ramit solutions core hr classes

RamIT Solutions# 301, 3rd floor, Lakshmi Sri Complex, Opp. Vellanki Foods, Ameerpet,

Hyderabad – 500034, Telangana State, India.

RAMIT SOLUTIONSCORE HR CLASSES

INTRODUCTION

Introduction of the class / students / faculty

Icebreaker – General discussions for engagement

What is HR?

Why HR?

Evolution of HR

Workforce Diversity – age groups & managing workforce

EVOLUTION OF HUMAN RESOURCES

Pre-Independence to late ’70s

• HR considered a clerical job majorly in Manufacturing industry; mostly handled by accounts

Late ‘70s – ’80s

• Shift from Manufacturing to SERVICE Industry

’80s - ’90s

• Human Resource Development (HRD)

Millenials – late ’90s - ‘2000 (& later)

Human Resource Management

Current Scenario

Human Resources

ORGANIZATION

Definition of Organization How organization is formed?

Goal / Objective

Culture

Values

Vision

Mission

Organization Functioning Resource Requirement – Physical and Human

Creating Departments

MODULE 1 - RECRUITMENT

Sourcing•Tools

•Bio-data vs CV vs Resume vs Profile

Screening

Scheduling

Interview

•Seating

•Conduction – Ice breaker / Body language / Presentation / Opening & Closing

Selection

OFFER

• Shortlist

• Select

• On Hold

• Not Suitable

• Time, Date, Venue communication

• No. of rounds

MODULE 2 – HR GENERALIST

EMPLOYEE LIFE CYCLE


ON BOARDING

OFFER• Pre-Joining Engagement

• Back Ground Verification

JOINING

ORIENTATION & INDUCTION

FUNCTIONAL HAND SHAKE

• Level, Role• OJT, CFT

JOINING

Joining Documents

ID ProofAddress ProofBank details

Contact detailsFamily details

Emergency contactEducational certificatesExperience certificates

Last drawn salary proofsReferences

PF Enrolment & nomination formESIC enrolment & nomination form

Medical Insurance formGratuity Enrolment

Personal File

Manpower Plan & Budget sheet copy

Manpower Requisition FormCV / Resume with signed JDInterview Assessment Form

Offer LetterJoining Documents

Induction / Onboarding planAsset allocation documents

Appointment LetterConfirmation Letter

KRA sheet Performance Review

Salary Revision / Increment Letter


ATTENDANCE MANAGEMENT SYSTEM

AMS

Manual

Automated

RegistersMovement Registers

Bio-metrics / Palm ReadersIris recognitionSwipe cardsRFID Access control

• Present (P)• Absent (AB)• Weekly Off (WO)• Compensatory Off (CO)• Loss of Pay (LOP)• Punch Missing (PM)• Leave (CL, SL, EL/PL, ML etc.)


ATTENDANCE MANAGEMENT SYSTEM

Attendance Records

HRMS Payroll Accounting


LEAVE MANAGEMENT SYSTEM• Calendar Year

• No Carry Forward

• 7 per year

• No clubbing

• Can not be availed for more than 3 consecutive days

Casual Leave (CL)

• Financial Year

• Can be Carried Forward

• 7 per year

• Clubbing Allowed

• Allowed for more than 3 days with supporting documents

Sick Leave (SL)

• Financial Year

• Can be Carried Forward

• 18 per year – 1 leave for every 20 days of work – 240 days in a year

• Clubbing Allowed

• Encashable & Accumulation

Earned / Privilege Leave (EL/PL)

Leave Without Pay (LWP)

Un-authorized absence

Un-approved leave


LEAVE MANAGEMENT SYSTEM

• For Female employees

• Allowed only for 2 children

• 26 weeks per instance upto 2 instances

• clubbing allowed

Maternity Leave (ML)

• For Male employees


• As per Company policy

Paternity Leave (PL)

• All all employees


• As per Company policyAdoption / Mis-carriage Leave

LEAVE ADMINISTRATION

Casual Leave (CL)

Sick Leave (SL)

Earned Leave OR Privilege Leave

(EL or PL)

Maternity Leave (ML)

