I am hr in logistics company - in our company, there is a rider on fixed salary so that they requested for the bonus. So we want to do it on commission based so tell me some words that we specified in policies of our company. Mean i instead of salary we need to use another word that has no payment of bonus. So help me with this and give me suggestions on how we cover it.
From India, Pune
From India, Pune
You said you are an HR, presumably an Human Resource Manager/ Executive/ Officer etc. What is your role? As an HR Officer, your role is not to deny any rights of an employee under the statute. Your rider (driver?) has been working for the organisation and you pay him salary. How can it be called by any other name? How can the rights of the employee change when you just change the name from salary to commission? What is commission? Commision is a payment given to a broker, agent or others expressed as a percentage of the value of revenue realised. It can be offered as an additional incentive to an employee whose output/ service can be quantified. But it can not be made applicable to all types of employees.
How can a driver's service be linked to his output? Not possible. For the kilomter travelled he can be given an incentive so that no overtime wages need not be paid. But that should be over and above a fixed salary. That salary will attract PF, ESI and Bonus and on a later stage Gratuity also. If your responsibility is to take away these statutory contributions from the employee, you are mistaken, the employees will turn hostile.
Any amount paid for the service of an employee is wages/ salary whatever is the nomenclature. Therefore, there is no way out but if his basic wages is within the bonus brackets (say Rs 21000 or less) he should be paid bonus, you cannot refuse it.
From India, Kannur
4242How can a driver's service be linked to his output? Not possible. For the kilomter travelled he can be given an incentive so that no overtime wages need not be paid. But that should be over and above a fixed salary. That salary will attract PF, ESI and Bonus and on a later stage Gratuity also. If your responsibility is to take away these statutory contributions from the employee, you are mistaken, the employees will turn hostile.
Any amount paid for the service of an employee is wages/ salary whatever is the nomenclature. Therefore, there is no way out but if his basic wages is within the bonus brackets (say Rs 21000 or less) he should be paid bonus, you cannot refuse it.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary-Note.doc
SALARY SHEET CALCULATION.xls