Payment of subsistence allowance

Payment of subsistence allowance

(Industrial Employment (Standing Orders) Act, 1946)

(1) Where any workmen is suspended by the employer pending investigation or inquiry into complaints or charge of misconduct against him, the employer shall pay to such workman subsistence allowance-

(a) at the rate of fifty per cent of the wages which the workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and

(b) at the rate of seventy-five per cent of the such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.

(2) If any dispute arises regarding the subsistence allowance payable to a workman under sub-section (1) the workman or the employer concerned may refer the dispute to the Labor Court, constituted under the Industrial Disputes Act, 1947 (14 of 1947), within the local limits of whose jurisdiction the industrial establishment wherein such workman is employed is situate and the Labor Court to which the dispute is so referred shall, after giving the parties an opportunity of being heard, decide the dispute and such decision shall be final and binding on the parties.

(3) Notwithstanding anything contained in the foregoing provisions of this section where provisions relating to the payment of subsistence allowance under any other law for the time being in force in any state are more beneficial than the provisions of this sections, the provisions of such other law shall be applicable to the payment of subsistence allowance in the state.]

The Subsistence Allowance commonly payable to employees is concerned is at the rates mentioned below

• First 90 days – at the rate of 50% of the wages

• 91 to 180 days – at the rate of 75% of the wages

• More than 180 days – at the rate of 100% of the wages.

Whereas, if enquiry is prolonged exceeding 90/180 days to due to reasons attributed to the charge sheeted employee then subsistence allowance will continue to be @1/2 of wages

Check list for the contractor for compliance's to be followed:

Documents Required During Hiring A New Contractor

1.            Registration Certificate under Shops & Commercial Establishments Act.

2.            Rent Deed in case, office is rented.

3.            Registration certificate of EPF

4.            Registration certificate of ESI.

5.            Registration certificate of Service Tax.

6.            Pan card of the Company or Proprietor incase of individual.

7.            Address proof, ID proof of the contractor (Proprietor)

8.            Labour License under Contract Labour Act.

9.            Undertaking for Compliance.

10.          Indemnity Bond - Duly signed, stamped & notarized on Rs. 100/- stamp paper.

Documents required for New Contract License: (By Contractor)

1.            Application for License in Form IV (triple copy).

2.            Principle Employer’s certificate in Form V

3.            Registration Certificate of the company (Principle Employer)

4.            Annexure of manpower of the company (Principle Employer)

5.            Employee Details (ID No. name, address, DOJ, DOB) in Form XIII (13)

6.            Copy of original agreement.

7.            Registration Certificate under Shops & Commercial Establishments Act. (Contractor)

8.            Pan card of the Company or Proprietor incase of individual

9.            Registration certificate of EPF (Contractor)

10.          Registration certificate of ESI. (Contractor)

11.          Original challan of Rs.__/- of treasury to Bank. (Contractor)

Documents required for Renewal of Contract License: (By Contractor)

1.            Principle Employer’s certificate in Form V

2.            Annexure of manpower of the company (Principle Employer)

3.            Registration Certificate of the company (Principle Employer)

4.            Employee Details (ID no, name, address, DOJ, DOB) in Form XIII (13)

5.            Half Yearly Return by Principle employer in Form XXIV(24)

6.            Application for renewal of license in Form VII (7)

7.            Paid Bonus Register in Form D

8.            Wage Register (Last 3 months at least) Form XVII (17)

9.            Photocopy Agreement

10.          Registration Certificate under Shops & Commercial Establishments Act. (Contractor)

11.          Pan card of the Company or Proprietor incase of individual

12.          Registration certificate of EPF (Contractor)

13.          Registration certificate of ESI. (Contractor)

14.          Original treasury challan of Rs.__/- (Contractor)

Documents to be maintained by contractor under the Contract Labour Act

1.            Contract License

2.            Muster Roll/Attendance register

3.            Register of Fine, Deduction , Advances

4.            Wage Register

5.            Leave with wages register

6.            Register of SL/CL & National Holidays

7.            Overtime register

8.            Wages Slips

9.            Employment Card

10.          Bonus Register

11.          Record under EPF Act (Register, Challan, Returns, Inspection Book etc)

12.          Register of ESI Act (Register, Challan, Returns, Inspection Book, Accident Book etc.)

13.          Labour Welfare returns

14.          Returns of Contract Labour in Form XXIV(24)

Documents to be maintained by Principal Employer under the Contract Labour Act

1.            Contract Labour License

2.            Annexure of Manpower

3.            Register of Contractors

4.            Yearly Returns of Contract Labour in Form XXV(24)

5.            Form V issued to contractors

Calculation of Retrenchment Compensation under Indian Employment Laws

The definition of retrenchment as interpreted by Courts is wide. It is so wide that every termination, for any reason whatsoever, except those expressly excluded under Section 2(oo) of the Industrial Disputes Act, 1947 is considered a retrenchment.

