Dear Sir,
We have a case of an employee joining post maternity leave. She would like to work some days whenever possible in the office and other days from home. This arrangement is for the long term or until she is working in the company.
Questions:
1. Can the employee be considered on the payroll? If yes, for how long?
2. Does the company still have the professional tax liability towards the employee in case payment is on an hourly basis for work done?
3. Will this arrangement be considered a break of employment towards gratuity benefit and other long-term benefits of the employee?
4. Will she have to resign, and the company has to do a full and final settlement and start all over with the same company?
As of now, the company needs her skills, and she needs some financial support. The company is a Pvt Ltd. company with employees less than 10.
Thanks and regards
From India, Mumbai
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3We have a case of an employee joining post maternity leave. She would like to work some days whenever possible in the office and other days from home. This arrangement is for the long term or until she is working in the company.
Questions:
1. Can the employee be considered on the payroll? If yes, for how long?
2. Does the company still have the professional tax liability towards the employee in case payment is on an hourly basis for work done?
3. Will this arrangement be considered a break of employment towards gratuity benefit and other long-term benefits of the employee?
4. Will she have to resign, and the company has to do a full and final settlement and start all over with the same company?
As of now, the company needs her skills, and she needs some financial support. The company is a Pvt Ltd. company with employees less than 10.
Thanks and regards
From India, Mumbai
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Hi,
Please find responses below:
Question 1: Can the employee be considered on payroll? If yes, for how long? - There are many MNCs nowadays that allow their employees to work from home, which ultimately saves costs for the employer. The tenure is finally at the call of the management.
Question 2: Does the company still have professional tax liability towards the employee if payment is on an hourly basis for work done? - Yes, if you list her as an employee on your payroll, then you need to deduct professional tax from her salary.
Question 3: Will this arrangement be considered a break of employment concerning gratuity benefits and other long-term benefits for the employee? - If you do her full and final settlement and rehire her as a consultant, then you need to close her accounts as an employee and treat her as a fresh consultant for your company.
Question 4: Will she have to resign, and will the company have to do a full and final settlement and start all over with the same company? - Answer given in the 3rd question.
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Please find responses below:
Question 1: Can the employee be considered on payroll? If yes, for how long? - There are many MNCs nowadays that allow their employees to work from home, which ultimately saves costs for the employer. The tenure is finally at the call of the management.
Question 2: Does the company still have professional tax liability towards the employee if payment is on an hourly basis for work done? - Yes, if you list her as an employee on your payroll, then you need to deduct professional tax from her salary.
Question 3: Will this arrangement be considered a break of employment concerning gratuity benefits and other long-term benefits for the employee? - If you do her full and final settlement and rehire her as a consultant, then you need to close her accounts as an employee and treat her as a fresh consultant for your company.
Question 4: Will she have to resign, and will the company have to do a full and final settlement and start all over with the same company? - Answer given in the 3rd question.
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Hi,
I appreciate your response. So, we can conclude that as of now, we do not have any basic law for work-from-home employees. It is the management's decision whether to treat them as payroll employees or consultants.
Have I understood it correctly?
Thanks and regards
From India, Mumbai
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I appreciate your response. So, we can conclude that as of now, we do not have any basic law for work-from-home employees. It is the management's decision whether to treat them as payroll employees or consultants.
Have I understood it correctly?
Thanks and regards
From India, Mumbai
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Office Order regarding Maternity Leave for Contractual employee as per Amendment Act 2017.pdf
Maternity Leave Policy - posting.doc