HR Policy
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COMPENSATION AND BENEFITS
This Chapter deals with the Compensation and Benefits payable to all regular employees of the Company except those who are covered under any separate Agreement
Payroll Processing
Medical Reimbursement
a) Employees are paid Medical reimbursement @ 8.33% of monthly Basic Salary subject to a maximum of Rs. 1,000/- per month when it is necessary.
b) Medical reimbursement on submission of requisite bills, subject to a maximum of Rs. 12,000/-per annum is exempted from income tax.
c) The coverage includes employees and their family members. Family in relation to member means, (a) spouse and children (b) Parents, minor brothers and sisters who are wholly or mainly dependent on him/her.
d) Medical allowance payable to all of the employees through monthly salary.
e) Medical reimbursement for the year must be claimed during the same financial year. Any unclaimed amount will be paid at the end of the financial year. Tax liability, if any, will be borne by the employee.
Provident Fund (Employer’s Contribution)
Employer’s contribution to Provident Fund of an employee is 12% of basic salary per month. For employees drawing basic salary of more than Rs. 6,500/- per month, the basic salary is deemed to be Rs. 6,500/- per month and a PF contribution of Rs. 780/-
per month is deposited as employer’s contribution to PF. Out of the employer’s contribution of 12%, 8.33% subject to a maximum of Rs.541/- per month is diverted to Employee Pension Fund under the PF Act
Miscellaneous Reimbursements
Telephone Expenses Reimbursement (wherever applicable) amounting upto a maximum of Rs. 6,000/- per annum can be claimed against bills. Any unclaimed amount will be paid as Telephone Expenses Reimbursement at the end of the financial year. Tax liability, if any, will be borne by the employee. Pro-rata Telephone Expenses Reimbursement will be paid for part year of service. (Note:- For issuance of Mobile Phone handsets to employees specific approval of concerned HOD’s or Director is required). It is the responsibility of the user/employee to keep the mobile handset in fully functional working condition. The Company will not make any repairs/replacement of the handset within two years of issuing the same.
Group Personal Accident Insurance Policy:
ENFORCEMENT OF DISCIPLINE
Acts of Misconduct
Without prejudice to the general meaning of the term “misconduct” it shall be deemed to mean and include those items enumerated in the Standing Orders/Service Rules of the company
Forms of Punishment
An employee found guilty of misconduct will be liable to any of the following forms of
punishment:
- A censure or warning.
- Suspension without pay for a period not exceeding 15 days as per the provisions of the standing orders.
- Withholding of grade increment, reduction of pay or demotion.
- Discharge.
Issue of Charge Sheet/Letter of Explanation
Refusal to Accept or Delay in Reply to Charge Sheet
Exoneration from the Charge if Reply is Acceptable
Enquiry
Suspension Pending Enquiry
Action to be taken on the Conclusion of an Enquiry
Order of Punishment
- Caution: If the misconduct is of a minor nature, the employee may be cautioned verbally or in writing.
- Warning in Writing: An employee who is guilty of misconduct of a minor nature but committed more than once may be warned in writing and copy of the warning letter be kept in his service record.
- Fines: An employee guilty of a misconduct may be fined in accordance with the provisions of Payment of Wages Act, 1936
- Suspension: Depending upon the gravity of the misconduct an employee may be suspended without pay as a disciplinary measure for a period not exceeding 15 days.
- Withholding of Grade Increment: The grade increment of an employee may be withheld at the discretion of the Management if he/she is found guilty of misconduct depending upon the gravity of the offence.
- Demotion or Reduction of Pay: An employee who is guilty of a misconduct not grave enough to warrant discharge may be demoted to a lower post or to a lower salary in the same post.
- Discharge: An employee who is found guilty of a serious misconduct may be discharged from the services of the company subject to the provisions governing discharge of an employee.
