introduce LC in January 2017. After one year, keep old LC in the personal file as a record to verify in the future. It is easy for P&A to work out entitlement, balance-leave management. It is cheap and easy to maintain. Employees will know how often they are taking leave, and HOD can caution misuse/approve on a need basis. Custody-P&A. Each HOD to keep LC to facilitate his employees to take leave. HR to call LC when required to update leave register, month-end, December - statutory.
Holiday List-2017 – Optional Holidays
For continuous working companies (mines, plants) - for uninterrupted work, two optional holidays can be given with national and festival holidays to ensure minimum manpower to man essential services like production, O&M, accounts, HR, etc., as most employees don’t observe all festivals at one time. When one set of employees takes a holiday, the other set can work and vice-versa. Thus, HODs can plan minimum manpower for shift duty/maintain essential services by adjusting manpower to suit his needs and avoid overtime or stop work due to holidays (without increasing declared holidays-10-12).
Personal Information Changes Notice - P.I.C.N. Form
Most HR/P&A departments have personal files on all employees. Still, many employees' current information is missing when HOD wants it, i.e., present address to send notice to X, mobile number would have changed to contact X, nominees' details to notify accident, etc. As the above information has changed after giving the first bio-data on joining, they can be collected by December 2016 using the above form to update MIS, manpower details. For personal file, PF, ESI, and other statutory returns, ISO records for promotion, S.I./A.I. in January 2017, etc.
Manpower Indent/Requisition – M.P.I./R. Form
Recruitment work starts when the user department sends MPI/R.F. to HRD/P&A. This single-sheet form has many columns for HOD to indent several posts - like name/number of posts to be filled, job description, qualification, experience, grade, etc. (of the person to be recruited). After approval by the competent authority, send to HR department. HRD to compare manpower application with manpower planning and succession planning statements to check internal candidates, etc. If no suitable match, take MD’s approval to recruit. Follow recruitment procedures. Notify employment exchanges under CNV Act, employee referrals, database. If no candidate, issue paper/TV ad/contact recruiting agents to sponsor suitable candidates.
Absent Notification Form - A.N.F.
Absenteeism is becoming a serious problem in some companies. HRM is blamed for laxity. It can be controlled by using the above form. HRM to take action against erring employees or when a HOD sends A.N.F. to him. Proper disciplinary procedure to be followed for AOS lest; court may nullify it as void. Sample circular and form for adoption are given below: (150 RP&F available).
Why Standing Orders (S.O.) -- I.D. Act?
A certified S.O. under the Industrial Employment (Standing Orders) Act empowers the company to take disciplinary action against its employees for violating terms and conditions in S.O. However, the company cannot punish employees for acts not included in S.O. - Supreme Court. Termination without inquiry/natural justice, etc., is illegal, and the court can reinstate such employees. Hence, important acts/conducts involving the discipline of employees must be included in the "Misconduct List" in S.O. and procedures of natural justice must be observed to make the company’s action legal. Do’s, don’ts, duties of employees - 100 points, misconducts for which employees are liable for disciplinary action - 80 points, company application/bio-data form - 40 points, important terms and conditions in appointment order - for skilled - 20, supervisors and above - 35. (Please check terms and conditions in your company application, appointment order, standing orders, etc.) - Effect of non-inclusion.
Steps to Set Up HR Department
Regarding steps to set up an HR department, there is no one solution/answer fitting to several HR & A works/functions at one time. One needs to study/audit existing systems, procedures, rules, policies, etc., to deal with HR works as one doctor cannot cure all diseases, and we have to go to ortho, optho, gyno, etc., for different ailments. Kindly go through the below points. I hope it will be useful for your works.
After serving for 35 years (as PO, PM, AM, Advocate, HR Manager, Sr. HR Manager & AGM – HR&A) in HR, IR, legal, and administration departments of steel plant, power plant, chemical plant, electronics & mining companies (with 2000 employees + CL), I am providing consultancy on all aspects of human resources management from recruitment to separation (in soft-copy, for easy adoption in new companies).
In my previous manufacturing companies, I had this opportunity. First, I studied and audited existing systems, rules, documents maintained/followed in the company – viz., attendance registers, leave card/records, statutory returns/reports, licenses-factories act, PF, ESI, bonus, gratuity, etc., manpower statistical reports, MIS, personal files, etc.