Applicability All employees All employees

Only Confirmed & Permanent employeesEmployee has to complete 240 days in a year to be eligible for PLs;For every 20 days in a month -1 PL is credited

Only Female employeesFor upto Two deliveries only excluding miscarriages

Calendar YearCalendar YearFinancial Year

Financial Year Not Applicable

Eligibility 7 / year 7 / year 18 / year 26 weeks per instance

UtilizationMin. 0.5 & upto 3 per instance

Min. 0.5 & if beyond 3 days - Medical reports, documents are to be submitted

above 3 daysLong leaves

26 weeks per instance

Accural Not AllowedAs per Co. policyCo. allow upto 30 days accumulation

As per Co. policyCo. allow upto 90 days accumulation

Not Allowed

Carry Forward Not Allowed Allowed as per Co. Policy Allowed as per Co. Policy Not Allowed

Encashment Not AllowedNot AllowedOnly utilization for Sickness

YES Not Allowed

Clubbing Not Allowed Allowed except CL Allowed except CL Allowed except CL

Inclusion As per Co. policy YES YES YES

Exclusion As per Co. policy Not Allowed Not Allowed Not Allowed

LEAVE BENEFITS

o Special Sick Leave – Allowed upto 30 days or at management discretionCan be paid or with Leave Without Pay

o Bereavement Leave – Allowed in case of death of near family membersAllowed upto 3 or 4 days per instanceCan be paid or with Leave Without Pay

o Sebbatical Leave – Allowed upto 2 years and Two instancesCan be paid or with Leave Without Pay

o Study Leave – Allowed upto 2 years and Two instancesCan be paid or with Leave Without Pay

HUMAN RESOURCES GENERALIST

- POLICIES & SLA

Policy Drafting

▪ Identify and Pronounce the Objective for the Policy

▪ Scope & Applicability

▪ Guidelines

▪ Process

▪ Do’s & Don’ts

▪ Administration

▪ Exceptions and Deviations

▪ Review

Confirmation Probation Extension Termination / PIP


CONFIRMATION PROCESS

Confirmation initiation 15 days prior to Proabation End date

Discussion with LM/RM and forward recommendations

to HR

Issue Confirmation

Letter

Issue Probation Extension Letter

Issue Performance Improvement Plan (PIP) or Termination Letter

Why Employee Exits?

Expectation & Aspirations Mis-match between Organization and Individuals.

Satisfaction and dis-satisfaction

Types of Exits


EMPLOYEE EXIT MANAGEMENT

Natural RegrettedVoluntary

ForcedNon-RegrettedNon-Voluntary

ResignationDeath

Superannuation

TerminationAbsconding

Lay-Off / Lock-out

Reasons for Exit

Compensation

Benefits

Work-life balance (family)

Location

Re-location

Role

Health

Work Culture / Workplace

Studies

Death

Retirement / Superannuation

Non-Performance

Indiscipline or Misconduct



Exit ProcessVoluntary Non-Voluntary Death Superannuation



Resignation submitted to

LM/RM

Discussion with LM/RM and forward to HR

(Resignation Accepted)

Exit Interview –Discuss NP / LWD

HOTO, Relieving Formalities, NOC

Relieving FFS

Retention (Resignation

Rejected)



Performance Behaviour

Key (Critical) Resources

HP HB

High Potentials

(HiPos)

HPLB

Average Performers

LPHB

Poor Performers

(HiPPos)

LPLB

MODULE 3 – LEARNING AND DEVELOPMENT

Learning Training Development

Skills Behaviour Knowledge

• Individual Need• Team Need• Functional Need• Organizational Need

MODULE 3 – LEARNING AND DEVELOPMENT

Training Need Identification

(TNI)

• Personal Interaction / Face to Face Interviews

• Questionnaires

• Feedback / Performance Reviews

• Informal Discussions and Interactions

Training Need Analysis

(TNA)

Training (Plan & Budget)

Training Evaluation and Effectiveness

• Executive Development Program (EDP)

• Managerial Development Program (MDP)

• Leadership Development Program (LDP)