Graded Punishment for Chronic Cases of Misconduct
Unauthorized Absence : An employee who is guilty of absence without information or permission is liable to be punished as follows:-
First offence | Warning in writing |
Second offence | Suspension for 3 days |
Third offence | Suspension for 7 days |
Fourth offence | Suspension for 15 days |
Fifth offence | Discharge |
Habitual Late Coming
First offence | Warning in writing |
Second offence | Suspension for 3 days |
Third offence | Suspension for 7 days |
Fourth offence | Suspension for 15 days |
Fifth offence | Discharge |
Sleeping On Duty
First offence | Warning in writing |
Second offence | Suspension for 3 days |
Third offence | Suspension for 7 days |
Fourth offence | Suspension for 15 days |
Fifth offence | Discharge |
Loss of Identity/Attendance Card
First offence | A letter of warning and fine at Rs. 1,000/- will be deducted from salary |
Second offence | 3 days’ suspension and fine at Rs. 1,000/- will be deducted from salary |
Third offence | 7 days’ suspension and fine at Rs. 1,000/- will be deducted from salary |
Fourth offence | 15 days’ suspension and fine at Rs. 1,000/- will be deducted from salary. |
Fifth offence | Discharge |
LEAVE
i) Accident Leave (Injury on Duty)
An employee, who is otherwise not governed by the provisions of Employees’ Compensation Act, 1923 and ESIC, if he/she meets with an accident while on duty is granted accident leave money during the period of his/her temporary disablement due to the injury sustained by him while on duty as certified by the Company’s medical authority. The accident leave money so paid will include basic pay and all other allowances. An employee who is on accident leave and whose retirement falls within the period during which he/she is still undergoing medical treatment for the accident should be continued on service and paid accident leave money until he/she is declared fit or his/her disability is finally assessed. The payment of accident leave money is subject to adjustment against the amount paid under Group Personal Accident Insurance policy, if any
ii) Casual Leave
iii) Sick Leave/ESIC Leave
iv) Maternity Leave
a) For six weeks up to and including the day of delivery and six weeks immediately following that day.
b) For six weeks immediately following the day of miscarriage
c) For a maximum period of one month in addition to the period of leave allowed under (a) and (b) above for illness certified by a Registered Medical Practitioner, arising out of pregnancy, delivery, premature birth of child or miscarriage.
v) Leave Without Pay
National Holidays
i) 26th January – Republic Day
ii) 15th August – Independence Day
iii) 02 nd October – Gandhi Jayanti
Compulsory Holidays
i) Bhogi
ii) Sankranti/Pongal
iii) Kanuma
iv) Maha Sivaratri
v) Ugadi
vi) Idul Fitr/Ramzan
vii) Bakrid
viii) Ganesh Chaturthi
ix) Dasara
x) Diwali
xi) Christmas
General Principles & Procedure for Grant of Leave
LOAN & ADVANCE
An employee may be considered for payment of advance against salary or loan, subject to the provisions mentioned below, for any of the following purposes:
- Marriage (self/son/daughter/sister/brother)
- Medical/Prolonged illness (self/spouse/son/daughter/parents)
- Death in the family
- Educational assistance (son/daughter)
- Natural calamities
Eligibility: Permanent employees of the Company who have completed at least 1 (One) year service are eligible for payment of advance against salary and those having completed at least 3 (Three) year’s service are eligible to apply for loan.
Advance Against Salary: An employee can apply only once in a financial year for payment of advance against salary for an amount not exceeding one month’s net salary. The amount so advanced will be adjusted against his salary for the following month(s).
Interest Charge on Loan: An interest @ 12% at ‘Reducing Balance Method’ is charged on any loan, in excess of Rs. 25,000/- (Rupees Twenty Five Thousands), granted to all categories/grades of employees irrespective of the grounds on which such a loan is sanctioned. In addition, such loans will also attract a taxable perquisite of 1.5% wherever applicable. A post-dated cheque for any amount exceeding Rs. 25,000/- will
be taken from the employee concerned as ‘Security’ which will be returned to him after recovery of the amount paid as loan
PERFORMANCE MANAGEMENT SYAYEM
Objective: The Performance Management System aims at setting goals, reviewing and measuring performance and rewarding employees. The dual objectives of the System for the organization and the individual are as follows:
For the Organization:
- To set goal for individual employees based on business plan of the Company.
- To ensure commitment of employees towards organizational goal.
- To evaluate performance for reward and recognition.
- To identify opportunities for training and development of the individual with reference to job and career demands.
- To aid in succession planning.
- To aid in decisions related to job rotation
For the Individual:
- To help employees manage (plan, monitor and review) and improve their performance.
- To serve as a basis for coaching and counseling of the individual by the superior.
- To facilitate personal and professional development of the employee.