Compared with the list of documents to be maintained as per factories/shops and commercial establishments acts, etc., registers, records, reports, MIS, documents, statutory returns/reports, licenses, manpower statistical reports, MIS, files, rules, policies, procedures, processes, systems, formats, etc., and recommended the list of gaps/inadequacies/steps to set up HR department for adoption/implementation as under:
Follow Below Steps, Rules, Systems, Procedures & Formats to Set Up HR Department
Important Formats, Documents for HR & Admin Operation Purpose
As I was to take care of both HR & admin works, I designed and introduced basic formats for each job like advance to draw cash for company’s works, TA & expenses bill, out-pass, OOD & visitors pass, gate pass, leave card & register, indent for vehicles, food, room, ticket booking, etc. Collected and maintained all statutory registers like attendance, wages, leave, adult workers, register of extra work done (OT) & compensatory off availed, punching (biometric-face reader) to regulate in & out time and certify attendance for salary, leave card, record, deduction & remittances of PF, ESI, WC policy, other insurance policies for employees-medical claim, machines & equipment, motor vehicles, etc., CL registration, registers, records, etc., implemented bonus, gratuity, superannuation scheme for senior executives, etc.
Appointment, Opening of Personal Files
Made new company application/bio-data form to collect full details of all employees already working and collected filled forms from 200 employees. Issued induction kit with new appointment order, standing orders & leave rules, ID card, employee code number, EPF & gratuity nomination form, bank account opening for all employees & provided uniform & PPE after safety & induction training.
Check-List Form for Personal Files
Introduced and new personal files opened for each employee with company application/bio-data, interview/selection approval sheet of competent authority for appointment, offer letter, induction schedule on joining, appointment order-acknowledgment copy, all certificates copies of DOB, qualifications, past experience, salary slip, PA form, address proof, medical & blood group reports, photos, ID card, employee code number, EPF & gratuity nomination form, etc.
For Fresh Recruitment
New manpower requisition/indent form, candidates' details for interview/selection (comparative list form), interview assessment form for selection, check-list form for interview, check-list form for appointment & approval introduced.
Reports of Manpower - MIS, HRIS
Master list, addition & separation, manpower planning, succession planning, HRIS, MIS, etc., categorizing/grading & pay-scale (band) for all levels of employees, job description, security checks, safety & health – OHC, as per ISO/management’s requirement were introduced and implemented.
Absent Notification Form
To monitor/control absence, advisory memo, show cause notice, enquiry, publication on company notice board, newspaper. If employee fails to respond, terminate as per AOS under certified standing orders of the company. PA form to assess trainees, confirmation, promotion, S.I., annual increment, transfer, T&D, all terminations, retrenchment, VRS, superannuation, extension of service, resignation procedures, notice period, exit interview, clearance certificate/no due certificate, final settlement, service certificate.
Constituting Various Committees
Constituted safety, canteen, housekeeping, house allotment, works and grievance redressal, transport, event organizing committees, etc., involving concerned HODs to create awareness, to ensure smooth functioning of all department works, harmonious relations & to attend to complaints of employees including sexual & other types of harassment & discrimination.
Training & Developments with 50 Slides
Conducted T&D programs with 50 slides on discipline, attitude, housekeeping, health tips on Ayurveda, yoga, Panchakarma for stress, BP, sugar problems, etc.
I hope you will find the above useful. Will share more on hearing from you.
Thanking you & awaiting to hear from you.
With kind regards,
C. Neyim Khan
HR Consultant & Advocate, Ex-AGM (HR&A),
Hospet/Bangalore, Karnataka, S. India.
Mobile No. [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]
Qualification: BA, LLB, PGDPM, MBA-HR-Xaviers
Ex-Member, NIPM, Calcutta, Ex-Trainee-Member, Indian Institute of Management, Bangalore.
Languages Known: Kannada, Tamil, Telugu, Malayalam + English & Hindi
Regards, C. Neyim Khan
From India, Mumbai
Lately, it has been noticed that some members and officials use "Appointment Letter" instead of "Appointment Order." I think, as this is an important document binding the employee and employer and is often reviewed by several courts when the relationship strains, it should be worded as "Appointment Order" and not "Appointment Letter." By referring to it as an "Appointment Letter," the significance and value of such an important document are reduced. The Purchase Department uses terms like "Purchase Order," "Materials Order," "Work Order," etc. Whereas this appointment concerns the life of an employee when it goes to the Labour Court and other courts, hence, it is worth mentioning as "Appointment Order" and not "Appointment Letter." An offer letter can be okay like other normal letters, though it also has significant value. As the appointment document is a binding contract, it can be termed as "Appointment Order." Senior members' comments/opinions are requested to adopt a uniform word.
