HR Handbook
Uploaded by
abhisach10HR Handbook
Uploaded by
abhisach10Handbook for HR Managers |1
Advance Praise
aving worked in the industry for over 20
H
years, I must congratulate Ramanujandthe
team for putting forth this comprehensive
book that covers all HR operations under
one umbrella. If you are someone who is
new to HR this is your reference book. I
have always believed that if one needs to
excelinprofessionallifethenbasicsmustbe
very strong and this book has it all. From
laws to letters, it is like a ready reckoner.
his handbook covers the entire HRecosystem
T
from legal and compliance perspectives. The
comprehensivecoverageofstatutoryprovisions,
as also the policy templates embedded in the
handbook, are expedient for hand holding HR
Managers to navigate through legal issues
surrounding the HR landscape. I must
congratulate the team of LawSikho.com and
iPleaders for their inexorable efforts in leading
yet another initiative that will bring about
changestothelivesofHRprofessionalsworking
acrossvarioussectors.Iwill,personally,fallback
onthishandbookforgoingaboutmydaytoday
endeavours.
ItisanamazingworkofMrRamanujandteam
and is nicely articulated, comprehensive and
covering each and every aspect of the legal
framework an HR practitioner has to go
through during his day to day responsibility.
Withmylegalqualificationand25+year-long
experienceinHRM,IamsurethatnotonlyHR
managers but legal practitioners and HRM
students will also benefit from this book.
Handbook for HR Managers |2
Table of Contents
Introduction 9
Part 1 - Day to day work and problems faced by an HR manager 11
Daily, weekly, monthly, quarterly and yearly compliances; maintaining records a
nd
registers; filing of returns 1 2
Inspection-preparedness 12
Handling industrial and labour disputes 12
Types of labour disputes 12
Role of HR in handling such disputes 12
Handling accidents 13
What do you mean by accident? To what extent does it come under the ambit of HR? 13
Types of accident 13
Types of accidental claims 13
Whatarethelawsthatgovernorregulatethecompensationforinjuriessustainedinthe
orkplace?
w 13
Handling the hiring process 13
Deciding the plan of action 13
Issuance of vacancy advertisements 13
Scrutiny 14
Qualification check 14
Dealing with headhunters and hiring platforms 14
Dealing with contractors 14
Verification of employment history and antecedents, including the last salary drawn 15
Interviewing candidates 15
Screening and Shortlisting of Candidates 15
Psychometric tests 15
Reference and background check 15
Informing the rejected candidates 16
Informing the shortlisted candidates 16
Salary negotiation(May be done during the interview itself also) 16
Pre-employment medical checkup 16
Probation and Confirmation 16
Termination 17
Categories of termination 18
Termination for convenience or for resignation 18
Lawsikho insights on handling terminations 19
Exit formalities 19
Consequences of errors in handling the termination process 20
Business Continuity Policy Implementation 20
Data Security 20
CSR 21
Part 2 - Laws every HR manager must know 2
2
State-wise Shops and Establishment Acts 22
Handbook for HR Managers |3
Applicability 22
Important compliances under the Act 23
Compliance with respect of registration of the establishment 23
What are the penalties under the Act? 24
What are the challenges for HR Managers under the Act? 26
he Industrial Disputes Act, 1947, Industrial Disputes (Central) Rules, 1957 or relevant
T
state-level rules 26
What are the organisations to which this law will apply? 26
Organized sector 27
Unorganized sector 27
What are the important compliances under this statute? 27
Compliances with regard to lay-off and retrenchment 27
Compliance in regards to the change in service [Section 9A] 27
What are the penalties? 28
What are the biggest challenges under the act for HR Managers? 28
Notes on Industrial Relations Code 29
The Factories Act, 1948 and Model Rule Under The Factories Act, 1948 29
What are the organizations to which this law will apply? 30
What are the compliances under the Act? 30
Section 6 and 7 (licensing of factory) 30
Health provisions 30
Safety provisions 32
Welfare provisions 33
Working hours of adults 34
What are the penalties? 36
What are the biggest challenges? 37
Occupational Safety, Health and Working Conditions Code Bill, 2019 37
The Payment of Wages Act, 1936 37
What are the organisations to which this law will apply? 37
What are the important compliances under the statute? 38
Mode of payment of wages 38
Wage period 38
Maintenance of registers and records (Section 13-A) 38
Deductions from wages (Section 7) 38
Time for the payment of wages (Section 5) 38
Wage threshold for applicability of the Act 39
What are the penalties? 39
What are the biggest challenges? 39
Changes under the Code on Wages, 2019 40
The Payment of Bonus Act, 1965 and Payment of Bonus Amendment Act, 2015 40
What are the organisations to which this law will apply? 40
What are the important compliances under the statute? 41
Payment of minimum (Section 10) and maximum bonus (Section 11) 41
The time limit for payment of bonus (Section 19) 41
Maintenance of register and records (Section 26) 41
Annual return 41
Handbook for HR Managers |4
What are the penalties? 41
What are the biggest challenges? 42
The Employees State Insurance Act, 1948 42
What are the organisations to which this law will apply? 42
Important Forms for compliance under the Statute (ESI General Regulations, 195042
Penalty 43
What are the biggest challenges? 45
The Employee’s Compensation Act, 1923 and The Workmen's Compensation Rules, 1924 45
What are the organisations to which this law will apply? 45
What are the important compliances under the statute? 46
Employer’s liability for compensation (Section 3) 46
When does the compensation become due? (Section 4A) 46
Depositing the compensation with the Commissioner (Section 8) 46
Statements of fatal accidents to be sent to the commissioner (section 10A) 46
Report of fatal accidents and serious bodily injuries (Section 10B) 47
Returns as to compensation (Section 16) 47
Duty to notify the employee about his rights (Section 17A) 47
Registration of agreements (Section 28) 47
Other Forms 47
What are the penalties? 47
What are the biggest challenges? 48
he Employees’ Provident Fund Act, 1952 and The Employees’ Provident Funds Scheme,
T
1952 48
What are the organizations to which this law will apply? 48
Compliances under the Statute 49
ompliance related to contribution (Section 6 of Employees’ Provident Funds
C
Miscellaneous Provisions Act, 1952)(Para 29 of The Employees’ Provident Funds
Scheme, 1952) 49
CompliancerelatedtotheEmployeesPensionScheme(Section6AoftheEmployees’
rovident Funds Miscellaneous Provisions Act)
P 50
Other important compliances related to duties of employers 50
Penalties 50
What are the biggest challenges? 51
The Payment of Gratuity Act, 1972 51
What are the organisations to which this law will apply? 51
Important compliances under the statute 52
What are the penalties? 52
What are the biggest challenges? 52
Code on Wages with respect to gratuity 53
The Maternity Benefit Act, 1961 53
ode on Social Security essentially consolidates the provisions on Maternity Benefit.
C
However, exact technical compliance requirements and forms maydiffer-thiswillbe
only known once the law along with implementing rules is notified. 53
Eligibility 53
Maternity Benefit Payments 53
Duration of Maternity Benefit 53
What are the organizations to which this law will apply? 54
Handbook for HR Managers |5
What are the important compliances under the statute? 54
Penalty for non-compliance (Section 21) 55
What are the biggest challenges? 55
Sexual Harassment (Prevention, Prohibition and Redressal) Act, 2013 58
What are the organizations to which this law will apply? 58
What constitutes sexual harassment at the workplace? 58
Categories of employees protected under the Act 59
How to handle frivolous complaints 59
What are the important compliances under the statute? 60
Compliance with regard to Internal complaints committee 60
Compliance with respect to employment contracts 61
Framing an anti sexual harassment policy 62
Compliance with respect to Annual Reports 62
What are the penalties under the Act? 62
Where is it given? 62
What are the biggest challenges in implementation of POSH? 63
Part 3: Templates of important drafts for HR Managers 4
6
Template - EMPLOYMENT AGREEMENT 67
Template - EXECUTIVE EMPLOYMENT AGREEMENT 78
Template - CONSULTANCY AGREEMENT 91
Contract Labour 99
Trainee arrangements can be of various kinds 99
Standing Order 100
Insights About Application of Statutes 100
Important Policies 101
Code of Conduct and Ethics Policy 101
Whistle Blower Policy 102
Conflict of Interest Policy 103
Template - CONFLICT OF INTEREST POLICY 104
Business and Travel Policy 106
Template - BUSINESS & TRAVEL EXPENSE POLICY 107
Data Security Policy 109
Template - DATA SECURITY POLICY 111
Health and Safety Policy 113
Template - HEALTH & SAFETY POLICY 114
Leave and Attendance Policy 116
Template - LEAVE AND ATTENDANCE POLICY 117
Media Policy 122
Template - MEDIA POLICY 123
Personnel File Policy 125
Template - PERSONNEL FILE POLICY 127
Anti Sexual Harassment Policy 128
Template - POLICY ON PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE129
Physical Contact with Customers Policy 137
Template - PHYSICAL CONTACT WITH CUSTOMERS POLICY 138
Probationary Policy 139
Handbook for HR Managers |6
Template - PROBATIONARY POLICY 141
Computer Equipment and Internet Usage Policy 143
Template - USE OF COMPUTER EQUIPMENT & INTERNET USAGE POLICY 144
Dress Code 146
Template - DRESS CODE POLICY 148
Customer Data Policy 150
Template - Customer Records & Confidentiality Policy 152
Dating Policy/ Fraternization Policy 154
Template - DATING POLICY 154
Social Media Policy 156
Template - Use Of Social Media By Employees Policy 158
Equal Opportunity Policy 161
Template - EQUAL OPPORTUNITY POLICY 162
Protection of IP from Employees, Consultants and Vendors 163
Important notices 163
Charge Sheet/ notice of enquiry 163
Chargesheet 163
Show Cause Notice 165
Template - Show Cause Notice 166
Inquiry Report 166
Notice for Termination of an Employee 168
Miscellaneous 168
Offer Letter 169
Sample Offer Letter 169
EXIT MEMO 171
Letter Of Appointment for Advisor / Consultants 173
Draft Complaint against Sexual Harassment at the Workplace to be submitted in six
opies
c 176
Handbook for HR Managers |7
FOREWORD
heconceptofHumanResourcesDevelopmentisnowattractinggreaterandgreaterattentionin
T
thesphereofmanagementtechnique.Thehumanfactorplaysapivotalroleintheworkingofany
organization. One has, therefore, to give deep thought tobringaboutexcellenceinthefieldof
HRD.
Individual difference is a peculiar trait attachedtothehumanfactorandthereforeitdifferswith
other factors like machine and material. It is, therefore, necessary to deal with the employees
taking into consideration the concept of individual differences.
simplewordofappreciation,apatientlisteningandsharingtheirthoughtscancreateamiracle.
A
An effective line of communication is therefore not only necessary but important too.
he “M/s. LawSikho.com'' have taken due care to coordinate the concept of Human Relations
T
with the implementation of various labour laws and statutory provision in their forthcoming
publicationof“LEGALHANDBOOKFORHRMANAGERS''.Appraisaloftheimplicationsofvarious
labourlawsandstatutoryprovisionsisanessentialpartofHRManagement.Theauthorhasdealt
withalltherelevantaspectsofbothlabourlawsaswellasHRDprinciplesandpracticeinamost
lucid language. I hope thisbookproducedbyLawSikho.comwillreachmanyHRManagersand
help them to make a better decision in the course of their work.
oconcludewithonecansaythatakeytobringexcellenceinHRD,themanagementshouldset
T
the following goal :
“Here lies a man, who knows how to enlist
in his service better men than himself.”
With Best Wishes
Shafi I. Kazi
dvocate, Notary, Labour Laws & Management Consultant
A
President : Maharashtra Employers & Professional Associations
Past Vice Chairman & Officiating Chairman-NationalInstituteof
Personnel Management, Mumbai Chapter
Visiting Lecturer on Labour Laws&HRDatMaharashtraInstitute
of Labour Studies, Parel, Mumbai
WrittenArticles&PresentedPapersonvarioussubjectsofLabour
Laws, HRD in various Newspaper periodicals and magazines.
Handbook for HR Managers |8
Know more ⇒https://lawsikho.com/course/labour-law-hr-managers
Handbook for HR Managers |9
Introduction
R managers are the pillars of modern organizations. They are responsible for the welfare of
H
employees, andatthesametimemustensurethattheorganizationalobjectiveswithrespectto
eachemployeearefulfilled.Theyfacealotofchallengesinordertoachievethisgoal,andsome
of the biggest challenges they ever face are legal and regulatory in nature.