LEARNING & DEVELOPMENT

TRAINING PLAN

Objective of the programScope

ParticipantsTrainer – Internal or External

ContentMethodologyTraining Tools

Logistics

ConductOrganizeFacilitate

TRAINING EVALUATION

Training FeedbackTrainer FeedbackFollow-up Review

Periodic Review / Feedback / Assessment – Monthly / Quarterly /

Half-Yearly and AnnualQuestionaire

Personal InteractionRM feedbackObservation

MODULE 4 – ORGANIZATIONAL DEVELOPMENT

EMPLOYEE ENGAGEMENT


EMPLOYEE ENGAGEMENT

o Events and Activitieso Learning & Developmento Open House Sessionso Career progressiono Succession planningo Rewards & Recognitiono Benefit administrationo Satisfaction Surveyso Employee Communication (Newsletters, Communiques)o Feedback mechanism

Engagement Tactics and Tools:


Organizational development is a planned effort for a work group and/or theorganization, managed by leadership and supported by employees, toincrease organization effectiveness through planned change in processes andsystems.

MODULE 5 – GRIEVANCE MECHANISM

TRANSACTIONAL

Deviations or beyond Tolerance day-to-day Operational issues

DISCIPLINARY

Misconduct

▪ Escalation Matrix▪ Internal Complaints Committee Mandatory▪ Disciplinary Committees


DISCIPLINARY ACTION

▪ Register the complaint / grievance / misconduct▪ Discuss and counsel all related parties

Verbal Communication or warning

Written Communication or warning

YES NO

Acc

epte

d

Action Taken Grievance CLOSED

Case Opened for Further Disciplinary

proceedings

Phase I


DISCIPLINARY ACTION

SHOWCAUSE Notices issued

CHARGE SHEET issued

YES NO

Res

po

nd

ed

Action Taken case CLOSED

Phase II

INITIATE DISCPLINARY PROCEEDINGS

Refer: Industrial Disputes Act (IDA); Standing Orders Act


DISCIPLINARY PROCEEDINGS – DOMESTIC ENQUIRY

o Prepare case file with all Statements, material evidence

Management Appoints a Management Representative (MR)

o MR is the custodian of all case material

o MR to identify neutral Enquiry Panel members / Enquiry Officer for an unbiased enquiry

Appointment of EO / EPo EO / EP are responsible for conduct of a free and unbiased enquiry

Appointment of Presiding Officer

o PO is the custodian of all case material post his/her appointment

o Coordinates, schedules all hearingso Records the statements,

proceedingsConducting Domestic Enquiry Process

Conclusion and Inquiry Report submission by EO / EP

Action taken on the Inquiry Report

Related parties:▪ Complainant (who files a compliant)▪ Respondent (against whom the

complaint is filed)▪ Witness

Suspension Subsistance Allowance:

▪ Within 30 days – 25% of Gross wages▪ Within 60 days – 50% of Gross wages▪ Within 90 days – 75% of Gross wages▪ Above 90 days – 100% of Gross wages

o Provident Fund and Miscellaneous Acto Employee State Insurance ActoGratuity Acto Payment of Bonus ActoMinimum Wages Acto Payment of Wages Acto Professional Tax

MODULE 5 – STATUTORY LAWS


PROVIDENT FUND AND MISCELLANEOUS ACT

Provident Fund was created with a vision to provide SOCIAL SECURITY to the work force,predominantly in the manufacturing and infrastructure sectors during initial Post Independenceera

Employees' Provident Funds and Miscellaneous Provisions Act, 1952 was enacted by GoI

The Employees' Provident Fund Organisation (called as EPFO), is an organization tasked to assistthe Central Board of Trustees, a statutory body formed by the Employees' Provident Fund andMiscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry ofLabour and Employment

Employees Provident Funds and Miscellaneous Provisions Act, 1952. Long Title: An Act toprovide for the institution of provident funds pension fund and deposit-linkedinsurance fund for employees in factories and other establishments

ABOUT PROVIDENT FUND (PF)

PROVIDENT FUND ORGANIZATION (PFO)

Provident Fund Regulatory Authority (PFRA)

Central Board of Trustees (CBT)

EPFO HQ, New Delhi

Regional PFO (All State Capitals)

Sub-regional PFO (Area wise)