Leave Card/Record (L.C) Form
Some companies still use Leave Application (LA) loose forms to take leave every time. As LA is loose, it is difficult to check, account, store, and keep track, which complicates making the monthly salary besides saving paper and printing costs where hundreds of employees work. On checking 500 entries of biometric attendance in big companies, 20 LAs were missing. As LA is loose, seniors don’t get time to check each loose LA, and so, companies pay wages as certified by staff even though employees took leave. Hence, you can print and use Leave Card (LC) Record and stop using LA. LC is handy; seniors can always check and find the number of times and days leave taken to calculate monthly CL, SL, PL/EL to make salary. LC/Record is statutory and cannot be manipulated like loose LA. One card for one employee for one year. You can introduce LC in January 2017. After one year, keep old LC in the personal file as a record to verify in the future. It is easy for P&A to work out entitlement, balance-leave management. It is cheap and easy to maintain. Employees will know how often they are taking leave, and HOD can caution misuse/approve on a need basis. Custody-P&A. Each HOD to keep LC to facilitate his employees to take leave. HR to call LC when required to update leave register, month-end, December - statutory.
Holiday List-2017 – Optional Holidays
For continuous working companies (mines, plants) - for uninterrupted work, two optional holidays can be given with national and festival holidays to ensure minimum manpower to man essential services like production, O&M, accounts, HR, etc., as most employees don’t observe all festivals at one time. When one set of employees takes a holiday, the other set can work and vice-versa. Thus, HODs can plan minimum manpower for shift duty/maintain essential services by adjusting manpower to suit his needs and avoid overtime or stop work due to holidays (without increasing declared holidays-10-12).
Personal Information Changes Notice - P.I.C.N. Form
Most HR/P&A departments have personal files on all employees. Still, many employees' current information is missing when HOD wants it, i.e., present address to send notice to X, mobile number would have changed to contact X, nominees' details to notify accident, etc. As the above information has changed after giving the first bio-data on joining, they can be collected by December 2016 using the above form to update MIS, manpower details. For personal file, PF, ESI, and other statutory returns, ISO records for promotion, S.I./A.I. in January 2017, etc.
Manpower Indent/Requisition – M.P.I./R. Form
Recruitment work starts when the user department sends MPI/R.F. to HRD/P&A. This single-sheet form has many columns for HOD to indent several posts - like name/number of posts to be filled, job description, qualification, experience, grade, etc. (of the person to be recruited). After approval by the competent authority, send to HR department. HRD to compare manpower application with manpower planning and succession planning statements to check internal candidates, etc. If no suitable match, take MD’s approval to recruit. Follow recruitment procedures. Notify employment exchanges under CNV Act, employee referrals, database. If no candidate, issue paper/TV ad/contact recruiting agents to sponsor suitable candidates.
Absent Notification Form - A.N.F.
Absenteeism is becoming a serious problem in some companies. HRM is blamed for laxity. It can be controlled by using the above form. HRM to take action against erring employees or when a HOD sends A.N.F. to him. Proper disciplinary procedure to be followed for AOS lest; court may nullify it as void. Sample circular and form for adoption are given below: (150 RP&F available).
Why Standing Orders (S.O.) -- I.D. Act?
A certified S.O. under the Industrial Employment (Standing Orders) Act empowers the company to take disciplinary action against its employees for violating terms and conditions in S.O. However, the company cannot punish employees for acts not included in S.O. - Supreme Court. Termination without inquiry/natural justice, etc., is illegal, and the court can reinstate such employees. Hence, important acts/conducts involving the discipline of employees must be included in the "Misconduct List" in S.O. and procedures of natural justice must be observed to make the company’s action legal. Do’s, don’ts, duties of employees - 100 points, misconducts for which employees are liable for disciplinary action - 80 points, company application/bio-data form - 40 points, important terms and conditions in appointment order - for skilled - 20, supervisors and above - 35. (Please check terms and conditions in your company application, appointment order, standing orders, etc.) - Effect of non-inclusion.
Steps to Set Up HR Department
Regarding steps to set up an HR department, there is no one solution/answer fitting to several HR & A works/functions at one time. One needs to study/audit existing systems, procedures, rules, policies, etc., to deal with HR works as one doctor cannot cure all diseases, and we have to go to ortho, optho, gyno, etc., for different ailments. Kindly go through the below points. I hope it will be useful for your works.
After serving for 35 years (as PO, PM, AM, Advocate, HR Manager, Sr. HR Manager & AGM – HR&A) in HR, IR, legal, and administration departments of steel plant, power plant, chemical plant, electronics & mining companies (with 2000 employees + CL), I am providing consultancy on all aspects of human resources management from recruitment to separation (in soft-copy, for easy adoption in new companies).
In my previous manufacturing companies, I had this opportunity. First, I studied and audited existing systems, rules, documents maintained/followed in the company – viz., attendance registers, leave card/records, statutory returns/reports, licenses-factories act, PF, ESI, bonus, gratuity, etc., manpower statistical reports, MIS, personal files, etc.