Rmanagersareexpectedtoensurecompliancetolabourandemploymentlaws,helplawyersin
H
case ofemploymentdisputes,handlegovernmentinterventionsuchasinspectionsandraidsby
labour officers and inspectors and protect the interests of the organization.
owever, HR managers are rarely trained adequately to handle these very serious and critical
H
responsibilities. A certain amount of legal training and resource allocation is necessary for HR
leaders to be impactful and take care of their legal obligations.
t LawSikho, we have been teaching the law, regulations and compliance to HR managers for
A
over 5 years now. Our experience made us aware of a palpable deficiencyofqualityresource
materials, trainingandstrategicguidanceforlawyers.Wehavetrainedover2000HRmanagers
onlabourlaw,employmentlawandevensexualharassmentlaws.Inalmosteverycase,whilewe
took care of the training, the HR managers expressed disappointment that they did not have
access to a quality handbook they could lean on for legal issues that arise in course of daily
operations.
urattempttocreateadetailedhandbookforHRmanagershasarisenfromourdesiretofillthis
O
gap. We have focussed on practical matters, as we normally do in our courses. While it is not
possible to teach critical skills through a book, we can efficiently deliver critical information
through this book, and that is what we have attempted to deliver.
e believe that this handbook will be used by generations of HR managers in times to come,
W
becausethelessonsinthesepagesaretimelessanddonotrelymerelyontheblackletterofthe
law.
e hope to bring out newer versions of this book eventually, which we hope would be richer,
W
based on the feedback from thousands of HR managers who would put this book to good use.
ealsohumblyrequestyoutocheckoutouronlinecourseonlabour,employmentandindustrial
W
lawsforHRmanagers,whichmayhelpyoumuchbeyondwhatthisbookcandoforyou.Wealso
thankallthoseHRmanagersandorganizations,whichtrustedouronlinelabourandemployment
law courses, as that allowed us to launch these free resources that we today hope will help
thousandsofHRmanagersandmillionsofIndianemployeesandworkmenentrustedundertheir
care.
Inthis2ndeditionofthebook,wehaveaddedsomenewinsightsfromtwoyearsoftrainingHR
managers on legal aspects and drafting.
Handbook for HR Managers |10
We have also made a mention of some of the changes to be introduced by the Labour Codes.
ut of the four labour codes, only the Code on Wages has been passed by the Parliament.
O
However, an implementing notification from the Central Government is still pending.
The other three Labour Codes are still in draft form.
orthisreason,wehaveretainedourfocusontheexistinglabourstatutes,andpointedlinkages
F
to the Labour Codes at appropriate places, so thatHRmanagerscanprepareforthetransition
and do not experience overwhelm.
eseekyourvaluablefeedbackonthisbookandthecoursecurriculum.Pleaseshareyourviews
W
onramanuj@ipleaders.inso that we can keep the workgoing.
Handbook for HR Managers |11
art 1 - Day to day work and problems
P
faced by an HR manager
Rmanagersfaceanumberoflegal,regulatoryandproceduralissuesindaytodayfunctioning.
H
EveryHRmanagerhastounderstandandlearnabouttheseprocessesandissuesinordertobe
effective and reliable. The impact of the misstep by an HR manager is usually very major, and
thereforeeverystepmustbemeasured,guidedbyaclearunderstandingofthelawsthatgovern
specific activities as well as organizational interests.
In this book, we have not only told you what these issues are but provided you with various
templates, formats and forms that you will need to succeed as an HR manager.
uchofthiscontentistakenfromalabourandemploymentlawcourseweoffertoHRmanagers.
M
WeareabletooffersomuchvaluablecontentfreeofcostforallHRmanagersthankstoallthose
who subscribed to our paid courses and enabled us tohavethefunds,reachandfirepowerto
take up a big project like this.
e could easily publish this as a paid book with a major publisher.However,ourvisionwasto
W
give it away for free for use by HR managers and others who need to learn labour and
employment law and reach the maximumnumberofpeoplepossible.Weknowthatthiswillbe
usedbyaverylargenumberofprofessionalsintheirday-to-dayworkformanyyearstocome,so
wehaveexercisedalotofcautiontoensureaccuracy.Still,incaseyouseeanymistakes,dotell
us so that we can fix that in the next edition!
lso please email your feedback toramanuj@ipleaders.indirectlysothatwecanlearnwhatwe
A
did right and where we still need to improve. Tell us what else we can addhereandwhatwe
shouldgetridof.Ifyouhaveatestimonialtoshare,pleaseemailsothatourteamthatworkedon
it feels encouraged. If we get a good response, we intend tokeepupdatingthisbookevery6
months with the latest content. So please stay in touch through our mailing lists as well.
Ihopethatourmanymonthsofhardworkpositivelybenefitsyou.Also,ifyoufindthisinteresting,
visitourcourseswebsiteandconsidersigningupforthisemploymentandlabourlawcoursethat
is built with alotofloveandcareexclusivelyforHRmanagers.Itisa6monthscoursethatyou
can access from anywhere, attend live classes from any place on earth and get personalised
feedback on your drafting, strategy, policy documents and other legal output. Youwillalsoget
access to a massive database of templates and formats that we are constantly upgrading. We
also have a course for labour lawyers, feel free to enquire about that if you need the same.
o now let’s jump straight into understanding the variety of legal situations that HR managers
S
often face.
Handbook for HR Managers |12
aily, weekly, monthly, quarterly and yearly
D
compliances; maintaining records and registers; filing of
returns
here is a long list ofcentrallabourlawsinIndia.Moreover,everystatealsohasitsownlabour
T
law rules and regulations. It is very difficult to comply with all the requirements of these Acts.
Especially if you are an HR of an establishment which hasmanybranchesindifferentstatesof
India, it is very confusing to monitor that whether all the registers are maintained properly,
whetherallthereturnsarebeingfiledontime,wheretofindalltherelevantformsandproformas,
where you have to file monthly and where you have to file quarterly, half-yearly and yearly
returns.Hence,itisveryimportantforanHRmanagertohaveanexhaustivelistofalltherelevant
compliances and to learn the method to find out all the necessary compliances on his own.
Inspection-preparedness
Inspection-preparednessandknowledgeofvariouslabourauthoritiesfortheestablishment,orfor
the region (in case of zonal HR managers) is an important function.
veninlargeorganizations,thisfunctionisdischargedonanadhocbasis,asprocessesarenot
E
created.
Handling industrial and labour disputes
ccording to Section 2 (k) Industrial Disputes Act, Industrial dispute is a dispute between
A
workmenandemployerorworkmenandworkmenoremployerandemployer.Suchdisputesmay
be related to employment or non-employment, working conditions of labour, terms of
employment etc.
Types of labour disputes
Industrial and labour disputes are mostly related to strikes, lock-outs, go s low, lay off,
retrenchments, non-payment of wages and salary, working hours, wrong behaviour of
management with labourers, gherao, etc.
Role of HR in handling such disputes
R can act as a link between the management and the employees. He can meditate and
H
communicatewitheachofthemtoresolvethematterattheearliestpossible.Hecanalsoensure
tomaintaingoodworkingconditionsandproperimplementationofsocialsecuritybenefitsforthe
employees. He needs to be aware of the policies of the company and has to ensure that the
employeesarealwaysfollowingthepolicies.Toavoidanydisputes,hecanarrangetrainingand
workshopsandsometimesevenget-togetherssothattheintentionsandexpectationsofboththe
employer and the employees are communicated to each other.Ifhecomestoknowaboutany
possibility of a dispute he has to take immediate actions to communicate the issue to the
management and try to resolve it immediately to avoid any consequences later.
Handbook for HR Managers |13
Handling accidents
hat do you mean by accident? To what extent does it
W
come under the ambit of HR?
enerally, an accident means an inevitable event which was not planned or designed with a
G
purpose which occurs spontaneously and this unexpected and unintentional event causes
damage or injury.
Types of accident
F
● atal accident
● Accident causing permanent disablement
● Accident causing temporary disablement
Types of accidental claims
● oad accidents claims
R
● Accidents at work claims
● Medical negligence claims
● Slip or trip accident claims
hat are the laws that govern or regulate the
W
compensation for injuries sustained in the workplace?
E
● mployees State Insurance Act
● Factories Act 1948
● Employee Compensation Act
Handling the hiring process
Deciding the plan of action
efore the process of recruitment, an HR manager is expected to form the plan of action and
B
assign various tasks to other individuals if needed. This plan of action is to be followed
throughout the process of recruitment. The plan of action should contain all the information
regarding the procedure that is to be followed by the manager and those who have been
assigned by him to perform certain tasks.
Issuance of vacancy advertisements
eforetheprocedureofrecruitmentbegins,theemployerhastopublicisethefactthatthereisa
B
need for candidates hence he is supposed to publish the vacancy advertisements in various
newspapers and magazines and on various online as well as offline recruitment portals.
Handbook for HR Managers |14
Lawsikho Insight:
onfirm the applicability of Employment Exchanges (Compulsory Notification of Vacancies)
C
Act. If it is applicable you will need to notify an employment exchange and observe other
requirements under the Act.
Scrutiny
areful and detailed examination of each and every candidatehastobedonebythemanager
C
and the committee members assigned for the recruitment.
Qualification check
heckingifthecandidateiseligibleforthesaidjobisnecessaryinordertoknowifheorsheis
C
therightcandidateforthejob.Qualificationcheckisdonebylookingatthecoverletterandthe
resumeofthecandidates,thishelpsanHRmanagerinshortlistingthecandidateseasilyasheis
abletoknownotonlyabouttheacademicqualitiesoftheindividualbutalsotheworkexperience
he or she has had in the field.
Dealing with headhunters and hiring platforms
hesedaystherearemanyplatformswhichprovidespecialisedhiringservices.Youjusthaveto
T
provideyourspecificrequirementstothemandtheywillhuntfortheeligiblecandidates.Theywill
make all the arrangements for the interview process. You just have to choose from a suitable
candidate from the given list of the candidates.
Dealing with contractors
ometimesanestablishmentcannothireorisnotwillingtohireemployeesforaspecifictypeof
S
work. To get the work done they engage with some contractors who provide an appropriate
workforce to them. In such situations, they can avoid day-to-day hiring operational hassles.
LawSikho Insights:
- rom a compliance perspective, a strict vendor onboardingandauditprocessisvery
F
important to ensure that contractors are legally compliant.
- Consequences of legal violations by contractors leads to the legal liability of the
principal employer under multiple statutes.
- Inclusion of appropriate indemnity clauses in manpower supply contracts or other
contracts with contractors is important.
- In appropriate scenarios, HR managers may need to draft indemnity claims to claim
any financial consequences arisingfromcontractors’violations.Wherethecontractor
has discontinued engagement with the organization, recovery proceedings or
arbitration may be important.
If you want to learn how to perform these tasks effectively, you can explorethis course.
Handbook for HR Managers |15
erification of employment history and antecedents,
V
including the last salary drawn
part from the educational qualifications, are the employee’s claims about his or her past
A
accurate? Typically, verification of this involves the following aspects:
btaining salary slips and statements representing credit of salary in the passbook.
O
Obtaining a relieving letter from the previous organization.
ome organizations also engage private investigative agencies who inquire with the previous
S
employersoftheemployeeabouttheirconduct,toensurethattherearenosurprisesorrelevant
matters which the employee has not disclosed.
Interviewing candidates
Interviewing candidates come next as, in ordertocheckwhethertheindividualisworthyofthe
job,theemployermustensureitpersonallybycontactingthecandidatewhohasappliedforthe
job.Thiscanbedonebytelephoneandvideo-callingalsoasthesecanbedonerandomlyatany
time to test the knowledge and speaking skills of the candidate.
B
● y Telephone.
● By Video-call.
Screening and Shortlisting of Candidates
fterthequalificationcheck,theindividualsaretobeaskedbytheHRmanagerforthescreening
A
whereaninterviewwillbeconductedwheretheywillbeabletointerviewthecandidatesfaceto
face.Aftertheinterviewing,theresponsibilityofshortlistingcandidateslieswiththeHRmanager.
Heistheonewhoissupposedtomakealistofthecandidateswhohavesuccessfullybeenable
to crack the interview and have the right qualifications.