PROVIDENT FUND APPLICABILITY

PF is applicable for any organization with

I. > 19 employees (12%)II. <19 employees (10%) [effective 2017]

EXEMPTIONS

I. Only Organizations setting up PF Trust within the organization are exemptedII. Employees already enrolled with PF in their current organization can not opt

out.III. PF Exemption to an employee may be granted, in case a new joinee with Gross

salary > Rs.15,000

MEMBER ENROLMENT

- Adhaar and PAN card copies to be submitted mandatorily;- Bank detail (Account Name, No., IFSC code, Branch) for account linking

PROVIDENT FUND CONTRIBUTIONS

PF contributions are by both EMPLOYEE and The EMPLOYER

Employee Contribution12%

Employer Contribution12%

Employee Provident Fund

(EPF) – 12%Employee

Provident Fund (EPF) – 3.67%

Employee Pension Scheme

(EPS) – 8.33%

PROVIDENT FUND ADMINISTRATION

• Contributions on GROSS Salary instead of Basic Salary as earlier

• Any Allowance being paid fixed such as Conveyance, Special allowance etc. are nowincluded for PF contributable wage calculation

• ONLY HRA is exempted

• Ceiling limit* of Rs.15,000/- per month is now applicable to Gross salary instead ofBasic salary. PF contribution is restricted to 12% of Rs.15,000/- i.e. Rs.1,800/- permonth

• Employee can contribute over and above Rs.1,800/- voluntarily [Voluntary ProvidentFund – VPF]

• Employer’s liability is in general restricted to 12% (of Rs.15,000) i.e. Rs.1,800/-, even ifemployee chooses for VPF or contribute above the ceiling.

• DUE DATE: 15th of every month

PROVIDENT FUND TRANSACTIONS

• All Transactions are carried out with Unique Account Number (UAN)

• Every employee (PF member) is allotted a PF no. by the organization

• UAN is now mandatory for all PF transactions

PF accumulation Transfers

• PF contribution accumulations can be transferred from any Previous Organization tocurrent organization by quoting the UAN. Now an Auto-transfer facility also has beenprovided

• Transfer Process:

Member to apply online on UAN portal ➔ previous employer to authorize ➔ currentemployer Authorization


PF accumulation Withdrawal

• PF accumulation withdrawals can be done (though not recommended) oncemember employee leaves an organization. However, these withdrawals can be doneunder certain conditions only:

✓ upon remaining un-employed for over Two months;✓ moving abroad or✓ intended not to get employed in future

• Withdrawal is allowed in total accumulation of 24% if the contributory period is lessthan One Year

• Withdrawal of accumulation is Not allowed in totality if the service is more than Oneyear.

▪ Employee share (EPF) 12% + Employer share (EPF) 3.67%▪ Employer share (EPS) 8.33% is retained for provision of Retirement Pension


Member Pension

o Pension to the member is provided on attainment of Retirement age of 58 yrs

o There is also a provision for “Reduced Pension” post attainment of 45 yrs of age

o Pension amount Depends on “total accumulations” at the time of availing Pensionoption

o Currently minimum is Rs. 850 and is proposed to be taken upto Rs.2,500/-

Death Pension

In case of Death of a contributing member:

o Member’s family gets INR 2.50 lacs as PF Insuranceo Spouse gets life-long pensiono Children get pension till attaining age of 21 yrs

PROVIDENT FUND BENEFITS

Provision for Loans

PF provides Loan benefits to all its members who has continuous contributary period of aminimum of Seven (7) years

o Loan for Marriageo Loan for Housingo Loan for Medical Needso Loan for Education


EMPLOYEES STATE INSURANCE ACT

ESIC was created with a vision to provide HEALTHCARE FACILITY to the work force, predominantlyin the manufacturing and infrastructure sectors during initial Post Independence era

Employees State Insurance Act, 1948 was enacted by GoI

The Employees State Insurance Corporate (called as ESIC), is an organization tasked to assist theMedical Board, a statutory body formed by the Employees State Insurance Act, 1948 and is underthe administrative control of the Ministry of Labour and Employment

Employees State Insurance Act, 1948. Long Title: An Act to provide for the Healthcare facilitiesand benefits for employees in factories and other establishments

ABOUT EMPLOYEE STATE INSURANCE CORPORATION (ESIC)

EMPLOYEE STATE INSURANCE CORPORATION (ESIC)

ESIC Hospital & Medical College

Medical Board

ESIC HQ, New Delhi

Regional ESIC (All State Capitals)

Area or Local Offices (Area wise)

Dispensaries

Network Hospitals

ESIC is administered by respective State goverments, hence the contributions are payable to the states.