There are provisions under Chapters V-A and V-B of Industrial Disputes Act relating to retrenchment under certain situations. Section 25F provides for conditions precedent to retrenchment of workers, Section 25F(b) provides for payment for retrenchment compensation which shall be equivalent to 15 day’s average pay for every completed year of continuous service or any part thereof in excess of 6 months.

As per employment law in India, the payment of retrenchment compensation is condition precedent and failure to pay will vitiate the retrenchment. Therefore calculation of retrenchment compensation is very important. While calculating retrenchment compensation unlike Gratuity component of wages includes Basic, Dearness Allowance and all allowances. Since, payment of retrenchment compensation is a condition precedent; one will have to consider definition of Wages as provided in Section 2(rr) in Industrial Disputes Act. –

while calculating retrenchment compensation, Basic Wages, Dearness Allowance, all allowances for attendance , House Rent , Conveyance  etc shall have to be considered. The value of housing provided as well as value of amenities provided along with housing also will have to be considered.

The period of 6 months or excess thereof will be considered a full year, if period of employment is less than 6 months, it will not be considered a full year. The following illustration will help explain the calculation of retrenchment compensation –

Mr ABC has worked in an organization for 24 years, 5 months and his last drawn package is as under –

Basic Wages – Rs 5, 000 + Dearness Allowance – Rs 3, 000 + Conveyance Allowance – Rs 1, 500 + Washing Allowance – Rs 1, 000 + House Rent Allowance – Rs 1, 000 + Canteen facility worth Rs 1, 000 + Dress Allowance – Rs 1, 000. The total amount to be considered for retrenchment compensation is Rs 13, 500.

13, 500

___ = 519.23 (1 Day’ salary)

26 days

519.23 X 24 years X 15 days = Rs 1, 86, 922. 80/-

Therefore the amount of retrenchment compensation to be payable to Mr ABC is Rs 1, 86, 922. 80/-

Main procedures for domestic inquiries:

(1) Charge-sheet:

If a prima facie case has been established and the offence is quite serious, a charge-sheet may be prepared on the basis of the allegations made. It should be in writing, detailing the allegations of misconduct. It should also indicate the time within which the workmen charge-sheeted should submit his explanation.

(2) Suspension

Where, in the interest of discipline, the shutting out of the charge-sheeted workman is necessary, the employee should be suspended. He is to get wages for the period of suspension if so provided in the standing orders.

(3) Service of charge-sheet

If the workman is present, charge- sheet should be handed over to him in the presence of witness after explaining the contents of it in a language known to him.

If the delinquent workman is absent or refuses to accept the charge-sheet, it should be sent to his last address under registered post with acknowledgement due. If he refuses to accept it or if it comes back undelivered otherwise, the charge- sheet has to be published in a local newspaper with wide circulation.

(4) Explanation

The explanation given by the worker within the given time has to be considered

(5) Notice of enquiry

If the explanation is found unsatisfactory, a notice giving the time, place and date of the enquiry together with the name of the enquiry officer has to be served on the worker.

The enquiry officer must not be the one who has issued the charge-sheet because it is a principle of natural justice that a person is disqualified to act as a judge if he is-a party to the dispute.

(6) Enquiry

At the appointed time, on the appointed date and place the enquiry will commence by the enquiry officer in the presence of charge-sheeted workman.

At the commencement of the enquiry the enquiry officer should explain the charge-sheet to the worker. If the charge-sheeted workman pleads innocence, the enquiry should be preceded. If he pleads guilty in writing, the enquiry need not be preceded.

(7) Fact-findings

On completion of the enquiry, the enquiry officer is required to submit his findings to the authority authorized to take disciplinary action. He should state in his report the charges as well as the explanations given to them. The enquiry officer should not recommend any punishment in his findings.

(8) Decision

The higher management, such as works manager or director, for taking disciplinary action shall consider the findings and if he accepts the findings of guilt, he should inflict appropriate punishment in accordance with the standing orders.

(9) Service of the order

Any order of punishment should be served on the charge-sheeted workman and this completes the procedure for domestic enquiry.

Accidental Death & Compensation: (Income Tax Return Required)

If a person has an accidental death and the person was filing income tax returns for the last three years, then the government is obliged to give ten times the average annual income of the last three years to that person's family.

Yes, you will be surprised by this, but this is right and it is Government rule. For example, if someone's annual income is  4 lakh 5 lakhs and 6 lakhs in the first, second and third years respectively, its average income is ten times of five lakhs.. means five million rupees, family of that person is entitled to receive from the Government.

In the absence of much information, people do not take this claim with the Government.

If any return is missing, mainly last three years, this could lower the claim amount or even no claim because court takes ITR as only evidence. NO wealth record, FD's; business etc. is given that much importance as compared to ITR in the eyes of law.

Many a time,  people do not file ITRs regularly..or it will be taken lightly..