Psychometric tests
sychometric tests are nothing but the tests which test thementalcapacityoftheindividualas
P
well as to measure candidates suitability for a role based on the required personality
characteristics and aptitude.
Reference and background check
hecking whether the candidate has given the right reference gives him or her credibility and
C
solidifies his or herrecruitment,referencecheckisalsoanHRmanager’sdutybeforerecruiting
someone.Backgroundcheckofacandidateisalsonecessarywhenrecruitinganindividualasit
is important to know if the individual being hired is not a big time street thug or a thief.
Background check is very important as the safety ofotherworkersandtheworkplaceisatthe
hands of the manager.
Handbook for HR Managers |16
Informing the rejected candidates
heresponsibilityofinformingtheindividualswhowererejectedintheprocessofshortlistinglies
T
withtheHRmanager.Heissupposedtoinformeachandeveryrejectedcandidatepersonallyor
via some mode of communication to prevent certain problems which may or may not occur.
Informing the shortlisted candidates
fterallthenecessarytestsaredone,theHRmanagerissupposedtoinformthecandidateswho
A
have been selected to work at the workplace. He can inform the candidates personally or via
phone-call or any other method of communication.
alarynegotiation(Maybedoneduringtheinterviewitself
S
also)
n HR manager is required to negotiate the salary terms with the individuals who have been
A
shortlisted and come to a common consensus in order to proceed to work and accomplish
various tasks at the workplace.
alaries must be in accordance with Minimum Wages Act and state-specific notifications
S
specifying the minimum wages for that particular role.
Pre-employment medical checkup
onductingormakingsurethatthemedicalcheckupofeachandeverycandidateisdoneisone
C
of the responsibilities of the HRmanager.Heissupposedtoensurethatthepersonherecruits
doesn’t have a life threatening disease that may affect the work environment.
Probation and Confirmation
n employee is not appointed as a permanent employee directly. In most of the cases, he is
A
appointedonprobation.Lessersalaryispaidascomparedtoapermanentemployeeandhecan
be terminated any time without any notice or other formalities in this duration.
ut, if he complies with all the necessary conditions, he is confirmed as an employee. As the
B
employee will enjoy all the benefits and there will be additional burden on his salary on the
company, it is thedutyoftheHRtoensurethatonlyaproductiveandskilledcandidateishired
and confirmed.
Lawsikho Insights:
- rafting of appropriate letters to reject probationers isanimportantskill.Also,some
D
organizations specifyanindeterminateprobationperiod(i.e.withnoouterlimit).That
is not correct.
- In industries where the workforce qualifies as ‘workmen’, terms for engagement of
probationary employees must be mentioned in the standing orders drafted by the
organization, which must be certified.
Handbook for HR Managers |17
Termination
Rmanagersinthemanufacturingsector(andservicesectorinsomecases)shouldbeawareof
H
theprovisionsoftheIndustrialDisputesAct,1947,IndustrialEmployment(StandingOrdersAct),to
‘workmen’.
R managers usually need to ensure that a termination or discharge on disciplinary grounds,
H
medical grounds or absenteeism does not qualify as retrenchment.
here it qualifies as a retrenchment, depending on the size of the organization, retrenchment
W
compensation of 1 to 3 months’ remunerationmaybepayable,andinsomecases,government
permission may also be necessary.
Rmanagersneedtoensurethatsuchterminationisnotcolourableorinviolationofapplicable
H
procedure.
orthis,appropriatelegalprocessesmustbefollowed,documentarytrailmustbemaintainedand
F
disciplinary proceedings, where applicable, must be properly conducted.
urther, from time to time, identification of who qualifies as a workman and who does not
F
becomes difficult.
Inothersectors,therelevantstate-levelShopsandEstablishmentsActcontainscertainprovisions
regarding termination.
owever,detailedproceduralrequirementsregardingconductofdisciplinaryproceedingsarenot
H
specified in the Shops and Establishments Act.
elevantcontracts,policiesandstatutesfortermination
R
proceedings
It is very essential for an HR manager to be aware about the terms and conditions of the
employmentagreements,theappointmentletter,thecertifiedstandingorderortheorganization’s
Code of Conduct to handle such situations.
epending on the sector and the natureofthework,theShopsandEstablishmentsAct,orthe
D
Industrial DisputesActandtheIndustrialEmployment(StandingOrders)Act(alongwithcertified
standing orders for the establishment) may be applicable to termination.
ach state-level shops and establishments law, or even the state-level Standing Orders Rules,
E
may have slightly differing provisions pertaining to termination.
or instance, Delhi Shops and Establishments Act, 1954, requires an employee to give a one
F
monthnoticebeforeresigningwhiletheemploymentcontractofthesameemployeemayaskfor
a 3 month notice.
Handbook for HR Managers |18
owtohandlethesituationwhentheemployeewantstoleaveimmediatelywithoutsuchnotice?
H
What if he wants to give only a month's notice instead of a 3 month notice?
In this regard, state-level Shops and Establishments Acts may contain unique provisions.
or example, Section 20 of the UP Act requires employees to serve a one-month’s notice.
F
However,ifthenoticeperiodisviolated,itdoesnotauthorizeemployerstodeductmorethan15
days’ wages.
InsuchsituationsHRshouldalsobeawarewiththelegalprovisionregardingfinalsettlementof
the amount to be paid to the employee. He must beawareabouttheprovisionsregardingthe
deductions which can be made legally and the limits of such deductions.
Categories of termination
erminationofanemployeeorworkman’sengagementcantakeplaceonmultiplegrounds,and
T
an HR manager must understand these in depth to be able to execute these terminations
appropriately. We have explained the most important categories of termination below.
Termination for convenience or for resignation
ometimes a sudden resignation of an employee can create huge problems for the employer,
S
especially if it is one of important employees or an employee who is handling an important/
technicalpositionforwhichitisdifficulttofindabackup,itbecomesreallyverydifficulttohandle
the situation. It is important to ensure that the noticeperiodishonouredandthattheoutgoing
employee does a full handover.
Termination pursuant to disciplinary proceedings
R managerswhoarenotconversantwithhandlingdisciplinaryproceedingsoftenhavetodeal
H
with unproductive employees, insubordination or misconduct by employees and have to coax
them to resign, which sets a bad precedent for organizations. Unwilling employees may also
refuse to resign, which will encourage under-performers.
Termination for non-performance
ermination proceedings fornon-performanceneednotbeheldinthesamewayasdisciplinary
T
proceedings for misconduct - there are minute differences in the process.
Termination of probationers for non-performance
erminationofprobationersfornon-performanceisconsideredtobenon-stigmaticanddoesnot
T
require disciplinary hearings. Yet, the way in which a letter for discontinuation is drafted is
specific. If it appears to be stigmatic from its language, courts may rule that disciplinary
proceedings and hearings were necessary.
Termination for absenteeism
hedocumentationandterminationprocedureforabsenteeismisdifferentfromterminationfrom
T
regular misconduct, as the employee may not himself orherselfbepresentattheproceedings
Handbook for HR Managers |19
itself. However, that does not restrain the organization from terminating the services of the
employee.
Termination upon expiry of contract (for fixed-term employees)
nder the StandingOrdersAct,workerscanbehiredona‘fixed-term’basis-theirappointment
U
terminates upon the expiry of the term.
awsikho Insight: An important aspect to remember is that social-security benefits for
L
fixed-term employees must be paid out on a pro-rata basis, even if they do not meet the
requirements of minimum periodofserviceunderaparticularlaw.Forexample,afixed-term
employeewhoseemploymentexpiresin3yearswillneedtobepaidproportionategratuityfor
the period.
Lawsikho insights on handling terminations
- ccasionally, termination-related scenarios may be very technical, and require
O
reference to case laws.
- Where Industrial Disputes Act is applicable, an individual employee can himself or
herself challenge a termination as it is deemed to be an industrial dispute.
- Inunionizedindustries,onemustbeespeciallycareful,elsetheremaybedisputeswith
trade unions.
- Expertise with conducting hearings, inquiry process, appreciation of evidence and
decision making skills are very important for minimization of legal risk and financial
consequences for wrongfultermination. HRmanagersandevenlawyersdonothave
enough practical experience through the education system (in LLB, MBA or CS
degree). Only ‘judges’ and ‘arbitrators’ have some experience with decision-making
skills.
- Drafting of letters, notices and orders for termination proceedings are also crucial
skills to handle termination proceedings effectively.
his course, designed for HR managers, specifically teaches you skillsetsrelatedtoconductof
T
disciplinaryproceedingsandemployeeterminationsformanufacturing,servicesector andsenior
level and C-Suite employees.
Exit formalities
Companies face the following risks at the time that an employee leaves:
● isks for employees not respecting confidentiality
R
● Employees working with competitors, or selling data to competitors
● Destruction of personal copies of official data,
● Handover of work on company-projects that was not submitted
● Employees soliciting their colleagues or other vendors of the company
● Employees publishing incorrect information about theorganizationontheirsocialmedia
profiles and other websites
Handbook for HR Managers |20
urrentexitinterviewprocessesareconfinedtoabasichandoverofcompanypropertyanddata
C
and a full-and-final settlement.
However, these processes are insufficient to minimize the legal risks posed by the above actions.
ItispossibleforHRmanagerstoimplementprocessestominimizetherisksofsucheventstaking
place, and to take enforcement actions against employees violating these requirements, to
minimize recurrence of such defaults by employees.
lso, the exit conditions must be supported by the terms of engagement at the appointment
A
stage.
o you want to learn how to maximise the effectiveness of your exit processes? This course
D
teaches how to use Exit Memos effectively. A basic template is also provided in this handbook.
onsequences of errors in handling the termination
C
process
● R einstatementwithbackwages,especiallyiftheemployeewasunabletofindalternative
employment
● Payment of retrenchment compensation and other retrenchment formalities
● Huge amount of compensation under arbitration if senior level employees challenge it.
Business Continuity Policy Implementation
OVID-19lockdownhasemphasizedtheroleofHRmanagerswithrespecttoimplementationof
C
the ‘Business Continuity Policy’.
Inawork-from-homescenario,theentireorganizationalframework,andallHRpolicies,including
data security, leave and attendance policy, etc. required a re-look.
Data Security
aintenance of data security is a very important concern now, especially in the following
M
scenarios:
- Data security of intellectual property, passwords and customer data from exiting
employees,
- Data security of organization’s intellectual property and customer data fromconsultants
and vendors
- Data security of intellectual property, passwords and customer data in a remote
environment.
- Under the Personal Data Protection Bill, there are requirements for obtaining employee
consent and prescriptions for how employee data must be stored.
R managers are responsible forlast-mileimplementation(andsometimesevendrafting)ofthe
H
data security policy, for which they must be aware of certain legal concepts.
Handbook for HR Managers |21
CSR
In large companies, allocation of CSR budgets specified by the management team is a key
functionoftheHRteam.HRmanagersneedtoidentifysuitableprojects,monitorfundutilization
and prepare variousreportsformanagement.Fromtimetotime,thisrequiresanunderstanding
of CSR-related requirementsundertheCompaniesAct,whichhavebecomecomplexovertime,
with multiple amendments and clarifications by the Ministry of Corporate Affairs (MCA).
Handbook for HR Managers |22
art 2 - Laws every HR manager must
P
know
1. State-wise Shops and Establishment Acts
heShopsandEstablishmentActhasstate-wiseapplicability.WehavecoveredtheDelhi
T
Shops and Establishment Act as a reference (you may access the Acthere).
In 2016, the Central Government had proposed a model format for Shops and
Establishments Acts which could be used by the State Governmentsforamendingtheir
own state-level laws.
Lawsikho Insights
- hops and establishments Acts are not envisaged to be replaced by Labour
S
Codes.
- In every state, ensure that you identify whether the organization can avail of
exemptions, which are specifiedundertheintroductoryprovisionsofthestate
legislation or usually at the end of the schedule.
- Format for appointment letter, number of working hours, leaves, termination
provisions, registers, deductions,finesandothercompliancerequirementsare
specifiedinthestate-levellegislation.Organizationalpoliciesmustbeframedin
alignment with the Shops and Establishments Act provisions of the relevant
state where the branch/ office is situated.
- IncomparisontoDelhiwhichimposesverymeagrefinancialconsequencesfor
violations, the new Maharashtra Shops and Establishments (Regulation of
Employment and Conditions of Service) Act, 2017 (see here) imposes heavy
fines and penalties for non-compliance.ThislawisbasedontheModelShops
and Establishments format.
