A
SUMMER TRAINING PROJECT REPORT
ON
“HR POLICIES AND ITS IMPLEMENTATION”
AT
TURT SOFTECH PVT. LTD.
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
AFFILIATED TO
( G.B. TECHNICAL UNIVERSITY, LUCKNOW )
SUBMITTED TO: Miss. Shweta Trivedi
SUBMITTED BY: MONIKA GURDASANI
ROLL NO. – 1267470021
MBA IIIrd Semester
(2012 – 2014)
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PROJECT REPORT CERTIFICATE
This is to certify that Miss. Monika Gurdasani a student of MBA has submitted her
project report entitled “HR POLICIES AND ITS IMPLEMENTATION” at TURT SOFTECH
PVT. LTD. in partial fulfilment of the requirement for summer training of “Master of
Business Administration” of the “Gautam Budhha Technical University, Lucknow
(U.P.)”. The training has been carried out under our supervision during academic session
2012-2014.
I wish her to be successful in all her effort and achieve all that she hoped for.
Prof. Dr. C.R. Bharol
Director
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August 10th, 2013
TO WHOM SO EVER IT MAY CONCERN
This is to certify that Miss. Monika Gurdasani has undergone summer internship in
our organization for a period of 08 weeks w.e.f. 05th June 2013 as a part of her MBA
Course curriculum from SHREE COLLEGE OF MANAGEMENT, LUCKNOW.
She has successfully completed her internship in HUMAN RESOURCE department.
During the tenure of internship, we found her sincere and hardworking.
We wish all success in her future endeavours.
Thanks & Regards,
Prateek Dubey
(Managing Director)
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August 10th, 2013
CERTIFICATE
This is to certify that Miss. Monika Gurdasani, a student of MBA from Shree
College of Management, Lucknow has undergone training in TURT SOFTECH PVT. LTD.
from 05th June 2013 for 08 weeks, and worked under my guidance on the project entitled –
“HR POLICIES AND ITS IMPLEMENTATION” at TURT SOFTECH PVT. LTD.
For the purpose of her summer internship project while forwarding the project work
the mentioned topic above, I certify that she has completed her project work in the
prescribed period and the project incorporated the result of the job done by her during this
period. She showed interests and inquisitiveness throughout the project training. I wish her
luck in all her future endeavours.
Thanks & Regards,
Anand Nigam (PROJECT GUIDE)
(HR Manager)
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ACKNOWLEDGEMENT
This report is an outstanding prospect to convey my gratefulness to those many
people whose timely help and guidance went a long way in finishing this project work from
commencement to achievement.
I would like to express my sincere thanks to Anand Nigam for giving me an
opportunity to explore the practical knowledge practiced by the company.
I am very glad to work with the organization as a trainee. I am grateful to HR
Department of TURT SOFTECH PVT.LTD. for helping me to get the information and an
invaluable experience.
Last but not the least would like to thank my friends, family members and all those
people who helped me for the completion and deeper understanding of the concept of
performance appraisal.
Working on this project to be an enlightening experience for me.
MONIKA GURDASANI
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TABLE OF CONTENTS
INDEX
CERTIFICATE …………………………………………………………………………2
ACKNOWLEDGEMENT ………………………………………………………………5
DECLARATION ……………………………………………………………………….10
PREFACE ……………………………………………………………………………...11
EXECUTIVE SUMMARY …………………………………………………………….12
Chapter – I
INTRODUCTION
INDUSTRY ANALYSIS
1. Overview Of The Industry ………………………………………………………..13
2. Industry Segmentation ……………………………………………………………14
3. History And Evolution Of IT Industry ……………………………………………15
4. List Of Players In The Industry …………………………………………………..16
5. Growth Of The Industry (Forecast) ……………………………………………...17
Chapter – II
COMPANY PROFILE
6. About The Company …………………………………………………………......21
7. Turt Group Structure …………………………………………………………......22
8. Board Of Directors .......................................................................................24
9. About Board Of Directors .............................................................................25
10. About Turt Softech (P) Ltd. ...………………………………………………….…27
11. Company History ……………....……………………………………………….…28
12. Infrastructure ……………………....………………………………………………29
13. Company Mission …………………....……………………………………………31
14. Company Goal ………………………....………………………………………….32
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15. Company Vision …………………………..………………………………………33
16. Core Purpose & Corporate Values ……..…………………………………...….34
17. Value Statement ……………………………..……………………………………35
18. Organizational Structure ……………………..…………………………………..37
19. Turt Team ………………………………………...………………………………..38
20. Organization Features …………………………………………………………....40
21. Turt Aims At Providing ……………………………………………………….......43
22. Advantages Of Turt Softech ………………………………………………….....44
23. Quality And Environment ……………………………………………………......45
24. Research & Development …………………………………………………….....46
25. Achievements …………………………………………………………………......47
26. Milestone ………………………………………………………………………,.....50
27. Turt Product Range ………………………………………………………….…...51
28. Our Product ………………………………………………………………….…....52
Chapter – II
ABOUT THE TOPIC
HUMAN RESOURCE POLICY
29. About The Topic : ‘Human Resource Policies’ …………………………..........69
30. Formulating Policies ………………………………………………………….......70
31. Benefits Of Hr Policies ……………………………………………………….......71
32. Principles Of Hr Policy ……………………………………………………...........72
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Chapter – III
RESEARCH OBJECTIVES, SCOPE, METHODOLOGY AND
PROBLEMS
33. Objectives Of Study …………………………………………………………….74
34. Scope Of Study …………………………………………………………….......75
35. Research Methodology ..........................................................................76
36. Research Problem .................................................................................78
Chapter – IV
THEORITICAL BACKGROUND
STATE LABOUR LAWS
37. Introduction …………………………………………………...........................80
38. History Of Labour Laws ……………………………………………............…81
39. Purpose Of Labour Legislation ………………………………...............……84
40. Evolution Of Labour Law In India …………………………...............………85
41. Constitutional Provisions For Labour Laws .............................................86
42. Constitutional Status ..............................................................................87
43. Labour Policy Of India ................................................................ ............88
44. Labour Laws In India ..............................................................................90
45. Classification Of Labour Laws In India ...................................................95
Chapter – V
FINDINGS, RESEARCH AND RESOLUTION
46. HR Policies At Inspection ..........................................................................144
47. Impact Of HR Policies ...............................................................................158
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Chapter – VI
IMPLEMENTATION OF NEW HR POLICY
48. Hours Of Operations ……………………………….…………………….…..160
49. Attendance Policy …………………………………….………………………161
50. Leave Policy …………………………………………………………………..163
51. Holidays …………………………………………………………………….….171
52. Recruitment ………………………………………………………………..….172
53. Manpower Requirement Requisition Form ……………………………..…175
54. Job Application Form ………………………………………………………...177
55. Importance Of Job Application Form ....................................................182
56. Interview Assessment Form .................................................................183
57. Training And Probation Policy ………………………………………….......185
58. Performance Appraisal Policy ……………………………………………....186
59. Key Responsibilities Assessment ………………….................................187
60. Counselling …………………………………………………………………....191
61. Career Planning Policy ........................................................................192
62. Pay And Compensation .......................................................................193
63. Dress Code Policy ...............................................................................194
64. Safety Policy .......................................................................................197
65. Work Place Security Policy……………………………………………….....198
66. Equal Employment Policy …………………………………………………...199
67. Business Expense Reimbursement ……………………………………......200
68. Telephone And Computer Use Policy …………………………………......201
69. Drug, Alcohol And Smoking Policy …………………………………….......202
70. Termination Policy ...............................................................................203
71. Grievance Handling Process ................................................................207
72. Comparison Between The Two Policies ………………………………......208
73. Conclusion ...........................................................................................210
REFERENCE
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DECLARATION
I MONIKA GURDASANI, hereby declare that all the information furnished in this
PROJECT entitled, “HR POLICIES AND ITS IMPLEMENTATION” at TURT SOFTECH
PVT. LTD. is my original work containing authentic facts. This work is only being submitted
to SHREE COLLEGE OF MANAGEMENT in the partial fulfilment of the requirements for
the award of Masters of Business Administration is the outcome of original study
undertaken by me and it has not been submitted earlier to any other University or Institution
for the award of any Degree.
Date: 8th August, 2013
Place: Lucknow MONIKA GURDASANI
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PREFACE
Human resource management is concerned with people element in management.
Since every organization is made up of people, acquiring their services, developing their
skills/ motivating to high level of performances and ensuring that they continue to maintain
their commitments to the organization which are essential to achieve organizational
objectives.
This project is meant to know the Human Resource Policies in the organization. The
HR Policies are a tool to achieve employee satisfaction and thus highly motivated
employees. The main objective of various HR Policies is to increase efficiency by increasing
motivation and thus fulfil organizational goals and objectives.
The objective is to provide the reader with a framework of the HR Policy Manual and
the various objectives that the different policies aim to achieve. The main focus was on the
managerial levels of employees in TURT SOFTECH PVT. LTD.
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EXECUTIVE SUMMARY
My internship at TURT SOFTECH PVT.LTD., was a great exposure to the corporate
world. After going through my summer training, I had a first-hand experience of how a
Company as well as HR department functions.
INTRODUCTION OF PROJECT
This project is about the HR Policies in TURT SOFTECH PVT. LTD. The HR Policies
in an organization helps every individual to raise his/her potential in all facets by helping him
to be satisfied and secured about his present and future.
PROJECT TITLE
The title of the project is “HR Policies and Its Implementation” in TURT SOFTECH
PVT.LTD. As the name indicates it is the study of the HR Policies prevalent in TURT
SOFTECH PVT.LTD.
ORGANIZATION
TURT brings in a unique mix of specialists in information technology areas. The
solution requirements of Information Technology demand experts in these areas and TURT
geared up to offer a comprehensive suite of services to the IT Industry.
We have a huge Development, Testing, Maintenance, Support and Business
Development Team having vast experience and in-depth knowledge of different
technologies for developing complex business solutions with focus on the core
requirements. We bring innovative ideas and cutting-edge technologies, to help our
customers just to concentrate on their respective business.
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INTRODUCTION
INDUSTRY ANALYSIS
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OVERVIEW OF THE IT INDUSTRY
The Indian IT industry is growing steadily despite the global meltdown in the year
2009. When the whole of the world witnessed the negative growth, Indian IT industry still
managed to register a growth of 5.5%. The industry is about to register the historic landmark
of Rs. 300 thousand crores exports last financial year, according to NASSCOM President,
Som Mittal. The domestic market is also slotted to witness 12% growth, this year. Potential
size of India‟s offshoring industry is estimated at Rs. 750 thousand crores to 1200 thousand
crores by 2015. The industry currently employs around 10 lacks people and provides
indirect employment to around 25 lacks people. It is expected to add another 1,50,000 jobs
in the next fiscal according to NASSCOM.
Indian IT/ IT-es sector is growing substantially with its
Expansion into varied verticals
Well differentiated service offerings
Increasing geographic penetration
The phenomenal success of the Indian IT- IT-es industry can be attributed to the
favourable government policies, burgeoning demand conditions, healthy growth of related
industries and competitive environment prevalent in the industry. The interplay of these
forces has led to putting the industry on the global map.
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INDUSTRY SEGMENTATION
IT industry can be broadly classified into three sectors:
1. Software
2. IT Services
3. IT enabled Services (IT-es)- BPO
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HISTORY AND EVOLUTION OF IT INDUSTRY
1. PHASE I – Prior to 1980
2. PHASE II – 1980 - 1990
3. PHASE III – 1990 - 2000
4. PHASE IV – Post 2000
YEAR GROWTH
PHASE I PHASE II PHASE III PHASE IV
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LIST OF PLAYERS IN THE INDUSTRY
1. ESDS
2. TATA CONSULTANCY SERVICES
3. WIPRO LIMITED
4. INFOSYS
5. HCL TECHNOLOGY
6. TECH MAHINDRA
7. COGNIZANT
8. I - FLEX SOLUTIONS
9. L&T INFOTECH
10. MINDTREE
11. I- GATE
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GROWTH OF THE INDUSTRY (FORECAST)
Competition globally.
India can sustain if the cost differential is attractive which is 1:3 currently.
Containing costs one of the challenges.
Quality control
Focus and build Indian market.
Moving up the value chain.
Making good revenue in the software service sectors.
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COMPANY
PROFILE
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ABOUT THE COMPANY
TURT is a group with the multidimensional and well diversified domain including
many aspects, such as:
IT Sector for development, maintenance and commissioning, along with support for
business promotion and internet marketing.
Business consultancy for helping business to initiate, propagate and stand, with the
features of plant side reporting, land and material procurement and commissioning.
Pharmaceuticals sector for pharmacological research, medicine testing and
manufacturing.
Tele media sector for researching, producing and distributing the feature films and
television motion pictures.
and many more…
TURT group is one of the trusted partners for aforesaid sectors & have the
capabilities, manpower, methods, technologies and the desire to be your strategic partner of
choice.
Their primary objective is to develop an environment of fairness, honesty, integrity
and courtesy towards their clients, employees, vendors and society at large. They are
committed to their Customers and partners and have a passion for technology. They take
on big challenges, and pride themselves on seeing them through
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TURT GROUP STRUCTURE
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Turt Softech
Turt Consultancy
Turt Sccurities
Turt Infrabuild
Turt Healthcare
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BOARD OF DIRECTORS
CEO
Dr. A. P Mishra
MANAGING DIRECTOR
Mr. Prateek Dubey
DIRECTOR and LEGAL ADVISOR
Mrs. Rajshree Mukherjee
MEMBER ADVISORY BOARD
Mr. Soumak Mukherjee
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ABOUT BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
Mr. A.P Mishra
Academic: Completing his basic schooling from Uttarakhand, the land of mountains, he
further accomplished his Medical Education in Dentistry from Moradabad (Uttar Pradesh),
the brass city. After completion of his education from two entirely different atmospheres, he
started a company in 2011 which shined like brass and stood strong as mountains.
Work Role:
Meeting the needs of employees, customers, and investors.
He decides, sets budgets, and hires a team to steer the company accordingly.
His duty is building culture. Work gets done through people, and people are
profoundly affected by culture.
Team-building is his duty. He hires, fires, and leads the senior management team,
they, in turn, hire, fire, and lead the rest of the organization.
Allocation of capital is his duty. He sets budgets within the firm.
Setting up strategy and vision for the company.
Keeping the Board informed of existing or impending Board policy issues
Contributing to the development of annual goals and objectives
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MANAGING DIRECTOR
Mr. Prateek Dubey
Academic: Completing his basic schooling from Lucknow, the city of nawabs, he further
attained his graduate degree of Engineering in Electronics and Communication from
Moradabad (Uttar Pradesh). After completion of his education he came forth with a new
idea of setting up a IT business in Lucknow.
The competition was tough and he was new. He was not able to survive, but he
fought, against adversary, employees, money, family and most important of all, he fought
against himself.
Work Role:
He is holding the top management position in a company.
He acts as a head of the company scrutinizing, assessing, and monitoring various
departments.
He is answerable to the customers, and also the board of directors, on issues
regarding the company performance.
He takes decision, holds meetings, and formulates strategic plan for daily
activities.
He maintains the operational performance of the company.
He directs strategy towards the profitable growth and operation of the company.
He motivates the employees of the company from time to time.
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ABOUT TURT SOFTECH (P) LTD.
TURT SOFTECH PVT. LTD. is a Web Development and Custom Application
Development company of India. It provides custom solutions of high quality and low cost
with their rich experience in Web Development, Project Management and technical know-
how. They bring innovative ideas and cutting-edge technologies to help their customer just
concentrate on their respective business.
They, in a short span of time, have established a reputation as the most definitive
work for website development, software development, in house and offshore server, domain
management and cloud setup. They have indigenously developed the concept of high
specification, carrier neutral & fully managed Servers in Lucknow, Nashik (India) & London
(U.K).
They have a huge Development, Testing, Maintenance, Support and Business
Development Team having vast experience and in-depth knowledge of different
technologies for developing complex business solutions with focus on the core
requirements.
Apart from developing and maintaining the solutions for their esteemed customers
they also thrive to make their customers smile without worry.
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COMPANY HISTORY
Founded in 2011 as a small co. with a big vision, at Lucknow.
Maintained a phenomenal growth.
Achieving total financial stability since inception & the growth is solely based on
internally generated funds.
Consistent record of 50% of business coming from repeated customers.
Spotless delivery of record of many successful projects.
A dedicated team of brilliant software and hardware professionals.
Providing complete peace of mind & satisfaction to our clients.
In 2012 set up its two branches one at Siliguri (West Bengal) and the one at Sitapur
(U.P).
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INFRASTRUCTURE
TURT SOFTECH has a dedicated development and service centre, which is an
extension of the customer‟s software engineering facility from carefully selected building
materials to unique power saving systems. They have ensured that they keep their
operations & premises as a contributing factor in maintaining the environment equilibrium.
DATA CENTRE SPECIFICATION:
A large working area.
Complete multi powered network.
Healthy environment.
Fully air-conditioned.
Multiple internet connection from different backbone providers to provide 100%
uptime.
Vision cameras.
Providing good training facility for staff.
Dedicated servers for application hosting, testing & client presentation.
A good communication facility with clients with co-ordination.
Well maintained to overcome any disaster.
Environmental monitoring system.
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COMPANY MISSION
TURT Web Development team works with an objective to provide all the possible
services to get your business IT enabled with easy-to-use facilities and software tools to
upgrade clients business to a new height which your competitors can never think of.
They believe in planned approach for future by securing your online presence today.
To capitalize on the efficiency of information technology industry to same clients, they work
hard constantly.
At TURT clients get the highest quality & value for their investment with complete
peace of mind and satisfaction. They believe in providing a user-friendly application with a
unique presentation, easy & simple to understand approach.
They embrace bold strategies that will lead to their success in market place & will
make TURT SOFTECH a winning competitor both today & in the future.
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COMPANY GOAL
TURT goal is to become the world‟s leading Information Technology Company
providing quality solutions backed up by unbeatable customer service.
They see themselves on the heights which no one has ever achieved. They aspire to
become the best cutting edge technology provider, that too responsibly and in a fair way.
They want to maximize the rewards of our diversity by providing end to end solutions,
which are easy to maintain and upgrade.
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COMPANY VISION
TURT want to extend their relationship with clients and become a trusted and
predictable outsourcing partner. They look forward to commence a mutually beneficial and
long-term relationship.
They dream to be the fastest, safest, most progressive technology builder, relentless
in the pursuit of client & employee‟s excellence & strive to achieve higher customer
satisfaction with information product & service. They work with honesty, integrity &
commitment.
