“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:⁠⁠⁠⁠

Contract labour Act (Abolition & regulation ) 1970 August 29, 2017

Check list For the contractor for compliances to be followed by the  contractor under Contract labour Act (Abolition & regulation ) 1970

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

A Leader Should Know How to Manage Failure

'A Leader Should Know How to Manage Failure'
(Former President of India APJ Abdul Kalam at Wharton India Economic forum , Philadelphia, March 22,2008)

Question: Could you give an example, from your own experience, of how leaders should manage failure?

Kalam: Let me tell you about my experience. In 1973 I became the project director of India's satellite launch vehicle program, commonly called the SLV-3. Our goal was to put India's "Rohini" satellite into orbit by 1980. I was given funds and human resources -- but was told clearly that by 1980 we had to launch the satellite into space. Thousands of people worked together in scientific and technical teams towards that goal.
By 1979 -- I think the month was August -- we thought we were ready. As the project director, I went to the control center for the launch. At four minutes before the satellite launch, the computer began to go through the checklist of items that needed to be checked. One minute later, the computer program put the launch on hold; the display showed that some control components were not in order. My experts -- I had four or five of them with me -- told me not to worry; they had done their calculations and there was enough reserve fuel. So I bypassed the computer, switched to manual mode, and launched the rocket. In the first stage, everything worked fine. In the second stage, a problem developed. Instead of the satellite going into orbit, the whole rocket system plunged into the Bay of Bengal. It was a big failure.

That day, the chairman of the Indian Space Research Organization, Prof. Satish Dhawan, had called a press conference. The launch was at 7:00 am, and the press conference -- where journalists from around the world were present -- was at 7:45 am at ISRO's satellite launch range in Sriharikota [in Andhra Pradesh in southern India]. Prof. Dhawan, the leader of the organization, conducted the press conference himself. He took responsibility for the failure -- he said that the team had worked very hard, but that it needed more technological support. He assured the media that in another year, the team would definitely succeed. Now, I was the project director, and it was my failure, but instead, he took responsibility for the failure as chairman of the organization.

The next year, in July 1980, we tried again to launch the satellite -- and this time we succeeded. The whole nation was jubilant. Again, there was a press conference. Prof. Dhawan called me aside and told me, "You conduct the press conference today."

I learned a very important lesson that day. When failure occurred, the leader of the organization owned that failure. When success came, he gave it to his team. 

The best management lesson I have learned did not come to me from reading a book; it came from that experience.

Wages have been classified into three categories:

Wages have been classified into three categories:

(1) Living wages

(2) Minimum wages

(3) Fair wages

(1)         Living Wages Definition is given by Justice Higgins which reads "Living wage is a wage sufficient to ensure the workman food, shelter, clothing, frugal comfort, provision for evil days etc. as regard for the skill of an artisan, if he is one". According to Fair Wages Committee Report: "The living wage should enable the male earner to provide himself and his family not merely the basic essentials of food, clothing and shelter but a measure of frugal comfort including education for the children, protection against ill-health, requirement of essential social needs and measures of insurance against old age."  

(2)          Minimum Wages—The minimum wage may be defined as the lowest wage necessary to maintain a worker and his family at the minimum level of subsistence, which includes food, clothing and shelter. When the government fixes minimum wage in a particular trade, the main objective is not to control or determine wages in general but to prevent the employment of workers at a wage below an amount necessary to maintain the worker at the minimum level of subsistence.The Government of India passed a Minimum Wage Act in 1948.

(3) Fair Wages—A fair wage is something more than the minimum wages. Fair wage is a mean between the living wage and the minimum wage. While the lower limit of the fair wage must obviously be the minimum wage, the upper limit is the capacity of the industry to pay fair wage compares reasonably with the average payment of similar task in other trades or occupations requiring the same amount of ability. 

The fair wages depends upon the following factors :

(1) Minimum Wages

(2) Capacity of the industry to pay

(3) Prevailing rates of wages in the same or similar occupations in the same or neighboring localities

(4) Productivity of labour

(5) Level of national income and its distribution.

(6) The place of the industry in the economy of the country.

In my opinion we follow the Minimum wages prescribed by the respective State Government's for the respective schedule of employment. 

A schedule of employment is the category of industry (Hotel, Plastics, Construction, Bakery......).  The Min.wage generally has 2 components, the basic wage + Dearness Allowance which is linked to the cost of living index considering a base year (1960, 1982, 2001......) & we have region wise indices too.