Applicability
T
● he Act extends to the whole of the Union Territory of Delhi.
● Itappliestoallshopsandcommercialestablishmentswhichincludesanypremises
wherein any trade, business or profession is carried out.
● A combined reading of Section 2(5) and Section 2(9) of the Act covers an
exhaustive list of commercial establishments like residential hotels, restaurants,
eating-house,theatreorotherplacesofpublicamusement.Journalisticinstitutions
and educational institutions run with a private gain are also included.
● It is important to keep in mind that the word ‘shop’ has a very broad meaning
under the Act. Any place having a nexus with purchase and sale of goods or
services is deemed to be a shop under the Act.
Handbook for HR Managers |23
Important compliances under the Act
Compliance with respect of registration of the establishment
● T
he registration can bedoneonlineinFormAasperSection5oftheActread
withRule3oftheDelhiShopsandEstablishmentRules,1954.Thisstatementmust
contain following particulars:
Name of the employer and managers
Name and Postal address of the establishment
ategory of the establishment, if it is a shop, commercialestablishment,hotel,
C
theatre or another place of amusement or entertainment, restaurant or other
eating house.
umber of employees working in the establishment, the names of young
N
persons must be mentioned separately.
Date of commencement of business
● F orm A can be filed online within 90 days of coming into force of this Act for
existing companies. In case a new establishment is formed, the proprietor must
sendthestatementfromthedaytheestablishmentcommencesworktothechief
inspector.
● As per Rule 4 the registration certificate issued by thechiefinspectorinFormC
must be displayed at a conspicuous place within the organisation.
● ItisthedutyoftheproprietoroftheestablishmenttointimatetheChiefInspector
aboutanychangesthatmayoccurwithregardstotheinformationsubmittedtothe
Chief Inspector in the statement at the time of the registration inFormDasper
Rule 6 of the rules to the Act.
Holidays and Leaves
● E
very shop and commercial establishment shall remain closed on a close
day. The closed day is that day of the week on which the shop or the
commercial establishment remains closed. Intimation regarding the choice
of the close day should be sent to the chiefinspectorinFormEwithin30
days as per Rule 8.
Termination of Employment
● G
iving notice of one month before terminating any employee who has
worked for more than 3 months.
Letter of Appointment to Employee u/s 34 read with Rule 15.
Handbook for HR Managers |24
It is mandatory for every employer to issue a letter of appointment on the
appointment of an employee in theestablishment.Suchadocumentmustcontain
the following particulars:-
S
● alary or the rate of wages.
● Designationoftheemployeeandthekindofworkforwhichheisemployed
whether it is manual work, clerical, supervisory or any other.
● Concessions and benefitsthathavebeenconferredtoanemployeethatis
special to his post if any.
Maintenance of Records and Registers u/s 33 read with Rule 14
● egister of employment and wages inForm G
R
● Register of leave inForm I
● Notice of Holiday inForm J
● Everyoccupiershallexhibitinhisestablishmentanoticeshowingtheclose
day, the daily working hours and the usual period of rest interval fixedfor
employees inForm 'K'displayed at a conspicuous place
What are the penalties under the Act?
Description of offence Punishment
s per Section 40, if in any shop M
A inimumfineof Rs.25whichmayextenduptoRs.
or establishment there is any 250 and an additional fine of Rs 5 per day if it
contravention ofanyprovisionsof continues
this Act
s per Section41,willfullymaking Imprisonment for a period not exceeding three
A
false entries in records, registers months, or
or notice prescribed under
Section 33 Fine which shall not be less than fifty rupees but
whichmayextendtotwohundredandfiftyrupees,
or both.
ection42,Willfullyobstructingan F
S ine which shall not be lessthanfiftyrupeesand
Inspector in the exercise of any which may extend to two hundred and fifty rupees.
power under section 37
orconcealinganemployeeinthe
F
establishment from appearing
before or being examined by an
Inspector.
Handbook for HR Managers |25
Know more ⇒https://lawsikho.com/course/labour-law-hr-managers
Handbook for HR Managers |26
What are the challenges for HR Managers under the Act?
● T he Act is different across different states. It is a challenge to align internal policies
governing leave, attendance, holidays and work timings for a large organization and
maintain uniformity across India.
● IdentificationofwhichstatehasthemostfavourableShopsandEstablishmentsActfroma
flexibility, cost and competitiveness perspective for your organization is a challenge,
especially if you want to open a large organization whichcaterstoaglobalmarket.For
example, specific industries such as the IT and ITeS sector need to stay globally
competitive. Provisions of many state-level shops and establishments acts which limit
overtimeworkorrequireclosureononedayoftheweekcanimpactcompetitivenessand
costs.
● Identification ofapplicableexemptionsisachallenge,butofferstremendousadvantages
- for example, law firms in many states do not needtocomplywiththeAct.Similarly,in
Maharashtra,anewActwaspassedin2017,whoseprovisionsapplytoa‘worker’andnot
to all employees.
● Simultaneous compliance with other labour laws can be a challenge owingtooverlaps,
inconsistency and disparity.Forexample,obligationsunderPaymentofWagesAct,1936
(in states where the act applies to shops and establishments as well), Industrial
Employment (StandingOrders)Act,1946,MaternityBenefitsAct,1961,IndustrialDisputes
Act, 1947 and Sexual Harassment of Women atWorkplace(POSH)Act,2013needtobe
reconciled together. Actions such as termination, terms and conditions of work, leaves
and imposition of fines need to be in accordance with all applicable statutes.
● Action for non-compliance can be discovered through other ways becausegovernment
data and systems are being integrated over time and data is maintained digitally. For
example, governments can identify from GST returns and issue show-cause notices for
non-compliance. Settling matters outside books through unscrupulous means such as
bribery is nolongerfeasibleasdataowingtodigitalrecordkeepingandautomatedand
centralised government records.
2. heIndustrialDisputesAct,1947,IndustrialDisputes
T
(Central) Rules, 1957 or relevant state-level rules
lease see here for the Industrial Disputes Act, 1947 and here for Industrial Disputes
P
(Central) Rules, 1957
hat are the organisations to which this law will
W
apply?
ccording tosection2( j)oftheactindustrymeansanyorganizedandsystematicactivity
A
that has been carriedbyagroupofpeoplewithco-operationandco-ordinationwiththe
basic aim to increase theproduction,supplyanddistributionofgoodsInordertosatisfy
the human need.
It includes:
Handbook for HR Managers |27
Organized sector
● usiness
B
● Trade
● Industrial or handicraft occupation
● Workmen avocation
● Calling of the employer
Unorganized sector
● gricultural industries
A
● Charitable institutions
● Educational and scientific, training institution
● Village industries
● Hospital dispensaries
hat are the important compliances under this
W
statute?
Compliances with regard to lay-off and retrenchment
It is the duty of the employer to maintain a muster roll (Section 25D).
●
● An employer who intends to close down any undertaking shall serve at least a
noticepriortosixtydaysbeforethedateonwhichheintendedtheclosuretothe
appropriategovernment.AccordingtoRule75(A),TheIndustrialDisputes(Central)
Rules,1957,ifaworkmanislaidoffthentheemployerconcernedshallgivenotice
ofcommencementandterminationofsuchlay-offsinFormO1andO2respectively
within 7 days of commencement.
● Applicationforpermissiontolayoffundersection25(M)shallbemadeinFormO3
and delivered to the authority.
● It is the duty oftheemployertogivealternativeemploymentorotherwiselegally
liable to pay the workmen in case of retrenchment. Rule 76 states that a notice
must be issued by the employer if he desires to retrench any workmen Form P.
● Rule 76(B)- notice and application for retrenchment in Form PA is served to the
appropriate government.
Compliance in regards to the change in service [Section 9A]
● It is the duty oftheemployertoinformtheworkmen,registeredtradeunion,and
other officials with 21 days prior notice before making any changes.
● However in case awards and settlements no notice is required to be given on
changing the conditions of services.
● Ifanydisputeispendingbeforeanyprescribedauthoritywhichistoresolvesuch
disputes the employer is required to take prior permission in writing from the
authority before prejudicially changing any conditions of service.
Handbook for HR Managers |28
What are the penalties?
Penalties under Industrial Dispute Act 1947 are as follows:-
ayoff and retrenchment without informing and taking prior permission of the
L
prescribed authority[Section-25(Q)].
1 month imprisonment, or ₹1000 fine with workmen entitled all the benefit
Illegal closure [Section-25 R(1)]
Workmen entitled all the benefits as if closure never happened. Employers shall be
punishable for 6 month imprisonment or ₹5000 fine or both.
otcomplyingwiththeordersoftheappropriategovernmentortheauthoritytoclose
N
down the undertaking [Section-25 R(2)]
Employersshallbepunishablewith1yearimprisonmentor₹5000fineorbothandincase
of continuing contravention, additional fine of ₹2000 per day.
ommitting unfair trade practices [Section 25(T),25(U)]
C
6 months fine or ₹1000 fine or both
mployer acting in furtherance of illegal strikes/lockouts [Section 26(2)]
E
Shall be punishable by imprisonment for 6 months or a fine of ₹1000 or with both.
reach of settlement or award penalty [Section (29)]
B
6 months imprisonment and fine + ₹200 per day if breach is continued.
isclosing confidential information penalty [Section (30)]
D
6 months imprisonment or ₹1000 fine or with both.
ontravention of provisions under 25FFAinrespectofclosurewithoutnoticeSection
C
30 A
Employersshallbeliabletobepunishedwithatermofimprisonmentof6monthsorafine
of ₹5000 or with both.
ontraventions of provisions of Section 33 (for changing of the conditions of the
C
service during the pendency of the proceedings) [Section 31(1)]
Employers shall be liable to be punished for contravention with a term of 6 months of
imprisonment or a fine of ₹1000 or both.
ontraveninganyotherprovisionwhereanyotherspecificpenaltyisnotgiven[Section
C
31]
₹100 fine.
Handbook for HR Managers |29
hatarethebiggestchallengesundertheactforHR
W
Managers?
tringentprovisionsenshrinedunderIndustrialDisputesAct1947makeitverydifficultfor
S
the industrial establishment to work as per their requirement.
● D ealing with trade unions and ensuring that disciplinary violations by individual
employees do not escalate into industrial disputes, strikes and go slow.
● Representation of management in conciliation proceedings and before labour
courts and industrial tribunals.
● Ensuring that there is no violence in industry and factory premises.
● Ensuring that workers have a proper mechanism to channelize grievances and
dissatisfaction, and that theWorksCommittee,ConciliationOfficerandGrievance
Redressal Committee are able to effectively address worker concerns.
● In case ofacollectivebargainingsituation,ensuringtheunionsandmanagement
are able to arrive at mutually satisfactory settlement agreements.
● Implementation of a settlement agreement over a period of time.
● Effectiveprovisionofallfactstorepresentthemanagement’sstandintheeventa
legal proceeding is initiated before a labour court or labour tribunal.
● Havingappropriatemachinerytoinformtheappropriategovernment,requestinga
reference to alabourcourtortribunalifalabour-managementdisputespiralsout
of control.
● Ensuringthattherightsandbenefitsprovidedtoworkersacrossdifferentstatesin
India are not divergent as that can lead to an industrial dispute in future.
● Ensuring that dismissal of one or more employees on disciplinarygroundsisnot
treated as a retrenchment, thereby triggering the obligationtopayretrenchment
compensation.
● Ensuring that lay-off or retrenchment in case of sizing down of the business,
closure is undertaken as per the provisions of the Act.
● Ensuringthattransferofemployeesincaseofanacquisitionoftheundertakingby
another acquirer does not amount to retrenchment and trigger retrenchment
compensation obligations.
Notes on Industrial Relations Code
Industrial Disputes Act is envisaged to be eventually replaced by the Industrial
Relations Code Bill, 2019 (still not passed).
- Key features of the ID Act are retained under the Code.
- Concept of ‘negotiating union’ and negotiating council is added to simplify
challenging scenarios where employers have to deal with multiple trade
unions.
- Number of forums for dispute resolution are reduced to conciliation officers,
industrial tribunal and national industrial tribunal.
Handbook for HR Managers |30
3. he Factories Act, 1948 and Model Rule Under The
T
Factories Act, 1948
lease see here fortheFactoriesAct,1948andhereforModelRuleundertheFactories
P
Act, 1948
hat are the organizations to which this law will
W
apply?