Due to lack of information the family receives no economic benefits.

Source - forwarded

Section 166 of the Motor act, 1988 (Supreme Court Judgment under Civil/ Appeal No. 9858 of 2013, arising out of SLP (c) No. 1056 of 2008) Dt. 31 Oct. 2013. Fawarded as Received..

Disciplinary Actions Procedure

The following procedure is to be adopted and followed while dealing with the disciplinary actions against the employees who have been committed misconduct as per the provisions of standing orders / service rules as the case may be. This system may ensure HR dept to avoid legal complications that may arise out of discharge, dismissal and termination of employees to the maximum extent. While I was working with one leading in Electronic Media at Hyderabad, I have framed this system and implemented successfully for their 11 net work channels successfully.   

1. Advice Letter: If any employee is found to be absent from his training/ duty without leave or intimation to the office for more than one week, you have to give him an advice letter asking him to report for duty within  3 days of receipt of that letter. If the employee responds and report for duty within the specified time then we have to close his case by treating the period of his absence as LOP/Leave as recommended by his HOD. On the other hand, if the covers of advice letters sent to the permanent and present address of the employee returned undelivered to us, we have to send a copy of such letter through his e-mail id. Even there is no response from the employee then we have to go for issuing him charge sheet cum show cause notice in case of permanent employee or show cause notice for discharge in case of trainee/probationer. 

2. Show cause notice for discharge: If there is no response for the advise letter sent to any trainee/probationary employee or explanation offered by them is found to be unsatisfactory, then we have to give him the show cause notice for discharge by mentioning the date of his joining and the terms of agreement if applicable and the period of his absence. Finally we have to ask him as to why he should not be discharged from his training/probationary employment for his unauthorized absence within the stipulated time, without prejudice to our right to recover the compensation amount from him as per the terms and conditions of the agreement. If the employee did not receive this notice and the communication is also not served through his e-mail id and his whereabouts are not known, then we have to go for paper publication of this notice covering his permanent residential address as per our service record. 

3. Discharge Order: If the employee refuses to take the notice, either through post or mail or no response for the paper publication, then we have to give him the discharge order wherein we have to mention from what date his discharge will be effective and we have to ask him to pay the amount of compensation, which is due from him as per the terms and conditions of the agreement. 

4. Charge sheet cum show cause notice: If there is no response or explanation offered by the confirmed employee is not satisfactory for the advice letter given to him as per Para 1 of the above, then we have to issue him the charge sheet cum show cause notice, wherein we have to frame the charge against him under the relevant service rules of our organization. Further, we have to ask him to submit his explanation if any, within 3 days of receipt of that notice. For the service of notice on the employee, the same procedure as stated in Para 1 of the above is to be followed. If there is no response from the employee or explanation offered by him is found to be unsatisfactory to us, then we have to go for conducting enquiry into the charge leveled against the employee. 

5. Charge Sheet cum Enquiry Notice: If the employee does not receive the charge sheet cum show cause notice either through register post or mail and his whereabouts are not known then we have to go for the publication of charge sheet cum enquiry notice in a leading daily news paper covering the permanent residential address of the employee. In this publication the details of his unauthorized absence, the name of the enquiry officer and the time of the enquiry to be held etc are to be mentioned so as to enable the employee to come and participate in the enquiry on the appointed date and time. If the employee fails to come and attend the enquiry as per the schedule time, an exparte will be conducted by the enquiry officer. 

6. Enquiry Notice: If the employee received the charge sheet cum show cause notice as detailed in Para 4 of the above and offer his explanation for the same, which was found to be unsatisfactory to us for one or the other reason, then we have to issue him the Enquiry Notice and the rest of the procedure is to be followed as detailed in Para 5 of the above. 

7. Enquiry Proceedings: The concerned HR-Executive is to be appointed as a management representative by the management to represent them in the enquiry to be held against the charge sheeted employee(CSE)as per the details of charge sheet cum enquiry notice/enquiry notice. During the enquiry proceedings, the management representative has to present the case of CSE in brief to the enquiry officer and he is also required to produce his witness and exhibits to be marked in the enquiry on behalf of the management. If the CSE has attended and participated in the enquiry the management representative is required to cross-examine the CSE for the statement given by him before the enquiry officer. On the other hand, if the exparte enquiry is conducted by the enquiry officer, then the management representative has to give his statement and produce his witness i.e time keeper to give the statement in brief to the enquiry officer about the CSE. The management representative has to mark the following documents as exhibits on behalf of the management. 

8. Enquiry Report: As soon as holding the enquiry, the enquiry officer is required to submit his report within a week or two to the management, wherein he has to give his findings basing on the proceedings of the enquiry which was conducted by him. The enquiry officer, findings shall contains whether the charges leveled against the employee has been proved or not? 