They are the most economical service providers on the globe providing the most
economical plans for website & software solutions.
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CORE PURPOSE & CORPORATE VALUES
CORE PURPOSE
“Improve Life through Innovative Technology”
We are a role model enterprise, respected globally for excellence in quality and
innovation.
We enhance stakeholder value while adhering to the code of responsible care and
ethical values.
We are an employer of choice and preferred business partner worldwide.
CORPORATE VALUES
TURT SOFTECH PVT. LTD. believes in honouring its commitment, integrity and
transparency are an integral part of our relationship with customers, employees, society.
Respect for Life: The Company believes that life in all its forms must be respected.
We respect and value our people. Our employees are our value creators whose efforts,
creativity and bond we cherish. Our customers, who reward us for our value creation and
our stakeholders, who are committed to us in our endeavour to improve life. We also
recognize and respect our environment and take every effort to preserve it.
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VALUE STATEMENT
Integrity
We are open, ethical, transparent & uncompressing in our work.
Decisiveness
Set a goal, analyse the facts and work on alternatives and conclude them in fixed
time frame.
Team Spirit
We encourage group interaction and working together. United and collective drive
achieves the desired goal.
Commitment
We keep all promises made within and outside the company.
Caring
We are concerned for our environment, society and employees and work for their
betterment.
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Excellence
We are a role model and benchmark company for our products, services and
business processes.
Innovation
We nurture creativity and encourage application of knowledge and ideas in all facets
of our business.
Customer Orientation
Customer is uppermost in our mind. We work to exceed his expectations.
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ORGANIZATIONAL STRUCTURE
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TURT TEAM
TURT SOFTECH is a group of dedicated team of skilled IT professionals. It brings in
a unique mix of specialists in information technology areas. We have our own staff,
monitoring entire network & all our servers. We employ an experienced team of professional
engineers, with proven track records who are committed, responsive & Information
Technology demand experts. TURT has geared up to offer a comprehensive suite of
services to the IT Industry.
HARDWARE TEAM SPECIFICATION:
10 AM to 6 PM Helpdesk & Customer Support.
Experienced professionals of hardware and networking sector.
Good analysis, resolution & delivery of products.
Disaster recovery & Backup Solutions.
Honest & Hardworking staff.
Providing satisfaction to Customers.
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SOFTWARE TEAM SPECIFICATION:
24/7 Helpdesk & Customer Support at NOC.
24x7x365 monitoring & staffing in NOC.
Experienced professionals of IT sector.
Good analysis, implementation & delivery of projects store technology.
Research & Development team.
Managed Web Hosting & Data centre Services.
Email services.
Disaster recovery & Backup Solutions.
Share point services.
Global server load Balancing.
Network Designing & Implementation.
Virtualization Technology & Cloud Computing.
Geospatial Information System & Web Making.
E-Governess & M-Governess.
Honest & Hardworking staff.
Providing satisfaction to Customers.
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ORGANIZATION FEATURES
TURT TECHNOLOGY SERVICES:
Application Design
Product Development
Integration & Support
Network Management
Network Security
Dynamic Web Application Development
Web Designing
Web Optimization
Web Promotion
Link Building
Web Maintenance
E-Commerce Solution
Animation
Flash
Cloud Hosting
Search Engine Submissions
Hosting
Graphic Designing
Consultancy.
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Online Marketing
TECHNICAL LANGUAGES:
Java
Java Script
HTML
XHTML
XML
PHP
SQL
MSSQL
MySQL
C#
ASP.NET
DEDICATED SERVERS:
Cent OS, Open BSD, Cold Fusion DNS, Hyper V-tech, Microsoft SQL Server 2008-
Enterprise Edition R2, Microsoft SQL Server 2008- Web Edition R2, Virtuzzuo Container,
Parallel Plesk Expand Unlimited with Power Pack 2, Dotnet panel.
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Our dedicated servers are designed to deliver an optimum combination of
affordability, flexibility, reliability & most important a higher level of security that makes your
hosted environment complete.
SYSTEM & PRODUCTS:
Incorporate user feedback points & are enriched with onsite experience.
Deploy modular, Plug in Framework.
Can be installed maintained & understood by end user.
Have excellent user interface & Reporting.
Use latest networking technologies like IPVG, SNMPU3, XML, and RPC.
Are designed for affordable Solutions.
Can be maintained through remote software updates.
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TURT AIMS AT PROVIDING
Quality Product
Excellent Customer Service
Cost Effective Solution
Economic Price Structure
Flexible Payment Mode
Right Time Delivery
Satisfaction to Customers
Quick resolution to problems
Healthy Environment
Satisfied clients
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ADVANTAGES OF TURT SOFTECH
TURT ensure no. of advantages of its own:-
Ensure on time delivery.
Have skilled hardware and network professionals.
Healthy environment.
Good communication with clients through a simple & understanding language.
Quick resolution to problems.
Consistent growth & performance.
Satisfied clients.
Proximity to skilled manpower.
Multicultural & Multi location understanding.
Flexible to work with needs of the clients.
Provide high quality & cost effective solution.
Competitive pricing & risk sharing.
Local LANS, local time, local responsibility, local guarantee, global quality.
Pre-active client management accessing from 10am to 9pm.
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QUALITY AND ENVIRONMENT
At TURT SOFTECH quality is the keyword in every activity and a constant endeavour
to achieve standards of the highest levels has been an on-going commitment from the time
of its inception as well as recognition and acknowledgement of this devotion. This
achievement has been set as a benchmark to go forward in excellence.
For TURT it is an on-going process to continuously explore new product applications,
competitive technologies and potential markets. TURT has scaled his success with its aim
of commitment and quality.
The commitment towards this is apparent from the fact that TURT has a total
manpower of 85 persons supporting the Quality and Technical functions at its various
technical facilities
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RESEARCH & DEVELOPMENT
At Turt Softech, R&D is the key to survival and growth, given that a fast paced global
environment results in ever changing customer needs and new products and processes
drain away competitiveness.
From mere quality issues, Turt Softech has now moved into the field of newer
technologies, expanding applications that satisfy customers.
To that end we have a central R&D facility, the TURT Research & Development
Centre (TRDC) at Lucknow. TRDC has a sophisticated analytical facility for testing new
technologies and new products. A team of over 30 persons, looks after the department
activities.
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ACHIEVEMENTS
TURT has many a firsts to its credit and these have been earned through its constant
endeavour for identification of products that are required by the clients. TURT R&D centre in
Lucknow aims to provide specialized products that add value and enhance every aspect of
life.
Success can be measured in many ways.” Success is a journey, not a destination.”
And for TURT, it‟s been a period of tremendous achievements.
Mentioned here are some of the company's achievements:
Started in November 2011 with a small area in Murari Yadav Complex Faizabad
Road and maintained 20 clients in first financial year.
Expanded its business a year later in 2012 with 120 clients consisting of 20 old
clients.
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Expanded server site infrastructure with owned dedicated servers in London, U.K
and Nasik data centres.
Expanded business in 2012 by opening two branch office at Siliguri (West Bengal)
and Sitapur (U.P).
Further expansion of business was seen in third year 2013 with expansion of
business area and a new office set up at Sinha Complex, Gole Market Mahanagar.
Company made its contribution by sponsoring BHARAT JAGO DAUD at Siliguri
(West Bengal) in 2013.
In 2013 TURT formed a group with its following subsidiaries:
TURT SECURITIES PVT. LTD.
TURT SOFTECH PVT. LTD.
o It has its sister concern TURT EDUTECH
TURT CONSULTANCY SERVICES PVT. LTD.
o It has its sister concern WINAXIS CONSULTANTS PVT. LTD.
TURT HEALTH CARE SERVICES
o It has its sister concern GLOW DENTAL CARE
o It has its sister concern AXILTH REMEDIES
SVYAMSIDHA ENTERTAINMENTS (I) PVT. LTD
TURT INFRABUILD PVT. LTD.
o It has its sister concern GOODWILL INFRA
The inauguration of WIN AXIS CONSULTANTS PVT. LTD. was done by our
esteemed guest Mr. Ambika Choudhary, Minister of Pichda Varg and Vikalang
Kalyan.
In this year the clientele reached upto 500+.
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TURT forwarding step in a new sector applied for news publication name RELATO
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MILESTONE
In a short span of 3 years TURT has steadily climbed the steps of excellence and is
continuing in its efforts to reach the top and be the best. Mentioned here are some of its
milestones:
GROWTH
20 120
500+
2011 2012 2013
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TURT PRODUCT RANGE
Turt is a trusted partner for all & has a wide range of its product. There are ten
software products of our company. They all are well developed with high technology
features in grouped in all.
List of Products:
1. SKLEP LITE
2. SKLEP ELITE
3. SKLEP PLUS
4. BITE PLAZA
5. COMERCIO
6. SKOLAN
7. RELATO
8. SKO LEARN
9. DIGI CINE
10. DIGI DENT
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OUR PRODUCT
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SKLEP LITE
ABOUT:
SKLEP LITE is light weighted software suitable
for small scale industries. It is an online invoicing
system with unique features and functionality. It has
provision to record complete personal details of
customer and his account details. It is helpful in
making records of sales and invoice on daily, weekly,
quarterly, monthly and yearly basis. This software also has provision for preparing balance
sheet of the business.
USES:
It is used for recording customer details.
It is used for preparing balance sheet.
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ADVANTAGES:
It has advantage for invoicing online.
It is for maintaining invoice on daily, weekly, quarterly, monthly and yearly basis.
SKLEP PLUS
ABOUT:
SKLEP PLUS to be known as point of sale
solution has special features of billing. It is billing
system software with new and different features
comparable to other software. It is helpful in inventory
management of the business. This software also has
the bar code printing facility. It records complete client
details and manages client account. This software is scalable upto 1 lakh products.
USES:
It is used for inventory maintenance.
It is used to record client details.
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ADVANTAGES:
It has advantage of easy billing.
It is scalable of maintaining 1 lakh products.
It provides advantage of bar code facility.
SKLEP ELITE
ABOUT:
SKLEP ELITE to be known as enterprise resource
planning is an entirely web based software. This software
is helpful for maintaining quotations and for entering
customer orders. It has feature for maintaining both sales
and purchase order. The inventory managed is easily
done by this software. It maintains a fixed asset register. It
is easily accessible in multi languages and facility for multi-currency is usage is there in this
software. It is for making daily sales report of the business. It records complete details of the
customers personal and the account detail both. Using this software number of bank
accounts can be maintained. It also has provision for preparing balance sheet of the
business.
USES:
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It is used for maintaining quotations.
It is used for entering customers‟ orders.
It is used for inventory management.
It is used for recording customer detail.
It is used for managing bank accounts.
It is used for managing customer queries/complaints.
It is used for salary management.
It is used for production management.
It is used for service request resolution.
ADVANTAGES:
It has advantage of preparing balance sheet.
It is for maintaining number of bank accounts.
It has advantage of multi-language interface.
It has advantage of multi- currency usage facility.
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BITE PLAZA
ABOUT:
BITE PLAZA is a complete restaurant management
system. The interface of it is available in 11 languages. This
magnificent product works well with all types of printers,
cash drawers, line display, bar code readers & magnetic
strip readers. It has provision for taking orders from the
customers. It is very easy accessible for generating billing
with tax reports. Including all the above it also provides
inventory record & management provision. It maintains complete staff management i.e.
salary, report time etc. It has one new feature of Kitchen Order Ticket printing (KOT). The
daily, weekly, monthly, quarterly & yearly sales & invoice reporting is done by it. It also
works in networks. It is having comprehensive set of reports i.e. sales, taxes, Z-out,
inventory, profit margin & others.
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USES:
It is used for taking orders from the customers.
It is used for staff management.
It is used for inventory management.
It is used for restaurant billing.
It is used for report viewing.
ADVANTAGES:
It has advantage of multi-language interface.
It is for generating bills with tax reports.
It has advantage of working in networks.
It has advantage of working with all type of printers, cash drawers, line display, bar
code readers & magnetic strip readers.
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Comercio
ABOUT:
COMMERCIO software has an easy to
use functionality for shop owners. It has user
friendly design look & feel. This software is
compatible for both mobile & tablet. It is fully
scalable upto 1 lakh products. It has feature
of online ordering with 2 steps & 5 steps check out procedures & supports all available
payment gateways including wire transfer & cash on delivery. This software is used for
tangible & non-tangible products i.e. grocery items, mobile etc. Using this software owner
can fully customise his shop & can run on multiple online stores. The software maintains full
customer records, a/c & invoices. It is feature for customer to track their orders. The
software is also having logisticians panel.
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USES:
It is used to maintain customer record.
It is used to record tangible and non-tangible products.
It is used for online product selling.
It is used for online product showcasing.
It is used for e commerce discount deals.
It is used for shipment management.
ADVANTAGES:
It provides advantage to customer for tracking their orders.
It is scalable to 1 lakh products.
It has feature of online ordering.
It is compatible with mobile and tablet.
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SKOLAN
ABOUT:
SKOLAN is complete school management system software. It maintains complete
student record & details i.e. attendance, growth & progress. It is helpful to teachers for
preparation of grade books & report cards. It maintains complete teacher record & details
i.e. attendance, progress & consignment. This software has a unique feature of online
parent & teacher relationship management. It is having online leave application facility.
There is a portal for parents to view their child‟s performance. The software is helpful for
preparing class time table schedule both for teacher & student. It has a provision for
maintaining a/c, salary & fee structure of the teachers and students both. It maintains
complete class wise record & details.
USES:
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It is used to record students and teachers detail.
It is used to prepare class time table.
It is used to maintain complete class record.
It is used to maintain grade book and results.
It is used for fees management.
ADVANTAGES:
It has advantage of online leave application facility.
It maintains online parent & teacher relationship.
It provides portal for parents to view their child‟s performance.
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RELATO
ABOUT:
RELATO is an online news portal. It
is suitable for the clients who are in print & news media sector. This software has friendly
search engine system can archive unlimited news posts. The software has quick & easy to
use functionality. It has provision for newsletter & subscription. It is compatible to both
mobile & tablet. This supports text, images, as well as videos.
USES:
It is used to support text, images and videos.
It is used by clients in print and news media sector.
ADVANTAGES:
It has a great advantage of friendly search engine system.
It has portal for newsletter and subscription.
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It is compatible to both mobile and tablet.
SKOLEARN
ABOUT:
SKO LEARN is software with feature
for online classes & courses. It is scalable of
upto unlimited subjects, courses & topics. In
this the online registration for both students & teachers can be done. It has a unique feature
carrying social networking site and file storage. This software provides interactive
communication between teachers & students. It has a feature for online messaging and it
also carry out online tests and results. It maintains complete profile of student and teacher.
USES:
It is used by student and teachers.
It is used to record teachers and students detail.
ADVANTAGES:
It has advantage of online registration.
It provides a social networking site and online messaging facility.
It is scalable of upto unlimited subjects, courses & topics.
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It provides online tests and results.
DIGICINE
ABOUT:
DIGI CINE is complete hospital
management software. It is suitable for
both OPD & IPD functionality. It is having
facility of patient registration; complete details of patient can be maintained and can be kept
for future reference. It maintains records & details of all the departments & department
heads. It has a feature of pharmacy management and store management. It maintains
complete record of employee‟s and their details of salary. It has provision for making
financial record.
USES:
It is used to record patient detail and make registration.
It is used for both OPD and IPD functionality.
It is used for maintain employee‟s record and details.
It is used to prepare details of all departments.
It is used for online registration of patients.
It is used for pathological result storage.
It is used for radiological result storage.
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ADVANTAGES:
It has advantage of online registration.
It maintains financial record.
It is flexible and scalable.
It provides billing facility.
It also has one more feature of pharmacy and store maintenance.
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DIGIDENT
ABOUT:
DIGI DENT software has
unique solution for private dental
practise management. It maintains
online patient registration according to
slots. It maintains complete patient record & details which are easy accessible for future
references. It has unique feature of maintaining patient‟s radiograph record. It also provides
interactive communication with patients. This software has multi-speciality management and
has provision of online lab & radiograph ordering.
USES:
It is used to record patient detail and make registration.
It is used to maintain patient‟s radiograph record.
ADVANTAGES:
It has advantage of online registration.
It provides interactive communication with patients.
It provides multi-speciality management.
It provides online lab & radiograph ordering.
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ABOUT THE TOPIC
“HUMAN RESOURCE POLICY”
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ABOUT THE TOPIC
‘HUMAN RESOURCE POLICIES’
Human Resource Policies refers to principles and rules of conduct which “formulate,
redefine, break into details and decide a number of actions” that govern the relationship with
employees in the attainment of the organization objectives.
HR Policies cover the following:
Policy of hiring people with due respect to factors like reservations, sex, marital
status, and the like.
Policy on terms and conditions of employment-compensation policy and methods,
hours of work, overtime, promotion, transfer, lay-off and the like.
Policy with regard medical assistance-sickness benefits, ESI and company medical
benefits.
Policy regarding housing, transport, uniform and allowances.
Policy regarding training and development-need for, methods of, and frequency of
training and development.
Policy regarding industrial relations, trade-union recognition, collective bargaining,
grievance procedure, participative management and communication with workers.
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FORMULATING POLICIES
There are five principal sources for determining the content and meaning of policies:
1. Past practice in the organization.
2. Prevailing practice in rival companies.
3. Attitudes and philosophy of founders of the company has also its directors and the
top management.
4. Attitudes and philosophy of middle and lower management.
5. The knowledge and experience gained from handling countless personnel problems
on day to day basis.
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BENEFITS OF HR POLICIES
Organizations should have personnel policies as they ensure the following benefits:
1. The work involved in formulating policies requires that the management give deep
thought to the basic needs of both the organization and the employees. The
management must examine its basic convictions as well as give full consideration to
the prevailing practices in other organizations.
2. Established policies ensure consistent treatment of all personnel throughout the
organization. Favouritism and discrimination are, thereby, minimized. Continuity of
action is assured even though top management personnel change. The CEO of a
company may possess a very sound personnel management philosophy.
3. He/she may carry the policies of the organization in his/her head, and he she may
apply them in an entirely fair manner. But what happens when he/she retires? The
tenure of office of nay manager is finite. But the organization continues. Policies
promote stability.
4. Policies serve as a standard of performance. Actual results can be compared with
the policy to determine how well the members of the organization are living upto the
professional intentions.
5. Sound policies help build employee motivation and loyalty. This is especially true
where the policies reflect established principles of fair play and justice and where
they help people grow within the organization.
