Dear Sheetal,
Thanks a lot for your advice, we will be doing this definitely but I need a format like how much % we should give them on which salary slab and what other benefit we should give them.
Rajni
From India, Delhi
Thanks a lot for your advice, we will be doing this definitely but I need a format like how much % we should give them on which salary slab and what other benefit we should give them.
Rajni
From India, Delhi
Rajni just go through geeta's post .... she has written everything ....
Hi Rajni,
Your problem can be looked at from a different angle.
Say 5% of employee salary is kept as severance pay. At the end of one year you have 5 % of employee's CTC which is payable only if he leaves any time after completing 1 year. If he resigns before completing minimum time as defined by the policy then you may not give this amount at the time of resignation. But this you may not show as a part of CTC. You show 95% as CTC, 5% as severance pay which is over and above the CTC.
The policy could read something like:
If an employee serves the company for minimum 1 year then upon completion of one year he is entitled to 5% of his current CTC as severance pay ,however this amount is made payable only if the employee resigns. This amount is multiplied by number of years completed in service. if an employee resigns after X number of years then the employee is entitled to X multiplied by 5% of current CTC at that time.
CTC is structured in such fashion to retain employees and amuse them during and also at the end of employment. The wording and concept in the policy should be presented in a manner acceptable to all.
Thanks
Geeta
From India, Chandigarh
2Hi Rajni,
Your problem can be looked at from a different angle.
Say 5% of employee salary is kept as severance pay. At the end of one year you have 5 % of employee's CTC which is payable only if he leaves any time after completing 1 year. If he resigns before completing minimum time as defined by the policy then you may not give this amount at the time of resignation. But this you may not show as a part of CTC. You show 95% as CTC, 5% as severance pay which is over and above the CTC.
The policy could read something like:
If an employee serves the company for minimum 1 year then upon completion of one year he is entitled to 5% of his current CTC as severance pay ,however this amount is made payable only if the employee resigns. This amount is multiplied by number of years completed in service. if an employee resigns after X number of years then the employee is entitled to X multiplied by 5% of current CTC at that time.
CTC is structured in such fashion to retain employees and amuse them during and also at the end of employment. The wording and concept in the policy should be presented in a manner acceptable to all.
Thanks
Geeta
From India, Chandigarh
Dear Rajni
(we take a bond for an amount equal to three months salary to counter this practice. HR people shud insist for the releiving letters during recruitment so the practice of not bothering for the F&F and releiving letter will come down. It's our own grave we dug.
any way cutting part of salary doesn't seem to be right. A bond shud be correct. in case of default a legal notice form legal adviser to that employee will set things right.)
I withdraw this post and agre with what Ms.Geeta suggests.
From India, Madras
(we take a bond for an amount equal to three months salary to counter this practice. HR people shud insist for the releiving letters during recruitment so the practice of not bothering for the F&F and releiving letter will come down. It's our own grave we dug.
any way cutting part of salary doesn't seem to be right. A bond shud be correct. in case of default a legal notice form legal adviser to that employee will set things right.)
I withdraw this post and agre with what Ms.Geeta suggests.
From India, Madras
Hi rajani, do the employee working in your organisation know that they have to serve 2 month notice period? Coz my perception is that in this topic views falls on 2 aspects one is Retetion amount and other is to reduce the practice of leaving orgn: without serving notice period?
For retention i think as some of my friends told, you can implement LTA so as to enable them to be stress free and can have enjoyment with their family or can give an amount under the head "Loyalty".
From India, Ernakulam
For retention i think as some of my friends told, you can implement LTA so as to enable them to be stress free and can have enjoyment with their family or can give an amount under the head "Loyalty".
From India, Ernakulam
Hi Rajani,
Please keep in mind about the minimum wages,there should not be deduction in minumum wages(except law allowed),otherwise it consider as illigal deduction.
Yes,if you are paying more than the minimum wages then you can keep wages structure as per the company policy and you can choose the option of Geeta.
Best Regards-
Sajid Ansari-Delhi
From India, Delhi
Please keep in mind about the minimum wages,there should not be deduction in minumum wages(except law allowed),otherwise it consider as illigal deduction.
Yes,if you are paying more than the minimum wages then you can keep wages structure as per the company policy and you can choose the option of Geeta.
Best Regards-
Sajid Ansari-Delhi
From India, Delhi
Dear Rajni,
As per labour laws, there are some authorised deductions specified. In care you want to formulate a policy in regards to deduct some amount from salary every month and shall keep the same as security money, then you are required to pay them interest on the same amount like banks give on fixed deposits. The same has to be incorporated in the policy and the policy before implementation is required to be discussed in detail with the employees and should get their token of acceptance, dulky vetted by your legal advisor.
Regards
Amit Anand Gera
From India, New Delhi
As per labour laws, there are some authorised deductions specified. In care you want to formulate a policy in regards to deduct some amount from salary every month and shall keep the same as security money, then you are required to pay them interest on the same amount like banks give on fixed deposits. The same has to be incorporated in the policy and the policy before implementation is required to be discussed in detail with the employees and should get their token of acceptance, dulky vetted by your legal advisor.
Regards
Amit Anand Gera
From India, New Delhi
Rajani,
As mentioned in the earlier posts
1. Its not legal to set aside any amount for the above mentioned cause
2. You can set aside an amount for 'Loyalty Bonus' to be paid once a year
3. Understand and Analyze the reason why attrition is high and try to change that
4. Break up salary into Fixed and Variable components
5. Draw up a strong and conclusive 'Employee Agreement' with the employees which include clauses w.r.t employee separation without/short notice.
Regards
SF
From India, Mumbai
As mentioned in the earlier posts
1. Its not legal to set aside any amount for the above mentioned cause
2. You can set aside an amount for 'Loyalty Bonus' to be paid once a year
3. Understand and Analyze the reason why attrition is high and try to change that
4. Break up salary into Fixed and Variable components
5. Draw up a strong and conclusive 'Employee Agreement' with the employees which include clauses w.r.t employee separation without/short notice.
Regards
SF
From India, Mumbai
Yes this can be possible but you have to check all other aspects about his present reputation with organization.:?:
From India, Pune
From India, Pune
Dear Rajni,
As far as the policy is concerned including the quotation of security i think this leaves a bad impression on organization, there is an option for deducting some amount of money from the employee monthly salary i.e EWS employee welfareer scheme, made a policy of this scheme and deduct the fixed amount e.g 500 or 300 from the monthly salary and the contribution amount could withraw only at the time of resignation/Full and final, with some fixed interest amount.
rgds
Mahavir singh
From India, New Delhi
As far as the policy is concerned including the quotation of security i think this leaves a bad impression on organization, there is an option for deducting some amount of money from the employee monthly salary i.e EWS employee welfareer scheme, made a policy of this scheme and deduct the fixed amount e.g 500 or 300 from the monthly salary and the contribution amount could withraw only at the time of resignation/Full and final, with some fixed interest amount.
rgds
Mahavir singh
From India, New Delhi
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