Each branch of an organization in different states are to be enrolled in respective states and compliances followed; ESIC authorities allot SUB-CODEs for such branch offices

ESIC APPLICABILITY

ESIC is applicable for any organization with

I. > 9 employees (operating on / with Power)II. > 19 employees (operating without power)

EXEMPTIONS

I. Employees with Gross salary > Rs.21,000 are exempted from ESICcontributions

INSURED PERSON (IP) ENROLMENT

- Adhaar and PAN card copies to be submitted mandatorily;- Bank detail (Account Name, No., IFSC code, Branch) for account linking

- Employee immediate family (Spouse, Children – two, parents, in-laws (ifdependent), siblings (upto the age of 21 yrs)) is also eligible to enrol with ESIC.They are required to submit their adhaar and get biometric authenticated atany Local or Regional ESIC office.

ESIC CONTRIBUTIONS

ESIC contributions are by both EMPLOYEE and The EMPLOYER

Employee Contribution0.75%

Employer Contribution3.25%

ESIC contributions are payable on Gross wages excluding any components of washing allowance, uniform allowance, mobile allowance provided these are given for perfoming official works.

ESIC ADMINISTRATION

• Administration done in Two (2) Contributary Periods (CP)▪ April – September - CP I▪ October – March – CP II

• Contributions on GROSS Salary

• Ceiling limit* of Rs.21,000/- per month is applicable to Gross salary. ESIC is applicableto employees within this ceiling of gross; NO contributions / coverage to employeesabove this ceiling.

• For new Insured Person (IP), waiting period of Nine (9) months to avail cash benefits

• Employees with continued IP can continue with their membership from day 1.

• Payment of ESIC contributions – 15th of every month

ESIC TRANSACTIONS

MEDICAL BENEFITS

▪ IP and family members covered can avail medical and hospitalization

benefit from day 1

▪ Medicines available Free of Cost

ALL BENEFITS

▪ Cash for Leave▪ Wages during hospitalization

and all medical benefits

ESIC BENEFITS

Provision in ESIC

o Medical Treatmento Medicineso Leave wageso Maternity wageso Funeral Expenses in case of death of IPo Disablement Benefit – Temporary Disablement, Partial Disablement and Permanent

Disablement

Governed by respective States & Local Administration (Municipal Corporations, Municipalities or Panchayats etc.)

Administered by Commercial Taxes Dept. of the government.

Slabs (Telangana & Andhra Pradesh*) 0 – 15,000 - NIL 15,001 – 19,999 – 150/- >20,000 – 200/-

✓ Slabs vary from state to state

Directors contribution of INR 2,500 to be paid every year latest by 31st

May Co. contribution of INR 2,500 to be paid every year latest by 31st May

• Due date : 10th of every month• Assessments to be done every year after completion of the Financial Year

MODULE 5 – STATUTORY LAWSPROFESSIONAL TAX


MINIMUM WAGES ACT

Minimum Wages Act was enacted in 1948, with a vision to provide basic minimum wages to thework force, for better living and sustenance.

Minimum Wages is under the administrative control of the Ministry of Labour and Employmentand are declared periodically (Annually / Bi-annually / Quarterly) by respective states dependingon their Economy.

Minimum wages is derived from WPI (Wholesale Price Index) and CPI (Consumer Price Index) andis declared every month by respective states.

Comprises of Basic wages + Dearness Allowance (DA) or VDA ( Variable DA). As a compliance, thetotal of these two components can not be split into wage / salary structure.

Administration is Zone wise distribution of Metros, District Headquarters and Mandals / Taluk /Villages

Compliance is Mandatory, else punishment provisions are there.

KEY FEATURES


PAYMENT OF WAGES ACT

Payment of Wages Act was enacted in 1936, with a vision to ensure payment of wages to thework force.

