Sir, i have heard that finance team is responsible to pay gratuity, then why it comes under an HR.
From India, Delhi
1From India, Delhi
Gratuity act is social legislation .... all social act /legislation comes under HR. Finance/accounts department responsibility to arrange respective amount and pay.
From India, undefined
From India, undefined
Hi Sandeep Maratha,
Computation has to be done by HR department, payment has to be made by Finance department.
As HR is responsible for maintaining the employee details like date of joining,pay,no of years of service,date of leaving, it gives the authenticity of the details and Finance clears the same upon verification.
As rightly suggested by Mr.R K Singh, it is a part of Statutory payment which is relating employee compensation benefits, HR has to calculate the same and make Management comply with it.
From India, Hyderabad
Computation has to be done by HR department, payment has to be made by Finance department.
As HR is responsible for maintaining the employee details like date of joining,pay,no of years of service,date of leaving, it gives the authenticity of the details and Finance clears the same upon verification.
As rightly suggested by Mr.R K Singh, it is a part of Statutory payment which is relating employee compensation benefits, HR has to calculate the same and make Management comply with it.
From India, Hyderabad
GRATUITY PAYMENT BY A/CS.DEPT. WHY H.R. TO DEAL ??
=============================================
H.R.Dept. takes care of complete personal details of every employees from Recruitment to Separation. HR Dept.is the Custodian of Personal Files, Personal information of all employees; Service details like, DOJ, DOL, Salary details, Appointment, Final Settlment; Implementation of all Statutory Acts like PF, ESI, Bonus, Gratuity, S.O., IDA etc., are the responsbilities of HR Dept. Hence, HR Dept. works out the Salary (based on Attendance -which is HR Duty), OT, PF, ESI, Bonus, Gratuity etc., and get the same approved by Management and then send to Accounts Dept. for payment. Accounts will cross check with the Management approval & make payment.
HR Dept. has the added responsibilities of controlling Absenteeism, deducting for absenteeism, Disciplinary action including suspending from duty which means HR to deduct salary for Suspended days etc,
Hence, HR has a major role in certifyig payment for Salary, PF, ESI, Bonus, Gratuity etc.,
In many Cos. HR & Accounts are made to work as Checks & Balance; while HR initiates all proposals and get it appd.by Management, Accounts Dept. make payment after verifying Management Approval
INTRODUCTION. (Abrevations used to save space).
===========
I am an Ex AGM-HR&Adm.with 40+ yrs.exp.in HR,IR,LEGAL, & Admn., Works of 7 Mfg. Cos.- Steel Plant, Power, Chemical , Electronics Plants & Mines.
I am providing Consultancy on all aspects of H.R., Co., Mines, S.O., Leave, PF, ESI- Management - (in Hard/ Soft-Copy, ppt for easy Presentation, Understanding & Adoption).
I am providing below
SOLUTIONS to some of the Per. & Admin. PROBLEMS for your infn. please.
As these are imp.Rules, u may print & read them leisurely. I hope; it will be informative & useful for ur P&A works.
1. DUSSHERA, DIVALI HOLIDAYS-OPTIONAL HOLIDAYS:
==========================================
Some Co.’s face Manpower(MP)Shortage during Festivals like Duserha, Divali etc., when 3-4 days Holidays come at a time.
This problem can be reduced by providing Optional Holidays; i.e.,
Republic Day, Independence Day,
Gandhi Jayanthi, Karnatak Rajyotsav Day
May Day are fixed
Whereas; employees can be given Option to take Festival Holidays (6- as per Co.Rule)in a staggered way; depend-ing upon the urgency of work tobe regulated by HODs.
This will help Continuous Working of the Cos.(like Mfg., Prodn.,etc.,for un-interrupted Works) and ensures Min.MP to man Essential Services like Prodn., O&M, A/c.s, HR etc., as most empl’s don’t observe all Festivals at 1 time & so, when 1 set of empl’s take Holiday, other set can work & vise-versa. Thus, HODs can plan min.MP for Shift duty/ maintain Essential Services by adjusting MP to suit his needs & avoid work-stoppage etc. due to Holidays (without increasing Declared Holidays or violating N&F Holidays Act).