6. Sound policies help resolve intrapersonal, interpersonal and intergroup conflicts.
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PRINCIPLES OF HR POLICY
1. Principle of individual development to offer full and equal opportunities to every
employee to realize his/her full potential.
2. Principle of scientific selection to select the right person for the right job.
3. Principle of free flow of communication to keep all channels of communication
open and encourage upward, downward, horizontal, formal and informal
communication.
4. Principle of participation to associate employee representatives at every level of
decision-making.
5. Principle of fair remuneration to pay fair and equitable wages and salaries
commensuration with jobs.
6. Principle of incentive to recognize and reward good performance.
7. Principle of dignity of labour to treat every job and every job holder with dignity
and respect.
8. Principle of labour management co-operation to promote cordial industrial
relations.
9. Principle of team spirit to promote co-operation and team spirit among employees.
10. Principle of contribution to national prosperity to provide a higher purpose of
work to all employees and to contribute to national prosperity.
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RESEARCH
OBJECTIVES, SCOPE
METHODOLOGY AND
PROBLEMS
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OBJECTIVES OF STUDY
“The word objective means purpose behind doing anything.”
Every research study has its own specific research objective. Without objective no
one is doing any work. To do anything there is a purpose behind it.
Here in „TURT SOFTECH PVT. LTD‟ my research objectives are as follows:
To study the HR Policies of the company.
To study the amendments made in the HR Policies of TURT SOFTECH PVT. LTD.
since the time of incorporation.
To incorporate the amendments in the base policy and prepare a final policy.
To design a HR Policy manual for the company with special emphasis on the
“Managerial Service Conditions”.
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SCOPE OF STUDY
In an organization human resource is the most important asset. In current scenario,
Turt Softech Pvt. Ltd. is a very large company with talented & qualified employees.
As most of the company‟s overall performance depends on its employee‟s
performance which depends largely on the HR POLICIES of the organization.
So the project has wide scope to help the company to perform well in today‟s global
competition.
The core of the project lies in analysing and assessing the organization and to design
an HR POLICY manual for the organization.
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RESEARCH METHODOLOGY
Research has its special significance in solving various operational and planning
problems of business and industry.
Research inculcates scientific and inductive thinking and promotes the development
logical habits of thinking and organization.
Thus, Research is the foundation of knowledge for the sake of knowledge and an
important source of providing guidelines for solving different business, governmental and
social problems. It is a sort of formal training which enables one to understand the new
developments in one‟s field in a better way.
1. METHOD OF DATA COLLECTION
I have chosen the questionnaire methods of data collection due to limited time in
hand. While designing data-collection procedure, adequate safeguards against bias and
unreliability must be ensured. I have examined the collected data for completeness,
comprehensibility, consistently and reliability.
I have also gathered secondary data which I got from various journals, historical
documents, magazines and reports prepared by the other people.
For the present piece of research I have used the following methods:
Questionnaire
Observation
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2. SAMPLE SIZE
Here, I have taken 10 as the sample size.
3. HYPOTHESIS OF PROJECT
Human Resource Policies provided by the organization of employees works as an
agent for the growth of employees and also motivates the employees to perform well
i.e. employee performance and satisfaction is the valuable outcome of sound HR
Policies of the organization.
The various HR Policies in Turt Softech Pvt.Ltd. makes the employees enthusiastic
towards work.
4. ABOUT THE QUESTIONNAIRE
In this method a questionnaire is sent to the HR Manager concerned with a request
to answer the questions and return the questionnaire. The questionnaire consisted of a
number of questions printed or typed in a definite order. The HR Manager has to answer
the questions of their own. The researcher has chosen this method of data collection
due to low cost incurred, it is free from bias of the interviewer and respondent have
adequate time.
5. ABOUT OBSERVATION
In this method I observed the activities carried out in the organization. The way
different policies were followed in the company by the employer as well as employees.
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RESEARCH PROBLEM
The first and foremost step happens to be that of selecting and properly defined
research problem.
Research Problem refers to some difficulty which a researcher experiences in the
context of either a theoretical or practical situation and wants to obtain a solution for the
same.
A research problem is one which requires a researcher to find out the best solution
for the given problem that is to find out by which course of action the objective can be
attained optimally in the context of a given environment.
Thus zest for the work is must. The subject or the problem selected must involve the
researcher and must have an upper most place in his mind so that he /she undertake all
the pains for the study.
I have selected the research problem in is as follows:
To know the HR POLICIES AND ITS IMPLEMENTATION
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THEORITICAL
BACKGROUND
STATE LABOUR LAWS
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INTRODUCTION
Labour law also known as employment laws the body of laws, administrative rulings,
and precedents which address the legal rights of, and restrictions on, working people and
their organizations. As such, it mediates many aspects of the relationship between trade
unions, employers and employees. In other words, Labour law defines the rights and
obligations as workers, union members and employers in the workplace. Generally, labour
law covers:
Industrial relations – certification of unions, labour-management relations, collective
bargaining and unfair labour practices;
Workplace health and safety;
Employment standards, including general holidays, annual leave, working hours,
unfair dismissals, minimum wage, layoff procedures and severance pay.
There are two broad categories of labour law. First, collective labour law relates to
the tripartite relationship between employee, employer and union. Second, individual labour
law concerns employees' rights at work and through the contract for work.
The labour movement has been instrumental in the enacting of laws protecting labour
rights in the 19th and 20th centuries. Labour rights have been integral to the social and
economic development since the industrial revolution.
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HISTORY OF LABOUR LAWS
Labour law arose due to the demands of workers for better conditions, the right to
organize, and the simultaneous demands of employers to restrict the powers of workers in
many organizations and to keep labour costs low. Employers' costs can increase due to
workers organizing to win higher wages, or by laws imposing costly requirements, such as
health and safety or equal opportunities conditions. Workers' organizations, such as trade
unions, can also transcend purely industrial disputes, and gain political power - which some
employers may oppose. The state of labour law at any one time is therefore both the
product of, and a component of, struggles between different interests in society.
International Labour Organisation (ILO) was one of the first organisations to deal with
labour issues. The ILO was established as an agency of the League of Nations following the
Treaty of Versailles, which ended World War I. Post-war reconstruction and the protection of
labour unions occupied the attention of many nations during and immediately after World
War I. In Great Britain, the Whitley Commission, a subcommittee of the Reconstruction
Commission, recommended in its July 1918 Final Report that "industrial councils" be
established throughout the world. The British Labour Party had issued its own
reconstruction programme in the document titled Labour and the New Social Order. In
February 1918, the third Inter-Allied Labour and Socialist Conference (representing
delegates from Great Britain, France, Belgium and Italy) issued its report, advocating an
international labour rights body, an end to secret diplomacy, and other goals. And in
December 1918, the American Federation of Labour (AFL) issued its own distinctively
apolitical report, which called for the achievement of numerous incremental improvements
via the collective bargaining process.
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As the war drew to a close, two competing visions for the post-war world emerged.
The first was offered by the International Federation of Trade Unions (IFTU), which called
for a meeting in Berne in July 1919. The Berne meeting would consider both the future of
the IFTU and the various proposals which had been made in the previous few years. The
IFTU also proposed including delegates from the Central Powers as equals. Samuel
Gompers, president of the AFL, boycotted the meeting, wanting the Central Powers
delegates in a subservient role as an admission of guilt for their countries' role in the
bringing about war. Instead, Gompers favoured a meeting in Paris which would only
consider President Woodrow Wilson's Fourteen Points as a platform. Despite the American
boycott, the Berne meeting went ahead as scheduled. In its final report, the Berne
Conference demanded an end to wage labour and the establishment of socialism. If these
ends could not be immediately achieved, then an international body attached to the League
of Nations should enact and enforce legislation to protect workers and trade unions.
The British proposed establishing an international parliament to enact labour laws
which each member of the League would be required to implement. Each nation would have
two delegates to the parliament, one each from labour and management. An international
labour office would collect statistics on labour issues and enforce the new international laws.
Philosophically opposed to the concept of an international parliament and convinced that
international standards would lower the few protections achieved in the United States,
Gompers proposed that the international labour body be authorized only to make
recommendations, and that enforcement be left up to the League of Nations. Despite
vigorous opposition from the British, the American proposal was adopted.
The Americans made 10 proposals. Three were adopted without change: That labour
should not be treated as a commodity; that all workers had the right to a wage sufficient to
live on; and that women should receive equal pay for equal work. A proposal protecting the
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freedom of speech, press, assembly, and association was amended to include only freedom
of association. A proposed ban on the international shipment of goods made by children
under the age of 16 was amended to ban goods made by children under the age of 14. A
proposal to require an eight-hour work day was amended to require the eight-hour work day
or the 40-hour work week (an exception was made for countries where productivity was
low). Four other American proposals were rejected. Meanwhile, international delegates
proposed three additional clauses, which were adopted: One or more days for weekly rest;
equality of laws for foreign workers; and regular and frequent inspection of factory
conditions.
The Commission issued its final report on 4 March 1919, and the Peace Conference
adopted it without amendment on 11 April. The report became Part XIII of the Treaty of
Versailles. (The Treaty of Versailles was one of the peace treaties at the end of World War
I. It ended the state of war between Germany and the Allied Powers. It was signed on 28
June 1919.)
The first annual conference (referred to as the International Labour Conference, or
ILC) began on 29th October 1919 in Washington DC and adopted the first six International
Labour Conventions, which dealt with hours of work in industry, unemployment, maternity
protection, night work for women, minimum age and night work for young persons in
industry. The prominent French socialist Albert Thomas became its first Director General.
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PURPOSE OF LABOUR LEGISLATION
Labour legislation that is adapted to the economic and social challenges of the
modern world of work fulfils three crucial roles:
it establishes a legal system that facilitates productive individual and collective
employment relationships, and therefore a productive economy;
by providing a framework within which employers, workers and their representatives
can interact with regard to work-related issues, it serves as an important vehicle for
achieving harmonious industrial relations based on workplace democracy;
it provides a clear and constant reminder and guarantee of fundamental principles
and rights at work which have received broad social acceptance and establishes the
processes through which these principles and rights can be implemented and
enforced.
But experience shows that labour legislation can only fulfils these functions
effectively if it is responsive to the conditions on the labour market and the needs of the
parties involved. The most efficient way of ensuring that these conditions and needs are
taken fully into account is if those concerned are closely involved in the formulation of the
legislation through processes of social dialogue. The involvement of stakeholders in this
way is of great importance in developing a broad basis of support for labour legislation and
in facilitating its application within and beyond the formal structured sectors of the economy.
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EVOLUTION OF LABOUR LAW IN INDIA
The law relating to labour and employment is also known as Industrial law in India.
Considerations of British political economy were naturally paramount in shaping some of
these early laws. Thus came the Factories Act. It is well known that Indian textile goods
offered stiff competition to British textiles in the export market and hence in order to make
India labour costlier the Factories Act was first introduced in 1883 because of the pressure
brought on the British parliament by the textile magnates of Manchester and Lancashire.
While the impact of this measure was clearly welfares the real motivation was undoubtedly
protectionist.
The earliest Indian statute to regulate the relationship between employer and his
workmen was the Trade Dispute Act, 1929 (Act 7 of 1929). Provisions were made in this Act
for restraining the rights of strike and lock out but no machinery was provided to take care of
disputes.
The original colonial legislation underwent substantial modifications in the post-
colonial era because independent India called for a clear partnership between labour and
capital. The content of this partnership was unanimously approved in a tripartite conference
in December 1947 in which it was agreed that labour would be given a fair wage and fair
working conditions and in return capital would receive the fullest co-operation of labour for
uninterrupted production and higher productivity as part of the strategy for national
economic development and that all concerned would observe a truce period of three years
free from strikes and lockouts. Ultimately the Industrial Disputes Act (the Act) brought into
force on 01.04.1947 repealing the Trade Disputes Act 1929 has since remained on statute
book.
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CONSTITUTIONAL PROVISIONS FOR LABOUR LAWS
The relevance of the dignity of human labour and the need for protecting and
safeguarding the interest of labour as human beings has been enshrined in Chapter-III
(Articles 16, 19, 23 & 24) and Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the
Constitution of India keeping in line with Fundamental Rights and Directive Principles of
State Policy.
Labour is a concurrent subject in the Constitution of India implying that both the
Union and the state governments are competent to legislate on labour matters and
administer the same. The bulk of important legislative acts have been enacted by the
Parliament.
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CONSTITUTIONAL STATUS
The legislations can be categorized as follows:
1) Labour laws enacted by the Central Government, where the Central Government has
the sole responsibility for enforcement.
2) Labour laws enacted by Central Government and enforced both by Central and State
Governments.
3) Labour laws enacted by Central Government and enforced by the State
Governments.
4) Labour laws enacted and enforced by the various State Governments which apply to
respective States.
The Constitution of India provides detailed provisions for the rights of the citizens and
also lays down the Directive Principles of State Policy which set an aim to which the
activities of the state are to be guided. These Directive Principles provide:
for securing the health and strength of employees, men and women;
that the tender age of children are not abused;
that citizens are not forced by economic necessity to enter avocations unsuited to
their age or strength;
just and humane conditions of work and maternity relief are provided; and
that the Government shall take steps, by suitable legislation or in any other way, to
secure the participation of employee in the management of undertakings,
establishments or other organisations engaged in any industry.
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LABOUR POLICY OF INDIA
Labour policy in India has been evolving in response to specific needs of the situation
to suit requirements of planned economic development and social justice and has two fold
objectives, namely maintaining industrial peace and promoting the welfare of labour.
LABOUR POLICY HIGHLIGHTS
Creative measures to attract public and private investment.
Creating new jobs.
New Social security schemes for workers in the unorganized sector.
Social security cards for workers.
Unified and beneficial management of funds of Welfare Boards.
Reprioritization of allocation of funds to benefit vulnerable workers.
Model employee-employer relationships.
Long term settlements based on productivity.
Vital industries and establishments declared as `public utilities`.
Special conciliation mechanism for projects with investments of Rs.150 crores or
more.
Industrial Relations committees in more sectors.
Labour Law reforms in tune with the times. Empowered body of experts to suggest
required changes.
Statutory amendments for expediting and streamlining the mechanism of Labour
Judiciary.
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Amendments to Industrial Disputes Act in tune with the times.
Efficient functioning of Labour Department.
More labour sectors under Minimum Wages Act.
Child labour act to be aggressively enforced.
Modern medical facilities for workers.
Rehabilitation packages for displaced workers.
Restructuring in functioning of employment exchanges. Computerization and
updating of data base.
Revamping of curriculum and course content in industrial training.
Joint cell of labour department and industries department to study changes in laws
and rules.
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LABOUR LAWS IN INDIA
The term „labour‟ means productive work especially physical work done for wages.
Labour law also known as employment law is the body of laws, administrative rulings, and
precedents which address the legal rights of, and restrictions on, working people and their
organizations. There are two broad categories of labour law. First, collective labour law
relates to the tripartite relationship between employee, employer and union. Second,
individual labour law concerns employees' rights at work and through the contract for work.
The law relating to labour and employment in India is primarily known under the
broad category of "Industrial Law". The prevailing social and economic conditions have
been largely influential in shaping the Indian labour legislation, which regulate various
aspects of work such as the number of hours of work, wages, social security and facilities
provided.
The labour laws of independent India derive their origin, inspiration and strength
partly from the views expressed by important nationalist leaders during the days of national
freedom struggle, partly from the debates of the Constituent Assembly and partly from the
provisions of the Constitution and the International Conventions and Recommendations.
The relevance of the dignity of human labour and the need for protecting and safeguarding
the interest of labour as human beings has been enshrined in Chapter-III (Articles 16, 19, 23
& 24) and Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India keeping
in line with Fundamental Rights and Directive Principles of State Policy. The Labour Laws
were also influenced by important human rights and the conventions and standards that
have emerged from the United Nations. These include right to work of one‟s choice, right
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against discrimination, prohibition of child labour, just and humane conditions of work, social
security, protection of wages, redress of grievances, right to organize and form trade
unions, collective bargaining and participation in management. The labour laws have also
been significantly influenced by the deliberations of the various Sessions of the Indian
Labour Conference and the International Labour Conference. Labour legislations have also
been shaped and influenced by the recommendations of the various National Committees
and Commissions such as First National Commission on Labour (1969) under the
Chairmanship of Justice Gajendra gadkar, National Commission on Rural Labour (1991),
Second National Commission on Labour (2002) under the Chairmanship of Shri Ravindra
Varma etc. and judicial pronouncements on labour related matters specifically pertaining to
minimum wages, bonded labour, child labour, contract labour etc.
Under the Constitution of India, Labour is a subject in the concurrent list where both
the Central and State Governments are competent to enact legislations. As a result , a large
number of labour laws have been enacted catering to different aspects of labour namely,
occupational health, safety, employment, training of apprentices, fixation, review and
revision of minimum wages, mode of payment of wages, payment of compensation to
workmen who suffer injuries as a result of accidents or causing death or disablement,
bonded labour, contract labour, women labour and child labour, resolution and adjudication
of industrial disputes, provision of social security such as provident fund, employees‟ state
insurance, gratuity, provision for payment of bonus, regulating the working conditions of
certain specific categories of workmen such as plantation labour, beedi workers etc.
The legislations can be categorized as follows:
a) Labour laws enacted by the Central Government, where the Central Government has
the sole responsibility for enforcement.
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b) Labour laws enacted by Central Government and enforced both by Central and State
Governments.
c) Labour laws enacted by Central Government and enforced by the State
Governments.
d) Labour laws enacted and enforced by the various State Governments which apply to
respective States.
a) Labour laws enacted by the Central Government, where the Central
Government has the sole responsibility for enforcement
1. The Employees‟ State Insurance Act, 1948
2. The Employees‟ Provident Fund and Miscellaneous Provisions Act,1952
3. The Dock Workers (Safety, Health and Welfare) Act, 1986
4. The Mines Act, 1952
5. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare
(Cess) Act, 1976
6. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labor Welfare
Fund Act, 1976
7. The Mica Mines Labour Welfare Fund Act, 1946
8. The Beedi Workers Welfare Cess Act, 1976
9. The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
10. The Cine Workers Welfare (Cess) Act, 1981
11. The Beedi Workers Welfare Fund Act, 1976
12. The Cine Workers Welfare Fund Act, 1981
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b) Labour laws enacted by Central Government and enforced both by Central and
State Governments
13. The Child Labour (Prohibition and Regulation) Act, 1986.
14. The Building and Other Constructions Workers‟ (Regulation of Employment and
Conditions of Service) Act, 1996.
