Who should, in an organization, ideally take care of PF, ESI, Gratuity and other financial aspects related employees? Is it the job for HR department or Finance department? Thanks Avinash
From India, Bangalore
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1From India, Bangalore
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It is the task of HR and the personnel department. The personnel department maintains the wage roll and deducts the statutory deductions such as PF, ESI, PT, IT, etc. It is the wage section that prepares the wage roll and maintains the attendance. Hence, they have all the records to account for PF, ESI, PT, IT, etc.
Based on the workings of the personnel department, the finance department's role is to make payments to the authorities on time.
Regards,
G.K. Manjunath Sr. Manager-HR
From India, Bangalore
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Based on the workings of the personnel department, the finance department's role is to make payments to the authorities on time.
Regards,
G.K. Manjunath Sr. Manager-HR
From India, Bangalore
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In a medium to large organization, the following practices are normally observed:
1. Submission of returns by HR
2. Interpretation of definitions is always done by HR
3. Deductions and maintenance of accounts are handled by the Accounts department
4. Liaison with departments is the responsibility of HR
5. Maintenance of registers is carried out by HR
6. Representing the organization before judicial authorities is the duty of HR
HR will be accountable for all ESI and PF-related issues, while the Accounts department will play a supportive role and be responsible for payment-related matters.
From India, Chennai
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1. Submission of returns by HR
2. Interpretation of definitions is always done by HR
3. Deductions and maintenance of accounts are handled by the Accounts department
4. Liaison with departments is the responsibility of HR
5. Maintenance of registers is carried out by HR
6. Representing the organization before judicial authorities is the duty of HR
HR will be accountable for all ESI and PF-related issues, while the Accounts department will play a supportive role and be responsible for payment-related matters.
From India, Chennai
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Dear Sivasankaran, When you say "Interpretation regarding definition is always by HR", what do you mean by that, please? May you please elaborate? Thanks Avinash
From India, Bangalore
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From India, Bangalore
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There are many definitions like wages, employee, benefits, etc. HR is supposed to have knowledge of case laws pertaining to these definitions and implement correct definitions across. For example, discussions will arise as to whether conveyance allowance will be included as part of wages. HR should cite definitions, case laws, and advise the correct position.
From India, Chennai
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From India, Chennai
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Dear Mr. Avinash,
I am in sync with all the replies given by friends on your doubt. The right practice and convention are for the HR department to handle all matters concerning employees, such as welfare and statutory compliance, except TDS under Income Tax. The HR department sends requisitions for cheques after making all the calculations and preparing challans, etc. It is the HR department that should understand the correct meaning of various terms under labor laws, for which they should have the latest editions of books and be in touch with the concerned departments, attend workshops and seminars arranged by them or industry associations. Websites like this have some limitations, as often the replies given by some contributors may not be correct or latest. Hence, be careful and selective. No HR professional can avoid reading original laws and the latest editions of reputed books on the subject. Where needed, they should consult legal advisors well-versed in the subject. Not all those claiming to be consultants need to be knowledgeable on the latest laws, and many are merely liaison men who could even complicate matters.
Regards,
O. Abdul Hameed
Formerly Addl. Commissioner ESIC
[Email Removed For Privacy Reasons]
From India, Coimbatore
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I am in sync with all the replies given by friends on your doubt. The right practice and convention are for the HR department to handle all matters concerning employees, such as welfare and statutory compliance, except TDS under Income Tax. The HR department sends requisitions for cheques after making all the calculations and preparing challans, etc. It is the HR department that should understand the correct meaning of various terms under labor laws, for which they should have the latest editions of books and be in touch with the concerned departments, attend workshops and seminars arranged by them or industry associations. Websites like this have some limitations, as often the replies given by some contributors may not be correct or latest. Hence, be careful and selective. No HR professional can avoid reading original laws and the latest editions of reputed books on the subject. Where needed, they should consult legal advisors well-versed in the subject. Not all those claiming to be consultants need to be knowledgeable on the latest laws, and many are merely liaison men who could even complicate matters.
Regards,
O. Abdul Hameed
Formerly Addl. Commissioner ESIC
[Email Removed For Privacy Reasons]
From India, Coimbatore
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