To Control, keep track of Optional Holidays, U have to adopt Leave Card System. Otherwise, where will u enter Holidays availed by the empls; how to keep track to ensure that empls. take only 6 out of 20 Festivals ?
Govt.declared 25 Holidays for 2018 including 5 above.
Though Biometric & Online systems exists, LC is useful for P&A Mgrs.for various purposes.
As Jan. 2018 is fast approaching, pl. go thru’ my HR Systems, Rules; so that U can discuss for Adoption from new year 2018.
==============
2. LEAVE CARD/ RECORD (L.C) FORM:
=============================
Some Cos. still use Leave Appn.(LA) Loose Forms to take Leave every time: As LA is loose, difficulty to Check, Account, Store, keep track; to make Monthly Salary besides PAPER & Printing Cost/WASTE where hundreds of empl’s work.
You can PRINT & Use LEAVE CARD (LC)-RECORD & Stop LA:. LC is handy, Seniors can always Check, Find No.of times, days Leave taken; to Calculate Monthly CL, SL,PL/EL,OH, LWOP to make Salary. LC is a Record & Statutory and cannot be manipulated like Loose LA.
1 Card for 1 Employee for 1 year.
You can introduce LC from 1.1.2018. After one year, keep old LC- in Per.File as Record to verify in future. Easy for P&A. to work out Entitlement, Balance- Leave Management & Salary preparation. It is cheap & easy to maintain. Empl. will know how often he is taking Leave & HOD can caution, Mis-use/approve on need basis. Custody-P&A.Dept.. Each HOD to keep LC to facilitate his Empl.to take Leave. HR to call LC when Reqd., to update Leave Regr, make Salary- Month-end, & in Decmbr.to work out Leave earned, availed & balance & post in LC of all employees and update Leave Regr.
FINAL SETTLEMENT:
As the L.C. is frequently checked by HRM, HODs, Auditors & empl., GM / MD can rely on L.C. as an accepted Record to crosscheck Leave, DOJ, & approve FS & avoid empl. disputing while making F.S.
====================
3. ABSENT NOTIFICATION FORM - A.N.F.
===============================
Absenteeism is becoming a serious problem in some Cos. HRMgr. is blamed for laxity. It can be controlled by using above Form. HRM to take Action against erring employee or when a HOD sends A.N.F. to him. Proper Disc.Procedure tobe followed for AOS lest; Court may nullify Termination as void.
=============================================
(As per New PF & ESI Notifications (PF Form-11 to replace earlier Form 2 & Form 13), Cos. have to collect & provide all employees personal details + their Family, dependents, Nominee + Aadhar, Pan Card, Bank dtls.etc. & to keep in Per. Files; & to show to Officials to get benefits to employees in critical times).
1. Apptt. Order which binds Employer-Employee Relation do not contain essential t & c. of Service (Min. t & c -30 points). Pl. check No. of points in ur A.O. If not issued; pl. issue now to regulate/ Regularize Employment Relation as required under Labour Acts.
2. Existing Co. Application / Bio-data Form not providing imp. dtls.of all empl’s, Family, Dependants, Nominee, Person to Contact in Emergency to update / furnish details in Statutory Returns to F.I., L.I.,P.F.I., ESI, Gratuity, HRIS etc.,(My NEW BIO-DATA FORM will help to collect all such infn.50 Points. Some Cos. adopted them as their Co.Appn. had less than 20points. Pl.check no. of points in ur Co.Appn. Form).
3. PERSONAL INFN. CHANGE NOTIFICATION –(P.I.C.N.) - Form
=================================================
Where Co.Appln./Biodata was already collected while Joining; subsequent changes in Per.Infn. to be collected from all empl’s; using P.I.C.N. Form.
