Greetings!!!
I am a contractor providing manpower to various firms. This is in reference to a contract wherein i have retained old employees. Had been trying since last few months to find my margins but after analyzing data of last few months, it is learnt that I am unable to have profit from the business due to different reasons.
A option that i have thought upon is to decide the Manpower costing and thus changing Salary Structure of existing employees by deciding on their CTC wherein i wish to deduct Employer's contribution of ESI & PF from Employee. This would result in decrease of their monthly salary amount by around Rs. 1500/- per person.
Though I am not happy for doing this but to continue the business, i find this as an alternate. I want to offer some benefits to the employees against this. I expect to save around 45K by doing so & and am willing to spend a portion of same to provide any other benefit or something.
Request experience of yours to guide me so as to have rolling out of this smoothly without having any dispute (Presumed due to reduction in on hand amount) and offering them something which can make things easier.
Thanking You
From India, Vadodara
I am a contractor providing manpower to various firms. This is in reference to a contract wherein i have retained old employees. Had been trying since last few months to find my margins but after analyzing data of last few months, it is learnt that I am unable to have profit from the business due to different reasons.
A option that i have thought upon is to decide the Manpower costing and thus changing Salary Structure of existing employees by deciding on their CTC wherein i wish to deduct Employer's contribution of ESI & PF from Employee. This would result in decrease of their monthly salary amount by around Rs. 1500/- per person.
Though I am not happy for doing this but to continue the business, i find this as an alternate. I want to offer some benefits to the employees against this. I expect to save around 45K by doing so & and am willing to spend a portion of same to provide any other benefit or something.
Request experience of yours to guide me so as to have rolling out of this smoothly without having any dispute (Presumed due to reduction in on hand amount) and offering them something which can make things easier.
Thanking You
From India, Vadodara
Hi Kumar,
Though you yourselves answered your query that you are not happy in doing so however under some circumstances it need to be done. The employees who are existing and working cannot be switched to CTC module now and deducting the contribution from their end as they can raise the objection and also this will not be a fair practice attracting industrial disputes
You can do so by hiring new staff and implementing the CTC factor and then deduct the portion as the person would be pre-informed with the same and signed the documentation.
Regards,
Harpreet Walia
9357730033
From India, New Delhi
121Though you yourselves answered your query that you are not happy in doing so however under some circumstances it need to be done. The employees who are existing and working cannot be switched to CTC module now and deducting the contribution from their end as they can raise the objection and also this will not be a fair practice attracting industrial disputes
You can do so by hiring new staff and implementing the CTC factor and then deduct the portion as the person would be pre-informed with the same and signed the documentation.
Regards,
Harpreet Walia
9357730033
From India, New Delhi
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