15. The Contract Labour (Regulation and Abolition) Act, 1970.
16. The Equal Remuneration Act, 1976.
17. The Industrial Disputes Act, 1947.
18. The Industrial Employment (Standing Orders) Act, 1946.
19. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979.
20. The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by
Certain Establishments) Act, 1988
21. The Maternity Benefit Act, 1961
22. The Minimum Wages Act, 1948
23. The Payment of Bonus Act, 1965
24. The Payment of Gratuity Act, 1972
25. The Payment of Wages Act, 1936
26. The Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act,
1981
27. The Building and Other Construction Workers Cess Act, 1996
28. The Apprentices Act, 1961
29. Unorganized Workers Social Security Act, 2008
30. Working Journalists (Fixation of Rates of Wages Act, 1958
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31. Merchant Shipping Act, 1958
32. Sales Promotion Employees Act, 1976
33. Dangerous Machines (Regulation) Act, 1983
34. Dock Workers (Regulation of Employment) Act, 1948
35. Dock Workers (Regulation of Employment) (Inapplicability to Major Ports) Act, 1997
36. Private Security Agencies (Regulation) Act, 2005
c) Labour laws enacted by Central Government and enforced by the State
Governments
37. The Employers‟ Liability Act, 1938
38. The Factories Act, 1948
39. The Motor Transport Workers Act, 1961
40. The Personal Injuries (Compensation Insurance) Act, 1963
41. The Personal Injuries (Emergency Provisions) Act, 1962
42. The Plantation Labour Act, 1951
43. The Sales Promotion Employees (Conditions of Service) Act, 1976
44. The Trade Unions Act, 1926
45. The Weekly Holidays Act, 1942
46. The Working Journalists and Other Newspapers Employees (Conditions of Service)
and Miscellaneous Provisions Act, 1955
47. The Workmen‟s Compensation Act, 1923
48. The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
49. The Children (Pledging of Labour) Act 1938
50. The Bonded Labour System (Abolition) Act, 1976
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CLASSIFICATION OF LABOUR LAWS IN INDIA:
Labour Laws may be classified under the following heads:
I. Laws related to industrial relations such as:
1. Trade Unions Act, 1926
2. Industrial Employment Standing Order Act, 1946.
3. Industrial Disputes Act, 1947.
II. Laws related to wages such as:
4. Payment of Wages Act, 1936
5. Minimum Wages Act, 1948
6. Payment of Bonus Act, 1965.
7. Working Journalists (Fixation of Rates of Wages Act, 1958
III. Laws related to Working Hours, Conditions of Service and Employment such
as:
8. Factories Act, 1948.
9. Plantation Labour Act, 1951.
10. Mines Act, 1952.
11. Working Journalists and other Newspaper Employees‟ (Conditions of Service and
Misc. Provisions) Act,1955.
12. Merchant Shipping Act, 1958.
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13. Motor Transport Workers Act, 1961.
14. Beedi & Cigar Workers (Conditions of Employment) Act, 1966.
15. Contract Labour (Regulation & Abolition) Act, 1970.
16. Sales Promotion Employees Act, 1976.
17. Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)
Act, 1979.
18. Dock Workers (Safety, Health & Welfare) Act, 1986.
19. Building & Other Construction Workers (Regulation of Employment & Conditions of
Service) Act, 1996.
20. Building and Other Construction Workers Welfare Cess Act, 1996
21. Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
22. Dangerous Machines (Regulation) Act, 1983
23. Dock Workers (Regulation of Employment) Act, 1948
24. Dock Workers (Regulation of Employment) (Inapplicability to Major Ports) Act, 1997
25. Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition)
Act, 1993
26. Industrial Employment (Standing Orders) Act, 1946
27. Mines and Mineral (Development and Regulation Act, 1957
28. Plantation Labour Act, 1951
29. Private Security Agencies (Regulation) Act, 2005
IV. Laws related to equality and empowerment of women such as:
30. Maternity Benefit Act, 1961
31. Equal Remuneration Act, 1976.
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V. Laws related to deprived and disadvantaged sections of the society such as:
32. Bonded Labour System (Abolition) Act, 1976
33. Child Labour (Prohibition & Regulation) Act, 1986
34. Children (Pledging of Labour) Act, 1933
VI. Laws related to social security such as:
35. Workmen‟s Compensation Act, 1923.
36. Employees‟ State Insurance Act, 1948.
37. Employees‟ Provident Fund & Miscellaneous Provisions Act, 1952.
38. Payment of Gratuity Act, 1972.
39. Employers‟ Liability Act, 1938
40. Beedi Workers Welfare Cess Act, 1976
41. Beedi Workers Welfare Fund Act, 1976
42. Cine workers Welfare Cess Act, 1981
43. Cine Workers Welfare Fund Act, 1981
44. Fatal Accidents Act, 1855
45. Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare
Cess Act, 1976
46. Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund
Act, 1976
47. Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
48. Mica Mines Labour Welfare Fund Act, 1946
49. Personal Injuries (Compensation Insurance) Act, 1963
50. Personal Injuries (Emergency Provisions) Act, 1962
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51. Unorganised Workers‟ Social Security Act, 2008
APPRENTICES ACT, 1961
The main purpose of the Act is to provide practical training to technically qualified
persons in various trades. The objective is promotion of new skilled manpower. The scheme
is also extended to engineers and diploma holders.
The Act applies to areas and industries as notified by Central government. [Section 1(4)].
Scheme of the Act
There are 38 Sections in total and 1 Schedule. This Schedule is about modifications
in the Workmen‟s Compensation Act, 1923 with regard to its application to apprentices
under the Apprentices Act, 1961.
Obligation of Employer
Every employer is under obligation to provide the apprentice with the training in his
trade in accordance with the provisions of this Act and the rules made there under.
If the employer is not himself qualified in the trade, he has to ensure that a person
who possesses the prescribed qualification is placed in charge of the training of the
apprentice.
Every employer has to provide adequate instructional staff, possessing such
qualifications as may be prescribed for imparting practical and theoretical training
and facilities for trade test of apprentices; and
Every employer is under obligation to take apprentices in prescribed ratio of the
skilled workers in his employment in different trades. [Section 11].
In every trade, there will be reserved places for scheduled castes and schedules
tribes. [Section 3A]. Ratio of trade apprentices to workers shall be determined by
Central Government.
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Employer can engage more number of apprentices than prescribed
minimum.[Section 8(1)].
The employer has to make arrangements for practical training of apprentice [Section
9(1)].
Employer will pay stipends to apprentices at prescribed rates. If the employees are
less than 250, 50% of cost is shared by Government. If employer is employing more
than 250 workers, he has to bear full cost of training.
Obligations of Apprentices
Every trade apprentice undergoing apprenticeship training shall have the following
obligations, namely:
To learn his trade conscientiously and diligently and endeavour to qualify himself as
a skilled craftsman before the expiry of the period of training;
To attend practical and instructional classes regularly;
To carry out all lawful orders of his employer and superiors in the establishments;
To carry out his obligations under the contract of apprenticeship.
In case of graduate or technician apprentice or technician (vocational) apprentice, apart
from the afore stated obligations, the Act imposes further obligation to learn his subject in
Engineering or Technology or Vocational Course. (Section 12)
Who can be an Apprentice
Apprentice should be of minimum age of 14 years and he should satisfy the standard of
education and physical fitness as prescribed. [Section 3].
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Reservation of training places for scheduled castes
Section 3A provides that in every designated trade, training places shall be reserved
by the employer for the Scheduled Castes and Scheduled Tribes (as defined in clauses (24)
and (25) of Article 366 of the Constitution) and where there is more than one designated
trade in an establishment, such training places shall be reserved on the basis on the total
number of apprentices in all the designated trades in such establishment. The reservation
shall be such as may be prescribed having regard to the population of the Scheduled
Castes and Scheduled Tribes in the State concerned.
Duration of Training
Duration of training period and ratio of apprentices to skilled workers for different
trades has been prescribed in Apprenticeship Rules, 1991. Duration of Apprenticeship may
be from 6 months to 4 years depending on the trade, as prescribed in Rules. Period of
training is determined by National Council for training in Vocational Trades (established by
Government of India)-(Section 6).
Contract with Apprentice
Apprentice appointed has to execute a contract of apprenticeship with employer. The
contract has to be registered with Apprenticeship Adviser. If apprentice is minor, agreement
should be signed by his guardian. [Section 4(1)] Apprentice is entitled to casual leave of 12
days, medical leave of 15 days and extraordinary leave of 10 days in a year.
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Date of commencement of apprenticeship training
The apprenticeship training shall be deemed to have commenced on the date on
which the contract of apprenticeship has been entered into.
Registration
The employer shall send the contract to the Apprenticeship adviser for registration
within three months of the date on which it was signed (Rule 6).
The contract shall be registered by the Apprenticeship Adviser on being satisfied that
the person described as an apprentice in the said contract is qualified under this Act.
Registration of contract of apprenticeship under Section 4(4) is not a necessary
ingredient of definition of apprentice.
Terms and conditions of contract
The contract may contain such terms and conditions as may be agreed to by the
parties to the contract. In case, the Central Government after consulting the Central
Apprenticeship Council makes any rule varying the terms and conditions of apprenticeship
training of any category of apprentices undergoing such training then the terms and
conditions of every contract relating to that category of apprentices and subsisting
immediately before the making of such rule shall be deemed to have been modified
accordingly.
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Novation of contract of apprenticeship:
Where an employer is for any reason unable to fulfill his obligations under the
contract and with approval of the Apprenticeship Adviser it is agreed between the employer,
the apprentice or his guardian and any other employer that the apprentice shall be engaged
as an apprentice under the other employer for the unexpired portion of the period of
apprenticeship training, the agreement, on registration with the Apprenticeship Adviser shall
be deemed to be the contract of apprenticeship between the apprentice or his guardian and
other employer. Such contract on and from the date of such registration shall be terminated
with the first employer and no obligation under that contract shall be enforceable(Section 5).
Payment to apprentices
This is a contractual as well as statutory obligation imposed under Section 13 of the
Act that an employer pays to every apprentice during the period of training such stipend at a
rate not less than the prescribed minimum rate and this rate will be specified in the contract.
An employer shall pay such stipend at such intervals and subject to such conditions as may
be prescribed. However, an apprentice shall not be paid on the basis of piece-work nor he
shall take part in any output bonus or other incentive scheme.
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Termination of contract
The contract of apprenticeship training shall terminate on the expiry of the period of
apprenticeship training. Either party can make application for termination of contract to the
Apprenticeship Adviser and thereafter send a copy of the same to the other party, who on
being satisfied that the parties have failed to carry out the terms and conditions of the
contract and it is desirable in the interests of the parties or any of them to terminate the
contract, shall register the same. However, the employer shall pay the prescribed amount of
compensation to the apprentice where the contract is terminated for failure on the part of the
employer to honour the contract. Where the contract is terminated for failure on the part of
the apprentice, he or his guardian shall refund the cost of the training to the employer.
(Section 7)
Legal Position of Apprentices
An apprentice is not a workman during apprentice training. [Section 18] Provisions of
labour law like Bonus, PF, ESI. Act, gratuity, Industrial Disputes Act etc. are not applicable
to him. However, provisions of Factories Act regarding health, safety and welfare will apply
to him. Apprentice is also entitled to get compensation from employer for employment injury.
[Section 16]. An employer is under no obligation to employ the apprentice after completion
of apprenticeship. [Section 22(1)]. However, in UP State Road Transport Corpn v. UP
Parivahan Nigam Shishukh Berozgar Sangh AIR 1995 SC 1114 = (1995) 2 SCC 1 , it was
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held that other things being equal, a trained apprentice should be given preference over
direct recruits. It was also held that he need not be sponsored by the employment
exchange. Age bar may also be relaxed, to the extent of training period. The concerned
institute should maintain a list of persons already trained and in between trained
apprentices, preference should be given to those who are senior.
Stipend payable
The minimum rate of stipend payable per month is as follows - (a) Engineering
graduates - Rs 1,970 p.m. for post-institutional training (b) Sandwich course students for
degree examination - Rs 1,400 p.m. (c) diploma holders - Rs 1,400 p.m. for post-institutional
training (d) Sandwich course students for degree examination - Rs 1,140 p.m. (e)
Vocational certificate holder - Rs 1,090 p.m. [w.e.f. May 2001] In case of 4 year training, the
stipend is as follows – first year – Rs 820 pm. Second year – Rs 940 pm. Third year – Rs
1,090 pm. Fourth year – Rs 1,230 pm.
Test and Proficiency certificate
On completion of training, every trade apprentice has to appear for a test conducted
by National Council. If he passes, he gets a certificate of proficiency.
Apprenticeship Adviser
Government is empowered to appoint Apprenticeship Adviser, Dy Apprenticeship
Adviser etc. to supervise the scheme. Various powers have been conferred on them under
the Act.
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Disputes under contract and settlement thereof
Section 20 of the Act provides that if out of the terms and conditions of the contract
any dispute arises, it will be referred to Apprenticeship Adviser for decision. An appeal can
be preferred by the aggrieved party within 30 days of the communication of the Adviser‟s
decision to the Apprenticeship Council and such appeal shall be heard and determined by
the Committee of that Council appointed for the purpose, and such decision of the
Committee shall be final.
Holding of Test and Grant of Certificate and Conclusion of Training (Section 21)
1. Every trade apprentice who has completed the period of training shall appear for a
test to be conducted by the National Council to determine his proficiency in the
designated trade in which he has undergone his apprenticeship training.
2. Every trade apprentice who passes the test referred to in sub-Section (1) shall be
granted a certificate of proficiency in the trade by the National Council.
3. The progress in apprenticeship training of every graduate or technician apprentice,
technician (vocational) apprentice shall be assessed by the employer from time to
time.
4. Every graduate or technician apprentice or technician (vocational) apprentice, who
completes his apprenticeship training to the satisfaction of the concerned Regional
Board, shall be granted a certificate of proficiency by that Board. (2) Notwithstanding
anything in sub-Section (1), where there is a condition in a contract of apprenticeship
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shall, after the successful completion of the apprenticeship training, serve the
employer, the employer shall, on such completion, be bound to offer suitable
employment to the apprentice, and the apprentice shall be bound to serve the
employer in that capacity for such period and on such remuneration as may be
specified in the contract: Provided that where such period or remuneration is not, in
the opinion of the Apprenticeship Adviser, reasonable, he may revise such period or
remuneration so as to make it reasonable, and the period or remuneration so revised
shall be deemed to be the period or remuneration agreed to between the apprentice
and the employer.
Offences and Penalties (Section 30)
1. If any employer
a. Engages as an apprentice a person who is not qualified for being so engaged,
b. Fails to carry out the terms and conditions of a contract of apprenticeship, or
c. Contravenes the provisions of this Act relating to the number of apprentices
which he is required to engage under those provisions
He/she shall be punishable with imprisonment for a term which may extend to six months or
with fine or with both.
2. If any employer or any other person
a. Required to furnish any information or return
i. Refuses or neglects to furnish such information or return, or
ii. Furnishes or causes to be furnished any information or return which is
false and which he either knows or believes to be false or does not
believe to be true, or
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iii. Refuses to answer, or gives a false answer to any question necessary
for obtaining any information required to be furnished by him, or
b. Refuses or wilfully neglects to afford the Central or the State Apprenticeship
Adviser or such other person, not below the rank of an Assistant
Apprenticeship Adviser, as may be authorised by the Central or the State
Apprenticeship Adviser in writing in this behalf any reasonable facility for
making any entry, inspection, examination or inquiry authorised by or under
this Act, or
c. Requires an apprentice to work overtime without the approval of the
Apprenticeship Adviser, or
d. Employs an apprentice on any work which is not connected with his training,
or
e. Makes payment to an apprentice on the basis of piecework, or
f. Requires an apprentice to take part in any output bonus or incentive scheme,
He/she shall be punishable with imprisonment for a term which may extend to six months or
with fine or with both.
Penalty where no specific penalty is specified (Section 31)
If any employer or any other person contravenes any provision of this Act for which
no punishment is provided in Section 30, he shall be punishable with fine which shall not be
less than one thousand rupees but may extend to three thousand rupees.
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Offences by Companies (Section 32)
1. If the person committing an offence under this Act is a company, every person
who, at the time the offence was committed was in charge of, and was responsible
to, the company for the conduct of business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly: Provided that nothing contained in
this sub-Section shall render any such person liable to such punishment provided
in this Act if he proves that the offence was committed without his knowledge or
that he exercised all due diligence to prevent the commission of such offence.
2. Notwithstanding anything contained in sub-Section (1), where an offence under this
Act has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any negligence
on the part of, any director, manager, secretary or other officer of the company,
such director, manager, secretary, or other officer shall also be deemed to be guilty
of that offence and shall be liable to be proceeded against and punished
accordingly.
Cognizance of Offences (Section 33)
No court shall take cognizance of any offence under this Act or the rules made there
under except on a complaint thereof in writing made by the Apprenticeship Adviser or the
officer of the rank of Deputy Apprenticeship Adviser and above within six months from the
date on which the offence is alleged to have been committed.
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EMPLOYEE STATE INSURANCE ACT, 1948
Introduction
The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare
legislation enacted primarily with the object of providing certain benefits to employees in
case of sickness, maternity and employment injury and also to make provision for certain
others matters incidental thereto. The Act in fact tries to attain the goal of socio-economic
justice enshrined in the Directive principles of state policy under part 4 of our constitution, in
particular articles 41, 42 and 43 which enjoin the state to make effective provision for
securing, the right to work, to education and public assistance in cases of unemployment,
old age, sickness and disablement. The act strives to materialize these avowed objects
through only to a limited extent. This act becomes a wider spectrum than factory act. In the
sense that while the factory act concerns with the health, safety, welfare, leave etc. of the
workers employed in the factory premises only. But the benefits of this act extend to
employees whether working inside the factory or establishment or elsewhere or they are
directly employed by the principal employee or through an intermediate agency, if the
employment is incidental or in connection with the factory or establishment.
Related Legislations:
ESI (Central) Rules, 1950 and ESI (General) Regulations, 1950
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Origin
The Employee State Insurance act was promulgated by the Parliament of India in the
year 1948.To begin with the ESIC scheme was initially launched on 2nd February 1952 at
just two industrial centers in the country namely Kanpur and Delhi with a total coverage of
about 1.20 lakh workers. There after the scheme was implemented in a phased manner
across the country with the active involvement of the state governments.