As perSection 2 (m)of the Factories Act, 1948
● T his Act is applicable to all factories which have employed 10 or more than 10
workers on any day of the preceding 12 months.
● Twentyormorethantwentyworkersareemployedinthemanufacturingprocessin
case the manufacturing process is carried out without the aid of power.
What are the compliances under the Act?
Under the Factories Act, the following compliances should be followed-
Section 6 and 7 (licensing of factory)
heoccupierofthefactoryisrequiredthepreviouspermissionfromtheStateGovernment
T
or the Chief Inspector in writing for the site on which the factory is to be situated.
heoccupiermustalsosendthenoticeu/s7oftheacttotheChiefInspector,atleast15
T
days before he begins to use the premises as a factory containing the following details:
● ame and address of the occupier
N
● Name and address of the factory
● Name and address of the owner of the premises
● Address for communication
● Nature of the manufacturing process to be carried in the factory
● Total horsepower to be installed
● Name of the manager of the factory
● Number of workers likely to be employed
Inaddition,theoccupiermustmaintainaHealthRegisterinrespectofpersonsemployed
in occupations declared to be dangerous operation u/s 87 of the Act.
M
● aintain a Bound Inspection Book.
● Annual return to be filed on time.
● Report from Health Office
Handbook for HR Managers |31
Health provisions
ule
R Description
(MFR)
20 Record of whitewashing
● T
he record of dates on which whitewashing, colour washing,
varnishing, etc. are carried out shall be entered in a register
maintained in Form 7.
21 Cleanliness of walls and ceilings.
● E very factory must be clean and there should be no
accumulation of dirt.
● Paint or repaint walls, ceilings, and staircases of the factory
onceinevery5years.Repaintthewallsonceinevery3yearsin
case of washable water paints.
22 Disposal of Trade Wastes and Effluents.
● T
he arrangements made for the treatment of wastes and
effluentsduetothemanufacturingprocessesshallbeapproved
by the relevant authority.
23 Ventilation and temperature.
● T
he factory premises should have adequate ventilationbythe
circulation of fresh air. The walls and roofs should be of such
quality that the temperature in thefactorydoesn’trisebeyond
the reasonable conditions of comfort.
24-34 Artificial humidification
● If the humidity in any factory is increased artificially, thewater
used for this purpose should be taken from a public water
supply or should be purified before it is used.
● A humidity register must be maintained as per rule 28.
35-36 Natural and Artificial Lighting
● T here shall be providedandmaintainedsufficientandsuitable
artificiallightingineverypartofthefactoryalongwithavailable
natural lighting.
● Effective provision shall be made for the prevention of glare,
either directly from a source of light or by reflection from a
smooth or polished surface.
Handbook for HR Managers |32
38-43 Drinking Water
● T hereshouldbesuitablepointsineveryfactorywhichprovidea
sufficient supply of drinking water.
● The word ‘drinkingwater’shallbementionedinthelanguage
understood by the workers.
44-53 Latrine and Urinals
● S ufficient latrine and urinal accommodation shouldbetherein
every factory accessible to the workers allthetimewhilethey
are present in the factory.
● The arrangement must be separate for male and female with
proper lights and ventilation.
54-56 Spittoons
● E
veryfactoryshallhaveasufficientnumberofspittoonsplaced
at a convenient place. The spittoons should be cleaned
regularly
Safety provisions
57 Fencing of Machines
The dangerous parts of all machinery should be securely fenced.
58 egister of workers employed for work on or near machinery in
R
motion
egisterofworkersemployedforworkonornearmachineryinmotion
R
should be maintained in Form 9
59 Employment of young persons on dangerous machines
● A
young person should work only after sufficient training and
under the supervision of a person and is aware of the
precautions to take while working at a dangerous machine.
60 Hoists and lifts
register shall be maintained to record particulars ofexaminationof
A
hoists and lifts and shall give particulars as shown in Form 10.
61 Lifting machines, chains, ropes and lifting tackles.
llpartsofliftingmachines,chain,ropeandliftingtackleshouldbeof
A
good construction,soundmaterialandfreefromdefects.Theyshould
Handbook for HR Managers |33
e thoroughly checked by a competent officer at least once in 12
b
months.
62 Pressure plants.
If a factory is using any machinery which is operated at a pressure
above atmospheric pressure,thenthepressureshouldbekeptunder
check.
63 Provision for gasholders
● E very gasholder shall be of adequate material and strength,
sound construction and properly maintained.
● Allpossiblestepsshallbetakentopreventorminimiseingress
of impurities in the gasholder.
64 Excessive weights.
oworkeremployedinthefactoryshallbemadetocarryormoveany
N
load which might cause any injury to him.
65 Eye Protection
Ifanyprocessiscarriedoutinthefactorywhichinvolvesariskofinjury
to the eyes from particles or fragments, suitable goggles oreffective
screens should be provided to the workers who are working insuch
circumstances.
66 Minimum dimensions of manholes
veryconfinedspacelike chamber,tank,pipeetc,whichpersonsmay
E
havetoentershouldhaveeffectivemeansofegressand manholesof
specified dimensions to act as an outlet against dangerous fumes.
68 Fire Prevention
hefactoryshouldtakeallpracticalmeasurestopreventtheoutbreak
T
of fireanditsspread,bothinsideandoutsidethefactory.Safemeans
of escape should be in the factory for the persons, in case of a fire.
Welfare provisions
83 Washing Facilities
eparateandadequatewashingfacilitiestobeprovidedformaleand
S
female workers. The facilities should be clean and conveniently
accessible.
Handbook for HR Managers |34
84 Facilities for keeping clothing
he factory should provide a suitable place for keeping the clothes
T
not worn during the working hours and for the drying of wet clothes.
85 First-aid appliances
● F irst-aid boxes or cupboards containing necessary contents,
should be maintained and provided during all the working
hours.
● The number of such boxes should not be less than one for
every 150 workers working in the factory.
8 to Canteen and restrooms
8
94
● Ifthefactoryhasmorethan250workersemployed,minimum
one canteen should be provided and maintained by the
occupier.
● A factory having more than 150 workers should provide
adequate and suitable restrooms and lunch rooms, with
provision for drinking water.
96 Facility for creches
Ifthefactoryemploysmorethan30womenworkers,itshouldprovide
a suitable room for the use of children under the age of 6 years of
such women.
Working hours of adults
RULE Description
104 Notice of periods of work of adult workers
● A noticeshouldbeputeverydayclearlyshowingtheperiods
in which an adult worker may be required to work that day.
● The notice of periods of work for adult workers shall be in
Form 16.
105 Register of adult workers
● E very factory is required to maintain a register of adult
workers showing the name and nature of the work of a
worker.
● The register of adult workers shall be in Form 17.
Handbook for HR Managers |35
110 Notice of periods of child workers
The notice of periods of work for child workers shall be in Form 18.
111 Register of child workers
The register of child workers shall be in Form 19.
102 Register of compensatory Holidays in Form 14
If a worker is deprived of any of theweeklyholidays,heshouldbe
allowed to take that holiday in thatmonthorwithinthetwomonths
immediately following that month.
112 Register of Leave and wages
● T he manager shall keep a register in Form 20 hereinafter
called the register of leave with wages
● The register of leave with wages shall be preserved for a
period of three years after the last entry in it and shall be
produced before the Inspector on demand.
113 Compliance with regard to leave Book
hemanagershallprovideeachworkerwhohasbecomeentitledto
T
leaveduringacalendaryear,withaleavebookinForm21)notlater
than 31st January of the following calendar year.
121 Accident or any dangerous occurrence specified in the schedule
● r esultsinsuchbodilyinjurytoanypersonasislikelytocause
hisdeath,takesplaceinafactory,noticeshallbesent inform
25 to :
○ The District Magistrate or Sub-divisional Officer;
○ The officer in charge of the nearest police stations;
and
○ The relatives of the injured or deceased person.
○ Inspector/ Chief inspector
● In case the accidentordangerousoccurrencecausesbodily
injury in the factory by the manager of the factory shall
forthwith send a notice to the Inspector and the Chief
Inspector within 12 hours in form 26
● Register of accidents and dangerous occurrences to be
maintained in Form 32 under Rule 130.
122 Notice of poisoning or disease.
Handbook for HR Managers |36
notice in Form 27 should be sent forthwith both to the Chief
A
Inspector and to the Certifying Surgeon
Display on notice board
notice containing rules and regulations of thefactoriesshouldbe
A
displayed in both English and Hindi language as per Section 108.
*MFR = Model Factory Rule
What are the penalties?
Section Offence Liability Penalty
92 ontravention of O
C ccupier or Imprisonment for a term
the provisions of manager which may be extendedto2
the Act years or with fine whichmay
extend to ₹1 lakh or both.
94 lready punished O
A ccupier or Imprisonment which may
for the offence manager extendto3yearsorwithfine
under section 92 which may extendto₹10000
previously and if or with both.
the contravention
of that provision
continues.
95 illful obstruction Any person
W Imprisonment which may
of theinspector’s extend to 6 months or with
work fine which may extend to
₹10000 or both
96 rongful
W Any person Imprisonment which may
disclosure of the extend to 6 months or with
result of analysis fine which may extend to
under section 91 ₹10000 or both.
96A ontravention o
C f Any person Imprisonment which may
provision of extend to 7 years or fine
section 41 which may extend to₹2lakh
or with both.
Handbook for HR Managers |37
97 ontravention o
C f Any Worker ne which may extend to
fi
any provision of ₹500.
the Act
98 roducing false Any Person
P Imprisonment which may
fitness certificate extend to 2 months or fine
which may extend to ₹1000
or with both.
99 llows child for Any Person
a ne which may extend to
fi
double ₹1000. unless it appears in
employment court that the child is doing
double employment by the
consent of his parents or
guardian and by his consent.
Whatare the biggest challenges?
1. C ompliancerequirementsunderthe Actarenumerous,itisimportanttocreatea
system such that no compliance is missed.
2. Dealing with raids and investigations.
3. Preparation of adequate replies to show cause notices.
4. Ensuring organization-wide compliance if there are multiple factories in different
locations.
5. Identification of the role of occupier and a managerofafactory.Identificationof
the role of occupier and a manager of a factory.
6. Dealing with different kinds of labour-managementdisputes,involvingtheWorks
Committee, Conciliation Board, Grievance Redressal Committee, etc.
7. Handling repercussions from accidents.
Occupational Safety, Health and Working Conditions Code, 2020
- actories Act requirements are sought to be subsumed under the
F
Occupational Safety, Health and Working Conditions Cod, 2020 (here).
- The Code expands coverage to various modern and digital industries.
- However, it introduces flexibility for the governments to decide applicable
thresholds,inareaswheretheexistingFactoriesActhasalreadyspecifiedthe
same. This has led to criticism by major unions.
4. The Payment of Wages Act, 1936
Please seeherefor Payment of Wages Act, 1936
Handbook for HR Managers |38
hat are the organisations to which this law will
W
apply?
The Act applies to every establishment including(Section2)
1 . actories
F
2. Industrial establishments
3. Tramway and motor services
4. Air transport services
5. Dock, Wharf, Jetty
6. Plantations
7. Workshops
8. Establishments where construction work, work-related to bridges and canals, or
workrelatedtoelectricitygeneration,distributionandtransmissionofelectricityis
carried out
. Establishments notified by the appropriate government.
9
ote: It is not applicable to shops and establishments by default. However, in some
N
states, the Act is applicabletoshopsandestablishmentsiftheappropriategovernment
has issued a notification in this regard.
hat are the important compliances under the
W
statute?
Mode of payment of wages
s per section 6, the mode of payment of wages iscoinsorcurrencynotescurrentlyin
A
circulation or by cheque or by crediting the wages in the bank account of the worker.
Wage period
As per Section 4, the wage period fixed by the employer shall not exceed one month.
Maintenance of registers and records (Section 13-A)
s per section 13 - A, the employer must maintain registers and records of persons
A
employed with the following particulars.
● ame/Particulars of persons employed
N
● Designation/Nature of work performed by employees
● Wages paid to employees
● Record of deductions made if wages are not paid in full
Deductions from wages (Section 7)
mployerscanonlymakedeductionsprovidedu/s7.Suchdeductionscannotexceedthe
E
limits provided under Sections 8 to 13 of the Payment of Wages Act.
