Dear Seniors,
Do directors need to serve a probation period as because they would be withdrawing salary from the company??? Can anyone help me with a sample of offer letter issued to the director? They would be in the Company payroll.
Apart from that I would like to know that, generally the policies that are applicable to other employees; would they be same in case of the directors????? Or is it that discriminations are made???
Though I used the SEARCH tab but I didn’t get any specific sample.
With Regards....
From India, Chandigarh
Do directors need to serve a probation period as because they would be withdrawing salary from the company??? Can anyone help me with a sample of offer letter issued to the director? They would be in the Company payroll.
Apart from that I would like to know that, generally the policies that are applicable to other employees; would they be same in case of the directors????? Or is it that discriminations are made???
Though I used the SEARCH tab but I didn’t get any specific sample.
With Regards....
From India, Chandigarh
Dear TG
Point 1: what ever issue offer letter in your company same as format to Director. Offer Letter and signed by Authozed Signature like Chairman/MD
like that.
Point2: Offer letter preparation is our creatation and subject to our organization requirements.
Point3: Probabion period is served or not depends on Management Policy.
Point4: It is must to salary shown in accounts. because if we appoint as direction there name appear/show in the Office of Company Register, Company Act.
Point5: Salary give in mode of Cheque or Bank A/c on account salary
Point6: My Idea, Like Director wise posting employee we can give the Offer cum Appointment letter issued is better and my thought it is best communication to him understand the organization policy and processedings
I would like to your comments on above points
Regards
From India, Hyderabad
12Point 1: what ever issue offer letter in your company same as format to Director. Offer Letter and signed by Authozed Signature like Chairman/MD
like that.
Point2: Offer letter preparation is our creatation and subject to our organization requirements.
Point3: Probabion period is served or not depends on Management Policy.
Point4: It is must to salary shown in accounts. because if we appoint as direction there name appear/show in the Office of Company Register, Company Act.
Point5: Salary give in mode of Cheque or Bank A/c on account salary
Point6: My Idea, Like Director wise posting employee we can give the Offer cum Appointment letter issued is better and my thought it is best communication to him understand the organization policy and processedings
I would like to your comments on above points
Regards
From India, Hyderabad
Dear sarmkpk,
First of all thank you so much for your prompt reply...!!!!
I also think that offer letter to directors should also be the same as other employees.
But I think they should also serve a probation period because they are paid such hefty amount. However you are correct that it is on the Management‘s discretion.
I would also like to know whether it is necessary to get their offer letter signed by the MD or can it be issue by the HR dept as well????
Regards,
TG.
From India, Chandigarh
First of all thank you so much for your prompt reply...!!!!
I also think that offer letter to directors should also be the same as other employees.
But I think they should also serve a probation period because they are paid such hefty amount. However you are correct that it is on the Management‘s discretion.
I would also like to know whether it is necessary to get their offer letter signed by the MD or can it be issue by the HR dept as well????
Regards,
TG.
From India, Chandigarh
Trishnita
If you are talking about a Director in the Board, the process is different. Legally you can not designate anyone as Director unless he/she is in the Board. However, some Companies are diluting this rule
1. If you want to appoint a Director in the Board, the appointment has to be approved by the General Body. Appointment leeter
is issued by the Chairman/MD after approval by the General Body. Terms and Conditions are approved by the General Body
2. If you are talking about a Director who is not in the Board, it is equivalent to President/Vice President/General manager etc.
3. In such cases, offers are generally signed by the Head/CEO of the Company to maintain protocol. Such senior people may
not appreciate a letter signed by a Junior person
4. Probation clause for such senior level is not necessary. Purpose of probation is to assess the perfromance in six months to
one year and terminate in case of non performane. In senior level, termination by giving one months /three months notice is
legal. Normally in such cases, the employee quits/or the Managements asks for the resignation.
For appointments as Directo in the Board, there is no Probation Clause as per Indian Companies Act.
If a person is appoineted as Director who is not in the Board, my advice is not to introduce Probation Clause . In todays context, such a probation clause has no relevance for senior level recruitments. It was used about 25/30 years back as certain benefits like PF was not applicable during probation period. If possible avoid giving designations as Director if the person is not on the Board. Give designations like COO,Business Head, President, Vice President.
Thanks
T Sivasankaran
From India, Chennai
If you are talking about a Director in the Board, the process is different. Legally you can not designate anyone as Director unless he/she is in the Board. However, some Companies are diluting this rule
1. If you want to appoint a Director in the Board, the appointment has to be approved by the General Body. Appointment leeter
is issued by the Chairman/MD after approval by the General Body. Terms and Conditions are approved by the General Body
2. If you are talking about a Director who is not in the Board, it is equivalent to President/Vice President/General manager etc.
3. In such cases, offers are generally signed by the Head/CEO of the Company to maintain protocol. Such senior people may
not appreciate a letter signed by a Junior person
4. Probation clause for such senior level is not necessary. Purpose of probation is to assess the perfromance in six months to
one year and terminate in case of non performane. In senior level, termination by giving one months /three months notice is
legal. Normally in such cases, the employee quits/or the Managements asks for the resignation.
For appointments as Directo in the Board, there is no Probation Clause as per Indian Companies Act.
If a person is appoineted as Director who is not in the Board, my advice is not to introduce Probation Clause . In todays context, such a probation clause has no relevance for senior level recruitments. It was used about 25/30 years back as certain benefits like PF was not applicable during probation period. If possible avoid giving designations as Director if the person is not on the Board. Give designations like COO,Business Head, President, Vice President.
Thanks
T Sivasankaran
From India, Chennai
Dear T Sivasankaran,
Thank you so much…..I will keep your suggestions in mind!!!
However people appointed are board members and the MD of the Company has asked me to designate them as “Directors.” So I believe probation clause is not required.
Thanks once again!!!
Regards,
TG.
From India, Chandigarh
Thank you so much…..I will keep your suggestions in mind!!!
However people appointed are board members and the MD of the Company has asked me to designate them as “Directors.” So I believe probation clause is not required.
Thanks once again!!!
Regards,
TG.
From India, Chandigarh
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