In a restaurant industry, we need to hire a staff for lower lable i.e. housekeeping staff etc. and the turnover is very high in this category. Can we have this staff as casual staff and employee are not ready for deduction of ESI & PF as they were getting very less salary, some of them are below minimum wages also. Pls. advise how to handle this issue.
From India, Delhi
From India, Delhi
You have to pay at least the Minimum rates of wages fixed by the government. As said by the Supreme Court of India, no company has right to exist unless it pays at least the minimum rates of wages. It is not the PF or ESI deduction that creates high attrition but the rates of wages offered. When you start thinking that they are indispensable part of your industry without whom you can not function at all and when you start paying them a good salary, you will find that the attrition has come down. So, please increase their salary and then deduct the social security contributions; you will get result.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
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Bombay Anand Bhavan Restaurant-vs- ESIC SC 2-09-2009.pdf
Performance Appraisal Form for Staff.doc