Payment of Wages is under the administrative control of the Ministry of Labour and Employment.

Payment of Wages prescribes that the wages are paid to the workforce –

By 7th of every month

Wage structure guidelines

Upto 50% deductions in wages for Penalties, fines, recoveries (excluding Statutorydeductions)

Wage registers to be maintained for inspections

Compliance is Mandatory, else punishment provisions are there.

KEY FEATURES


PAYMENT OF GRATUITY ACT

Payment of Gratuity Act was enacted in 1958, with a vision to provide SOCIAL SECURITY and toREWARD LOYALTY towards an organization.

Payment of Gratuity is under the administrative control of the Ministry of Labour and Employment.

ADMINISTRATION

Gratuity is payable for employees whose tenure with the organization is above 5 years

Payment of Gratuity prescribes that for every Year of work, 15 days of compensation has to beprovided to the employee

Gratuity = Last drawn Basic (Basic+DA) x 15 x No. of years of service

26

Gratuity ceiling of Rs.20 lakhs

Under Shops & Establishments Act, provision for Service Compensation has been made on the lines ofPayment of Gratuity Act. The Service compensation is paid to employees at the exit from organizationand for every year of service completion.

KEY FEATURES

❑ Income Tax for salaried and Professionals under provisions and compliance of IT Act.

Tax Deduction at Source (TDS)

Associates 1%

Consultants 10%

Contractors, Temp Staffing, Outsourcing 10%

Salaried employees - as per applicable Tax rates

Provisional Declaration Form 12BB

MODULE 5 – TAX PLANNING


PAYMENT OF BONUS ACT

Payment of BONUS Act was enacted in 1965, with a vision to provide SOCIAL SECURITY and to PROFITSHARING towards an organization. Amended again in 2018 and 2019

Payment of Bonus is under the administrative control of the Ministry of Labour and Employment.

ADMINISTRATION

Applicable to all organizations with > 20 employees

Followed as in Accounting Year – April to March

For New Organizations – 5 years moratorium / exemption including completion of the accounting year

Employee has to complete 30 days of working in the accounting year to be eligible for Bonus.

Bonus payment can be at minimum rate of 8.33% and max. 20%

Payable to all employees who worked during the accounting year

Bonus paid on Basic (Basic + DA, wherever applicable) wages

Payment of Bonus is applicable for employees with Basic wages upto or < Rs.21,000

Bonus ceiling limit at Rs.7,500

KEY FEATURES

TAX RATES FOR SALARIED EMPLOYEES

New Tax Regime

Up to Rs 2.5 lakh NIL

Rs 2.5 lakh to Rs 5 lakh`

5% (Tax rebate of Rs 12,500 available under

section 87A)

Rs 5 lakh to Rs 7.5 lakh 10%

Rs 7.5 lakh to Rs 10 lakh 15%

Rs 10 lakh to Rs 12.5 lakh 20%


Rs 15 lakh and above 30%

Old Tax Regime

Up to Rs 2.5 lakh NIL


Rs 5 lakh to Rs 10 lakh 20%

Rs 10 lakh and above 30%

Rs 1 cr and above 30% + 10% surcharge

Mandatory submission of all proof of document to claim exemptions

NO Exemptions – NO Documents – NO Rebates

COMPENSATION STRUCTURE

COST TO COMPANY (CTC)

▪ Fixed Pay▪ Reimbursements▪ Allowances

▪ Co. provided Benefits▪ Performance Pay ▪ Incentives

▪ Retirement benefits

TAKE HOME (Nett)

▪ (Gross) – (Statutory Contributions) – (TDS / IT)

– (Fines / Recoveries)

GROSS

▪ All Earnings▪ Fixed Pay▪ Arrears

Excludes all benefits

Payroll computation and related MIS reports generation

o Compensation structure preparation

o Payroll and related report preparation

MODULE 6 – COMPENSATION AND BENEFITS

CONTACT US

RamIT Solutions# 512, 5th floor, Annapurna Block, Aditya Enclave, Ameerpet, Hyderabad – 500034, Telangana State,

India.

Sriram Latish KumarContact: 8309329496

e-Mail ID: [email protected]: www.ramitsolutions.com