      

9. Comments Letter: If the charges are found to be proved in an enquiry and accepted the same by management, then a comment letter is to be sent to the CSE along with enquiry report, asking him to submit his remarks about the findings of the enquiry officer within 3 days. 

10. Final Show Cause Notice for proposed punishment: If the CSE has received letter cited in para 9 and offers his remarks on the findings of enquiry officer and management found the same unsatisfactory or CSE refuses to take the letter, then management has to issue final show cause notice to the CSE wherein they should mention proposed punishment like Discharge, Dismissal or Cut of annual increment with cumulative or at once or warning etc. But the proposed punishment must be in proportionate with gravity of misconduct as leveled against CSE. 

11. Dismissal / Discharge / Termination Order: If CSE has fails to offer his comments on final show cause notice of management  or management found the explanation offered by CSE is not satisfactory, them management can issue discharge / dismissal / or any order which stipulates the punishment against CSE as per the provisions of the standing orders or service rules of the company. 

12. Suspension Pending Enquiry: If any employee commits grave misconduct such as theft, disorderly behavior, manhandling coworker or threatening superiors while on duty, in such a case, management can put said employee under suspension pending enquiry by way of issuing him an order mentioning the facts of the incident and how it constitutes misconduct under standing orders / service rules of company. Thereafter, detailed charge sheet as stated in para 4 and others are to be followed to completed the disciplinary proceedings. However, suspended employee is to be paid subsistence allowance as per the provisions of standing orders / service rules of the company during  proceedings of disciplinary action provided that delay in completing the proceedings are not attributable to CSE.

Laws Applicable on Sexual Harassment & Women Rights

Section 66A, Online Abuse and Offensive Messages

Section 66A:-

Section 66A of the IT Act describes, which penalised sending offensive messages through an online medium. The types of information these covers are offensive messages of a menacing character, or a message that the sender knows to be false but is sent for the purpose of ‘causing annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred, or ill will.’ If you are booked under Section 66A, You can face up to 3 years of imprisonment along with a fine. The types of information sent for the purpose of causing annoyance, inconvenience, obstruction, insult, injury, criminal intimidation, or ill will. The judgement about Section 66A is face up to 3 years of imprisonment along with a fine.

Influence of Internet

Nowadays, internet has a vital role.Through internet, women face large amounts of sexist harassment, abuse, discrimination on the basis of their gender, rather than their opinions, or beliefs. For women who face such abuse, the first law to which they could logically recourse is Section 66A of the IT Act. Overall 4154 cases were reported under this section during the year 2015.Recently, Bollywood singer Abhijeet Bhattacharya was arrested by the BKC Cyber Cell in Mumbai for abusing female journalist Swati Chaturvedi on micro blogging site Twitter, case was registered against him after the journalist lodged a complaint against him. He was booked under Section 66A of IPC for sending offensive messages online. However, the use of 66A to file a case against cyber sexual harassment seemed to be a victory for the law of  cyber problems.

Various laws applicable on the sexual harassment and women’s rights

Not just 66A there are other sections of the IPC that can be used when a woman suffers online harassment, these sections can be called into play for online harassment too.

Section 509: Insulting the modesty of a woman.

An act, word or gesture intended to insult the modesty of a woman and other forms of sexual abuse faced by women online - can fall under this.

Section 499: Defamation

Defamation is a catch-all term for any statement that harming someone's reputation. Section 499 too can be used against the online abusers.

Section 228a: Disclosure of the identity of victims of certain offences

Images of rape victims, as well as images and videos of rape, are sometimes published on the Internet, this is not legal.

Section 503: Criminal Intimidation

Rape threats is the most common violence against women online. Many of the women Twitteratis and Bloggers are a victim of these threats.

Section 507: Anonymous Communication

Many of the senders issuing rape threats other threats of violence. This section can be used against them.

We can use Section 66A and other sections to file a case against cyber sexual harassment for online abuse. These messages can be in the form of text, images, audio, or video. You can face up to 3 years of imprisonment along with a fine in case you are booked under Section 66A.

First-aid appliances

(1) There shall, in every factory, be provided and maintained so as to be readily accessible during all working hours first-aid boxes or cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed at any one time in the factory.

(2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard.

(3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person, who holds a certificate in first-aid treatment recognized by the State Government and who shall always be readily available during the working hours of the factory.

(4) In every factory wherein more than five hundred workers are ordinarily employed there shall be provided and maintained an ambulance room of the prescribed size, containing the prescribed equipment and in the charge of such medical and nursing staff as may be prescribed and those facilities shall always be made readily available during the working hours of the factory.

What is Staffing Metrics in HR ?

Staffing Metrics essentially are indicators of staffing performance.

Good metrics need to be:

In tandem with the organisational goals

Trackable

Consistent

Actionable

Predominantly there are four broad functional areas which are measured:

Productivity : The Unit of Service or the UOS is a commonly used metric which is basically calculated by dividing the number of things an employee does in a period of time with the total number of working hours in that period. Unproductive employees increase costs for the organisation and improving efficiency becomes very important.