Objectives:
The ESI Act is a social welfare legislation enacted with the object of providing certain
benefits to employees in case of sickness, maternity and employment injury. Under the Act,
employees will receive medical relief, cash benefits, maternity benefits, pension to
dependents of deceased workers and compensation for fatal or other injuries and diseases.
Definitions
According to Section 2 (m) of Factories Act, 1948, Factory means any premises
including the precincts thereof –
(a) whereon ten or more persons are employed or were employed for wages on any day
of the preceding twelve months, and in any part of which a manufacturing process is
being carried on with the aid of power or is ordinarily so carried on, or
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(b) whereon twenty or more persons are employed or were employed for wages on any
day of the preceding twelve months, and in any part of which a manufacturing
process is being carried on without the aid of power or is ordinarily so carried on. but
does not include a mine subject to the operation of Mines Act, 1952 or a railway
running shed;
According to Section 2 (k) of Factories Act, "manufacturing process" means any
process for –
making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning,
breaking up, demolishing, or otherwise treating or adapting any article or substance
with a view to its use, sale, transport, delivery or disposal, or
pumping oil, water, sewage or any other substance; or;
generating, transforming or transmitting power; or
composing types for printing, printing by letter press, lithography, photogravure or
other similar process or book binding;
constructing, reconstructing, repairing, refitting, finishing or breaking up ships or
vessels;
preserving or storing any article in cold storage;
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According to Section 2 (h) of The Minimum Wages Act, "wages"- means all
remuneration capable of being expressed in terms of money which would if the terms of the
contract of employment express or implied were fulfilled be payable to a person employed in
respect of his employment or of work done in such employment and includes house rent
allowance but does not include –
1. the value of -
a) any house accommodation supply of light water medical attendance or
b) any other amenity or any service excluded by general or special order of the
appropriate government;
2. any contribution paid by the employer to any person fund or provident fund or under
any scheme of social insurance; any traveling allowance or the value of any traveling
concession;
3. any sum paid to the person employed to defray special expenses entailed on him by
the nature of his employment; or
4. any gratuity payable on discharge
Applicability:
1. The ESI Act extends to the whole of India.
2. It applies to all the factories including Government factories (excluding seasonal
factories), which employ 10 or more employees and carry on a manufacturing
process with the aid of power and 20 employees where manufacturing process is
carried out without the aid of power.
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3. The act also applies to shops and establishments. Generally, shops and
establishments employing more than 20 employees are covered by the Act. “Shop”
according to the Delhi Shops and Establishment Act, 1954 means any premises
where goods are sold either by retail or wholesale or where services are rendered to
customers, and includes an office, a store-room, go down, warehouse or workhouse
or work place, whether in the same premises or otherwise, used in or in connection
with such trade or business but does not include a factory or a commercial
establishment. “Establishment” means a shop, a commercial establishment,
residential hotel, restaurant, eating-house, theatre or other places of public
amusement or entertainment to which this Act applies and includes such other
establishment as Government may, by notification in the Official Gazette, declare to
be an establishment for the purpose of this Act. According to the Delhi Shops and
Establishment Act, 1954, “Commercial Establishment” means any premises
wherein any trade, business or profession or any work in connection with, or
incidental or ancillary thereto is carried on and includes a society registered under
the Societies Registration Act, 1860, and charitable or other trust, whether registered
or not, which carries on any business, trade or profession or work in connection with,
or incidental or ancillary thereto, journalistic and printing establishments, contractors
and auditors establishments, quarries and mines not governed by the Mines Act,
1952, educational or other institutions run for private gain, and premises in which
business of banking, insurance, stocks and shares, brokerage or produce exchange
is carried on, but does not include a shop or a factory registered under the Factories
Act, 1948, or theatres, cinemas, restaurants, eating houses, residential hotels, clubs
or other places of public amusements or entertainment. Form 01 – Employers‟
Registration Form also requires a copy of the registration certificate or licence
obtained under the Shops and Establishment Act to be attached along with this form.
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From this it is quite evident that ESI Act will be applicable to shops and
establishments. Again the definition of shops and establishment will vary from state
to state depending on the shops and establishment act of that particular state.
4. The act does not apply to any member of Indian Naval, Military or Air Forces.
5. All employees including casual, temporary or contract employees drawing wages
less than Rs 10,000 per month are covered. The ceiling limit has been raised from
Rs.7500 to Rs.10000 with effect from 01.10.06.
6. Apprentices covered under the Apprenticeship Act are not covered under this Act.
According to Apprenticeship Act 1961, “apprentice” means a person who is
undergoing apprenticeship training in pursuance of a contract of apprenticeship.
1. The apprentices under any scheme as the name suggests come to learn the tricks of
the trade and may not count much so far as the output of the factory is concerned,
with that end in view, the apprentices are exempted from the operation of laws
relating to labour unless the State Government thought otherwise.
2. A factory or establishment, to which this Act applies, shall continue to be governed by
its provisions even if the number of workers employed falls below the specified limit
or the manufacturing process therein ceases to be carried on with the aid of power
subsequently.
3. Where a workman is covered under the ESI scheme,
a) Compensation under the Workmen's Compensation Act cannot be claimed in
respect of employment injury.
b) No benefits can be claimed under the Maternity Benefits Act.
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Areas Covered
The ESI Scheme is being implemented area-wise by stages. The Scheme is being
implemented in almost all union territories and states except Nagaland, Manipur, Tripura,
Sikkim, Arunachal Pradesh and Mizoram.
Administration of the Act
The provisions of the Act are administered by the Employees State Insurance
Corporation. It comprises members representing employees, employers, the central and
state government, besides, representatives of parliament and medical profession. A
standing committee constituted from amongst the members of the corporation, acts as an
executive body. The medical benefit council, constituted by the central government, is
another statutory body that advises the corporation on matters regarding administration of
medical benefit, the certification for purposes of the grant of benefits and other connected
matters.
Registration
The employer should get his factory or establishment registered with the ESI
Corporation within 15 days after the Act becomes applicable to it and also obtain the
employer‟s code number. Application should be made in Form 01 and after having being
satisfied with the application form, the regional office will allot a code number to the
employer, which must be quoted in all documents and correspondence.
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Identity Card
An employee is required to file a declaration form upon employment in factory or
establishment to show that he is covered under the Act. On registration every insured
person is provided with a „temporary identification certificate‟ which is valid ordinarily for a
period of three months but may be extended, if necessary, for a further period of 3 months.
Within this period, the insured person is given a permanent „family photo identity card‟ in
exchange for the certificate. The identity card serves as a means of identification and has to
be produced at the time of claiming medical care at the dispensary / clinic and cash benefit
at the local office of the corporation. In the event of change of employment, it should be
produced before the new employer as evidence of registration under the scheme to prevent
any duplicate registration. The identity card bears the signature/thumb impression of the
insured person. Since medical benefit is also available to the families of Insured persons,
the particulars of family members entitled to medical benefit are also given in the identity
card affixed with a postcard size family photo. If the identity card is lost, a duplicate card is
issued on payment as prescribed.
Employers’ / Employees’ Contribution
Like most of the social security schemes, the world over, ESI scheme is a self-
financing health insurance scheme. Contributions are raised from covered employees and
their employers as a fixed percentage of wages. Presently covered employees contribute
1.75% of the wages, whereas as the employers contribute 4.75% of the wages, payable to
the insured persons. Employees earning less than and up to Rs. 50 per day are exempted
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from payment of contribution. The contribution is deposited by the employer in cash or by
cheque at the designated branches of some nationalized banks. The responsibility for
payment of all contributions is that of the employer with a right to deduct the employees
share of contribution from employees‟ wages relating to the period in respect of which the
contribution is payable.
There are two contribution periods each of six months duration and two
corresponding benefit periods. Cash benefits under the scheme are generally linked with
contribution paid.
Contribution period - 1st April to 30th September, its corresponding Cash Benefit
period is 1st January to 30th June of the following year. Contribution period - 1st October to
31st March, its corresponding Cash Benefit period is 1st July to 31st December of the
following year.
Certification of Return of Contribution by Auditor
Regulation 26 of Employees‟ State Insurance (General) Regulations, 1950 was
amended by Notification No.N-12/13/1/2008-P&D to include certain details to be mentioned
in the Return of Contribution to be submitted by employers. The salient features of
amendments made in the Returns of Contribution are as under:-
1. Self-declaration by Employers regarding maintenance of records and registers,
submission of Declaration Forms, employees engaged directly or through immediate
employers and wages paid to the workers.
2. All the Employers employing 40 and more employees shall have to append a
certificate duty certified by a Chartered Accountant, in the revised format of Returns
of Contribution.
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3. The Employers employing less than 40 employees will have to provide self-
certification without any certification from the Chartered Accountants in Return of
Contribution. The Chartered Accountant should certify that he has verified the return
from the records and registers of the company. This notification has come into force
with effect from 01-04-2008.
Benefits under the Scheme
Employees covered under the scheme are entitled to medical facilities for self and
dependants. They are also entitled to cash benefits in the event of specified contingencies
resulting in loss of wages or earning capacity. The insured women are entitled to maternity
benefit for confinement. Where death of an insured employee occurs due to employment
injury or occupational disease, the dependants are entitled to family pension. Various
benefits that the insured employees and their dependants are entitled to, the duration of
benefits and contributory conditions thereof are as under:
1. Medical benefits
a) From day one of entering insurable employment for self and dependants such as
spouse, parents and children own or adopted.
b) For self and spouse on superannuation subject to having completed five years in
insurable employment on superannuation or in case of having suffered permanent
physical disablement during the course of insurable employment.
2. Sickness benefits
a) Sickness benefit is payable to an insured person in cash, in the event of sickness
resulting in absence from work and duly certified by an authorised insurable
medical officer/ practitioner.
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b) The benefit becomes admissible only after an insured has paid contribution for at
least 78 days in a contribution period of 6 months.
c) Sickness benefit is payable for a maximum of 91 days in two consecutive
contribution period.
3. Extended sickness benefit
a) Extended sickness benefit is payable to insured persons for the period of certified
sickness in case of specified 34 long-term diseases that need prolonged
treatment and absence from work on medical advice.
b) For entitlement to this benefit an insured person should have been in insurable
employment for at least 2 years. He/ she should also have paid contribution for a
minimum of 156 days in the preceding 4 contribution periods or say 2 years.
c) ESI is payable for a maximum period of 2 years on the basis of proper medical
certification and authentication by the designated authority.
d) Amount payable in cash as extended sickness benefit is payable within 7 days
following the submission of complete claim papers at the local office concerned.
4. Enhanced sickness benefit
a) This cash benefit is payable to insured persons in the productive age group for
undergoing sterilization operation, viz., vasectomy/ tubectomy.
b) The contribution is the same as for the normal sickness benefit.
c) Enhanced sickness benefit is payable for 14 days for tubectomy and for seven
days in case of vasectomy.
5. Maternity benefit
a) Maternity benefit is payable to insured women in case of confinement or
miscarriage or sickness related thereto.
b) For claiming this an insured woman should have paid for at least 70 days in 2
consecutive contribution periods i.e. 1 year.
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c) The benefit is normally payable for 12 weeks, which can be further extended up to
16 weeks on medical grounds.
d) The rate of payment of the benefit is equal to wage or double the standard
sickness benefit rate.
e) The benefit is payable within 14 days of duly authenticated claim papers.
6. Disablement benefit
a) Disablement benefit is payable to insured employees suffering from physical
disablement due to employment injury or occupation disease.
7. Dependants benefit
a) Dependants benefit [family pension] is payable to dependants of a deceased
insured person where death occurs due to employment or occupational disease.
b) A widow can receive this benefit on a monthly basis for life or till remarriage.
c) A son or daughter can receive this benefit till 18 years of age.
d) Other dependants like parents including a widowed mother can also receive the
benefit under certain condition.
e) The rate of payment is about 70% of the wages shareable among dependants in
a fixed ratio.
f) The first instalment is payable within a maximum of 3 months following the death
of an insured person and thereafter, on a regular monthly basis.
8. Other benefits like funeral expenses, vocational rehabilitation, free supply of physical
aids and appliances, preventive health care and medical bonus.
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Obligations Of Employers
1. The employer should get his factory or establishments registered with the E.S.I.
Corporation within 15 days after the Act becomes applicable to it, and obtain the
employers Code Number.
2. The employer should obtain the declaration form from the employees covered under
the Act and submit the same along with the return of declaration forms, to the E.S.I.
office. He should arrange for the allotment of Insurance Numbers to the employees
and their Identity Cards.
3. The employer should deposit the employees‟ and his own contributions to the E.S.I.
Account in the prescribed manner, whether he has sufficient resources or not, his
liability under the Act cannot be disputed. He cannot justify non-payment of E.S.I.
contribution due to no availability of finance.
4. The employer should furnish a Return of Contribution along with the challans of
monthly payment, within 30 days of the end of each contribution period.
5. The employer should not reduce the wages of an employee on account of the
contribution payable by him (employer).
6. The employer should cause to be maintained the prescribed records/registers
namely the register of employees, the inspection book and the accident book.
7. The employer should report to the E.S.I. authorities of any accident in the place of
employment, within 24 hours or immediately in case of serious or fatal accidents. He
should also furnish to the authorities such further information and particulars of an
accident as may be required.
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8. The employer should inform the local office and the nearest E.S.I.
dispensary/hospital, in case of death of any employee, immediately.
9. The employer must not put to work any sick employee and allow him leave, if he has
been issued the prescribed certificate.
10. The employer should not dismiss or discharge any employee during the period
he/she is in receipt of sickness/maternity/temporary disablement benefit, or is under
medical treatment, or is absent from work as a result of illness duly certified or due to
pregnancy or confinement.
Records To Be Maintained For Inspection By ESI Authorities
1. Attendance Register / Muster Roll
2. Salary / Wage Register / Payroll
3. EC (Employee‟s & Employer‟s Contribution) Statement
4. Employees‟ Register
5. Accident Book
6. Return of Contribution
7. Return of Declaration Forms
8. Receipted Copies of Challans
9. Books of Account viz. Cash/Bank, Expense Register, Sales/Purchase Register, Petty
Cash Book, Ledger, Supporting Bills and Vouchers, Delivery Challans (if any).
10. Form of annual information on company
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Employees Insurance Court
Any dispute arising under the ESI Act will be decided by the Employees Insurance
Court and not by a Civil Court. It is constituted by the State Government for such local areas
as may be specified and consists of such number of judges, as the Government may think
fit. It shall adjudicate on the following disputes and claims.
Disputes as to:
i. Whether an employee is covered by the Act or whether he is liable to pay the
contribution,
ii. The rate of wages or average daily wages of an employee, or
iii. The rate of contribution payable by the employer in respect of any employee, or
iv. The person who is or was the principle employer in respect of any employee, or
v. The right to any benefit and the amount and duration thereof, or
vi. Any direction issued by the Corporation on a review of any payment of dependents
benefit,
vii. Any other matter in respect of any contribution or benefit or other due payable or
viii. Recoverable under the Act.
Claims as to:
i. Recovery of contributions from the principal employer,
ii. Recovery of contributions from a contractor,
iii. Recovery for short payment or non-payment of any contribution under section 68,
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iv. Recovery of the value or amount of benefits received improperly under section 70,
v. Recovery of any benefit admissible under the Act
No dispute shall be admitted unless the employer deposits with the Court 50% of the
amount due from him as claimed by the Corporation.
An appeal will lie to the High Court within 60 days against an order of the Employees
Insurance Court if it involves a substantial question of law.
Important Forms to be submitted under the Act
Form 01 : Employers' Registration Form
Form 01(A) : Form of Annual Information on Factory/Establishment
Form 1 : Declaration Form
Form 1A : Family Declaration Form
Form 1B : Changes in Family Declaration Form
Form 3 : Return of Declaration Forms
Form 4 : Identity Card
Form 4(A) Family Identity Card
Form 5 Return of Contributions
Form 6 Register of employees
Form 8 Special Intermediate Certificate
Form 10 Abstention verification in r/o Sickness Benefit/Temporary Disablement
Benefit/MB
Form 12 Sickness of Temporary Disablement Benefit
Form 12A Maternity Benefit for Sickness
Form 13 Sickness or Temporary disablement or maternity benefit for sickness
Form 13A Maternity benefit for sickness
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Form 14 Sickness or temporary disablement or maternity benefit for sickness
Form 14A Maternity Benefit for Sickness
Form 16 Accident report from employer
Form 17 Dependant's or funeral benefit (Death Certificate)
Form 18 Dependant's Benefit (Claim Form)
Form 18A Dependant's Benefit (Claim for periodical payments)
Form 19 Maternity Benefits (Notice of Pregnancy)
Form 20 Maternity Benefits (Certificate of Pregnancy)
Form 21 Maternity Benefit (Certificate of expected confinement)
Form 22 Claims for Maternity Benefit
Form 23 Maternity Benefit (Certificate of confinement or miscarriage)
Form 24 Maternity Benefit (Notice of work)
Form 25 Claim for Permanent Disablement Benefit
Form 26 Certificate for permanent disablement benefit
Form 27 Declaration and certificate for dependant‟s benefit
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EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS
ACT, 1952
An Act to provide for the institution of provident funds, pension funds and deposit
linked insurance fund for the employees in the factories and other establishments. The Act
extends to the whole of India except the State of Jammu and Kashmir.
Applicability
All factories and establishments in which 20 or more are employed
Schemes under the Act
Three beneficial schemes-
1. Employees Provident Fund Scheme 1952
2. Employees‟ Pension Scheme 1995
3. Employees Deposit Linked Insurance 1976
Membership
1. An employee at the time of joining the employment and getting wages up to
Rs.6500/- is required to become a member.
2. An employee is eligible for membership of fund from the very first date of joining a
covered establishment.