However, many P&A Mgrs. don’t have this Form & face problems to collect/give Per.dtls. to GM/MD, Govt.Officers etc. as following current infn. is missing-
1. No Present Address to send Notice to X,
2. Mobile No. changed & unable to contact X
3. No Nominee’s detls.or dtls. of Person to contact in Emergency; to Notify accident etc.
4. No Nominee’ detls. to send payment of deceased X
5. No detls. of Marriage/Family, Children, dependents
6. No detls. of Aadhar,Pan Card for PF, ESI, I.Tax etc.
7. No detls. of latest Addnl. Qlfcn. etc., to review Career Growth, Spl.Increment etc.,
As the above infn. have changed after joining/ giving Ist Bio-Data,and if Per.infn. not collected for 3-4 yrs., pl.make all empl’s to fill & submit P.I.C.N. now so that U will have all employees dtls. in one Form (instead of piecemeal) to update Statutory Returns, PF, ESI, HRIS, Per.files etc.
My NEW P.I.C.N. FORM will help you to collect all such infn.in one Form.
I have developed 100+ Imp. HR SYSTEMS, RULES with my Exp. in 7 different Mfg.& Mines Cos., in Bellary, Chitradurga, B’lur, Chennai, Hyd., & as Secretary for ISO Certification. You may adopt them to improve your P&A. Works, preserve them as Statutory Records to comply with Labour Acts & reduce Legal Cost.
I can provide Soft & Hard copy of
BASIC RULES, FORMS to Professionally Manage all P&A. Works- + Procedures for Adopting:-
PA, OD, OP, GP, VP, TA, LTA, Resignation, Exit Interview, Clearance Certificate, F & F.S.
SHORT & LONG LEAVE Rules, Regr., P.L. Rules- Encash, Appn.Form, MB Rules, Appn.Form, Co.Off Rules +Regr. Appn. Form, Clubbing, W-Off., L.W.O.P.,
S.O. Certification Procedures, Letrs.Forms to Labr.Commr., List of DUTIES, MIS-CONDUCTs, Essential Services, All Service Rules, Forms, Bonds, Deeds, Contracts, Agreements etc.
– Provided to Group Cos. to SET UP H.R.Dept. where No P&A. Dept., Per.Files existed, No Co.Appn., Appt. Order, S.O., Leave & Service Rules, ISO Forms existed to Regularise Services of Empl’s. working for many yrs.
Most Cos. Hire Experts to train existing Officers to improve the working of the Cos. MOST VALUABLE ASSET; the HUMAN RESOURCES & to solve HR problems.
=================
Thanks. Pl.discuss with your concerned & reply to share more / Recommend to your friends in other Co.s by forwarding this mail.
With Kind Regards,
C.Neyimkhan, HR&Mgmnt Consultant&Advocate,(Ex-AGM-HR&A)40yrs.exp.
Ph: 9535470460- E-Mailid:
# ISR-CHITWADGI P.O. 583 211, HOSPET , BENGALURU
Ex-Member, NIPM, Calcutta, Ex- Tr.-Member, I.I.M., B;luru.
Languages known: Kannada, Tamil, Telugu, Malayalam + Hindi & English
From India, Mumbai
=============================================
H.R.Dept. takes care of complete personal details of every employees from Recruitment to Separation. HR Dept.is the Custodian of Personal Files, Personal information of all employees; Service details like, DOJ, DOL, Salary details, Appointment, Final Settlment; Implementation of all Statutory Acts like PF, ESI, Bonus, Gratuity, S.O., IDA etc., are the responsbilities of HR Dept. Hence, HR Dept. works out the Salary (based on Attendance -which is HR Duty), OT, PF, ESI, Bonus, Gratuity etc., and get the same approved by Management and then send to Accounts Dept. for payment. Accounts will cross check with the Management approval & make payment.
HR Dept. has the added responsibilities of controlling Absenteeism, deducting for absenteeism, Disciplinary action including suspending from duty which means HR to deduct salary for Suspended days etc,
Hence, HR has a major role in certifyig payment for Salary, PF, ESI, Bonus, Gratuity etc.,
In many Cos. HR & Accounts are made to work as Checks & Balance; while HR initiates all proposals and get it appd.by Management, Accounts Dept. make payment after verifying Management Approval
INTRODUCTION. (Abrevations used to save space).
===========
I am an Ex AGM-HR&Adm.with 40+ yrs.exp.in HR,IR,LEGAL, & Admn., Works of 7 Mfg. Cos.- Steel Plant, Power, Chemical , Electronics Plants & Mines.