Cost of Labor: The common metrics used include overtime costs, per unit costs of labor, cost of unproductive labor, payroll costs etc.

Satisfaction levels: Employee and Customer satisfaction are metrics which are determined using research surveys.

Retention: It is important to retain existing employees by providing them opportunities to grow as hiring new employees involve a cost. The annualized turnover rate is a common metric used.

Level of Recruitment: The costs involved and the time taken to recruit new employees are metrics used here.

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Compiled by: Dr. PBS. KUMAR

6 Big Reasons Employees Sue, And How To Protect Yourself

A critical part of a leader’s role in business is something called performance management. Proper goal setting and regular check-ins are crucial in order for your team members to understand how they are doing and where they might need improvement. It’s also about the manner in which you communicate. Having gotten this wrong in the past and suffered the consequences, I wanted to share some useful tips on how to protect the organization against employment-related lawsuits.

We live in an ever-evolving litigious society where peoples' first inclination when they feel wronged is to do what? Sue. As a business owner, I have learned many things the hard way. Mistakes invariably cost you time and money. But they are also learning experiences from which to gain wisdom.

According to the Equal Employment Opportunity Commission, since 2005 the amount of wrongful termination lawsuits has increases significantly every year, with the most significant peak in 2008 when the economy crashed. Desperate times call for desperate measures, right? Typically these claims are groundless but there are many reasons that an employee can fall back on to put together a lawsuit such as discrimination, harassment, wage and hour violations, unsafe work conditions, worker’s compensation claims and so on. That is why proper performance management and regular documentation is so vital.

Here are six big reasons employees will sue you when terminated.

1. Not giving a reason for firing. If you’re an at-will employer, you can fire at will, right? Wrong. Most employees think they’re wonderful workers, and if they get fired for a mysterious reason, they’ll make up their own reason – or their lawyer will. The reason for termination needs to be clear.

2. Firing an employee for bad performance when the employee has good performance reviews. This is the cousin to “not giving a reason for firing.” Supervisors need to understand that they’ll need a poor-performance paper trail if they want to fire someone. Or else a judge will smell something fishy.

3. Poor timing. For example, let’s say an employee files an internal complaint about the employer or a supervisor, and then shortly after is disciplined for a supposedly unrelated event.  It won’t be hard for a lawyer to connect the dots in court between these two actions. Employees who file complaints can be disciplined, but the supervisor better have the documentation in order before making the move.

4. Delayed internal investigations. When employees file complaints, they want them thoroughly investigated and they want it done now. If you can’t investigate immediately (because, for instance, a key player is on vacation), let the complaining employee know why and when the investigation is likely to begin.

5. Improper response to an Labour Department charge. If you’re contacted by the Labour Department regarding an employee complaint, respond promptly and courteously – and treat the complaining employee courteously, too. If you’re tardy in your response or treat the employee like a leper, expect to hear about it in court.

6. Failing to follow your own policies. You can have the best policies and training in the world – and indeed some companies have used that as a defense against a complaint. But you better be able to show that your supervisors followed those policies and applied the training.

If you are a manager or business owner, you have most likely experienced this to some degree and know how absolutely frustrating it is. Insurance can help mitigate costs, but that’s a double edged sword too. Having it is good, but if you use it your premiums go up. Or they might drop you. Then what’s the point?! Make sure your HR and legal teams are providing the proper protection and training for management. Sometimes these things can happen simply because management didn’t take the proper steps, thereby leaving the company exposed. Don’t allow that to happen. Being prepared won’t stop someone from attempting to sue you, but it can definitely mitigate time and costs involved in defending against it.

“HR - Your Aspiration must be greater than your Resource”

I got the opportunity to meet a CEO of a big organization, he said that, my HR person is not able to connect and extend support to the core business and for him HR means Recruitment, Statutory Regulations, Canteen and House Keeping. He limited his HR scope within this limit. This CEO further added that this kind of work anyone can do, even a commerce graduate can do easily. Being an HR everyone must be well aware about his 9 Roles and Responsibilities. Yes, it was not a complaint, but a pain he put forward to me. Today also, it is relevant in many organizations. This article is dedicated to all the members of HR fraternity to bring an inspiration within as we Proud of our profession “HR “which can bring a profitable and sustainable business in any industry.

Once upon a time a person belonging to a middle-class family started a business of selling rice and succeeded very well. Seeing his success, another man from the same village slipped into the same business of selling rice. This man used to open the shop daily and sit there till the evening, waiting for the customer and would come back after 7.00 pm. This almost continued for 2/3 months, he had not sold even a single kg of rice. Still he religiously continued the act, but in vain. When asked by his close partners and relatives about the business, he would tell that don’t doubt his skills and knowledge? This Business is not like any other business in the globe, market itself is down, many rice sellers are sitting idle. This person was not aware about the changed scenario and was unaware about the purpose of putting a shop or enterprise. What is the purpose of putting a shop or enterprise? We HR people must know about it.

