Continuing my search for building “soft infrastructure” of a small organization, I am doing some very basic study of human resource managment from employee perspective. These are some of the documents and process which must be there for any small organization in India.
-
Pay Slip
- Minimum Wage (Central) Rules, 1950, Rule 26(4) and Minimum Wage (Central) Rules, 1950, Rule 26(3) .
The payslips are required to let the employee know of what his net pay is (by clearly indicating on salary slips various components and deductions: statutory and administrative). Providing a salary slip is important, as it indicates to an employee the basis of all his net earnings and deductions for a particular month.A salary slip provides and instant help for individuals who are trying to get financial support for banking/financial institutions. It provides a proof of continuity in service (usually any kind of financial help required from a bank calls for provision of 3 months salary slips & the account statements of the salary account )
- Form 16 & Form 16 A
Form 16 & Form 16 A are required for filing income tax returns every financial year by the employer ,which contains details of salary paid for the year and remittance if any made into banks where TDS is deducted / effected. You would require your salary slips for the period worked with the organisation. And most important they have to give a Form 16 if they have deducted TDS from your salary.
- Increment Letter
A letter template like this
____/HRD/_____
Date :
Mr./Ms.___________________
________________
___________
____________
Dear Mr. ______________,
Consequent to the review of your performance during the period of 13/11/2008 to 31/05/2009, we have pleasure in informing you that, w.e.f 01/06/2007 your salary is being increased as follows:
Break up of Salary
Salary Head Existing Revised
Basic 2000 4000
HRA 1200 2400
TA 800 800
Other Allowance 5000 6800
Gross Per Month 9000 14000
Gross Per Annum 108000 168000
Mobile Reimbursement / Annum 
12000 12000
Fixed Amount / Annum 60000 100000
Annual Fixed Gross Cost 180000 280000
EX-Gratia 10000 20000
Annual Total Cost 190000 300000
The other terms and conditions of your appointment remain unchanged.
We look forward to your valuable contributions and wish you all the very best for a rewarding career with the organisation.
Please sign the duplicate copy of this letter as a token of acceptance of the same.
For, Company Name
Name:
Designation:
- Offer Letter
I found a lot of employees of start-ups don’t have offer letters.
- Health Care Benefits / Mediclaim Insurance
Mediclaim Policy is an Insurance coverage wherein any of your Health related hospitalisation bills can be claimed from the insurance company. There are two different ways to get your bills claimed either by cashless facility i.e your bills are directly paid to the hospital or you can pay your bills in the hospital and get an reimbursement after submission of the same to the insurance company.First you cannot deduct premium amount from employee salary until employee give his consent for the same. In case any company want to deduct medical insurance amount from employee salary then company need to take written consent from them.
- Leave Policy
There are various types of leaves. But, for small organizations, here’s an example
1. 24 leaves a year for (2 paid leaves a month)
2. The leaves are applicable only after confirmation. And one gets leave prorata.
for example: An employee joins in January, he gets confirmed in July. So the number of leaves available to him would be 12. (for period between July and December)
3. Leaves taken during probation would result in LOP. (loss of Pay).
4. A confirmed employee can take leaves as and when desired.(since these are paid leaves, and are subject to the manager’s approvals)
5. All leaves taken need to be tracked.
6. In December, the total leaves taken and balance leaves are calculated.
7. 50 % of balance leaves are encashed (on basic salary) and the rest 50% are carried forward (subject to a maximum of 10 leaves)
8. For the next year a member will be allotted 24 leaves + 10 carried forward leaves.
9. If there is negative balance (i.e an employee used more leaves than available, the same shall get deducted in the December salary)
If an employee is leaving:
Leaves get encashed (all the available leaves)
In case of negative balance the same gets deducted in the full and final settlement.
Restricting the abuse of leave policy:
1. The average leaves one can take in any month is 2.
2. Leaves which are more than 3 days need to be presanctioned by the reporting manager at least a month before.
3. In case one has to take leaves in emergency, it is mandatory that he/she communicates within the first 3 hours of work day on the first day of leave.
- List of Holidays
Holiday calendar is important for an organization.