Compared with the list of documents to be maintained as per factories/shops and commercial establishments acts, etc., registers, records, reports, MIS, documents, statutory returns/reports, licenses, manpower statistical reports, MIS, files, rules, policies, procedures, processes, systems, formats, etc., and recommended the list of gaps/inadequacies/steps to set up HR department for adoption/implementation as under:
Follow Below Steps, Rules, Systems, Procedures & Formats to Set Up HR Department
Important Formats, Documents for HR & Admin Operation Purpose
As I was to take care of both HR & admin works, I designed and introduced basic formats for each job like advance to draw cash for company’s works, TA & expenses bill, out-pass, OOD & visitors pass, gate pass, leave card & register, indent for vehicles, food, room, ticket booking, etc. Collected and maintained all statutory registers like attendance, wages, leave, adult workers, register of extra work done (OT) & compensatory off availed, punching (biometric-face reader) to regulate in & out time and certify attendance for salary, leave card, record, deduction & remittances of PF, ESI, WC policy, other insurance policies for employees-medical claim, machines & equipment, motor vehicles, etc., CL registration, registers, records, etc., implemented bonus, gratuity, superannuation scheme for senior executives, etc.
Appointment, Opening of Personal Files
Made new company application/bio-data form to collect full details of all employees already working and collected filled forms from 200 employees. Issued induction kit with new appointment order, standing orders & leave rules, ID card, employee code number, EPF & gratuity nomination form, bank account opening for all employees & provided uniform & PPE after safety & induction training.
Check-List Form for Personal Files
Introduced and new personal files opened for each employee with company application/bio-data, interview/selection approval sheet of competent authority for appointment, offer letter, induction schedule on joining, appointment order-acknowledgment copy, all certificates copies of DOB, qualifications, past experience, salary slip, PA form, address proof, medical & blood group reports, photos, ID card, employee code number, EPF & gratuity nomination form, etc.
For Fresh Recruitment
New manpower requisition/indent form, candidates' details for interview/selection (comparative list form), interview assessment form for selection, check-list form for interview, check-list form for appointment & approval introduced.
Reports of Manpower - MIS, HRIS
Master list, addition & separation, manpower planning, succession planning, HRIS, MIS, etc., categorizing/grading & pay-scale (band) for all levels of employees, job description, security checks, safety & health – OHC, as per ISO/management’s requirement were introduced and implemented.
Absent Notification Form
To monitor/control absence, advisory memo, show cause notice, enquiry, publication on company notice board, newspaper. If employee fails to respond, terminate as per AOS under certified standing orders of the company. PA form to assess trainees, confirmation, promotion, S.I., annual increment, transfer, T&D, all terminations, retrenchment, VRS, superannuation, extension of service, resignation procedures, notice period, exit interview, clearance certificate/no due certificate, final settlement, service certificate.
Constituting Various Committees
Constituted safety, canteen, housekeeping, house allotment, works and grievance redressal, transport, event organizing committees, etc., involving concerned HODs to create awareness, to ensure smooth functioning of all department works, harmonious relations & to attend to complaints of employees including sexual & other types of harassment & discrimination.
Training & Developments with 50 Slides
Conducted T&D programs with 50 slides on discipline, attitude, housekeeping, health tips on Ayurveda, yoga, Panchakarma for stress, BP, sugar problems, etc.
I hope you will find the above useful. Will share more on hearing from you.
Thanking you & awaiting to hear from you.
With kind regards,
C. Neyim Khan
HR Consultant & Advocate, Ex-AGM (HR&A),
Hospet/Bangalore, Karnataka, S. India.
Mobile No. [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]
Qualification: BA, LLB, PGDPM, MBA-HR-Xaviers
Ex-Member, NIPM, Calcutta, Ex-Trainee-Member, Indian Institute of Management, Bangalore.
Languages Known: Kannada, Tamil, Telugu, Malayalam + English & Hindi
Regards, C. Neyim Khan
From India, Mumbai
Importance of Issuing Appointment Letters
There is no provision in the above labor law that requires an employer to provide a written statement of particulars to a newly hired employee. However, a written appointment letter or employment contract is signed between the employer and the worker as a matter of practice.
If people don't have a receipt of the appointment order, then on what basis are they working there? Be firm and insist that the management issue an appointment order to every employee. Also, convince them that it's an illegal practice. Every rupee coming in and out of the company will be recorded somewhere, so it is better to maintain all records.
From India, Hyderabad
There is no provision in the above labor law that requires an employer to provide a written statement of particulars to a newly hired employee. However, a written appointment letter or employment contract is signed between the employer and the worker as a matter of practice.
If people don't have a receipt of the appointment order, then on what basis are they working there? Be firm and insist that the management issue an appointment order to every employee. Also, convince them that it's an illegal practice. Every rupee coming in and out of the company will be recorded somewhere, so it is better to maintain all records.
From India, Hyderabad
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