I am providing Consultancy on all aspects of H.R., Co., Mines, S.O., Leave, PF, ESI- Management - (in Hard/ Soft-Copy, ppt for easy Presentation, Understanding & Adoption).
I am providing below
SOLUTIONS to some of the Per. & Admin. PROBLEMS for your infn. please.
As these are imp.Rules, u may print & read them leisurely. I hope; it will be informative & useful for ur P&A works.
1. DUSSHERA, DIVALI HOLIDAYS-OPTIONAL HOLIDAYS:
==========================================
Some Co.’s face Manpower(MP)Shortage during Festivals like Duserha, Divali etc., when 3-4 days Holidays come at a time.
This problem can be reduced by providing Optional Holidays; i.e.,
Republic Day, Independence Day,
Gandhi Jayanthi, Karnatak Rajyotsav Day
May Day are fixed
Whereas; employees can be given Option to take Festival Holidays (6- as per Co.Rule)in a staggered way; depend-ing upon the urgency of work tobe regulated by HODs.
This will help Continuous Working of the Cos.(like Mfg., Prodn.,etc.,for un-interrupted Works) and ensures Min.MP to man Essential Services like Prodn., O&M, A/c.s, HR etc., as most empl’s don’t observe all Festivals at 1 time & so, when 1 set of empl’s take Holiday, other set can work & vise-versa. Thus, HODs can plan min.MP for Shift duty/ maintain Essential Services by adjusting MP to suit his needs & avoid work-stoppage etc. due to Holidays (without increasing Declared Holidays or violating N&F Holidays Act).
To Control, keep track of Optional Holidays, U have to adopt Leave Card System. Otherwise, where will u enter Holidays availed by the empls; how to keep track to ensure that empls. take only 6 out of 20 Festivals ?
Govt.declared 25 Holidays for 2018 including 5 above.
Though Biometric & Online systems exists, LC is useful for P&A Mgrs.for various purposes.
As Jan. 2018 is fast approaching, pl. go thru’ my HR Systems, Rules; so that U can discuss for Adoption from new year 2018.
==============
2. LEAVE CARD/ RECORD (L.C) FORM:
=============================
Some Cos. still use Leave Appn.(LA) Loose Forms to take Leave every time: As LA is loose, difficulty to Check, Account, Store, keep track; to make Monthly Salary besides PAPER & Printing Cost/WASTE where hundreds of empl’s work.
You can PRINT & Use LEAVE CARD (LC)-RECORD & Stop LA:. LC is handy, Seniors can always Check, Find No.of times, days Leave taken; to Calculate Monthly CL, SL,PL/EL,OH, LWOP to make Salary. LC is a Record & Statutory and cannot be manipulated like Loose LA.
1 Card for 1 Employee for 1 year.
You can introduce LC from 1.1.2018. After one year, keep old LC- in Per.File as Record to verify in future. Easy for P&A. to work out Entitlement, Balance- Leave Management & Salary preparation. It is cheap & easy to maintain. Empl. will know how often he is taking Leave & HOD can caution, Mis-use/approve on need basis. Custody-P&A.Dept.. Each HOD to keep LC to facilitate his Empl.to take Leave. HR to call LC when Reqd., to update Leave Regr, make Salary- Month-end, & in Decmbr.to work out Leave earned, availed & balance & post in LC of all employees and update Leave Regr.
FINAL SETTLEMENT:
As the L.C. is frequently checked by HRM, HODs, Auditors & empl., GM / MD can rely on L.C. as an accepted Record to crosscheck Leave, DOJ, & approve FS & avoid empl. disputing while making F.S.
====================
3. ABSENT NOTIFICATION FORM - A.N.F.
===============================
Absenteeism is becoming a serious problem in some Cos. HRMgr. is blamed for laxity. It can be controlled by using above Form. HRM to take Action against erring employee or when a HOD sends A.N.F. to him. Proper Disc.Procedure tobe followed for AOS lest; Court may nullify Termination as void.
=============================================
(As per New PF & ESI Notifications (PF Form-11 to replace earlier Form 2 & Form 13), Cos. have to collect & provide all employees personal details + their Family, dependents, Nominee + Aadhar, Pan Card, Bank dtls.etc. & to keep in Per. Files; & to show to Officials to get benefits to employees in critical times).