The purpose of putting a shop or enterprise is to create and keep customers. Similarly, when you think yourselves and interlink your professional qualification ( capability) with your work - in the terms of 2nd rice seller; even if you believe that you are having 100% knowledge and skill to do certain job, Mind it that it will not bring growth in your career and will not help the organization to grow in business. Why? Read on..

Yes, in the same village a third shop started the business of selling rice. Now, there were three rice shops in parallel. One was old – (family traditions) being old, they had created a brand. The Second – shop keeper was good, having 100% skill and 100% knowledge of business, even materials were in stock for sale, but no customer.

Now, in between them a third shop popped-up. What do you think? is this shop going to do any miracles? Yes, he did! - Here is the key, this is the key that controls your future, your promotion, your greatness in life. This is the key which enable you to reach your destination. [If you don’t change your-self, you will be obsolete. This is the warning for every one of us wherever we work as HR Professional] we need to enhance our level of responsibilities, care to work force, all stake holders, customers, satisfy them with our supreme services. In this situation, you might be jealous, even threatened. But, what would you need to be a layer in this scenario? You would need completely new skill set and tool set. More importantly you would need a new mind set – a new way of thinking. Mantra is “Keep your aspirations high”.

Back to the story - NOW the third shop keeper wants to make something different in his market

Performance. He created a “passion within himself (passion means - those things that naturally energize, exercise, motivate & inspire you to serve) that always drove him as a guiding principle. He believed that, ‘’a rising tide lifts all boats.. or.. in a tornado, even a turkey can fly..’’ By keeping this phrase in mind, he deeply thought about the changing scenario and imagined market performance. He knew imagination is much more important than knowledge. Initially, he started off with capturing data from each house of the entire area which was; a) how many members were there in each household? b) The quantity of rice, they cooked in any given day c) the size of the rice jar in each house to hold the stock.

Why he captured data? Thus, he met every customer at their place, generated knowledge about their need and their requirement and made a strong retain strategy.

Then he offered (1) Free home delivery of rice. (2) A good service —-to replenish the house hold’s rice jar automatically at regular intervals. Customer becomes so happy because they got rice at their house with regular intervals, without spending extra money and efforts (here customer saved travelling expenses and time, they got quality, quantity with less price). Everyone in the village agreed his offer and he captured full business in one night. He became the King overnight. He became the Business Leader. Till yesterday, the first rice seller (family traditions) was the Business Leader. Today his business is no more. Obsolete from the business. Today, only few may reach him. The New Business Leader replaced many within one day. He used - Three tactical elements of Value Generating Relationship strategy which are;

(a) To seek direct contacts with the customers.

(b) To build a data base

(c) To develop a customer oriented service.

Now, he captured complete business of the entire area. The new level of his marketing performance completely threatened to other two shops. The old shop who believed that they are the market leaders became the member of the market overnight. This new changes in the market place forced them to    believe that ‘’Customer was Supreme’’ .Whoever gives value to the price can stay in the market. Today, wherever you work – you need to understand: What does customer want? Customer want;

(a) Relationship, (b) Accessibility, (c) Promptness, (d) Follow-up, (e) Responsiveness, (f) Promises kept,(g) No Surprises, (h) knowledgeable people, (j) Kept informed, (k) Do it right.

Now, let us work out being an HR - what would be our strategy to become an important of Business. How we are going to create a difference in the organization through HR.

Workmen Compensation Vs Personal Accident Insurance

In WC policy mediclaim coverage is not possible but medical expenses incurred during accident can be covered alongwith a Personal accident (PA) policy subject to a ceiling based on additional premium.

The difference between a WC policy & PA policy is WC policy covers employment injury suffered in the course & out of employment whereas PA policy covers  any injury suffered 24 hours worldwide. Even an injury suffered at home, resulting in loss of earning capacity can be covered under PA policy.

The premium for WC policy is dependent on the nature of job, wages drawn, age. But PA policy is dependent on earning capacity of the individual. Pay out under WC policy will be in line with WC act & WC Commissioner. PA policy pay out will be based on sum insured under the policy.

WC Policy is a Legal Liability Policy whereas in PA Policy certain Agreed Benefits are granted.

W.C. Policy covers Legal Liability towards employees in case of death or injury sustained by them during the course of Employment. 

PA Policy covers Accidental bodily injuries resulting solely and directly from accident caused by EXTERNAL & VIOLENT means resulting into death or disablement any time during the period of Policy.

In case of WC Policy amount of compensation depend on the nature of injury in case of injury cases. In case of Fatal accidents the compensation is worked out by taking the factors like Age and Income of the person Injured/died. Thus it varies from case to case.

