Dear All,
I have a different query related to grade-wise positions.
In my company, we have staff category employees in Grades S-1 to S-3, E-9, and FTC, while the Executive grade starts from E-8 onwards.
My confusion is whether those employees coming under the Executive category are covered under various labor laws, or simply put, is the executive cadre group governed by various labor laws or not.
An early response will be highly appreciated.
With warm regards,
Ranjeet
From India, New Delhi
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12I have a different query related to grade-wise positions.
In my company, we have staff category employees in Grades S-1 to S-3, E-9, and FTC, while the Executive grade starts from E-8 onwards.
My confusion is whether those employees coming under the Executive category are covered under various labor laws, or simply put, is the executive cadre group governed by various labor laws or not.
An early response will be highly appreciated.
With warm regards,
Ranjeet
From India, New Delhi
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Dear Jeeni, if you are talking ESI...it cover only according to rules no matter what is the structure
From India, Mumbai
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From India, Mumbai
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In the absence of a proper definition of the word 'executive', it is difficult to answer your question. An employee who has substantial control over the affairs of the establishment shall be deemed to be part of management. Otherwise, he is an employee only.
Though the basic Acts have laid down some wage ceiling to define a workman, the same has been removed from many Acts. Therefore, it is not the salary that decides whether one is a worker or not, but it is the nature of his duties that determines whether he is an employee/worker and whether he is exempted from Labor Acts.
Regards, Madhu.T.K
From India, Kannur
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Though the basic Acts have laid down some wage ceiling to define a workman, the same has been removed from many Acts. Therefore, it is not the salary that decides whether one is a worker or not, but it is the nature of his duties that determines whether he is an employee/worker and whether he is exempted from Labor Acts.
Regards, Madhu.T.K
From India, Kannur
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Dear Madhu,
Thank you for your reply.
However, the company's policy is as follows:
For example, if they conduct a campus placement, they provide training to an individual for two years and assign the title of Assistant Manager to every role. Despite this, they still perform tasks such as recruitment or act as junior officials, handling responsibilities similar to those of regular employees. Although we provide statutory bonuses and other benefits to staff in other grades, those in the executive grade E-8 and above do not receive these benefits; instead, they are entitled to a performance bonus.
Their salaries are on the higher end, with additional benefits.
Please suggest what course of action to take.
Regards,
Ranjeet
From India, New Delhi
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Thank you for your reply.
However, the company's policy is as follows:
For example, if they conduct a campus placement, they provide training to an individual for two years and assign the title of Assistant Manager to every role. Despite this, they still perform tasks such as recruitment or act as junior officials, handling responsibilities similar to those of regular employees. Although we provide statutory bonuses and other benefits to staff in other grades, those in the executive grade E-8 and above do not receive these benefits; instead, they are entitled to a performance bonus.
Their salaries are on the higher end, with additional benefits.
Please suggest what course of action to take.
Regards,
Ranjeet
From India, New Delhi
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Dear Madhu, Can u give me the actual defination of Workman and Executive and reference of the act. With warm regards Ranjeet
From India, New Delhi
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From India, New Delhi
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Dear Ranjit,
It depends on the situation. The nature of the relationship and the degree of supervision will determine whether the employee will fall under the category of 'employee' or not. In fact, for the payment of a bonus, the salary (Basic + DA) will be the determining factor. For the payment of gratuity, there is no such restriction except that the total amount of gratuity should not exceed Rs 3.5 lakhs. Therefore, the designation shall not have any direct bearing in many cases. If the company's policy is to consider executives as 'supervisory staff,' the same can be followed. It does not mean that they should not perform any clerical work. It is not really the nature of work but the responsibilities undertaken and the position in the hierarchy that determine it. However, very often the salary will also influence the definition of an employee. For the payment of a bonus as per the Payment of Bonus Act, for example, the salary shall be considered. That would be accurate.
Regards,
Madhu.T.K
From India, Kannur
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It depends on the situation. The nature of the relationship and the degree of supervision will determine whether the employee will fall under the category of 'employee' or not. In fact, for the payment of a bonus, the salary (Basic + DA) will be the determining factor. For the payment of gratuity, there is no such restriction except that the total amount of gratuity should not exceed Rs 3.5 lakhs. Therefore, the designation shall not have any direct bearing in many cases. If the company's policy is to consider executives as 'supervisory staff,' the same can be followed. It does not mean that they should not perform any clerical work. It is not really the nature of work but the responsibilities undertaken and the position in the hierarchy that determine it. However, very often the salary will also influence the definition of an employee. For the payment of a bonus as per the Payment of Bonus Act, for example, the salary shall be considered. That would be accurate.
Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu,
Are trainees and apprentices entitled to provisions like bonus, gratuity, PF, and ESI? Can you tell me the difference between ex-gratia, statutory bonus, performance bonus, and production bonus? Where do these terms derive from?
Regards,
Ranjeet
From India, New Delhi
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Are trainees and apprentices entitled to provisions like bonus, gratuity, PF, and ESI? Can you tell me the difference between ex-gratia, statutory bonus, performance bonus, and production bonus? Where do these terms derive from?
Regards,
Ranjeet
From India, New Delhi
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Trainees other than those engaged as trade apprentices under the Apprentice Act, 1961, and those engaged as per provisions made in this regard in the Standing Orders of the company are eligible for bonus, ESI, and EPF. However, for EPF, a Supreme Court verdict stating that all trainees are exempted from EPF is in force. When calculating eligibility for gratuity, the period of training other than as per the Apprentice Act shall be considered the period of 'employment' unless the employer can prove that the employee was under training only.
Bonus payable following the provisions of the Payment of Bonus Act is statutory bonus. The bonus is payable at a rate of not less than 8.33% and not more than 20%, depending upon the availability of profits/surplus. On the other hand, performance bonus and production bonus are incentives based on production, sales, or performance. Any amount paid apart from these shall be classified as ex gratia.
Regards,
Madhu.T.K
From India, Kannur
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Bonus payable following the provisions of the Payment of Bonus Act is statutory bonus. The bonus is payable at a rate of not less than 8.33% and not more than 20%, depending upon the availability of profits/surplus. On the other hand, performance bonus and production bonus are incentives based on production, sales, or performance. Any amount paid apart from these shall be classified as ex gratia.
Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu,
I came across a case where the court had given a verdict that trainees and apprentices are not entitled to any benefits. However, now I think in Delhi, in trades like stewarding, no apprentices are being taken. Despite this, we are providing them with a certificate from TAJ.
So, if an apprentice is hired in a factory, are they eligible for PF and other statutory benefits or not? Please suggest.
Regards,
Ranjeet
From India, New Delhi
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I came across a case where the court had given a verdict that trainees and apprentices are not entitled to any benefits. However, now I think in Delhi, in trades like stewarding, no apprentices are being taken. Despite this, we are providing them with a certificate from TAJ.
So, if an apprentice is hired in a factory, are they eligible for PF and other statutory benefits or not? Please suggest.
Regards,
Ranjeet
From India, New Delhi
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I have made it clear that trainees engaged following the Apprentices Act and those engaged as per Standing Orders are exempted from the operation of these Acts. There should be sufficient proof to say that they are getting trained in all respects with practical and theoretical classes under the guidance of a person appointed for this purpose by the management. It should not be just to deter any rights of employees.
If we follow the Apprentice Act, there is a procedure for the appointment and engagement of trade apprentices for one year under a contract jointly signed by the company with the apprentice and his parent. It is considered as part of his trade course, and he is supposed to report every week to the Related Instruction center of the concerned Government for theory sessions.
Similarly, with a view to grooming persons to take up employment within the organization or outside, trainees can be engaged if provided in the Standing Orders. In such circumstances also, they are treated as trainees, but in all other cases, the engagement of trainees will be viewed as a measure to take away the rights of employees conferred in Labor Laws.
Regards,
Madhu.T.K
From India, Kannur
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If we follow the Apprentice Act, there is a procedure for the appointment and engagement of trade apprentices for one year under a contract jointly signed by the company with the apprentice and his parent. It is considered as part of his trade course, and he is supposed to report every week to the Related Instruction center of the concerned Government for theory sessions.
Similarly, with a view to grooming persons to take up employment within the organization or outside, trainees can be engaged if provided in the Standing Orders. In such circumstances also, they are treated as trainees, but in all other cases, the engagement of trainees will be viewed as a measure to take away the rights of employees conferred in Labor Laws.
Regards,
Madhu.T.K
From India, Kannur
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