Hi, I want to know how to manage an HR department in any company. What are the policies to maintain employees' overtime, call on any holiday, time-bound project management, leave policies, EPF, gratuity system, ESI, etc.?
From India, Chandigarh
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From India, Chandigarh
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The subject you have sought clarification on is very voluminous. It all depends on how your organization drafts its policy.
Overtime (OT) Regulations
Regarding OT, it is as per the Factories Act. You can engage employees in OT for not more than 48 hours in a month. You have to pay double the normal wages (on gross).
Holiday Work Compensation
On holidays, you can call any employee in case of work exigency. For such work, you have to pay double the wages.
Leave Policies
Regarding leave, earned leave is as per the Factories Act, i.e., 1 day for every 20 days worked. Regarding casual and sick leave, it is as per the wage agreement or management policy. If employees are covered under ESI, you need not pay any sick leave.
Employee State Insurance (ESI)
If your organization is covered under ESI (if you have 10 or more employees using power), you have to register with ESI authorities and enroll your employees in the scheme. You have to pay 4.75% of the gross amount of wages, and employees have to pay 1.75% of their earnings.
Gratuity System
Regarding Gratuity, if any employee worked for 5 years and above, you have to pay 15 days' wages for every completed year of service. The calculation is as follows: No. of years x 15 x (Basic + DA) / 26.
Time-bound Management Projects
Time-bound management projects are up to your policy.
This is only a bird's eye view of the schemes.
Regards,
G.K. Manjunath
Sr. Manager-HR
From India, Bangalore
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51Overtime (OT) Regulations
Regarding OT, it is as per the Factories Act. You can engage employees in OT for not more than 48 hours in a month. You have to pay double the normal wages (on gross).
Holiday Work Compensation
On holidays, you can call any employee in case of work exigency. For such work, you have to pay double the wages.
Leave Policies
Regarding leave, earned leave is as per the Factories Act, i.e., 1 day for every 20 days worked. Regarding casual and sick leave, it is as per the wage agreement or management policy. If employees are covered under ESI, you need not pay any sick leave.
Employee State Insurance (ESI)
If your organization is covered under ESI (if you have 10 or more employees using power), you have to register with ESI authorities and enroll your employees in the scheme. You have to pay 4.75% of the gross amount of wages, and employees have to pay 1.75% of their earnings.
Gratuity System
Regarding Gratuity, if any employee worked for 5 years and above, you have to pay 15 days' wages for every completed year of service. The calculation is as follows: No. of years x 15 x (Basic + DA) / 26.
Time-bound Management Projects
Time-bound management projects are up to your policy.
This is only a bird's eye view of the schemes.
Regards,
G.K. Manjunath
Sr. Manager-HR
From India, Bangalore
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