If PA Policy is taken for higher Sum Insured, it may cover compensation payable as per WC Policy; if it is taken for lower Sum Insured, the Award under WC may be more than the cover taken under WC.

The WC Policy covers occupational diseases that might be contracted by workers arising out of and in the course of employment (additional premium around 25%). Occupational disease is totally outside the scope of the PA Cover.

Premium rates under WC Policy depend on the nature of duties in which the workers are involved; 

whereas in PA, Standard Rates are charged for all except for Persons working in underground mines, Explosives Magazines, Workers involved in electrical installation with high tension supply, Jockeys, Circus personnels, persons engagedin activities like racing on wheels or horse back, big game hunting, Winter sports, Mountaineering,  Sking, Ice hockey, Ballooning, Polo and persons engage,d in occupations of similar hazard.

Benefits under ESI are as per WC Policy; whereas PA & Mediclaim policies cover benefits as per their standard terms and conditions. 

PA Covers compensation against Accidental Injury or Death as agreed in the policy and Mediclaim covers reimbursement against hospitalisation upto the limit covered under the policy.

Check list For Principal Employers Engaging Contract Labour

1). First of all it must be ensured that there is no notification prohibition contract labour system by the appropriate government for the employment of contract in any process, operation or any work of the establishment. Like in Madhyapradesh Employment of contract, labour in automobile industries is prohibited.


2). Before identifying a contractor, it is desirable to advertise in classified column (which will be economical) in the local newspaper inviting offers from the contractors and a copy of newspaper along with the invoice be preserved.


3). The principal employer is required to obtain registration under section 7 of the Contract Labour (R&A) Act in Form No.1 (in triplicate) to the Registering Officer of the area in which the establishment sought to be registered is located. The said Form shall be accompanied by demand draft showing the payment of fees for payment of registration.


4). Only those contractors be identified who have their own independent code number under the Employees’ Provident Funds & MP Act and the ESI Act. In case a contractor does not have independent codes for ESI and Employees’ Provident Fund, an undertaking be taken that his employees be covered by the principal employer and he will reimburse the amount of contributions.


5). Whenever a contractor will be having 20 or more persons working for him, it is obligatory that licence be taken under the Act. Accordingly the principal employer will issue Form-V (Form of certificate by the principal employer) to the contractor for obtaining licence. The principal employer will ensure that the contractor is also renewing his licence every year.


6). The principal employer should ensure that if the contract labours are employed for same or similar kind of work as the regular employee of the Principal Employer does, then the wage rates and other conditions of service should be the same for the contract labour as applicable to the regular employee.



7). The Principal Employer must ensure that it issues certificate in Form V to the contractor for obtaining licence as provided as provided under section 12 of the Act.


8). The Principal Employer should not involve himself in selection process of contract labour otherwise it may lead to sham and camouflage.


9). Principal Employer should not supervise the activity of contract labour because it may amount to sham and camouflage and, in turn, the contact labour would be declared employees of the Principal Employer. In such a scenario, the Industrial Court has the power to direct Principal Employer to absorb the contract labour.


10). That the Principal Employer gets the registration certificate and the contractor obtains the licence from the competent authority as provided under section 7 of the Act before proceedings to engage the contract labour.


11).The payment of wages to the employees, employed by the contractor, is disbursed to his employees by the contractor himself or this nominee and Principal Employer has to depute his representative to be present and sign the payment register in token of having disbursed the salary in his presence by the contractor.


12). Amongst other employees, as provided by the contractor, there must be at least one supervisor through whom the officials of the Principal Employer could communicate, preference be given to a contractor who has such type of work at other locations also.


13). Discipline of the employees of the contractor in the discharge of duties must be regulated by the contractor and not by the Principle Employer.


14). Leave to the employees of the contractor must be sanctioned by the contractor and not by the Principal Employer.


15). No advance should be paid by the Principle Employer to the contractor’s employees directly. Only contractor must regulate the same.


16). Maintenance of all types of record in respect of the employees employed by the contractor should be his own responsibility and Principal Employer should not intervene in such matters.


17). If the Principal Employer is covered by the Employee’s Provident Funds and Miscellaneous Provisions Act and the Employee’s State Insurance Act, then preference should be given to those contractors who have their own code numbers under these Acts.


18). The Principal Employer must ensure compliance of the obligation pertaining to the various provisions regarding amenities and benefits as prescribed under the Act.


19). The Principal Employer must ensure the submission of annual return to the prescribed authority in the prescribed form under the Act.


20). Experience certificates should not be issued by the Principal Employer to the employees of the contractor.


21). No performance appraisal of any sort shall be made by Principal Employer to the employees of the contractor.

22). Principal Employer should avoid any settlement process, either bi-partite or tri-partite.


23). Contractor should prepare and hand over the pass book to the inter-state migrant employees under the Inter –State migrant employees under the Inter State Workers Migrant Act, 1976.

24). Avoid engagement of on-roll and off-roll employees in same or similar job.