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Contribution to EPF
1. Employees‟ share : 12% of the Basic + DA
2. Employer‟s contribution : 12% to be deposited as :
3. 8.33% to be deposited in Pension Fund A/C No 10 and
4. the balance, ie, 3.67% to be deposited in Provident Fund A/C No 01 along with
Employees‟ share of 12%
5. Administration charges –
6. @ 1.1% of the total wages/salary disbursed by deposit to A/C No 02,
7. Employees Deposit Linked Insurance @ 0.5% of the total wages/salary by deposit to
A/C No. 21 and
8. Administration of EDLI @ 0.01% of the wages/ salary by deposit to A/C. No. 22.
Duties of employer
1. Employer to furnish information about:
a) Ownership and names of responsible persons of the establishment.
b) Declaration and nomination.
c) Joining and leaving of service by the members in form 5 and form 10 respectively
d) Form 12A with monthly challans of deposit.
e) Form 9 for details of employees.
f) Form 3A/6A at the end of the financial year.
g) Any other information as may be required under Para 76 of the scheme
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Benefits to employees
1. Provident Fund Benefits
2. Pension Benefits
3. Death Benefits
Provident Fund Benefits
1. Employer also contributes to Members‟ PF @ 3.67% (1.67% in case of sick industry -
eg: beedi)
2. EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF
accumulations
3. Member can withdraw from this accumulations to cater financial exigencies in life -
No need to refund unless misused
4. On resignation, the member can settle the account. i.e., the member gets his PF
contribution, Employer Contribution and Interest
Pension Benefits
1. Pension to Member
2. Pension to Family (on death of member)
3. Scheme Certificate
a) This Certificate shows the service & family details of a member
b) This is issued if the member has not attained the age of 58 while leaving an
establishment and he applies for this certificate
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c) Member can surrender this certificate while joining another establishment and the
service stated in the certificate is added with the service he is gaining from the
new establishment.
d) After attaining the age of 50 or above, the member can apply for Pension by
surrendering this scheme certificate (if total service is at least 10 years)
e) This is a better choice than Withdrawal Benefit, that if a member dies holding a
valid scheme certificate, his family will get pension (Death when NOT in service)
f) Withdrawal Benefit if not eligible for pension, member may withdraw the amount
accumulated in his pension account the calculation of this amount is based on
I. Last average salary and
II. Service (Not based on actual amount available in Pension Fund Account)
g) No amount is taken from Member to give Pension to the Member. Employer and
Govt. contribute to Pension fund @8.33% and @1.16% respectively
h) EPFO guarantees pension to members, even if the Employer has not contributed
to Pension Fund.
i) Pension calculation is similar to that of Govt. Employee
Death Benefits
a) Provident Fund Amount to Family (or to Nominee)
b) Pension to Family (or to Parent / Nominee)
c) Capital Return of Pension
d) Insurance (EDLI) amount to Family (or to Nominee)
e) No amount is taken from Member for this facility. Employer contributes for this.
f) Nominee is basically determined as per the information submitted by the member at
this office through FORM-2
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THE EMPLOYMENT EXCHANGES ACT, 1959
The main purpose of the Act is to provide for the compulsory notification of vacancies
to employment exchanges. The employer is required on a compulsory basis, to notify to the
Employment Exchanges all vacancies other than vacancies in unskilled categories,
temporary vacancies and vacancies proposed to be filled through promotion and tender to
the Employment Exchanges, return relating to the staff strengths at regular intervals. The
Act extends to the whole of India.
Scheme of the Act
There are only 10 Sections in the Act.
Application of the Act
The Act covers the employers in establishments both in public and private sectors.
The Act is applicable to establishments which are engaged in non-agricultural activities and
employing 25 or more workers. The enforcement of the Act is the responsibility of States
and Union Territories. Most of the States/Union Territories have set up special enforcement
machinery for this purpose.
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Act not to apply in relation to certain vacancies
The Act shall apply to the following category of vacancies:
1. In any employment in agriculture (including horticulture) in establishment in private
sector other than employment as agricultural or farm machinery operatives;
2. In any employment in domestic service;
3. In any employment the total duration of which is less than 3 months;
4. In any employment which requires unskilled office work;
5. In any employment related to the staff of Parliament.
In addition, the Act shall not apply to the following vacancies unless the Central
Government otherwise directs through notification in its Official Gazette:
1. Vacancies which are proposed to be filled through promotion
2. Vacancies which are proposed to filled through absorption of surplus staff of any
branch or department of the same establishment
3. Vacancies which are proposed to be filled through the result of any examination
conducted or interview held by, or on recommendation of, any independent agency
such as Union or State Public Service Commission and the like.
4. Vacancies in an employment which carries a remuneration of less than sixty rupees
in a month. (Section 3).
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Notification of vacancies to Employment Exchanges
Section 4 of the Act provides for notification of vacancies to employment exchange.
The employer in every establishment in public sector is required to notify any vacancy
before filling it up, to the prescribed employment exchanges. The Section further requires an
employer in every establishment tin private sector or every establishment pertaining to any
class or category of establishments in private sector to notify to the prescribed employment
exchanges from such date as may be specified in the notification issued by the appropriate
Government in the Official Gazette. Section 4(3) provides that the manner of notification of
vacancies and the particulars of employments having such vacancies should be such as
may be prescribed. Section 4(4) says that the employer‟s obligation is only to notify the
vacancy to the employment exchange. The Act does not impose any obligation on an
employer to recruit any person through employment exchange to fill the vacancy merely
because the vacancy has been notified as required by this Act.
Employment Exchanges to which vacancies are to be notified
Rule 3 of The Employment Exchanges (Compulsory Notification of Vacancies) Rules,
1960, says that the vacancies are to be notified either to the Central Employment Exchange
or Local Employment Exchange, as the case may be. The Central Employment Exchange
means the Employment Exchange established by the Government of India, Ministry of
Labour and Employment and to which the following vacancies shall be notified:
1. Vacancies in posts of a technical and scientific nature carrying a basic pay of Rs.
1,400 or more per month occurring in establishments in respect of which the Central
Government is the appropriate Government under the Acct; and
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2. Vacancies which an employer may desire to be circulated to the employment
exchanges outside the State or Union Territory to which the establishment is
situated. The Local Employment Exchange means the employment exchange (the
Central Employment Exchange) notified in the Official Gazette by the State
Government or the Administration or Union Territory as having jurisdiction over the
area in which the establishment concerned is situated or over specified classes or
categories of establishments of vacancies.
3. Vacancies of all types other than those which are required to be notified to Central
Employment Exchange shall be notified to these local employment exchanges.
Furnishing of Information or Returns
Section 5 requires an employer in every establishment in public sector to furnish,
such information or return as may be prescribed in relation to vacancies that have occurred
or are about to occur in the establishment to such employment exchanges as may be
prescribed. In the case of private sector or every establishment pertaining to any class or
category of establishments in private sector, the appropriate Government, by notification in
the Official Gazette, may require that from such date as may be prescribed in relation to
vacancies that have occurred or are about to occur in that establishment to such
employment exchanges as may be prescribed and the employer shall thereupon, comply
with such requisition. The above return shall be furnished to the Director or other authorized
officer of the Directorate administering employment exchanges in a State or Union Territory.
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Right of Access to Records or Documents
Such officer of the Government as may be prescribed in this behalf, or nay person
authorized by him in writing, shall have access to any relevant record or document in the
possession of any employer required to furnish any information or returns under Section 5
of this Act. Such officer is also empowered to enter at any reasonable time, any premises
where he believes that such record or document to be and inspect and take copies of
relevant records or documents or ask any question necessary for obtaining information
required under that Section (Section 6).
Penalties (Section 7)
1. If any employer fails to notify to the employment exchanges prescribed for the
purpose any vacancy in contravention of sub-Section (1) or sub-Section (2) of
Section 4, he shall be punishable for the first offence with fine which may extend to
five hundred rupees and for every subsequent offence with fine which may extend to
one thousand rupees.
2. If any person
a) Required to furnish any information or return –
I. refuses or neglects to furnish such information or return, or
II. furnishes or causes to be furnished any information or return which he
knows to be false, or
III. refuses answer, or gives a false answer to, any question necessary for
obtaining any
IV. information required to be furnished under Section 5; or
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b) Impedes the right of access to relevant records or documents or the right of
entry conferred by Section 6, he shall be punishable for the first offence with
fine which may extend to two hundred and fifty rupees and for every
subsequent offence with fine which may extend to five hundred rupees.
Cognizance of Offences
No prosecution for an offence under this Act shall be instituted except by, or with the
sanction of, such officer of Government as may be prescribed in this behalf or any person
authorised by that officer in writing (Section 8).
Protection of action taken in good faith
No suit, prosecution or other legal proceedings shall lie against any person for
anything which is in good faith done or intended to be done under this Act (Section 9).
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THE FACTORIES ACT, 1948
Objective of the Act
1) To ensure adequate safety measures and to promote the health and welfare of the
workers employed in factories.
2) To prevent haphazard growth of factories through the provisions related to the
approval of plans before the creation of a factory.
Applicability of the Act
1) Applicable to the whole of India including Jammu & Kashmir.
2) Covers all manufacturing processes and establishments falling within the definition.
3) Applicable to all factories using power and employing 10 or more workers, and if not
using power, employing 20 or more workers on any day of the preceding 12 months.
Scheme of the Act
The Act consists of 120 Sections and 3 Schedules.
1) Schedule 1 contains list of industries involving hazardous processes
2) Schedule 2 is about permissible level of certain chemical substances in work
environment.
3) Schedule 3 consists of list of notify able diseases.
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Important provisions the Act:
Facilities and Conveniences
The factory should be kept clean. [Section 11]. There should be arrangement to
dispose of wastes and effluents. [Section 12]. Ventilation should be adequate. Reasonable
temperature for comfort of employees should be maintained. [Section 13]. Dust and fumes
should be controlled below permissible limits. [Section 14]. Artificial humidification should be
at prescribed standard level. [Section 15]. Overcrowding should be avoided. [Section 16].
Adequate lighting, drinking water, latrines, urinals and spittoons should be provided.
[Sections 17 to 19]. Adequate spittoons should be provided. [Section 20].
Welfare
Adequate facilities for washing, sitting, storing clothes when not worn during working
hours. [Section 42]. If a worker has to work in standing position, sitting arrangement to take
short rests should be provided. [Section 44]. Adequate First aid boxes should be provided
and maintained [Section 45].
Facilities in case of large factories
Following facilities are required to be provided by large factories Ambulance room if
500 or more workers are employed; Canteen if 250 or more workers are employed. It should
be sufficiently lighted and ventilated and suitably located. [Section 46]. Rest rooms / shelters
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with drinking water when 150 or more workmen are employed [Section 47]; Crèches if 30 or
more women workers are employed. [Section 48]; Full time Welfare Officer if factory
employs 500 or more workers [Section 49]; Safety Officer if 1,000 or more workmen are
employed.
Safety
All machinery should be properly fenced to protect workers when machinery is in
motion. [Section 21 to 27]. Hoists and lifts should be in good condition and tested
periodically. [Section 28 and 29]. Pressure plants should be checked as per rules. [Section
31]. Floor, stairs and means of access should be of sound construction and free form
obstructions. [Section 32]. Safety appliances for eyes, dangerous dusts, gas, and fumes
should be provided. [Sections 35 and 36]. Worker is also under obligation to use the safety
appliances. He should not misuse any appliance, convenience or other things provided.
[Section 111]. In case of hazardous substances, additional safety measures have been
prescribed. [Sections 41A to 41H]. Adequate firefighting equipment should be available.
[Section 38]. Safety Officer should be appointed if number of workers in factory are 1,000 or
more. [Section 40B].
Working Hours
A worker cannot be employed for more than 48 hours in a week. [Section 51].
Weekly holiday is compulsory. If he is asked to work on weekly holiday, he should have full
holiday on one of three days immediately or after the normal day of holiday. [Section 52(1)].
He cannot be employed for more than 9 hours in a day. [Section 54]. At least half an hour
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rest should be provided after 5 hours. [Section 55]. Total period of work inclusive of rest
interval cannot be more than 10.5 hours. [Section 56]. A worker should be given a weekly
holiday. Overlapping of shifts is not permitted. [Section 58]. Notice of period of work should
be displayed. [Section 61].
Overtime Wages
If a worker works beyond 9 hours a day or 48 hours a week, overtime wages are
double the rate of wages are payable. [Section 59(1)]. A workman cannot work in two
factories. There is restriction on double employment. [Section 60]. However, overtime
wages are not payable when the worker is on tour. Total working hours including overtime
should not exceed 60 in a week and total overtime hours in a quarter should not exceed 50.
Register of overtime should be maintained. An employee working outside the factory
premises like field workers etc. on tour outside headquarters are not entitled to overtime.
Employment of Women
A woman worker cannot be employed beyond the hours 6 a.m. to 7.00 pm. State
Government can grant exemption to any factory or group or class of factories, but no
woman can be permitted to work during 10 PM to 5 AM. Shift change can be only after
weekly or other holiday and not in between. [Section 66].
Night Shift for women
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Factories Act has been proposed to be amended to allow night shift for women
workers. The Government has decided to amend Section 66 of the Factories Act, 1948 to
allow employment of women workers between 7.00 pm and 6.00 am. The demand of
women‟s organisations and in tune with the present economic globalization, the
Government has decided to bring in then required changes in the Act. This flexibility would
be available to all manufacturing units including the apparel sector. This decision has been
taken after meetings with the representatives of the employers and the trade unions. The
proposed Bill will empower the State Governments for allowing the necessary flexibility in
employment of women during night shift in factories. The proposed amendment would inter-
alia provide that the employer has to ensure occupational safety and adequate protection to
the women workers. However, the State Government or any person authorised by it would
be allowing employment of women during night only after consulting the workers or their
representative organisations and concerned employers or their representatives. The State
Governments are also empowered to frame their own rules for allowing such permissions.
Record of Workmen
A register (muster roll) of all workers should be maintained. No worker should be
permitted to work unless his name is in the register. Record of overtime is also required to
be maintained. [Section 62].
Leave
A worker is entitled in every calendar year annual leave with wages at the rate of one
day for every 20 days of work performed in the previous calendar year, provided that he had
worked for 240 days or more in the previous calendar year. Child worker is entitled to one
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day per every 15 days. While calculating 240 days, earned leave, maternity leave upto 12
weeks and lay off days will be considered, but leave shall not be earned on those days.
[Section 79]. – Leave can be accumulated upto 30 days in case of adult and 40 days in
case of child. Leave admissible is exclusive of holidays occurring during or at either end of
the leave period. Wage for period must be paid before leave begins, if leave is for 4 or more
days. [Section 81]. Leave cannot be taken for more than three times in a year. Application
for leave should not normally be refused. [These are minimum benefits. Employer can, of
course, give additional or higher benefits].
Wages for overtime and Leave Salary
Wages for leave encashment and overtime will include dearness allowance and cash
equivalent of any benefit. However, it will not include bonus or overtime.
Child Employment
Child below age of 14 should not be employed. [Section67]. Child above 14 but
below 15 years of age can be employed only for 4.5 hours per day or during the night.
[Section71]. He should be certified fit by a certifying surgeon. [Section68]. He cannot be
employed during night between 10 pm to 6 am. [Section71]. A person over 15 but below 18
years of age is termed as „adolescent‟. He can be employed as an adult if he has a
certificate of fitness for a full day's work from certifying surgeon. An adolescent is not
permitted to work between 7 pm & 6 am [Section70]. There are more restrictions on
employment of female adolescent. Register of child workers should be maintained.
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Display on Notice Board
A notice containing abstract of the Factories Act and the rules made there under, in
English and local language should be displayed. Name and address of Factories Inspector
and the certifying surgeon should also be displayed on notice board. [Section 108(1)].
Notice of Accidents, Diseases Etc.
Notice of any accident causing disablement of more than 48 hours, dangerous
occurrences and any worker contacting occupational disease should be informed to
Factories Inspector. [Section 88]. Notice of dangerous occurrences and specified diseases
should be given. [Sections 88A and 89].
Obligation regarding Hazardous Processes / Substances
Information about hazardous substances / processes should be given. Workers and
general public in vicinity should be informed about dangers and health hazards. Safety
measures and emergency plan should be ready. Safety Committee should be appointed.
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FINDINGS, RESEARCH
AND
RESOLUTION
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HR POLICIES AT INSPECTION
INTRODUCTION
Welcome to the TURT Group. These documents were developed to provide you with
an information resource for common questions and concerns. If you have questions or
concerns about the policies outlined here, you should contact your manager or Human
Resources.
The policies stated in these documents are subject to change at any time at the sole
discretion of the company. From time to time, you may receive updated information
regarding any changes in policy.
The contents of these documents are not intended to create a contract or agreement
between the company and you. For those employees in a position covered by a collective
bargaining agreement, you should refer to the agreement which governs your terms and
conditions of employment.
There are specific procedures for many of the general policies stated in the
handbook. Please direct any questions to your manager, department head, or to Human
Resources.
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HOURS OF OPERATION/WORK SCHEDULES
The office is normally open from 9:00 am until 10:00 pm Indian Standard Time. The
employees may be assigned to different work schedules and/or shifts outside of normal
office hours. If an employee must be outside of the office for non-business related reasons
during their normal work schedule, they should inform their manager.
TELECOMMUTING
The Company is committed to creating a work environment where the needs of our
customers, employees, and the Company are balanced. Therefore, the Company tries to be
flexible in its approach to work styles and location. Telecommuting arrangements may be
made on an “as needed basis” or set up on a regular schedule. In either case, employees
are encouraged to spend time working in the office whenever possible. This allows
employees to be accessible to customers and creates a sense of consistency and
collaboration among work teams. When employees desire to work at home, the Company
asks that they do so in a manner which is in keeping with a work style of accessibility,
communication, and productivity. All telecommuting arrangements are subject to approval
by the employee‟s manager.
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ATTENDANCE POLICY
Regular attendance is essential to the Company‟s efficient operation and is a
necessary condition of employment. When employees are absent, schedules and
customer commitments fall behind, and other employees must assume added
workloads.
Employees are expected to report to work as scheduled and on time. If it is
impossible to report for work as scheduled, employees must call their manager
before their starting time. If your manager is unavailable, a voice message should be
left. If the absence is to continue beyond the first day, the employee must notify their
manager on a daily basis unless otherwise arranged. Calling in is the responsibility of
every employee who is absent. Absence for three consecutive work days without
notifying the manager is considered a voluntary termination.
LEAVE OF ABSENCE
Employees are eligible to apply for an unpaid leave of absence if they have been a
regular employee of the Company for at least one year and scheduled to work 20
hours or more a week. The employee‟s manager will make a decision on the leave
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request. The request for leave will be reviewed based on the reason for the request,
previous attendance record, previous leave requests and the impact the absence will
have on the Company.
Authorized leaves for illness or disability begin after employees have exhausted
accrued sick leave, vacation and personal holiday time. A personal leave of absence,
if granted, begins after vacation and personal holiday time have been used.
Human Resources can provide employees with which benefits, in addition to retained
seniority, can be continued during the leave. If an employee wishes to continue
benefits, it must be arranged for directly with Human Resources.
If the request for leave of absence for personal reasons, the employee‟s manager,
with the advice of Human Resources, will decide whether the current position will be
held open, or if a position will be made available upon the employees return from
leave.
