Hi, Seniors. I joined a real estate firm, and I am confused. Can we give appointment letters to the employees?
The main reason behind this question is that it's not a registered company. The office is run on proprietorship, and the question is, is it legal to keep more than 20 employees at a time??
My owner is afraid of giving an appointment letter to employees as he is afraid of the labour dept. Laws, such as in sales, if employees don't perform, they can be fired, or their 50 % salary can be forwarded. Whereas I have not seen from the last 2 years anything like this. However, faced-problem retention is very bad in this industry.
Your input will be helpful. Please
Regards
Sonam
From India, New Delhi
4The main reason behind this question is that it's not a registered company. The office is run on proprietorship, and the question is, is it legal to keep more than 20 employees at a time??
My owner is afraid of giving an appointment letter to employees as he is afraid of the labour dept. Laws, such as in sales, if employees don't perform, they can be fired, or their 50 % salary can be forwarded. Whereas I have not seen from the last 2 years anything like this. However, faced-problem retention is very bad in this industry.
Your input will be helpful. Please
Regards
Sonam
From India, New Delhi
Dear Sonam, my personal opinion is that please do not stay in that organisation. Leave it as early as possible.
Now let us see the legal side. An organisation can be set as a sole proprietorship, partnership or as a company. The labour laws are same for all such constitutions. Regarding offer letter, I would say that an offer letter with acceptance by the employee therein is the basic document to show a legal relationship between the employer and the employee. There should not be any person in the establishment without an appointment order (you need not give separate appointment order but an offer letter with details of salary, place of posting etc with acceptance on it by the employee is sufficient to constitute a contract of employment)
You cannot run a business without following the labour laws. The applicability of labour laws to an establishment will depend only on the number of employees employed. For that both direct employees and those engaged through a contractor should be taken in to account. Even if you have only one employee, you are under the coverage of law, say, Minimum Wages Act. You are expected to pay salary within 7 days following Payment of Wages Act. If something happens to that employee during the course of employment, then you are liable to pay compensation as per Employees Compensation Act. If you employ one more person and you have one female employee and a male employee, the Equal remuneration Act will come to apply to your establishment. When your number of employees become 10 and out that you have one woman employee, then you have to grant her 26 weeks maternity leave as provided under Maternity Benefits Act. Subject to infancy protection allowed, Payment of Bonus Act will become applicable to your establishment. Then ESI Act will come to operate. Payment of Gratuity Act will also be covered to your establishment. Once the number of employees becomes 20, EPF Act will be covered.
You cannot hide your employees form the eyes of inspecting authorities. If you want to do business, you should follow certain rules. If your employer is not prepared to follow such rules, please move from there, let him do business in the way he wants to do and never spoil your career by working under such employer.
From India, Kannur
Now let us see the legal side. An organisation can be set as a sole proprietorship, partnership or as a company. The labour laws are same for all such constitutions. Regarding offer letter, I would say that an offer letter with acceptance by the employee therein is the basic document to show a legal relationship between the employer and the employee. There should not be any person in the establishment without an appointment order (you need not give separate appointment order but an offer letter with details of salary, place of posting etc with acceptance on it by the employee is sufficient to constitute a contract of employment)
You cannot run a business without following the labour laws. The applicability of labour laws to an establishment will depend only on the number of employees employed. For that both direct employees and those engaged through a contractor should be taken in to account. Even if you have only one employee, you are under the coverage of law, say, Minimum Wages Act. You are expected to pay salary within 7 days following Payment of Wages Act. If something happens to that employee during the course of employment, then you are liable to pay compensation as per Employees Compensation Act. If you employ one more person and you have one female employee and a male employee, the Equal remuneration Act will come to apply to your establishment. When your number of employees become 10 and out that you have one woman employee, then you have to grant her 26 weeks maternity leave as provided under Maternity Benefits Act. Subject to infancy protection allowed, Payment of Bonus Act will become applicable to your establishment. Then ESI Act will come to operate. Payment of Gratuity Act will also be covered to your establishment. Once the number of employees becomes 20, EPF Act will be covered.
You cannot hide your employees form the eyes of inspecting authorities. If you want to do business, you should follow certain rules. If your employer is not prepared to follow such rules, please move from there, let him do business in the way he wants to do and never spoil your career by working under such employer.
From India, Kannur
Hi Seniors
Joined a real estate firm and here had a confusion can we give appointment letter to the employees ??
Main reason behind this question is that its not a registered company the office which is run on proprietorship and the question is is it legal to keep more than 20 employees at a time??
As my owner is afraid of giving an appointment letter to employees as he is afraid of labour dept. laws as in sales if employees doesn't perform they can be fired or there 50 % salary can be forwarded. Where as I have not seen from last 2 years anything like this. But Faced problem retention is very bad in this industry.
your inputs will be helful. Please
From India
Joined a real estate firm and here had a confusion can we give appointment letter to the employees ??
Main reason behind this question is that its not a registered company the office which is run on proprietorship and the question is is it legal to keep more than 20 employees at a time??
As my owner is afraid of giving an appointment letter to employees as he is afraid of labour dept. laws as in sales if employees doesn't perform they can be fired or there 50 % salary can be forwarded. Where as I have not seen from last 2 years anything like this. But Faced problem retention is very bad in this industry.
your inputs will be helful. Please
From India
Same query was already answered by our very senior member. Please go through the answer carefully
From India, Aizawl
From India, Aizawl
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