Hello,
We have 4 employees in our startup company who have been with us for about 6 months. We incorporated as a private limited company 2 months ago. We have not yet provided appointment letters and would like to address this now.
My questions are:
1. How should we proceed with issuing appointment letters? Is it acceptable to issue appointment letters in the name of the company dated 6 months back, even though the company is only 2 months old? This is our primary concern, and we seek clarification on this matter.
Please provide guidance on this issue. Thank you for your assistance.
From India, Chennai
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1We have 4 employees in our startup company who have been with us for about 6 months. We incorporated as a private limited company 2 months ago. We have not yet provided appointment letters and would like to address this now.
My questions are:
1. How should we proceed with issuing appointment letters? Is it acceptable to issue appointment letters in the name of the company dated 6 months back, even though the company is only 2 months old? This is our primary concern, and we seek clarification on this matter.
Please provide guidance on this issue. Thank you for your assistance.
From India, Chennai
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Dear,
The appointment letter should be given to an employee on the same day as their joining date. In your situation, since the company was incorporated 2 months ago, you can issue the letters with any date after the incorporation to validate them on the new letterhead. However, in these letters, you may reference their service with the establishment when it operated as a partnership/proprietorship firm to demonstrate their continuous service with you since the beginning. Alternatively, for the initial 4 months, you may issue the letters on the old letterhead of your establishment, if available.
From India, Delhi
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The appointment letter should be given to an employee on the same day as their joining date. In your situation, since the company was incorporated 2 months ago, you can issue the letters with any date after the incorporation to validate them on the new letterhead. However, in these letters, you may reference their service with the establishment when it operated as a partnership/proprietorship firm to demonstrate their continuous service with you since the beginning. Alternatively, for the initial 4 months, you may issue the letters on the old letterhead of your establishment, if available.
From India, Delhi
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Dear Ravindran,
There is nothing wrong with correcting omissions or errors in actions with post-dated communications by showing retrospective effect to any event, specifically the appointments, as made from the actual date. So, don't be afraid to issue appointment letters with the date on which they are actually issued (not backdating), showing their date of appointment from the date of their actual joining. This represents an honest effort to regularize omissions or errors. Backdating appointment letters may sometimes create legal problems, so it is best to avoid such practices for the honest functioning of any organization.
Warm regards,
[Your Name]
From India, Delhi
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There is nothing wrong with correcting omissions or errors in actions with post-dated communications by showing retrospective effect to any event, specifically the appointments, as made from the actual date. So, don't be afraid to issue appointment letters with the date on which they are actually issued (not backdating), showing their date of appointment from the date of their actual joining. This represents an honest effort to regularize omissions or errors. Backdating appointment letters may sometimes create legal problems, so it is best to avoid such practices for the honest functioning of any organization.
Warm regards,
[Your Name]
From India, Delhi
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Before incorporating as private limited we did not have registration of any kind. They were working informally. Anything that can be done in this case?
From India, Chennai
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From India, Chennai
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(Fact Checked)-The employees should receive appointment letters now. It is essential to formalize their employment status despite the company's previous informal arrangement. (1 Acknowledge point)
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Thank you for all the replies. @psdhingra @HR_ROY
One more question.
1. We are less than 10 employees, so there is no need for PF and ESI. Could you provide a breakdown for a salary of 15,000 including Basic Pay, HRA, and Fuel allowance? Is ESI applicable only if the gross salary is less than 10,000?
From India, Chennai
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One more question.
1. We are less than 10 employees, so there is no need for PF and ESI. Could you provide a breakdown for a salary of 15,000 including Basic Pay, HRA, and Fuel allowance? Is ESI applicable only if the gross salary is less than 10,000?
From India, Chennai
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Dear Ravindran,
ESI is applicable if the gross salary is less than ₹15,000 per month, and also when 10 or more workers are employed with add-on power in the company. Now, PF eligibility is also the same, but the basic + DA should be less than ₹15,000 per month.
Breakup of ₹15,000 as per my view:
Basic - ₹6,000 (40% of salary)
HRA - ₹2,400 (40% of basic) It can be 50% of basic if the employee is residing in one of the four metropolitan cities in India.
Transport Allowance - ₹1,600
Special Allowance - ₹5,000
Total Gross - ₹15,000/-
Thanks,
Devendra Gaur
From India, Faridabad
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ESI is applicable if the gross salary is less than ₹15,000 per month, and also when 10 or more workers are employed with add-on power in the company. Now, PF eligibility is also the same, but the basic + DA should be less than ₹15,000 per month.
Breakup of ₹15,000 as per my view:
Basic - ₹6,000 (40% of salary)
HRA - ₹2,400 (40% of basic) It can be 50% of basic if the employee is residing in one of the four metropolitan cities in India.
Transport Allowance - ₹1,600
Special Allowance - ₹5,000
Total Gross - ₹15,000/-
Thanks,
Devendra Gaur
From India, Faridabad
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Dear Ravindran,
You will find more information from this link where a similar subject was discussed a few years ago:
https://www.citehr.com/399568-legal-...etter-pg2.html
The appointment letter should not be backdated, as this new startup company was established only two months ago. It would be a technical error to mention a date on the letter as if the company existed six months ago. Therefore, it is appropriate to issue the letter on the day of its incorporation while also regularizing the services from the date of joining. This information must be included in the appointment letter with appropriate wording. I suggest adding a paragraph to the appointment letter, among other terms and conditions, with the prospective date, as follows:
To
Mr./Ms...
xxxxxxx
xxxxxxxx
Past service before the incorporation of the Company:
You are appointed as [Position] in this firm effective [Date]. However, your service rendered before the incorporation of this company is considered regularized for all purposes from the date of joining/commencement of operations, i.e., with effect from [Date], which shall be deemed as the "Date of Joining" and the start of 'Continuous Service' under various rules such as EPF, Gratuity, Bonus, Pension, etc.
xxxxxxxxxxx
To signify agreement to the above terms and conditions, I, Mr./Ms. [Name], affix my signature below and affirm that I shall not raise any disputes regarding the 'Past service' as mentioned above.
Signature of employee:
Name:
From India, Bangalore
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You will find more information from this link where a similar subject was discussed a few years ago:
https://www.citehr.com/399568-legal-...etter-pg2.html
The appointment letter should not be backdated, as this new startup company was established only two months ago. It would be a technical error to mention a date on the letter as if the company existed six months ago. Therefore, it is appropriate to issue the letter on the day of its incorporation while also regularizing the services from the date of joining. This information must be included in the appointment letter with appropriate wording. I suggest adding a paragraph to the appointment letter, among other terms and conditions, with the prospective date, as follows:
To
Mr./Ms...
xxxxxxx
xxxxxxxx
Past service before the incorporation of the Company:
You are appointed as [Position] in this firm effective [Date]. However, your service rendered before the incorporation of this company is considered regularized for all purposes from the date of joining/commencement of operations, i.e., with effect from [Date], which shall be deemed as the "Date of Joining" and the start of 'Continuous Service' under various rules such as EPF, Gratuity, Bonus, Pension, etc.
xxxxxxxxxxx
To signify agreement to the above terms and conditions, I, Mr./Ms. [Name], affix my signature below and affirm that I shall not raise any disputes regarding the 'Past service' as mentioned above.
Signature of employee:
Name:
From India, Bangalore
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CiteHR.AI
(Fact Checked)-The user's reply is mostly correct. It is advisable not to backdate appointment letters to avoid potential legal issues. Issuing appointment letters with the actual issuance date and showing the date of appointment from the actual joining date is recommended. (1 Acknowledge point)