FAMILY MEDICAL LEAVE
All employees who have been employed at least twelve months, and who worked at
least 1,250 hours during the twelve months prior to the leave request are eligible for
an unpaid family and/or medical leave of absence under the Family and Medical
Leave Act of 1993 for a period up to twelve weeks during a calendar year under the
following circumstances:
For the birth of a son or daughter of the employee and to care for such new born son
or daughter, if completed within twelve months of the child‟s birth; The placement of a
son or daughter with the employee for adoption or foster care if completed within
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twelve months of the placement; To care for the spouse, or a son, daughter, or
parent of the employee, if spouse, son, daughter, or parent has a serious health
condition; or Where a serious health condition makes the employee unable to
perform the functions of his or her job.
Employees ordinarily must provide 30 days' advance notice when the leave is
"foreseeable." The Company may require medical certification to support a request
for leave because of a serious health condition, and may require second or third
opinions (at the employer's expense) and a fitness for duty report to return to work.
Taking of leave may be delayed if requirements are not met. For the duration of
FMLA leave, the Company will maintain the employee's health coverage under the
group health plan. Upon return from FMLA leave, most employees will be restored to
their original or equivalent positions with equivalent pay, benefits, and other
employment terms. The use of FMLA leave cannot result in the loss of any
employment benefit that accrued prior to the start of an employee's leave.
For complete details employees should contact their manager or Human Resources
PAY AND COMPENSATION
Employees are paid on the 1st and 15th of each month.
OVERTIME
Non-exempt employees are eligible to receive overtime pay if they work more than
40 hours in a given week. Holiday, vacation, and sick time are not included in hours
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used to determine overtime eligibility. Overtime pay equals 1.5 times and employee‟s
regular hourly rate. All overtime must be approved the manager in advance.
VACATION
All full-time employees are eligible for vacation pay.
New full-time employees will receive a pro-rata number of vacation days based on
one day for each month worked in the hired calendar year, not to exceed 10 days.
In the first full calendar year and through the calendar year in which the employee‟s 3
year anniversary of employment occurs, employees will receive 10 vacation days
each year.
In the calendar year of the employee‟s 4 year anniversary of employment, employees
will receive 15 vacation days each year.
In the calendar year of the employee‟s 10 year anniversary of employment,
employees will receive 20 vacation days each year.
Up to 5 unused vacation days may be carried over into the next year. All other
unused vacation time will be paid out in the final pay check for that year.
Employees should notify their manager at least one month in advance of taking
vacation time. All vacation requests are subject to manager approval. In addition,
employees should directly communicate vacation dates to co-workers to ensure
customer needs are met.
Part-time employees who work on a regular schedule all year are eligible for vacation
benefits on a pro-rata basis based on the schedule above.
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HOLIDAYS
The company will observe the following holidays:
Makar Sankranti
Republic Day
Holi
Raksha Bandhan
Independence Day
Id-Ul-Fitr
Gandhi Jayanti
Dussehra
Deepawali
Pareva
Id-Ul-Zuha
Moharram
Christmas
PERSONAL DAYS
Employees are eligible for 4 paid personal days per calendar year. New employees
will accrue 1 personal day for every 3 months worked in the hired calendar year. Personal
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days may be used at the employee‟s discretion for religious holidays and personal matters.
Personal days not used by the end of the year will be paid out to the employee in the final
payment for that year
SICK DAYS
Sick days are provided for illness of the employee, their spouse or children.
Employees should use their personal days or vacation days for non-illness related time all
full-time employees will receive sick days according to the following schedule:
Employees will be eligible for paid sick days after 6 months of employment. After 6
months of employment, employees will be eligible for one sick day for every two months
worked from date of hire, with a maximum of 5 days in their first year of employment. Every
succeeding calendar year, employees will be eligible for 5 sick days. Sick days may be
accumulated and carried over from year to year to a maximum of 10 days. All other unused
sick days by the end of the year is forfeited.
FUNERAL LEAVE
Employees will be paid for up to five days to attend the funeral of a close relative,
such as a spouse, children, parents, grandparents, siblings and corresponding in-laws. If
additional time off is required, employees should talk to their manager.
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Time off without pay may be provided so that employees can attend the funeral of
individuals other than those listed. Employees may take unused vacation or personal time
but, sick days cannot be used.
HEALTH BENEFITS
Full-time employees, their spouses and eligible dependent children are eligible for
health benefits on the first day of the month following 30 days of continuous employment.
For health benefits, full-time employees are defined as regular employees (excludes interns
and contract employees) who work exceeds 30 hours per week. Employees should consult
the separate materials prepared directly by the Company‟s health care insurance company
for details of the plan.
FLEXIBLE SPENDING ACCOUNTS
Full-time employees are eligible to enrol in the flexible spending account during open
enrolment each year or after a qualifying life event. This benefit allows you to pay certain
expenses with pre-tax pay. Employees should be aware that after they have elected the
amount to put into an account, any f unds unused at the end of the year are forfeited. There
are two types of flexible spending accounts:
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1. HEALTH CARE SPENDING ACCOUNT
This account allows employees to pay for most non-covered medical, dental, and
vision expenses, deductibles and co-pays up to a limit of Rs.2,500 per year. The minimum
contribution is Rs.250 per year.
2. DEPENDENT CARE SPENDING ACCOUNT
This account allows employees to pay qualified dependent care expenses such as
child or elder day care up to maximum limit of Rs.5,000 annual, subject to IRS rules and
restrictions. The minimum contribution is Rs.250 per calendar year.
EQUAL EMPLOYMENT POLICY
It is the policy of the Company to provide equal opportunity for all qualified persons
and not discriminate against any employee or applicant for employment because of race,
colour, religion, sex, age, national origin, veteran status, disability, or any other protected
status. This policy applies to recruitment and placement, promotion, training, transfer,
retention, rate of pay and all other details and conditions of employment.
Employment and promotion decisions will be based on merit and the principle of
furthering equal opportunity. The requirements we impose in filling a position will be those
that validly relate to the job performance required.
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All other personnel actions including compensation, benefits, transfers, layoffs,
recalls from lay-offs, training, education, tuition assistance and recreation programs will be
administered without regard to race, colour, religion, sex, age, national origin, disability,
veteran status, or any other protected status, in accordance with appropriate law.
TERMINATION
Employees who voluntarily resign from the Company are asked to provide at least
one week advance notice of their resignation. This notice should be in writing and should
briefly state the reason for leaving and the anticipated last day of work.
If a terminating employee is eligible for any incentive compensation, bonus, and/or
awards, they must be actively employed on the date the compensation, bonus or awards
are presented or paid, in order to receive the compensation, bonus or award.
DRUG AND ALCOHOL POLICY
The Company realizes that the misuse of drugs and alcohol impairs employee health
and productivity. Drug and alcohol problems result in unsafe working conditions for all
employees and customers. The Company is committed to maintaining a productive, safe,
and healthy work environment, free of unauthorized drug and alcohol use.
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Any employee involved in the unlawful use, sale, manufacturing, dispensing or
possession of controlled substances, illicit drugs and alcohol on Company premises or work
sites, or working under the influence of such substances, will be subject to disciplinary
action up to and including dismissal and referral for prosecution. In addition, the Company
has developed and maintains a comprehensive Drug and Alcohol Policy, which employees
may obtain from Human Resources
SMOKING POLICY
The Company maintain a non-smoking policy within the office. Employees should
smoke only in those areas of the building which are smoking designated.
SAFETY POLICY
The Company is sincerely interested in the safety and well-being of our employees.
The Company will make every effort to keep the office equipment in excellent condition and
make sure that all safety devices are working properly.
If, in spite of our efforts to ensure safe working conditions, an employee has an
accident or becomes ill on the job, it should be reported to the manager immediately. They
will see that prompt medical attention is provided.
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WORKPLACE SECURITY POLICY
The Company is committed to maintain a safe and secure workplace. In order to
maintain a secure work environment, the company strictly prohibits employees and visitors
from bringing any firearm on Company property. In addition, all visitors are asked to check
in with the receptionist. Failure to comply with this policy will result in disciplinary action up
to and including termination.
DRESS CODE POLICY
The Company maintains a business casual working environment. All employees
should use discretion in wearing attire that is appropriate for the office and customer
interaction.
TELEPHONE AND COMPUTER USE POLICY
The Company understands that when employees work during the week it is
occasionally necessary to conduct personal business during office hours. However,
employees should limit their personal use of the telephone and computer during office
hours.
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Talk to your manager if you have any questions as to how much is too much time.
Because telephone and e-mail systems are provided by the Company at its expense for
business use, all messages sent by or received on those systems are company documents.
The Company reserves the right to access and to disclose the messages that you
send or receive on the voice mail or e-mail systems.
Employees should also be aware that “deleted” messages from the computer screen
may not actually be deleted from the e-mail system. Employees who abuse this policy are
subject to disciplinary procedures up to and including discharge
BUSINESS EXPENSE REIMBURSEMENT
The company will reimburse employees for expense which are directly business
related to include: travel expenses, office supplies, and mileage incurred while travelling on
business. Employees must submit receipts for all expenses. Employees should consult with
their manager prior to business trips to confirm eligible expenses.
TUITION REIMBURSEMENT
Full-time employees are eligible to apply for the tuition assistance program after one
year of employment. After approval from the Company, employees are eligible for
reimbursement upon successful completion of approved course(s) at an accredited
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institution. The Company will reimburse the employee 100% of the tuition, registration,
book, and lab fees.
IMPACT OF HR POLICY
The impact of HR Policy was up to mark:
The HR Policy was not upto the working standard of the company.
It was lacking behind in ensuring good working environment to the employees.
The policy was quite rigid and not flexible.
The policy made did not have any provision for evaluating the performance of the
employee.
It has no provision of performance appraisal.
The policy did not hold any provision for grievance handling procedure.
It was not carrying any provision of recruitment procedure in the company.
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Thus, the policy made requires changes in it for raising the performance of the
company and for the welfare of the employees.
IMPLEMENTATION
OF
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NEW HR POLICY
HOURS OF OPERATIONS
The office working hours are normally from 10:00 AM - 9:00 PM according to Indian
Standard Time. There are 7 working days (Monday – Sunday). The time schedule has been
divided into two slots/shifts i.e. 10:00 AM to 6:00 PM or 1:00 PM to 9:00 PM. The
employees may be assigned with different work schedules and /or shifts outside of normal
work hours. The employee has to report in office 15 minutes before the working time
schedule allotted to them. There will be a lunch break for 30 minutes (1:00 PM to 1:30 PM)
for the employees coming at 9:00 AM and (3:00 PM to 3:30 PM) for the employees coming
at 1:00 PM for refreshment. If an employee is outside of the office for the non-business
related reasons during their work schedule, they must inform the manager.
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The management reserves the right to establish and adjust an employee‟s work
schedule temporarily within a workweek to meet company‟s needs. At management
discretion employee‟s schedule can be also adjusted to meet the employee‟s personal
needs.
Over time working hours normally shall not be authorized except where required by
exceptional circumstances of an emergency or temporary nature. Employees are expected
to work overtime hours as required by their manager.
Manager reserve the right to determine when or if lunch periods may be used to
compensate for an employee‟s late arrival or early departure
ATTENDANCE POLICY
Regular attendance is essential to the company‟s efficient operation and is a
necessary condition of employment, when employees are absent, schedules and customer
commitments fall behind, and other employees must assume added workloads.
The no. of working days are 7(Monday-Sunday).
Timing is 10:00 AM – 9:00 PM which is scheduled into two shifts.
The employee is entitled with predefined one day off in a week.
If the employee is not taking any off in a week, it will be accumulated as an earned
leave i.e. he can use those off as an earned leave at the end of year.
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If employee is coming late, then per 3 days ½ of his /her one day salary will be
deducted.
If employee is coming late, he /she should inform to HR as well as his /her senior.
1 casual leave in a month or 2 short leaves within a month is allowed to each
employee.
Half day will be considered, if employee is coming/leaving the office premises 2
hours late/prior to the scheduled time.
Per 2 half day, one day salary will be deducted.
Absence for three consecutive work days without notifying the manager is considered
a voluntary termination.
Calling is the responsibility of every employee who is absent, coming late or needs a
short leave.
FOR MARKETING EMPLOYEES
For the marketing employees, if they are coming late because of meeting with client,
every time they will have to inform their senior for coming late. And will have to show
the sheet or slip duly signed by the client with proper address and phone number.
Marketing department head will have to inform to HR department, on every late
coming of their juniors.
If the marketing employee is continuously coming late and unable to show the
signed, proper action will be taken by the management.
It is compulsory to inform their senior, if marketing person is coming late.
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LEAVE POLICY
A. PURPOSE
The purpose of the leave policy is to lay down the guidelines under which employees
become eligible for different types of leave and the rules and procedures for availing the
leave.
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B. POLICY
The policy aims to provide guidelines:
To set clear directions with the procedures of leave application
To provide a clear understanding of various types of leaves and regulations those
govern the policy.
To regularize leave taken by employees and to ensure compliance with statutory
Obligations
Leave cannot be claimed as of right and when exigencies so demand, leave of any
kind may be refused or revoked by the authority empowered to sanction the leave.
C. LEAVE RULES
a) Leave will be credited to the account of the employee on yearly basis at the end
of 31st March.
b) For the first year of employment, leave will be credited as follows:
c) All probationary/confirmed employees are eligible for the above-referred leaves of
12 days CL and 6 days SL.
d) Casual Leave and Sick Leave can be availed only for the period of one day
maximum; both kinds of leaves taken for more than one day will be considered as
Earned Leave.
e) Any employee who joins after the 15th of a month does not earn any leave for the
month of joining.
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f) When an employee serves the company only for part of a month, he/she will be
entitled to Earned, Casual and Sick Leaves on a pro -rata basis depending upon
the leaves for every completed month of service and it will be rounded off to the
nearest day.
g) The HR Department will update the leave record of all employees on a monthly
basis.
h) Employees are requested to plan their Earned Leave well in advance and inform
the same to the HRD.
i) Employees are required to apply at least six days in advance for approval if leave
is up to 3 days, at least ten days in advance for Earned Leave of 5 days or more
and fifteen days advance for Earned Leave of 6 or more days.
j) It will be the responsibility of the employee to ensure that he/she would proceed
on leave only after the sanctioning authority has duly approved his/her application
for leave.
k) If the employee wishes to extend leave originally granted he/she will be required
to make an application by email or inform the sanctioning authority over telephone
or by any other method. The sanctioning authority will send a reply granting or
refusing such extension to the employee. If the employee does not receive any
such reply, the application for extension of leave will be treated as rejected and
the employee will be required to resume duties on completion of leave originally
granted.
l) The sanctioning authority will have the discretion to revise, curtail or revoke leave
already sanctioned to an employee depending upon the requirements of presence
of the employee in the office.
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m) If an employee remains absent without leave or overstays leave without sanction
for a period of three consecutive days or more, disciplinary action may be initiated
against the employee by the Company.
n) In case of genuine and extreme emergency, the Management may, at its sole
discretion, grant leave before it has been earned and credited to an employee‟s
account. Such leave will be debited to an employee‟s leave account to be
adjusted as and when the leave is actually credited.
o) Leave cannot be considered for adjustment against notice period at the time of an
employee leaving the services of the Company.
D. LEAVE PROCEDURE
Leave should be applied through specified Leave Application Format.
E. TYPES OF LEAVES
There are 4 different types of leaves:
Casual Leave
Sick Leave
Earned Leave
Special Occasion Off
a) CASUAL LEAVE
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Objective: To provide leave to attend to personal exigencies/unforeseen
circumstances.
Applicability: This policy is applicable to all employees from their date of joining
except consultants and trainees.
Eligibility:
The employee is entitled for twelve (12) leaves in a year.
Maximum number of consecutive days for which CL can be availed at a time is 2.
CL cannot be accumulated and be availed of with prior sanction (to the extent
possible.
Casual leave will not be allowed to be combined with Sick Leave or Earned
Leave.
Unutilized casual leaves shall not be encashed or carried forward to the next
year.
b) SICK LEAVE
Objective: To provide leave to attend to sickness & medical ailments.
Applicability: This policy is applicable to all employees from their date of joining
except consultants and trainees.
Eligibility:
The employee is entitled for six (6) medical leaves in a year.
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The sick leaves will be credited to the employees account at the beginning of the
year but can be availed on pro-rata basis.
Sick leave cannot normally be combined with casual leave but can be suffixed to
earned leave and would require approval of the appropriate verifying officer.
For availing sick leaves of three days or more the employee shall have to produce
certificate from Registered Medical Practitioner, Nursing Home or Hospital or
Doctor Prescription.
Unutilized sick leaves shall be carried forward and can be accumulated up to 25
days, beyond twenty-five it will lapse.
The sick leave will not be encashed.
c) EARNED LEAVE
Objective: To provide for long duration planned leave.
Applicability: This policy is applicable to all employees from their date of joining
except trainees.
Eligibility:
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If the employee is not taking any off in a week, it will be accumulated as an
earned leave i.e. he can use those off as an earned leave at the end of year.
The employee is entitled for 18 leaves in a year after completion of one year.
Minimum number of consecutive days for which EL can be availed at a time is 3.
It can be availed only on 4 occasions in a year.
At least 7 days of advance notice is required to avail EL.
Intervening Sundays and holidays will not be counted as part of leave.
Half day earned leave is not allowed.
Accumulation: Earned leaves may be accumulated up to 36 days.
d) SPECIAL OCASSION OFF
Objective: To provide for facilities to Employees at times of Special Occasions.
The employee wants to share these special moments with his / her family.
Applicability: This policy is applicable to all employees from the date of their
joining.
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Types:
a) Leave on self‟s Birthdays
b) Leave on spouse‟s Birthday
c) Leave on Wedding Anniversary
d) Leave on Child‟s birthday
Eligibility:
Self and Spouse Birthday: An Employee on the day of his / her Birthday and his/ her
spouse‟s Birthday would be eligible for a half day‟s leave. This leave can be availed
only on the day of the Employees / Spouse‟s Birthday and not on any other day. The
date of birth shall be as per the records maintained in the HR.
Wedding Anniversary: An Employee on day of his / her Wedding Anniversary would
be eligible for a half day‟s leave. This leave can be availed only on the day of the
Employees Wedding Anniversary and not on any other day.
Children‟s Birthday: An Employee on the day of his / her children‟s Birthday would be
eligible for a half day‟s leave. This leave can be availed only on the day of the
Employees Children‟s Birthday and not on any other day. The date of birth shall be
as per the records maintained in the HR.
