Hi, I want to know how to manage an HR department in any company. What are the policies to maintain employees' overtime, call on any holiday, time-bound project management, leave policies, EPF, gratuity system, ESI, etc.
From India, Chandigarh
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From India, Chandigarh
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Hi Divya I believe you are fresher by seeing your posting. It is quite big topic. You should read and get expertise for those details on individual topics.
From India, Bangalore
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653From India, Bangalore
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Dear Divya,
Please search this site using the "Research" facility at the top and then pose precise questions giving enough information about the organization, the size of the department, your position, etc.
From United Kingdom
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Please search this site using the "Research" facility at the top and then pose precise questions giving enough information about the organization, the size of the department, your position, etc.
From United Kingdom
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Dear Divya,
The subject you have sought clarification on is very voluminous. It all depends on how your organization drafts its policy.
Regarding OT, it is as per the Factories Act. You can engage employees in O.T. for not more than 48 hours in a month. You have to pay double the normal wages (on gross).
On holidays, you can call any employee in case of work exigency. For such work, you have to pay double the wages.
Regarding leave - earned leave is as per the Factories Act, i.e., 1 day for every 20 days worked. Regarding casual and sick leave, it is as per the wage agreement or management policy. If employees are covered under ESI, you need not pay any sick leave.
If your organization is covered under ESI (if you have 10 or more employees using power), you have to register with ESI authorities and enroll your employees in the scheme. You have to pay 4.75% of the gross amount of wages, and employees have to pay 1.75% of their earnings.
Regarding Gratuity, if any employee worked for 5 years and above, you have to pay 15 days' wages for every completed year of service. The calculation is as follows: No. of years x 15 x (Basic + DA) / 26.
Time-bound management projects are up to your policy.
This is only a bird's eye view of the schemes.
G.K. Manjunath
Sr. Manager-HR
From India, Bangalore
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The subject you have sought clarification on is very voluminous. It all depends on how your organization drafts its policy.
Regarding OT, it is as per the Factories Act. You can engage employees in O.T. for not more than 48 hours in a month. You have to pay double the normal wages (on gross).
On holidays, you can call any employee in case of work exigency. For such work, you have to pay double the wages.
Regarding leave - earned leave is as per the Factories Act, i.e., 1 day for every 20 days worked. Regarding casual and sick leave, it is as per the wage agreement or management policy. If employees are covered under ESI, you need not pay any sick leave.
If your organization is covered under ESI (if you have 10 or more employees using power), you have to register with ESI authorities and enroll your employees in the scheme. You have to pay 4.75% of the gross amount of wages, and employees have to pay 1.75% of their earnings.
Regarding Gratuity, if any employee worked for 5 years and above, you have to pay 15 days' wages for every completed year of service. The calculation is as follows: No. of years x 15 x (Basic + DA) / 26.
Time-bound management projects are up to your policy.
This is only a bird's eye view of the schemes.
G.K. Manjunath
Sr. Manager-HR
From India, Bangalore
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Dear Divya,
As per the Factory Act of 1948 regarding overtime (OT), it is mentioned that in a quarter (i.e., 3 months for Jan-March and so on), 50 hours are allowed, and it can be extended to 75 hours by obtaining prior approval from the Labor Department. Therefore, if we calculate 48 hours in a month, then in a quarter, it will be 48*3 = 144 hours, which is not acceptable according to the law.
Kindly review Chapter VI once again, and if I am mistaken, please correct me.
Warm Regards,
Vineet Mishra
+91 9456317430
From India, Dehra Dun
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As per the Factory Act of 1948 regarding overtime (OT), it is mentioned that in a quarter (i.e., 3 months for Jan-March and so on), 50 hours are allowed, and it can be extended to 75 hours by obtaining prior approval from the Labor Department. Therefore, if we calculate 48 hours in a month, then in a quarter, it will be 48*3 = 144 hours, which is not acceptable according to the law.
Kindly review Chapter VI once again, and if I am mistaken, please correct me.
Warm Regards,
Vineet Mishra
+91 9456317430
From India, Dehra Dun
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GUIDELINES FOR HR POLICIES.doc
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