- To act as a motivating factor and encouragement for employees to perform
Period & Scope of Performance Management System:
The Performance Management System in the Company is a process applicable for a financial year – from 1st April of the year to 31st March of the following year. The system covers all permanent employees, who have worked for a minimum period of three months during the appraisal year. The system has a provision of a mid-year review to give feedback and guidance to employees for enhanced performance.
Suggestion Scheme
The Scheme is introduced with the following objectives:-
- To stimulate creativity and constructive thinking.
- To enhance participation and belongingness among the employees.
- To recognize constructive ideas by personal rewards/awards.
- To recognize employee who motivate co-employees and implement the suggestions.
INCREMENT & PROMOTION
Increment Policy
Objective:
To better overall performance through recognition of individual’s contribution, bringing in accountability for individuals, promote teamwork and bring in focus on Company’s success as a whole. Excellent performance needs to be recognized and appropriately rewarded. Simultaneously, for non-performers areas of improvement need to be identified and necessary corrective action initiated.
Annual Increment is based on the Following Parameters:
- Individual performance
- Company’s performance
- Last year’s increment trends
- Industry trend
Increment is based on percentage increase in CTC and is disbursed once in a year. The range of percentage increase is decided taking the above factors into account. In cases of exceptional performance or where the Management feels it necessary, increase in CTC beyond the range may be considered.
Promotion Policy
Objective: The CoObjective: To reward potential of individuals.
Process: A promotion is a career opportunity for an employee that involves greater responsibilities and may also involve an increase in salary. Promotions of employees generally take place within their own department. However, depending upon business requirement an employee may be transferred and promoted to a position outside his own department provided the employee possesses the requisite qualification and experience for the post. An employee has to complete at least one year’s service in his existing designation to be considered eligible for promotion to a higher position.
RECRUITMENT & SELECTION PROCESS
This Policy is applicable to recruitment of personnel for all positions on permanent rolls of the Company in all categories, including Trainees and those recruited on contractual basis for fixed terms. The Policy covers the following functions:-
Manpower Planning & Budgeting
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Sourcing of Candidates
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Process of Recruitment
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Reference Check
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Selection Process
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Compensation (CTC) Negotiation & Offer Letter
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Joining Formalities
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Probation & Confirmation
TRAVEL EXPENDITURE
Outdoor work should be carried out, as far as possible, using phone, fax, e-mail, teleconference, video-conference etc. However, it may become necessary at times to travel outside one’s location of work in connection with Company’s work. In such an event effort must be made to undertake travel at the minimum possible cost without in anyway compromising the quality of work and the image of the Company. The Company aims to ensure safe and convenient travel for all its employees while keeping all expenses to the required minimum. This Chapter outlines the Travel Expenditure Rules applicable to all of the Company employees. The rules are applicable to all employees of the Company including those on temporary or contract basis who are required
(i) local travel within the state limits, and
(ii) to travel on outdoor work out of the state. Employees are expected to strictly conform to the laid down rules. Any deviation will need prior written approval of one of the Directors. The Company shall take strict action against any employee misusing or attempting to misuse the travel expenditure rules with possible financial and legal implications.
Procedure before Commencing the Travel:
Planning
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Transport Eligibility
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Accommodation Eligibility
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Daily Allowance Eligibility
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Travel Advance
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Booking Travel
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Incidental Allowance
Planning
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Transport Eligibility
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Accommodation Eligibility
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Daily Allowance Eligibility
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Travel Advance
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Booking Travel
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Incidental Allowance
Non-Reimbursable Expenses: The following expenses, if claimed by an employee on tour, will not be reimbursed and will be deducted from the following month(s) salary:
- Any expenses incurred beyond the permissible limits for boarding, lodging, transport and incidentals, unless there is a specific approval from the competent authority.
- Laundry or dry-cleaning expenses unless the employee is travelling for more than 5 days at a stretch, or is compelled to extend his trip unforeseeably, in which case he may seek specific approval from the competent authority and submit the same along with his Travel Expense Statement.
- Alcoholic beverages unless otherwise specifically approved.
- Entertainment expenses for guests and customers, unless prior specific approval is taken from one of the Directors.
- Hotel phones used for outgoing calls only with specific approval. Employees should use their mobile or a PCO
Procedure after Completing Travel
Tour Report : Depending on the nature of travel, employees are required to submit a Tour Report to their approving authority