A total of 2 days leave is available for the above points. At his / her will the employee
can avail 4 half days leave on any of the occasions.
This off can be taken only if the anniversary/ birthday falls on a working day. Under
no circumstances a compensatory off will be given in lieu of this day.
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HOLIDAYS
Total no of holidays are:
Republic Day
Holi
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Independence Day
Good Friday
Easter
Raksha Bandhan
Id-Ul-Fitr
Gandhi Jayanti
Dussehra
Deepawali
Pareva
Id-Ul-Zuha
Moharram
Christmas
RECRUITMENT
We are implementing this policy in our organization.
OBJECTIVES
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To provide guidelines for recruitment & selection process to be an „Employer of
Choice‟.
COVERAGE
For Recruitment and Selection of regular Employees, full time/ part time for the
Company.
GUIDELINES
The recruitment and selection policy must be in line with the company‟s corporate
manpower planning and annual business plans.
All the business heads will systematically review their business plans, team structure,
skills and manpower flowing out of corporate plan.
On basis of the assessment, head of department will prepare their “manpower plan”,
and will get it approved from their concerned Director/ CEO of the division.
Approved manpower will be submitted to the HR department for approval of
management.
Vacant positions are to be filled first within the company through “Internal Job
Posting” to the extent possible. In case there is no suitable candidate available
against the vacant position or when the organization wants to infuse fresh blood,
external recruitment process will be initiated, either by manpower consultants,
references, advertisements in the newspapers, job web sites, campuses, etc.
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Based on the „Job Description Sheet „HR department will prepare a „Brief Profile‟, to
have clarity for communication (for vacant positions) purpose to different recruitment
sources/agencies.
Resume received from different sources will be screened, based on the „Job
Description Sheet „, by HR and concerned department representative.
Resume meeting the job criteria shall be forwarded to the concerned HOD for their
endorsement.
Based on the availability and in consultation with the Interview Panel, schedule of the
interview will be communicated to the short listed candidates, either by
phone/courier/post etc. clearly mentioning the name of the contact person, date, time
and venue.
INTERVIEW PANEL:
Positions for interview panel:
For up to Manager Level positions Head of Department/HR Representative
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For Sr. Manager and above positions Head of Department/Concerned
Director/COO/CEO/HR Head
For HEAD of Division positions and above Chairman/HR Head.
NOTE:
Selected candidate will be issued a „Letter of Intent‟, along with the briefing on CTC
break-up, and any other terms and conditions applicable.
On the date of joining, new entrant will complete the joining formalities and will
submit relevant documents as mentioned in the „Letter of Intent‟.
„Terms and Conditions‟ to be finalised by Head HR in consultation with Chairman
before hiring any person from Manpower Consultants.
Job Application Form should be duly filled to become a part of Personal File.
All HR records/systems/procedures will be computerized.
Head - HR will sign „Letter of Intent‟ and „Appointment Letter‟.
MANPOWER REQUIREMENT REQUISITION FORM
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This is the form which is filled up by the different departments according to the
manpower requirement in their department. This is requested by the HOD.
After the filling this is send to MD for authorization and after that received by the HR
Manager.
HR Manager now looking after the requirement arranges interview for the post
vacant.
PROCESS FLOW:
IMPORTANCE:
It helps to get the information about the need of fresh blood in an organization. It
inform about the vacant post in the organization with the complete details related to the new
entry.
HOD
MD
HRD
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JOB APPLICATION FORM
It is the form which is to be filled up by the candidate before the interview. It consists
of some relevant information about the candidate.
After the form filling the candidate with their curriculum vitae and all original
documents is sent for the interview session. The form consists of 3 sections:
The first page consists of candidate‟s personal detail such as, name, address,
contact no, their qualification, their past experience in job, their family detail etc.
The second page i.e. (section i) has two parts: A) about candidates educational
qualification. B) about candidates family.
The third page i.e. (section ii) A) about the work experience in job with the
information about the organization structure followed and the job responsibility carried by
candidate. B) about the compensation in the last organization.
The fourth page i.e. (section iii) about any ailment in the last year and any two people
reference by candidate with the signature in the certification.
PROCESS FLOW:
CANDIDATE
INTERVIEWER / HR MANAGER
HRD
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IMPORTANCE OF JOB APPLICATION FORM
The job application form is very important to get it filled by the candidate:
It provides complete personal detail of the candidate.
It provides detail of their family & friends.
It informs about the candidate qualification providing the complete academic record.
It provides complete record of past experience of the candidate if he or she was in
job.
It also provides the last compensation detail and the current expectation of the
candidate.
The application forms serves as a future record.
It helps the interviewer to get full knowledge about the candidate
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INTERVIEW ASSESSMENT FORM
The interview assessment form is made for judging the candidate. Evaluation of the
candidate is done on some of the factors based on impression created during the interview.
The complete evaluation of candidate is done by this form. It provides the education
information of the candidate with the detail of special course done or project report
made by the candidate.
It evaluates the personality of the candidate by judging the communication skills,
leadership quality and decision making characteristics of the candidate
It judges out the potential of candidate how ambitious, enthusiastic, initiative,
dedicated and co-operative he or she is for doing the work.
It also specifies the work experience he or she has in a particular field or not.
The form has one more important part which judges the technical skills of the
candidate.
This form evaluates the marks awarded to the candidate out of 100, and on this basis
he or she is selected or rejected.
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TRAINING AND PROBATION POLICY
Training is the mode of teaching the new employee working standards of the
company. It helps to make him /her aware about the working atmosphere in the company.
The training time period assign to the employees recruited will be decided by the
HRD.
There will be a probation period for first 3 months for all the employees at the time of
new joining to the company.
The employee will be given a training module which they have to complete for their
successful joining.
The employee gets complete knowledge about the working standard of the company
after the training.
It is done to get knowledge of the actual performance of the employees, in order to
know whether the person is fit for the job or not.
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PERFORMANCE APPRAISAL POLICY
Performance Appraisal grooms every individual to realize his potential in all facets by
helping to identify and achieve his personal goals within the framework of
organizational objectives.
Appraisals shall be ethical and impartial so as to recognize worthy contributions
appropriately and in time in order to maintain a high level of employee motivation and
morale.
The Performance Appraisal Systems aims at integration of individual and
organizational goals.
The employee‟s performance is appraised from time to time by conducting seminars,
and by performing some activities such as showing some motivational videos, and
holding up mutual talks.
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KEY RESPONSIBILITIES ASSESSMENT
The KRA (Key Responsibility Assessment) form is made to judge the employees for
their performance appraisal. This is to evaluate the performance of the employees for
rewarding them with new title, and position in the company.
It has parts in which the objectives of employee are recorded. The employee gives
weightage to their objective that is the work done by them.
The employee, supervisor and the reviewer comments are mention in it. Rating is
categorised into five aspects given by the reviewer to the weightage given by the
employees.
The 60 percent weightage is given by the employee themselves according to their
work and the 40 percent weightage is defined into 3 parts:
o 15 percent is for the accountability.
o 15 percent is for the additional responsibilities; liaison with different team
departments, quality initiatives and the daily and weekly reports.
o 10 percent is for the traits; leadership, commitment, maturity attitude,
dependability, reliability and discipline.
This is maintained monthly by each employee and on basis of its evaluation their
performance appraisal is carried out in the company.
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PROCESS FLOW:
IMPORTANCE OF KRA:
To judge employees for their performance appraisal.
To evaluate performance of the employees for rewarding them with new title,
and position in the company.
To find accountability of work by the employees.
To record the monthly activity carried out by the employees.
HRD
REVIEWER
SUPERVISOR
EMPLOYEES
HRD
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COUNSELLING
Counselling sessions, which are conducted by HR Department OR Professional
Counsellor OR Performance Appraiser, are available to all the employees in order to fulfil
the following objectives:
To enhance employees‟ competence and job satisfaction.
To prepare employees for future responsibilities.
To establish a better working relationship between the superior and subordinate.
To enable employees to cope with personal problems.
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CAREER PLANNING POLICY
Career Planning system in TURT SOFTECH is aimed at developing people of the
right calibre to meet present and future needs of the organization. It shall be an
essential ingredient for Succession Planning.
The mandatory factors to be considered prior to career planning shall be:
a) The organization‟s long and short term plans.
b) Manpower skills required towards implementing these plans.
c) Attrition rate of people with high potential, above average and average calibre.
d) Recruitment through internal and external sources at all levels and its ratio as
appropriate to the organization.
e) The number of people recruited and trained every year.
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PAY AND COMPENSATION
Employees are paid on the 15th of each month.
New employees are required to provide there Bank Account details (name of the
bank, branch name, account no.) and Pan Card details for their salary cheque.
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DRESS CODE POLICY
It is the policy of the company that each employee‟s dress, grooming and personal
hygiene should be appropriate to the work environment. Employees are expected at all the
times to present a professional, business-like image to customers.
Keeping in mind the company directives and with respect to tremendous changes in
wearing, hairstyles and make-ups, has come up with this dress code to maintain ethics and
reputation of its staff and company.
COMMON:
Clothing should be simple, ordinary and nice.
Clothes must be properly ironed.
Styles should be classic, with nothing too trendy or obtrusive.
Shoes should be patent leather and polished, avoid sport shoes and slippers.
No visible tattoos or non-traditional body piercing. No more than a pair of earrings for
women.
Hair should be simple, clean, well-cut and carefully styled.
Staff should not use strong fragrances (perfumes and sprays), which may cause
problem to other staff in the office.
On Saturday: Smart casuals are acceptable.
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For Men For Women
Hair
Should be clean, well
maintained & cut short.
Moustaches/beards neatly
trimmed or face clean shaven
daily.
Should be simple, clean, well- cut
and long hair must be properly
tied in a bun or a plait.
Nails Clean and dirt free. Should be
neatly cut short.
Well-manicured/neatly cut,
shaped and clean, with light
colour nail polish/base coat.
Ornaments None, except for obligatory
rings, kada, etc.
Simple, conservative and elegant
ornaments. Chain and a pair of
earrings allowed.
Footwear
Well-polished leather shoes
with socks.
Leather sandals or sandals of
similar material.
Attire
Formal shirts & trousers
co-ordinated with tie and
blazers occasionally, during
business meets.
Formal jeans ,Sari, salwar suit,
formal shirt/ kurtis with formal
trousers/skirts allowed.
Perfume / Make up Deodorant is recommended,
not with a strong fragrance.
Simple daywear make-up. Light
fragrance perfume &deodorant
recommended.
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DRESS CODE POLICY
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SAFETY POLICY
The Company is sincerely interested in the safety and well-being of our employees.
The Company will make every effort to keep the office equipment in excellent condition and
make sure that all safety devices are working properly.
If, in spite of our efforts to ensure safe working conditions, an employee has an
accident or becomes ill on the job, it should be reported to the manager immediately. They
will see that prompt medical attention is provided.
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WORK PLACE SECURITY POLICY
The Company is committed to maintain a safe and secure workplace. In order to
maintain a secure work environment, the company strictly prohibits employees and visitors
from bringing any firearm on Company property. In addition, all visitors are asked to check
in with the receptionist. Failure to comply with this policy will result in disciplinary action up
to and including termination.
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EQUAL EMPLOYMENT POLICY
It is the policy of the Company to provide equal opportunity for all qualified persons
and not discriminate against any employee or applicant for employment because of race,
colour, religion, sex, age, national origin, veteran status, disability, or any other protected
status.
This policy applies to recruitment and placement, promotion, training, transfer,
retention, rate of pay and all other details and conditions of employment.
Employment and promotion decisions will be based on merit and the principle of
furthering equal opportunity. The requirements we impose in filling a position will be those
that validly relate to the job performance required.
All other personnel actions including compensation, benefits, transfers, layoffs,
recalls from lay-offs, training, education, tuition assistance and recreation programs will be
administered without regard to race, colour, religion, sex, age, national origin, disability,
veteran status, or any other protected status, in accordance with appropriate law.
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BUSINESS EXPENSE REIMBURSEMENT
The company will reimburse employees for expense which are directly business
related to include: travel expenses, office supplies, and mileage incurred while travelling on
business. Employees must submit receipts for all expenses. Employees should consult with
their manager prior to business trips to confirm eligible expenses.
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TELEPHONE AND COMPUTER USE POLICY
The Company understands that when employees work during the week it is
occasionally necessary to conduct personal business during office hours. However,
employees should limit their personal use of the telephone and computer during office
hours. Talk to your manager if you have any questions as to how much is too much time.
Because telephone and e-mail systems are provided by the Company at its expense for
business use, all messages sent by or received on those systems are company documents.
The Company reserves the right to access and to disclose the messages that you send or
receive on the voice mail or e-mail systems. Employees should also be aware that “deleted”
messages from the computer screen may not actually be deleted from the e-mail system.
Employees who abuse this policy are subject to disciplinary procedures up to and including
discharge.
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DRUG, ALCOHOL AND SMOKING POLICY
DRUG AND ALCOHOL
The Company realizes that the misuse of drugs and alcohol impairs employee health
and productivity. Drug and alcohol problems result in unsafe working conditions for all
employees and customers. The Company is committed to maintaining a productive, safe,
and healthy work environment, free of unauthorized drug and alcohol use.
Any employee involved in the unlawful use, sale, manufacturing, dispensing or
possession of controlled substances, illicit drugs and alcohol on Company premises or work
sites, or working under the influence of such substances, will be subject to disciplinary
action up to and including dismissal and referral for prosecution.
SMOKING
The Company maintain a non-smoking policy within the office. Employees should not
smoke within the office and nearby areas of the office building. Any employee if found so
will be subject to disciplinary action.
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TERMINATION POLICY
Employees who voluntarily resign from the Company are asked to provide at least
one week advance notice of their resignation. This notice should be in writing and should
briefly state the reason for leaving and the anticipated last day of work.
If a terminating employee is eligible for any incentive compensation, bonus, and/or
awards, they must be actively employed on the date the compensation, bonus or awards
are presented or paid, in order to receive the compensation, bonus or award.
The termination is done for three reasons.
1. For absence without any information.
2. For non-performance and delay in work.
3. For misbehaviour in the company.
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Ref .no. (Date)
Termination Letter To, (Name of the Employee,) Sub: Termination of your services from our company.. Dear Mr. /Miss. /Mrs._______ , We regret to inform you that your employment with Turt Softech Pvt. Ltd. is being terminated with immediate effective from (Date of Termination). Your termination is the result of Non-performance. You are aware that such non-performance and delay in work amounts to misconduct as per the rules of the Company. On the basis of the above you are hereby terminated & relieved from your services. You will handover the Company property to the HRD. Your final settlement will be cleared by the management. On behalf of Turt Softech Pvt. Ltd. (Name) HR Manager (Date)
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Ref .no. (Date)
Termination Letter To, (Name of the Employee,) Sub: Termination of your services from our company. Dear Mr. /Miss. /Mrs._______ , We regret to inform you that your employment with Turt Softech Pvt. Ltd. is being terminated with immediate effective from (Date of Termination). Your termination is the result of misbehavior. You are aware that such misbehavior amounts to misconduct as per the rules of the Company. On the basis of the above you are hereby terminated & relieved from your services. You will handover the Company property to the HRD. Your final settlement will be cleared by the management. On behalf of Turt Softech Pvt. Ltd. (Name) HR Manager (Date)
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Ref .no. (Date)
Termination Letter To, (Name of the Employee,) Sub: Termination of your services from our organization. Dear Mr. /Miss. /Mrs._______ , We regret to inform you that your employment with Turt Softech Pvt. Ltd. is being terminated with immediate effective from (Date of Termination). Your termination is the result of absence from work without any information and approval from the authority. You are aware that such unauthorized absence amounts to misconduct as per the rules of the Company. On the basis of the above you are hereby terminated & relieved from your services. You will handover the Company property to the HRD. Your final settlement will be cleared by the management. On behalf of Turt Softech Pvt. Ltd. (Name) HR Manager (Date)
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GRIEVANCE HANDLING PROCESS
PURPOSE
This is a very important policy which deals with all the processes to be followed in
order, to deal with the problems and grievances faced by the employees. This is important
as grievances leads to stress, delay in work and low productivity of candidate as well as
hampers the work of the company.
Management
Human Resource
Department
Head of Department
Supervisor
Employees /Workers
Action time limit 3 days
Decision time limit 3 days
Action time limit 2 days
Action time limit 2 days
Application will be filed
to the supervisor
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COMPARISON BETWEEN THE TWO POLICIES
There is a lot of difference between the two policies. The provisions made in the two
policies are totally different from each other. The new policy is over all good from all the
aspects.
The old policy of the company was not clear and specific whereas the new
implemented policy is clear and specific with its words.
The old policy does not provide flexibility to meet changes whereas the new policy
provides adequate flexibility to meet changing conditions.
The old policy does not have a fair and equal approach to the employees whereas
the new policy agrees with one another and reflect an overall fair and equal approach
to the employees.
The old policy was rigid with its procedures whereas the new policy is not very rigid
with its procedures.
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The old policy was not upto the working standard of the company whereas the new
policy is made evaluating the working standard of the company
The old policy made did not have any provision of performance appraisal whereas
the new policy has the provision of performance appraisal.
The old policy did not hold any provision for grievance handling procedure whereas
the new policy has the provision for grievance handling procedure.
The old policy does not carry out provision of recruitment procedure, counselling and
career for planning whereas the new policy carry out all these provisions under it.
Thus, the new policy implemented is for raising the performance of the company
and for the welfare of the employees. It adheres all the aspects of HR POLICY which are
essential for any company.
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CONCLUSION
The HR policies are essential part of the company. The new HR policies
are the sound policies which are implemented in the company. These policies
are flexible to meet changing conditions. These policies are clear, specific and
upto the working standard of the company.
The sound policies are the one which ensure good working environment
to the employees and are for the welfare of the employees.
These policies help the employer to run and ensure smooth working in
the company. Following the rules mention in the policy the employer work for
the welfare of the employees. Policies are there to provide job satisfaction by
ensuring healthy environment, training, counselling and career planning to the
employees.
The policies help to evaluate the performance of the employees for their
performance appraisal in the company. It entitles employee with rewards and
titles. It ensures a fair and equal approach for all.
Thus, the HR policies help to achieve the goals and objectives of the
company by ensuring satisfaction to the employees in turn raising the
company‟s performance and goodwill.
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REFERENCES
www.citehr.com
www.slideshare.com
www.s3.amazonaws.com
http://en.wikipedia.org
http://hr.utk.edu
http://businessresources.peoples.com