Handbook for HR Managers |39
Time for the payment of wages (Section 5)
A
● ll payments are to be made on a regular working day.
● Whentheemploymentofanypersonisterminatedbytheemployerorisdoneon
his behalf, wages earned by him shall be paid before the expiry of the Second
working day from the day from which he was effectively terminated.
● Where less than1000personsareemployed,thewagesshallbepaidbeforethe
expiry of the seventh day of the following month.
● Wheremorethan1000personsareemployed,thewagesshallbepaidbeforethe
expiry of the tenth day of the following month.
Wage threshold for applicability of the Act
Threshold for applicability of this Act is INR 24,000 per month.
What are the penalties?
● F ailing to maintain registers and records, or willfully refusing or without excuse
neglecting to furnish information or return, or willfully furnishing or making any
information which he is aware is false shallresultinafinenotlessthan₹1,500it
may also extend to ₹7,500. [Section 20(3)(d)]
● Willful obstruction while an inspectorisperformingtheirdutyshallresultinafine
not less than ₹1,000 which may extend to ₹5,000.
● For failing or neglecting to pay wages to the workers, imprisonment of not less
than one month which may extend upto six months with a fine of ₹2,000 which
may extend upto ₹15,000 and additional fine upto ₹750 each day until such
neglect/failure continues. [(Section 20(6)]
● Ifthepersonresponsibleforthepaymentofwagesunderthisactcontravenesany
of the following provisions of the act, namely, Section 5 (except sub-section 4),
Section 7, Section 8 (except sub-section 8), Section 9, Section 10 (except
sub-section2),andSection11,Section12,andSection13,shallbepunishedwitha
fine of not less than ₹1,500 which may extend upto ₹7,500. [(Section 20(1)]
● Ifapersonhavingresponsibility,contravenesanyofthefollowingprovisionsofthe
Act, namely, Section 4, Section 5(4), Section 6, Section 8(8), Section 10(2), or
Section 25, will be punished with fine which may extend upto ₹3,750 (Section
20(2)).
● Ifapersonisconvictedsubsequentlyforthesameoffence,afineof₹3,750which
may extend upto ₹22500. [(Section 20(5)]
What are the biggest challenges?
1. C
reation of an appropriate wage structure keeping in mind the provisionsofthe
PaymentofWagesAct,providentfundcontributionandgratuity,whichisstatutorily
correct and does not increase theemployer’sliabilitydisproportionatelyandalso
represents the true costs of the employer to the employee.
Handbook for HR Managers |40
2. E nsuring the wage structure for a large organization with presence in multiple
states is uniform keeping in mind differences in the state-level minimum wages
and cost of living requirements, which impact house rent and dearness allowance.
3. Implementing full and final settlement on a timely basis.
4. Creation of leave and attendance policy and list of holidayskeepinginmindthe
provisions of the applicable central and state level holidays acts, and, in states
where Payment of Wages Act is notified to be applicable to shops and
establishments, the Shops and Establishments Act.
5. Imposition of fines in accordance with the provisions of the Act and other
applicable laws, after giving a due hearing.
6. ApplicationoftheActinharmonywiththeIndustrialEmployment(StandingOrders)
Act, where both Acts are applicable.
Changes under the Code on Wages, 2019
Code on Wages, 2019 has been passed by Parliament but a final implementing
otification is still pending.
n
rimarily,theCodeabsorbstheframeworkofthePaymentofWagesAct,withcertain
P
changes:
- nlikethePaymentofWagesAct,thereisnoupperthresholdfortheamountof
U
wages.
- There are changes in the definition of wages. It has also been unified across
various Codes.
- Monthlywagesmustbepaidwithin7days(10-dayexceptionisnotthere)ofthe
next month.
- Payment of full and final settlement must be made within 2 days after
termination.
- The amount of penalties for non-compliance has been increased.
- Minimum wages are to be determined by state governments over a unified
national minimum floor.
5. he Payment of Bonus Act, 1965 and Payment of
T
Bonus Amendment Act, 2015
ode on Wages retains the overall scheme of the Payment of Bonus Act.
C
Please see here for Payment of Bonus Act, 1965 and here for Payment of Bonus
Amendment Act, 2015
hat are the organisations to which this law will
W
apply?
This Act applies to the following entities [Section 1(3)]:
Handbook for HR Managers |41
● A nyfactoryorestablishmentwithtwentyormoreworkersbeingemployedatany
day during theyear.OfficescoveredundertheShopsandEstablishmentswillbe
covered if the ‘appropriate government’ has notified the Act to be applicable in
that state. (Section 2)
● All the departments, undertakings or the branches of such establishments.
(Section 3)
● The Government may by notification apply this act to any establishment even
factories having less than 20employeesbutsuchestablishmentsshouldhaveat
least 10 employees.
Eligibility
sperSection2(13)oftheAct,anemployeeearningaremunerationofuptoRs21,000per
A
month is covered for the purpose of extending the benefit of bonus under this Act.
hat are the important compliances under the
W
statute?
Payment of minimum (Section 10) and maximum bonus (Section 11)
● T he minimum bonusis8.33percentofthesalaryorminimumwage,whicheveris
higher during the accounting year.
● ThebasicwagecalculationceilingisRs7000permonth“ortheminimumwagefor
thescheduledemploymentasfixedbytheappropriateGovernment”(whicheveris
higher) as per Section 12.
● Payment of maximum bonus (section 11) is 20%.
The time limit for payment of bonus (Section 19)
hewageshavetobepaidwithin8monthsoftheclosingoftheaccountingyear,buton
T
application to the Government, it may be extended to two years.
In case of any dispute regarding the bonus, it has to be paid within one month of the
decision of the authority if it orders the payment of bonus in its decision.
Maintenance of register and records (Section 26)
ll the employers have the duty to maintain such registers, records and any other
A
documents which may be prescribed.
The following registers have to be maintained:
● R egisterforcomputationofallocablesurplus-FormAofPaymentofBonusRules
1975
● Register showing set on and set off of allocable surplus - Form B ofPaymentof
Bonus Rules 1975
Handbook for HR Managers |42
● R
egister for details of bonus due, deducted and actually disbursed - Form C of
Payment of Bonus Rules 1975
Annual return
ll employers havetouploadaunifiedannualreturnonthewebportaloftheMinistryof
A
LabourandEmploymentprovidinginformationofparticularswhicharespecifiedinrespect
of preceding year - Form D of Payment of Bonus Rules 1975.
What are the penalties?
If any provisions made under this act is violated or if there is failure to comply to the
directionsorrequisitionsmadeundertheact,suchapersonisheldliableandhecanbe
imprisoned for 6 months or be fined ₹1000 or both (Section 28)
What are the biggest challenges?
The biggest challenge faced under this act are:
C
● alculation of bonus, set-on and set-off.
● Maintainingproperrecordswhicharerequiredbylawandtoproducethemtothe
inspector on their request.
● Incasesofsurplusexceedingtheminimumbonusthesurplushastobeprovided
in the form of bonus as well leading totheproblemofproportioningtheamount
between the employees.
6. The Employees State Insurance Act, 1948
(To be subsumed into Social Security Code, but there are no major overhauls.
However, consequences of violations are steeper. Fine amounts have been increased.)
Please seeherefor the Employees State InsuranceAct, 1948
hat are the organisations to which this law will
W
apply?
his law applies to such establishments whichhad10ormoreemployeesonanydayof
T
the preceding 12 months including (Circular):
● S hops, hotels, restaurants, cinemas, preview theatres, road motor transport
undertakings and newspaper establishments etc, employing 10 or more persons
on any day of preceding 12 months.
● Educational institutions(including public, private, aided or partially aided) run by
individuals, trustees, societies or other organization
● Medical institutions (including corporate, jointsector,trust,charitableand private
ownership hospitals, nursing homes, diagnostic centres, pathological labs).
Handbook for HR Managers |43
● F actories (including factories belonging to theGovernment)otherthanseasonal
factories [Section 2(4)]
● It will not apply to the employees of those factories or establishments, which
belongtoorareundercontrolofgovernmentwhoseemployeesreceivesimilaror
superior benefits as available under this Act.
I mportant Forms for compliance under the Statute (E
SI General
Regulations, 1950
Regulation Form Description
10 B 01 A Registration of Factory/ Establishment.
10 C 01 Change of Registration
11 1 Declaration Form
12 2 Addition/deletion in Declaration Form
14 3 Declaration Return Form
15-A 1-A Registration of families
15-B 1-B Change in family declaration Form
26 5 Return of Contribution
32 6 Register of Employee
63 9 Claim of Sickness
66 11 Accident Book
Regulation Form Description
68 12 Accident Report
76 14 Claim for permanent disablement benefit
80 15 Claim of dependent benefit
83-A 16 Claim of periodical dependent benefit
87 17 Notice of Pregnancy
88 18 Maternity benefit before confinement
89 19 Maternity benefit after confinement
89-A 20 Claim of Maternity benefit by nominee
Handbook for HR Managers |44
95E 22 Claim for funeral expense
107 23 Life certificate for Permanent Disablement Benefit
107-A 24 Declaration & Certificate for Dependants Benefit
Penalty
Section Offence Penalty
84 alse statements made by any person imprisonment upto 6
F
for availing benefits not meant for him monthsorfineuptoRs.
undertheAct.TheSectionalsoincludes 2000 or both.
underitsambitavoiding orenablingany
person to avoid any payments to be
made under this Act.
85 on compliance with the provisions of Imprisonment is 6
N
the Act monthsupto1yearand
fine of Rs 10,000.
85a Failure to pay contribution Imprisonment is 6
months upto 3 years
and fine
Rs. 5,000.
85(b to g) Non compliance with other requirements Imprisonmentofupto1
year or fine of Rs.
4,000 or both.
85-A ays down enhanced penaltyforrepeat
L Imprisonment upto 2
offenders under the Act. Any person yearsorfinewhichmay
who has been convicted for an offence extendtoRs.5000fora
under theActrepeatsthesameoffence subsequent offence.
again
Section Offence Penalty
85-B ower of ESI corporation to recover -
P
damages
85-C ourt’s power to direct payment of W
C henever anemployer
contribution faces imprisonment
undertheAct,thecourt
can order in writing to
award any other
punishment in addition
Handbook for HR Managers |45
t o paying his
contribution for t he
duration of his
sentence.
86A Offences by Companies ny person in charge
A
for conducting the
business of the
company is liable for
punishment under the
Act if the offence was
committed in his
knowledge.
What are the biggest challenges?
C
● ontinuous checks for contractors’ compliance with ESI
● How to determine applicability of the Act and identify Central Government
notifications in specific areas
● IdentificationofgroundsandsituationswhenESIbenefitisavailableandwhenitis
not. ESI applicability variesfromstatetostate.Forexample,incertainstates,you
cannot claim ESI in respect of super speciality treatment.
● How to assist and represent the employer in an ESI hearing
● What actions to take if you receive an adverse ESI Assessment order
● How to handle an ESI inspection in your premises
7. he Employees’ Compensation Act, 1923 and The
T
Workmen's Compensation Rules, 1924
leaseseeherefortheEmployees’CompensationAct,1923andherefortheWorkmen’s
P
Compensation Rules, 1924
hat are the organisations to which this law will
W
apply?
As per Section 2 (1) dd read with schedule 2, the Act applies to:-
● E mployees working in factories, mines, docks, construction establishments,
plantations, oilfields.
● Personrecruitedasthedriver,helper,mechanic,cleaneroranyotherinconnection
with a motor vehicle and to a captain or other member of the crew of an aircraft.
● Persons recruited for working abroad and who is employed outside India as in
Schedule II of the Act.
● Other establishments listed in Schedule II of the Employee’s Compensation Act.
Handbook for HR Managers |46
● The Act does not apply to:-
M
○ embers of armed forces
○ Workmen who are covered under ESI (Employee State Insurance) Act.
hat are the important compliances under the
W
statute?
Employer’s liability for compensation (Section 3)
An employer is made liable under this act to pay compensation when:
T
● he employee gets injured as a result of the accident while working under him.
● The employee contracts any occupational disease which is peculiar to that
employment.
When does the compensation become due? (Section 4A)
ompensation has to be paid as soon asitfallsdueandincasetheemployerdoesnot
C
agree to the amount which he hastopay,heshallpaytheamountwhichheacceptsas
provisional payment and suchpaymentdoesnottakeawaytherightoftheemployeeto
make further claims.
