Dear All,
I have a different querry related to grade wise Position.
In my company, We have staff category employees in Grades S-1 to S-3, E-9 and FTC while Executive grade starts from E-8 onwards.
My confusion is that those employees coming under Executive is not covered under various labour laws or simply say that executive cadre group governed by various labour laws or not.
early response will be highly appreciated.
With Warm regards
Ranjeet
From India, New Delhi
11I have a different querry related to grade wise Position.
In my company, We have staff category employees in Grades S-1 to S-3, E-9 and FTC while Executive grade starts from E-8 onwards.
My confusion is that those employees coming under Executive is not covered under various labour laws or simply say that executive cadre group governed by various labour laws or not.
early response will be highly appreciated.
With Warm regards
Ranjeet
From India, New Delhi
Dear Jeeni, if you are talking ESI...it cover only according to rules no matter what is the structure
From India, Mumbai
From India, Mumbai
In the absence of a proper definition to the word 'executive', it is difficult to answer your question. An employee who is having substantial control over the affairs of the establishment shall be deemed to be part of management. Otherwise, he is an employee only. Though the basic Acts has laid down some wage ceiling to define a workman, the same has been taken out from many Acts. Therefore, it is not the salary which decides whether one is a worker or not but it is the nature of his duties which decides whether or not he is an employee/ worker and whether or not exempted from Labour Acts.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
DearMadhu,
Thanks for ur reply.
But the policy of the company is like that.
For ex- If they do a campus placement, they give training to a person for 2 years and gave the designation of Asst Mgr. in every profile. But they still do the work like Recruitment or like a junior Official they do every work as a simple employee. But when we pay them we are giving statuary bonus and other benefits to other staff grade but not to these executive grade E-8 and above. They are entitled for Performance Bonus.
Their salary is on higher side and with extra benefits.
Plz sugesst what to do.
Regards
Ranjeet
From India, New Delhi
Thanks for ur reply.
But the policy of the company is like that.
For ex- If they do a campus placement, they give training to a person for 2 years and gave the designation of Asst Mgr. in every profile. But they still do the work like Recruitment or like a junior Official they do every work as a simple employee. But when we pay them we are giving statuary bonus and other benefits to other staff grade but not to these executive grade E-8 and above. They are entitled for Performance Bonus.
Their salary is on higher side and with extra benefits.
Plz sugesst what to do.
Regards
Ranjeet
From India, New Delhi
Dear Ranjit,
It depends on the situation. The nature of relationship and the degree of supervision will lead to say whether the employee will come under 'employee' or not. In fact, for payment of bonus, the salary (Basic + DA) will be the determining factor. For payment of gratuity there is no such restriction except for the total amount of gratuity which should not exceed Rs 3.5 lakhs. Therefore, the designation shall not have any direct bearing on many cases. If the policy of the company is to treat the executives as 'supervisory staff' the same can be followed. It doesnot mean that he should not do any clerical work. It is not really the nature work but the nature of responsibilities borne and the link in the hierarchy that decides it. However, very often the salary will also influence in the defeintion of employee. For payment of bonus as per Payment of Bonus Act, for example, salary shall be taken. That will be genuine.
Regards,
Madhu.T.K
From India, Kannur
It depends on the situation. The nature of relationship and the degree of supervision will lead to say whether the employee will come under 'employee' or not. In fact, for payment of bonus, the salary (Basic + DA) will be the determining factor. For payment of gratuity there is no such restriction except for the total amount of gratuity which should not exceed Rs 3.5 lakhs. Therefore, the designation shall not have any direct bearing on many cases. If the policy of the company is to treat the executives as 'supervisory staff' the same can be followed. It doesnot mean that he should not do any clerical work. It is not really the nature work but the nature of responsibilities borne and the link in the hierarchy that decides it. However, very often the salary will also influence in the defeintion of employee. For payment of bonus as per Payment of Bonus Act, for example, salary shall be taken. That will be genuine.
Regards,
Madhu.T.K
From India, Kannur
Trainees other than those engaged as trade apprentices under Apprentice Act, 1961 and those engaged as per provisions made in this regard in the Standing Orders of the company are eligible for bonus, ESI and EPF. For EPF, however, a supreme court verdict saying that all trainees are exempted from EPF is in force. For calculating the eleigibility for gratuity also the period of training other than as per Apprentice Act shall be taken as period of 'employment' unless the employer has anything to prove that the employee was under training only.
Bonus payable following the provisions of the Payment of Bonus Act is statutory bonus. The bonus is payable at a rate not less than 8.33% and not more than 20% depending upon the availability of profits/ surplus. On the otherhand, performance bonus and production bonus are like incentives based on production or sales or performance. Any amount paid apart from these shall come under exgratia.
Regards,
Madhu.T.K
From India, Kannur
Bonus payable following the provisions of the Payment of Bonus Act is statutory bonus. The bonus is payable at a rate not less than 8.33% and not more than 20% depending upon the availability of profits/ surplus. On the otherhand, performance bonus and production bonus are like incentives based on production or sales or performance. Any amount paid apart from these shall come under exgratia.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu,
But i come through a case where Court had given the verdict that Trainees and Apprentices are not entitled for any benefit.
But now i think in Delhi, in trades like Stewarding etc No Apprentices are taken.
But we are giving them a certificate of TAJ.
So if in a factory an Apprentice is hired they are eligible for pf and other statuary benefits or not.
Plz suggest.
Regards
Ranjeet
From India, New Delhi
But i come through a case where Court had given the verdict that Trainees and Apprentices are not entitled for any benefit.
But now i think in Delhi, in trades like Stewarding etc No Apprentices are taken.
But we are giving them a certificate of TAJ.
So if in a factory an Apprentice is hired they are eligible for pf and other statuary benefits or not.
Plz suggest.
Regards
Ranjeet
From India, New Delhi
I have made it clear that trainees engaged following the Apprentices Act and those engaged as per Standing Orders are exempted from the operation of these Acts. There should be sufficient proof to say that they are getting trained in all respect with practical and theoretical classes under the guidance of a person appointed for this purpose by the management. It should not be just to deter any rights of employees.
If we follow the Apprentice Act, there is a procedure for appointment and engagement of trade apprentices for one year under a contract jointly signed by the company with the apprentice and his parent. It is considered as part of his trade course and he is suppose to report every week to the Related Instruction centre of the concerned Government for theory sessions.
Similarly, with a view to grooming persons to take up employment within the organisation or outside, trainees can be engaged if provided in the Standing Orders. In such circumstances also, they are treated as trainees but in all other cases, engagement of trainees will be viewed as a measure to take away the rights of employee conferred in Labour Laws.
Regards,
Madhu.T.K
From India, Kannur
If we follow the Apprentice Act, there is a procedure for appointment and engagement of trade apprentices for one year under a contract jointly signed by the company with the apprentice and his parent. It is considered as part of his trade course and he is suppose to report every week to the Related Instruction centre of the concerned Government for theory sessions.
Similarly, with a view to grooming persons to take up employment within the organisation or outside, trainees can be engaged if provided in the Standing Orders. In such circumstances also, they are treated as trainees but in all other cases, engagement of trainees will be viewed as a measure to take away the rights of employee conferred in Labour Laws.
Regards,
Madhu.T.K
From India, Kannur
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