1. Apptt. Order which binds Employer-Employee Relation do not contain essential t & c. of Service (Min. t & c -30 points). Pl. check No. of points in ur A.O. If not issued; pl. issue now to regulate/ Regularize Employment Relation as required under Labour Acts.
2. Existing Co. Application / Bio-data Form not providing imp. dtls.of all empl’s, Family, Dependants, Nominee, Person to Contact in Emergency to update / furnish details in Statutory Returns to F.I., L.I.,P.F.I., ESI, Gratuity, HRIS etc.,(My NEW BIO-DATA FORM will help to collect all such infn.50 Points. Some Cos. adopted them as their Co.Appn. had less than 20points. Pl.check no. of points in ur Co.Appn. Form).
3. PERSONAL INFN. CHANGE NOTIFICATION –(P.I.C.N.) - Form
=================================================
Where Co.Appln./Biodata was already collected while Joining; subsequent changes in Per.Infn. to be collected from all empl’s; using P.I.C.N. Form.
However, many P&A Mgrs. don’t have this Form & face problems to collect/give Per.dtls. to GM/MD, Govt.Officers etc. as following current infn. is missing-
1. No Present Address to send Notice to X,
2. Mobile No. changed & unable to contact X
3. No Nominee’s detls.or dtls. of Person to contact in Emergency; to Notify accident etc.
4. No Nominee’ detls. to send payment of deceased X
5. No detls. of Marriage/Family, Children, dependents
6. No detls. of Aadhar,Pan Card for PF, ESI, I.Tax etc.
7. No detls. of latest Addnl. Qlfcn. etc., to review Career Growth, Spl.Increment etc.,
As the above infn. have changed after joining/ giving Ist Bio-Data,and if Per.infn. not collected for 3-4 yrs., pl.make all empl’s to fill & submit P.I.C.N. now so that U will have all employees dtls. in one Form (instead of piecemeal) to update Statutory Returns, PF, ESI, HRIS, Per.files etc.
My NEW P.I.C.N. FORM will help you to collect all such infn.in one Form.
I have developed 100+ Imp. HR SYSTEMS, RULES with my Exp. in 7 different Mfg.& Mines Cos., in Bellary, Chitradurga, B’lur, Chennai, Hyd., & as Secretary for ISO Certification. You may adopt them to improve your P&A. Works, preserve them as Statutory Records to comply with Labour Acts & reduce Legal Cost.
I can provide Soft & Hard copy of
BASIC RULES, FORMS to Professionally Manage all P&A. Works- + Procedures for Adopting:-
PA, OD, OP, GP, VP, TA, LTA, Resignation, Exit Interview, Clearance Certificate, F & F.S.
SHORT & LONG LEAVE Rules, Regr., P.L. Rules- Encash, Appn.Form, MB Rules, Appn.Form, Co.Off Rules +Regr. Appn. Form, Clubbing, W-Off., L.W.O.P.,
S.O. Certification Procedures, Letrs.Forms to Labr.Commr., List of DUTIES, MIS-CONDUCTs, Essential Services, All Service Rules, Forms, Bonds, Deeds, Contracts, Agreements etc.
– Provided to Group Cos. to SET UP H.R.Dept. where No P&A. Dept., Per.Files existed, No Co.Appn., Appt. Order, S.O., Leave & Service Rules, ISO Forms existed to Regularise Services of Empl’s. working for many yrs.
Most Cos. Hire Experts to train existing Officers to improve the working of the Cos. MOST VALUABLE ASSET; the HUMAN RESOURCES & to solve HR problems.
=================
Thanks. Pl.discuss with your concerned & reply to share more / Recommend to your friends in other Co.s by forwarding this mail.
With Kind Regards,
C.Neyimkhan, HR&Mgmnt Consultant&Advocate,(Ex-AGM-HR&A)40yrs.exp.
Ph: 9535470460- E-Mailid:
# ISR-CHITWADGI P.O. 583 211, HOSPET , BENGALURU
Ex-Member, NIPM, Calcutta, Ex- Tr.-Member, I.I.M., B;luru.
Languages known: Kannada, Tamil, Telugu, Malayalam + Hindi & English
From India, Mumbai
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