Depositing the compensation with the Commissioner (Section 8)
he paymentofthecompensationincaseofdeathofanemployeeorwherepaymentis
T
madeinalumpsumtoawomanorapersonwhoislegallydisabled,hastobemadeby
depositing it with the commissioner and thus direct payment to the employee or
dependant will not amount to payment of compensation.
● W hen compensation is deposited by the employer to the commissioner for the
death of an employee, a statement also has to be furnished in Form A of the
Workmen’s Compensation Rules, 1924 and he gets a receipt in Form B of the
Rules. And in other cases the statement is furnished in Form AA and receipt is
providedinFormBoftheserules.(Rule6(1)oftheWorkmen'sCompensationRules,
1924)
● The statement of disbursement under Section 8(4) of Employee’s Compensation
ActhastobefurnishedinFormCofWorkmen’sCompensationRules,1924.(Rule
6(3) of Workmen’s Compensation Rules, 1924)
● If an employer deposits compensation in accordance with Section 8(2), the
statement has to be furnished in Form D and receipt is received in Form E of
Workmen’sCompensationRules,1924.(Rule9ofWorkmen’sCompensationRules,
1924)
Handbook for HR Managers |47
tatements of fatal accidents to be sent to the commissioner
S
(section 10A)
henthecommissionerisintimatedabouttheoccurrenceofanaccidenthecanaskthe
W
employer to provide a statementwithinthirtydaystoprovidethecircumstancescausing
the death of the employee. Theemployeralsohastosendinthestatement,hisopinion
about his liability.
Report of fatal accidents and serious bodily injuries (Section 10B)
If the law requires then the employer or any person on his behalf has to send areport
regarding the accident within seven days of such accident to the commissioner or the
prescribed authority.
hesubmissionofthisreportshallbemadeunderFormEEofWorkmen’sCompensation
T
Rules, 1924. (Rule 11 of Workmen’s Compensation Rules, 1924)
Returns as to compensation (Section 16)
heStategovernmentmaydirectthatcorrectreturnshall besentaboutalltheincidents
T
of accidents of the previous year and the compensation paid for them and any other
information as may be prescribed, to the prescribed authority.
Duty to notify the employee about his rights (Section 17A)
he employee has to be informed of his rights to claim compensation by the employer
T
immediately at the time of employment in Hindi, English or the official language of the
area and it should be done in writing as well as through electronic means.
Registration of agreements (Section 28)
If there is any agreement between the parties regarding the lump sum paymentforthe
redemptionofhalfmonthlypaymentoranyothersuchpayment,amemorandumhastobe
senttothecommissionerwhoonbeingsatisfiedofitsgenuinenessrecordsitinaregister
in the prescribed manner.
uch a memorandum of the agreement which is sent to the commissioner shouldbein
S
closeconformitywiththecircumstancesofthecaseanditshouldbesentwithFormKor
FormLorFormMofWorkmen’sCompensationRules,1924asthecasemaybe.(Rule48
of Workmen’s Compensation Rules, 1924)
Other Forms
orm F - Application for compensation by workmen
F
Form G - Application for order to deposit compensation
Form H - Application for communication
Handbook for HR Managers |48
What are the penalties?
● U nder Section 4A if theemployerfailstopaycompensationwithinonemonthan
interestattherateof12percentp.a.ormoreischargedandthecommissionercan
also impose a penaltyupto50percentofthewagesifthereisnojustificationfor
such a delay.
● UnderSection29iftheagreementasrequiredunderSection28isnotsenttothe
commissioner, the employer becomes liable to pay the full amount of
compensationandcannotdeductmorethanhalfofthepaymentofcompensation
by agreement or any other method without permission of the commissioner.
● Under Section 18A on the failure to
❏
aintain notice book
M
❏ Send statement required to be sent to the commissioner
❏ Send a report
❏ Make a return
❏ Notify the employee about his right of compensation
hepersonwhohasthedutytodoso,becomesliabletoafineof₹50,000whichmaybe
T
extended to ₹1,00,000.
What are the biggest challenges?
T
● he formulae for compensation of employees is complicated.
● The Act covers injury to the employee but doesnotcoverlossordamagetohis
property.
● Makingandmaintainingreturnscontainingtheinformationabouttheaccidentand
the compensation paid. The compliance level of the Act has been low.
● Dealingwithrecoverynoticesofthecommissionercanbetrickyiftherecordsare
notmaintainedproperlybecausethecalculationmentionedforcompensationcan
differ in the notice based on information available with the commissioner.
● Employeecompensationisacosttothecompanysoitisimperativetochoosean
insurance cover to provide for cover against employees at workplaces.
● Dealing with claims by contractors’ employees.
8. he Employees’ Provident Fund Act, 1952 and The
T
Employees’ Provident Funds Scheme, 1952
leaseseeherefortheEmployees’ProvidentFundAct,1952andherefortheEmployees’
P
Provident Fund Scheme, 1952.
Handbook for HR Managers |49
hat are the organizations to which this law will
W
apply?
● As per Section 1 of the Employee's Provident Funds Miscellaneous Provisions Act:
■ E veryestablishmentwhichisafactoryengagedinanyindustryspecifiedin
Schedule I of the Employee's Provident Funds Miscellaneous Provisions
Act employing 20 or more people
■ Any other establishment employing 20 or more people
● A
sperSection6oftheAct,Employersandemployeesbothshallcontribute12%of
wages in EPF.This was reduced to 10% during the COVID-19lockdown by EPFO.
● U
nder Section 2 (b) of The Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952, basic wages refers to all emoluments earned by an
employee in accordance with thetermsofhis/heremploymentcontractbutdoes
not include the following:
T
■ he cash value of any food concession
■ Any dearness allowance, house rent allowance, overtime allowance,
bonus, commission, or any other similar allowance payable to the
employee
■ Any presents made by the employer.
● W
age threshold for PF benefits is INR 15,000 per month.Foremployeesearning
more, employees and employers may mutually agree to PF contribution,butitis
not mandatory. HR managers frequently struggle with creation of suitable salary
structuresinlightofthedefinitionofwages,excludedallowancesandtheSupreme
Court’sjudgments,sothattheycanminimizeanemployer’sfinancialresponsibility
to contribute to PF.
● Checking regular compliance of contractors is an important concern for employers.
● T
ransferofPFwhenanemployeeleavesorhandlingclaimsbynomineesaresome
of the other concerns of HR managers.
Compliances under the Statute
ompliance related to contribution (Section 6 of Employees’
C
Provident Funds Miscellaneous Provisions Act, 1952)(Para 29 of The
Employees’ Provident Funds Scheme, 1952)
Para* Description
35 The employer has to prepare a contribution card in Form 3 or 3 A.
40 Contribution to be entered into contribution card every month
Handbook for HR Managers |50
42 Renewal of contribution card in Form 3 or 3 A.
43 very employer shall send contribution cards in respect of members
E
along with a statement in Form 6 within 1 month to the Commissioner.
If a member leaves service, the employer shall send the contribution
card in respect of such members before the 20th day of the next
month.
Ifanyemployeehasbecomeamemberofthepensionfundunderthe
Employees' Family Pension Scheme, 1971, the form must contain
additional details for compliance with the scheme.
*The Employees’ Provident Funds Scheme, 1952
ompliance related to the Employees Pension Scheme (Section 6A
C
of the Employees’ Provident Funds Miscellaneous Provisions Act)
uperannuation
S pension, retiring ot more than 8.33% of the daily
N
pensionorpermanenttotaldisablement wages is to be contributed to
pension to employees of any employee pension from employers
establishment to which this Act applies. share.
Other important compliances related to duties of employers
Para 33 Nomination in Form 2
Para 36 S
end the return tothecommissionerwithin15daysofeachmonthin
Form 5 and with declaration in Form 2 of the qualifying employees.
ara
P mployers to furnish particulars ofownershiphavetosendForm5A
E
36A in 15 days to the regional commissioner.
Para 37 Employers have to allot an account number to every employee.
*The Employees’ Provident Funds Scheme, 1952
Penalties
As per Para 76 of The Employees’ Provident Funds Scheme, 1952 if any person:
Description Punishment
● D
eductsorattemptstodeduct
from wages or other
remuneration of member the
Handbook for HR Managers |51
hole or any part of the
w e shall be punishable with
H
employer's contribution imprisonmentwhichmayextendtoone
● Fails or refuses to submit any year, or
return, statement required by
this Scheme or submits false ith fine which may extend to four
w
return, statement or other thousand rupees
document, or makes a false
declaration or with both.
Obstructs any Inspector or
●
other official appointed under
the Act or this Scheme
● Is guilty of contravention of
any other requirement of this
Scheme
ara 32 A of The Employees’ Provident Funds Scheme, 1952 provides for recovery of
P
damage of default payment:
Time Period Percentage of Penalty
Less than 2 months 5% PA
orethan2monthsbutlessthan4 10% PA
M
months
orethan4monthsbutlessthan6 15% PA
M
months
More than 6 months 25% PA
What are the biggest challenges?
nsuring the compliance framework including record-keeping, periodic
E
contributions and preparation of adequate documents is always on track and
updated.
reation of appropriate wage or salary structure in theorganization,toensure
C
that liability is not disproportionate.
Identification of allowances which will not be included in basic wages from a
provident fund perspective.
nsuring that contractors are always compliant withtheirobligationsunderthe
E
law in respect of the contract labour provided and do not deceive employers
about their compliance status.
Handbook for HR Managers |52
Maintenance of centralized and localized records under the Act
Dealing with raids and inspections
roadly, the scheme of the Provident Funds Act has been retained by the Code on
B
Social Security.
9. The Payment of Gratuity Act, 1972
Please seeherefor the Payment of Gratuity Act, 1972
hat are the organisations to which this law will
W
apply?
The Act applies to every establishment including
● E veryfactory,establishment,mine,oilfield,plantation,portandrailwaycompanyor
shop. (Section 1(3)(a))
● Every shop or establishment within the meaning of any lawforthetimebeingin
force in relation to shops and establishments in a state in which 10 or more
persons are employed, or were employed, on any day of the preceding 12
months.(Section 1(3)(b))
● Theacthowever,continuestoapplyevenifthenumberofemployeesgoesbelow
10 at any time.
Important compliances under the statute
● T he maximum gratuity amount payable shall not exceed₹20,00,000/-(increased
from₹1000000to₹2000000throughPaymentofGratuity(Amendment)Act,2018
(see here and here) as per Section 4(3) [increased from ₹10,000,00 through
Payment of Gratuity (Amendment) Act, 2018].
● Gratuity shall be payable to an employee on the termination of his employment
afterhehasrenderedcontinuousservicefornotlessthan5years(Section4ofthe
Act) :
❏ O n his superannuation (A regular payment made by an employee for a
future pension), or
❏ On his retirement or resignation, or
❏ On his death or disablement due to accident or disease.
● Employer may be exempted from liability if he proves (Section 10)
❏
T hat he used due diligence to the enforcement of the act,
❏ That the other person in question committed the offence without his
knowledge.
Handbook for HR Managers |53
What are the penalties?
● W henever an employer fails in the payment of insurance towards the approved
gratuityfundshallbeguiltyandwillbepunishablewithafinewhichmayextendto
₹10,000. In case of a continuing offence with a further fine whichmayextendto
₹1,000 per day. [Section 4(6)]
● Whoever avoids suchapaymentbyfalserepresentationorfalsestatementsshall
be punished with imprisonment for a term which may extend upto 6 months, or
with fine which may extend upto ₹10,000, or both [Section 9(1)]
● An employer who makes default in complyingwiththeprovisionsoftheactshall
be liable to imprisonment foratermwhichmayextendto1yearandshallnotbe
lessthan3monthswithafinewhichmayextendupto₹20,000(minimumamount-
₹10,000) or both. [Section 9(2)]
What are the biggest challenges?
● Dealing with the claims, in scenarios such as:
○ W heredeductionofgratuitycontributionwasmadefromtheCTCamount,
but the employee’s engagement was terminated before 5 years, and the
employee claims the unpaid gratuity contribution.
○ Claims relating to wrongful termination by employer to avoid payment of
gratuity
C
● alculation of the amount payable as gratuity.
● Minimization of risk of principal employer’s liability for non-compliance by
contractor with respect to contract employees.
