Hi to everyone
My question is, if we employee a person on MOU what should be the duration of his empoyment? Does he eligable for Statuory deductions (i.e. Pf, PT, ESIC)? and also will he be eligable for other benefits.
Thanking you in advance.
Warm Regards,
Parab
From India, Mumbai
My question is, if we employee a person on MOU what should be the duration of his empoyment? Does he eligable for Statuory deductions (i.e. Pf, PT, ESIC)? and also will he be eligable for other benefits.
Thanking you in advance.
Warm Regards,
Parab
From India, Mumbai
To,
Avika
Thx a lot for your quick reply,
As per speaking on fixed term, if an employee performs well then he can be absorbed on company's payroll (i.e. on fixed term) or if not he can be relieved as soon as his duration gets over as per his MOU duration stated.
Warm Regards,
Parab
From India, Mumbai
Avika
Thx a lot for your quick reply,
As per speaking on fixed term, if an employee performs well then he can be absorbed on company's payroll (i.e. on fixed term) or if not he can be relieved as soon as his duration gets over as per his MOU duration stated.
Warm Regards,
Parab
From India, Mumbai
In this case you are taking the employee on a retainership basis.
In such a scenario, the payment is made in lumpsum subject to deduction of tax at source.
The person would not be eligible for PF, ESI or Gratuity etc.
He would get all the benefits once he comes on rolls of the Company.
I hope this would help you.
Thanks,
Kind Regards,
Avika Kapoor
Manager-Business Development
E-173, Kalkaji, New Delhi - 110019
Phone: 011-4055 3774
From India, New Delhi
117In such a scenario, the payment is made in lumpsum subject to deduction of tax at source.
The person would not be eligible for PF, ESI or Gratuity etc.
He would get all the benefits once he comes on rolls of the Company.
I hope this would help you.
Thanks,
Kind Regards,
Avika Kapoor
Manager-Business Development
E-173, Kalkaji, New Delhi - 110019
Phone: 011-4055 3774
From India, New Delhi
DEar The moment word employment is used all Statutory contributions come in. VS Rajan Associates Chennai
From India, Bangalore
From India, Bangalore
Dear Madam, You mentioned about deduction of tax at source in case of retainership basis employment, what is the percentage, it 10.3% Ser Tax, or any other heads? Please update me on this. Suresh
From India, Pune
From India, Pune
Dear shri Parab,
Laws like ESI Act ,PF, Gratuity etc. are enacted to confer benefits to employees compulsorily by statutory prpvisions.Those laws can not be defeated by entering in to crafty drafts of engegements.If a person
works in aestablishment for hire or reward,he is entitled to benefits of labour laws.Of course he has to fulfil conditions laid down like salary limit
years of service etc.and should answer the definition of employee in that law.MOU can not override statutory provisions.
Regards.
From India, Pune
Laws like ESI Act ,PF, Gratuity etc. are enacted to confer benefits to employees compulsorily by statutory prpvisions.Those laws can not be defeated by entering in to crafty drafts of engegements.If a person
works in aestablishment for hire or reward,he is entitled to benefits of labour laws.Of course he has to fulfil conditions laid down like salary limit
years of service etc.and should answer the definition of employee in that law.MOU can not override statutory provisions.
Regards.
From India, Pune
Dear All
MOU in between employer and employee is nothing but an agreement of appointment, for a certain period and for performance of the employee during the period of the MOU. Now a days most of the corporate sectors are engaging the workmen on time bond employment agreements even some of the state governments are giving employment on contract agreements.
By entering MOU with an employee the employer can not over go by not paying the statutory payments/ benefits to the employee, he is bound to pay the statutory payments when a person is rendering his services for the company and with in the company premises.
Even when a contractor on MOU basis, who supply man power is liable for payments of statutory payments, and the employer of the contractor is liable for such payments / benefits if the contractor fail to make such payments to his contract employees.
Only consultants are exempted from such statutory payments as they are giving services for a particular piece of work entrusted to them, they are not treated as the workmen of the company.
Mohan Rao
Manager HR
From India, Visakhapatnam
MOU in between employer and employee is nothing but an agreement of appointment, for a certain period and for performance of the employee during the period of the MOU. Now a days most of the corporate sectors are engaging the workmen on time bond employment agreements even some of the state governments are giving employment on contract agreements.
By entering MOU with an employee the employer can not over go by not paying the statutory payments/ benefits to the employee, he is bound to pay the statutory payments when a person is rendering his services for the company and with in the company premises.
Even when a contractor on MOU basis, who supply man power is liable for payments of statutory payments, and the employer of the contractor is liable for such payments / benefits if the contractor fail to make such payments to his contract employees.
Only consultants are exempted from such statutory payments as they are giving services for a particular piece of work entrusted to them, they are not treated as the workmen of the company.
Mohan Rao
Manager HR
From India, Visakhapatnam
Dear Sr,
Please tell me the process if any company take over another running organisation what is the process of ESIC /PF and factory act . what are the documents which are mandatory for this process ESI & PF code no already taken that organizations , that esi/pf no. can continue or need to apply again ,
please suggest asap.
Regards
Bds
From India, Delhi
Please tell me the process if any company take over another running organisation what is the process of ESIC /PF and factory act . what are the documents which are mandatory for this process ESI & PF code no already taken that organizations , that esi/pf no. can continue or need to apply again ,
please suggest asap.
Regards
Bds
From India, Delhi
Hi Avika,
I need a small help. I am starting a project and i need to sign an agreement with X Person saying the company would pay him 50% of the net peofit. He will not be an permanat or fixed term employee of the company. Can I get format of such agreement papers if you have any.
Rgds...Nagesh
From India, Bangalore
I need a small help. I am starting a project and i need to sign an agreement with X Person saying the company would pay him 50% of the net peofit. He will not be an permanat or fixed term employee of the company. Can I get format of such agreement papers if you have any.
Rgds...Nagesh
From India, Bangalore
Hello Mr Rao,
Nice to know that you are HR Manager. Before i start my own firm i was working as Asst Manager - HR with ITC infotech, Bangalore. I have come up with small recruitment and developing centre in Bangalore.
I was impressed by the comments made by you on the MOU. Its nice to know you are helping you jouniers with your wast experince and knowledge. Good going Keep it on.
Rgds...NAgesh Malli
MD - Aviron Technocracy
From India, Bangalore
Nice to know that you are HR Manager. Before i start my own firm i was working as Asst Manager - HR with ITC infotech, Bangalore. I have come up with small recruitment and developing centre in Bangalore.
I was impressed by the comments made by you on the MOU. Its nice to know you are helping you jouniers with your wast experince and knowledge. Good going Keep it on.
Rgds...NAgesh Malli
MD - Aviron Technocracy
From India, Bangalore
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