25). Licence should be displayed at the work-place.

26). Principle Employer must send annual return by 15th February every year.


27). Principal Employer should see that the contract labour should not work in Principal Employer’s establishment after termination of contract.


28). The colour of the uniforms of the contract labour should be different than that of the employees of the Principal Employer.


29). Canteen facilities, if being provided by the Principal Employer to its employees, the contract labour should be charged at little higher rate if it is decided they can also avail such facility.


30). The Principal Employer should get an undertaking in the following of each month from the contractor that not only the wages have been paid to its employees but also they have been paid to its employees but also they have been enrolled under ESI and Employees Provident Funds & MP Act and the contractor has paid their contributions (with the proof of deposit). Should there by any reason, the Principal Employer is held liable to discharge any such monitory obligation, the contractor will be responsible and that amount can be deducted from his dues as payable by the Principal Employer. A pro-forma to this effect is given as Appendix A.

APPENDIX – A


PRO-FORMA SUGGESTED FOR UNDERTAKING BY THE CONTRACTOR


I …………………………s/o………..Proprietor/Partner/Director of ……………….,do hereby declare and undertake as under:


1). That in the capacity of independent Labour Contractor for M/s…………I have complied with the provisions of all laws as applicable. I have paid the wages for the month of ………….which are not less than the minimum rates as applicable, to all my employees and not other dues are payable to any employee.


2). That I have covered all the eligible employees under Employees’ Provident Funds and Miscellaneous Provisions Act and the Employees State Insurance Act and deposited the contributions for the following months and as such no amount towards contributions whatsoever is payable.


3). I further declare and undertake that in case any liability pertaining to my employees is to be discharged by the M/s………………due to my lapse. I undertake to reimburse the same M/s……………….is also hereby authorized to deduct the same from my dues as payable.

LABOUR CONTRACTOR

AUTHORIZED Signatory.

Contractor Performance Review
General checklist that can be used to review the contractor’s OHS system and contract requirements

Last Update: XX November  XXXX
Owner: Manager HR



Project or Job Number:
Date of Report:

Project Description: 



Worksite location: 

Target Completion Date of Project: 

Contractor:




This document can be used to confirm that the health and safety requirements for each contract have been defined and that the outcomes correspond to the agreement between the parties.  All items are to be completed by the Contractor and verified by the Principal’s Representative.  Items are to be marked N/A if Not Applicable.  The frequency of these reports will depend on the duration of the project and the terms of the contract.

CONTRACT
REQUIREMENTS Contractor’s
Comments Principal’s
Verification
1. A site safety plan has been developed from hazard identification and risk assessment data, and is revised as necessary.
2. Supervision ensures that the contractor’s work methods on site conform to the site safety plan requirements.
3. All relevant specifications, drawings and work plans are available on site.

4. The Contractor has obtained all relevant permits, licences and approvals and copies are available on site.
5. The Contractor has up to date copies of all correspondence, instructions and directives relevant to health and safety.
6. The Contractor conducts regular site safety inspections and records of the inspections are available.
7. The Contractor has copies of Material Safety Data Sheets for all substances used on site.

8. Copies of relevant legislation, standards and codes of practice are available on site.
9. The Contractor has nominated a person on site with overall responsibility for health & safety matters.
10. Work site boundaries have been defined and access restrictions are enforced to prevent unauthorised entry.
11. The Contractor maintains a site visitors book which is kept up to date.
12. Safe means of access and egress to the site are maintained.
13. The Contractor has implemented a site safety induction program and records are maintained.
14. Safety / Warning signs are in place and maintained in good order.
15. Permit to work procedures are operating for confined space entry, hot work etc.
16. Isolation / Tagging systems are used for unsafe or defective equipment.
17. Site emergency response plans have been developed and are regularly practiced.
18. An up to date Accident / Incident report book is maintained and WorkCover is notified of incidents where required by legislation.
19. All Accident / Incident investigations are up to date and completed satisfactorily.
20. First aid facilities and trained personnel are available on site.
21. A site safety committee has been formed and meets regularly.
22. Minutes of the site safety committee meetings are maintained and published.
23. Health and safety issues have been resolved in a timely manner.
24. Any outstanding prohibition or improvement notices from WorkCover inspections are being addressed.
25. The Contractor monitors the safety performance of all subcontractors on site and records are available.
26. Hazard identifications and risk assessments are available for the plant and equipment used on site.
27. Inspection, maintenance and service records are available for the plant and equipment used on site.
28. Fire protection equipment is available on site and maintained in good working order.
29. Personal protective equipment is available and maintained in good working order.
30. Flammable materials, gas cylinders and other hazardous substances are stored safely on site.
31. Facilities, amenities and the standard of general housekeeping on site are satisfactory.


Contractor’s Representative:

Principal’s Representative:

Signature:

Signature:⁠⁠⁠⁠