Code on Wages with respect to gratuity
heframeworkoftheCodeonWagesongratuityislargelysimilar.Oneaspecttokeep
T
in mind is that fixed-term employees engaged for less than 5 years must be paid
pro-rata gratuity. Also, punishments and fines are of a higher amount. Due to a
modification in the definition of wages, some allowances are included, which may
result in a higher gratuity amount than under the existing Payment of Gratuity Act.
10. The Maternity Benefit Act, 1961
Please seeherethe Maternity Benefit Act, 1961
ode on Social Security essentially consolidates the provisions on Maternity Benefit.
C
However,exacttechnicalcompliancerequirementsandformsmaydiffer-thiswillbeonly
known once the law along with implementing rules is notified.
Eligibility
womanmusthavebeenworkingasanemployeeinanestablishmentforaperiodofat
A
least 80 days in the past 12 months as per Section 5(2) of the Maternity Benefit Act, 1961.
Handbook for HR Managers |54
Maternity Benefit Payments
● P aymentduringtheleaveperiodisbasedontheaveragedailywagefortheperiod
of actual absence (Section 5).
● A femaleworkerisentitledtoamedicalbonusof₹3,500inadditiontothesalary
as per section 8 of the maternity benefits Act, 1961.
Duration of Maternity Benefit
● T heMaternityBenefitAmendmentActhasincreasedthedurationofpaidmaternity
leave availableforwomenemployeesfromtheexisting12weeksto26weeksas
per the provisions of Section 5.
● UndertheMaternityBenefitAmendmentAct,2017,thisbenefitcouldbeavailedby
women for aperiodextendinguptoamaximumof8weeksbeforetheexpected
delivery date and the remaining time can be availed post childbirth.
● For women who are expecting after having 2 children, the duration of paid
maternity leave shall be 12 weeks (i.e., 6 weeks pre delivery and 6 weeks post
expected date of delivery).
hat are the organizations to which this law will
W
apply?
The Act applies to the following establishment(u/s2)
● A ll the factories, mines and plantations. Itincludesanysuchestablishmentwhich
belongs to the Government.
● Everyshoporestablishmentinwhichtherewere10ormoreemployeesonanyday
of the preceding 12 months.
Note: This will be subject to the Shops and EstablishmentsAct of the State.
hat are the important compliances under the
W
statute?
hecompliancesandformsareprescribedbystatewisematernitybenefitrules.Wehave
T
takentheexampleofPunjabtoillustratethenumberofcompliancesapplicableincaseof
Maternity Benefit Act, 1961 to establishments engaged in a particular state.
i. usterRollshallbemaintainedbytheemployerinFormAasperSection20and
M
28 (2A) read with Rule 3 of Punjab Maternity benefit Rules, 1967
ii. Notice of claim for maternity benefit by thewomanemployeetotheemployerin
Form B as per Section 6 of the Maternity Benefit Act 1961 read with Rule4and
Rule 6 of the Punjab Maternity Benefit Rules, 1967.
iii. Proofofpregnancy,deliveryofchildormiscarriageprovidedbyamedicalofficerin
Form C.as per Section 6(5) and Rule 28(2)(e) readwith Rule 5.
Handbook for HR Managers |55
iv. ursing breaks of twenty (20) minutes, providedthatincasethecrècheorplace
N
wherechildrenareleftbyawomanwhileondutyisnotinthevicinityoftheplace
of work a period up to 15 minutes may be allowedforthepurposeofjourneyto
andfromcrècheortheplaceasperSection11readwithSection28(2)(1)readwith
Rule 7.
v. TheabstractoftheprovisionsoftheActandtheRulesshallbeexhibitedinFormK
inaconspicuousplacebytheemployerineverypartoftheestablishmentinwhich
womenareemployedasperSections1and28(1)readwith Rule15ofthePunjab
Maternity Benefit Rules, 1967.
vi. Theemployershallsupplytoeverywomanemployedbyhimatherrequestfreeof
cost copies ofForms‘B’, ‘C’, ‘D’, ‘E’, ‘F’, ‘G’,‘H’, and‘I’.
vii. Annual Return onorbeforethe21st dayofJanuaryineachyearinForms‘L’,‘M’,
‘N’ and ‘O’ as per Section 28(2)(k) read with rule 16.
viii. If the employer of an establishment to which the Act applies sells, abandons or
discontinues the working of the establishment, he shall, within onemonthofthe
date ofsaleorabandonmentorfourmonthsofthedateofdiscontinuanceasthe
casemaybe,submittotheCompetentAuthorityafurtherreturnineachofthesaid
Forms in respect of the Period between the end of the preceding year and the
date of sale, abandonment or discontinuance.
Penalty for non-compliance (Section 21)
Offence Punishment
mployerfailingtopayanyamountof P
E unishable with imprisonment which
maternity benefittoawomanentitled shall not be less than three months but
under this Act. which may extend to one year.
ischarges or dismisses such a P
D unishable with imprisonment which
woman during or on account of her shall not be less than three months but
absence from work in accordance which may extend to one year.
with the provisions of this Act.
In case of an employer contravening H e shall be punishable with
the provisions of thisActortherules imprisonment which shall not be less
made thereunder. thanthreemonthsbutwhichmayextend
tooneyearandwithfinewhichshallnot
be less than two hundred rupees but
which may extend to five thousand
rupees.
ailuretoDisplay AbstractofActu/s Imprisonmentmayextendtooneyearor
F
19 fine u/s 21(2)
Handbook for HR Managers |56
What are the biggest challenges?
● T he employer has to provide full wages for the period of maternity leave to the
employee. The employer has a statutory mandate u/s 11A of the Act to provide
creche facilities in case the number of employees is 50 or more.
● Unlikeothercountrieswherethestatesharesthecostofprovidingsuchbenefits,
in India the cost is to be borne by the employer himself.
● Everywomanreturningtoworkpostdeliveryisentitledtotwobreaksinthecourse
of her day to nurse her newborn until she turns 15 months old. However, these
breaks remain unexecuted in most cases.
● Provision of acreche,especiallyforsmallerorganizationswhichlackthefinancial
resources for the same, isachallenge,untiltherearealternatebusinessesinthe
economy to whom this responsibility can be outsourced.
● AlthoughtheEqualRemunerationActprohibitsdiscriminationinremunerationand
other terms of employment between men and women, the long duration of
maternityleave(26weeks,andfullypaid),applicableforupto2children,isahuge
deterrentforseveralorganizationsinhiringfemalecandidates,asitincreasestheir
financial costs significantly. Further, organizations view this requirement, coupled
with the POSH Act, as being specifically onerous on them.
Handbook for HR Managers |57
Know more ⇒https://lawsikho.com/course/labour-law-hr-managers
Handbook for HR Managers |58
11. S exual Harassment (Prevention, Prohibition and
Redressal) Act, 2013
Please seeherefor Sexual Harassment (Prevention,Prohibition and Redressal) Act, 2013
Not sought to be replaced by any of the Labour Codes.
hat are the organizations to which this law will
W
apply?
This Act inter alia applies to [Section 2(o)]
● ny private sector organisation or a private venture,
A
● undertaking
● Enterprise
● Institution
● Establishment
● Society
● Trust
● Non-governmental organisation,
● Unit
● Service provider carrying on commercial, professional, vocational, educational,
entertainment,industrial,healthservicesorfinancialactivitiesincludingproduction,
supply, sale, distribution or service.
hat constitutes
W sexual harassment at the
workplace?
hePOSHAct,2013hascoveredinstancesofconductthatwillbedeemedinappropriate
T
constituting sexual harassment at workplaces. This behaviour includes sexually
unwelcome tinted behaviour. [Section 2(n)]
● It can be through making unwelcome physical contact and advances
● Requesting or demanding sexual favours
● Making inappropriate sexually coloured remarks
● Showing pornography
● Any other verbal, non-verbal conduct of physical nature
Some examples of behaviour that constitute sexual harassment at the workplace
M
● aking sexually suggestive remarks or innuendos.
● Seriousorrepeatedoffensiveremarks,suchasteasingrelatedtoaperson’sbody
or appearance.
● Offensive comments or jokes.
● Inappropriate questions, suggestions or remarks about a person’s sex life.
Handbook for HR Managers |59
● D isplaying sexist or other offensive pictures, posters, MMS, SMS, WhatsApp, or
e-mails.
● Intimidation, threats, blackmail around sexual favours. 7. Threats, intimidation or
retaliation against an employeewhospeaksupaboutunwelcomebehaviourwith
sexual overtones.
● Unwelcome social invitations, with sexual overtones commonly understood as
flirting.
● Unwelcomesexualadvanceswhichmayormaynotbeaccompaniedbypromises
or threats, explicit or implicit.
Some examples that do not constitute sexual harassment
● ollowing-up on work absences
F
● Requiring performance to job standards
● The normal exercise of management rights
● Work-related stress e.g. meeting deadlines or quality standards
● Conditions of works
● Constructive feedback about the work mistake and not the person
Categories of employees protected under the Act
omen employees are granted protection under the Act. The Act coverswomeninthe
W
following work capacities (Section 2(f)):-
● omen employed in full time, part time, ad-hoc and daily basis
W
● women employed as contract workers
● Women employed through agents
● Probationers, trainees, apprentices, interns
● Women working on a voluntary basis without remuneration.
The employment agreement is not necessary for the purpose of protection under the Act.
How to handle frivolous complaints
● T his is a very sensitive area and any allegations/ complaints, howeverdiscreetly
handled, could prove derogatory for the person against whom it has been raised.
● After receiving the complaint ensure that it is made by the person who is
mentioned in that complaint and whether sheisactuallywillingtogoaheadwith
thecomplaintornot.Itshouldbeensuredthatthecomplainantisawareaboutthe
consequences of a frivolous.
● Taking necessary action
If there is a existing policy, action will be taken according to it
○
○ Ifthereisnoprovisioninthepolicy,thenitshouldbedecidedaccordingto
the principles of natural justice and general rules.
ote: If you don’t haveaprovisionregardingthisinthepolicy,draftandincludeitinthe
N
policy to deal with similar future complaints.
Handbook for HR Managers |60
● T
o avoid such complaints, sensitization of the employees should be ensured
through training sessions, seminars etc.
hat are the important compliances under the
W
statute?
Compliance with regard to Internal complaints committee
owdoyougoaboutformingoneforyourorganisation?Areyourequiredtoconstitutean
H
ICC at each branch office or a centralised ICC will suffice?
ection 4 of the POSHActspecifiesthefollowingwithregardtoformationofanInternal
S
complaints committee.
● T he employer of a workplace is responsible to constitute an InternalComplaints
Committee by an order in writing.
● Theinternalcomplaintscommitteeshallbeconstitutedatalladministrativeunitsor
branches of the workplace.
s an HR manager you need to have a plan in place to set up and operationalise the
A
Internal complaints committee at every location. Implementing a reporting framework is
essential too.
he nextquestionthatcomesintothemindiswhatshallbethecompositionofmembers
T
in theICC?Isitmandatorytohavesomeonefromoutsideyourworkplaceasamember
on the committee?
Member Eligibility
Chairperson Senior Women Employee
(If not available then a senior woman employee from
any office of the employer can be nominated).
Minimum two members F
rom amongst employees. Those having knowledge
and experience of social work should be preferred.
External Member rom NGO/ associations committed to the cause of
F
women or familiar with the issue of sexual harassment.
Note: One half of the members on the committee shouldbe women.
oyouknowthatthelawcastsoutadutyontheemployertodisplayatanyconspicuous
D
place in the workplace, the penal consequences of sexual harassment; and the order
constituting the Internal Committee?
Handbook for HR Managers |61
hiscanbedonethroughfixingpostersaroundtheofficesandespeciallyatplaceswhere
T
the employees will obviously read the posters, for example, near the cafeteria, water
cooler, coffee machines, washrooms, photocopier machines, etc.
urtherSection19listsdowndutiesoftheemployerwhichyouasanHRmanagermaybe
F
required to comply with on behalf of the employer:-
● It is your basic responsibility to provide a safe working environment at the
workplace which includes safety from the persons coming into contact at the
workplace.
● Organize workshops and awareness programmes at regular intervals for
sensitizing the employees with the provisions of the Act.
● The rules prescribe orientation programmes for the members of the Internal
Committee.
● Providenecessaryfacilitiestotheinternalcommitteeorthelocalcommittee,asthe
case may be, for dealing with the complaint and conducting an inquiry.
● Assist in securing the attendance of respondent and witness before the internal
committee or the local committee.
● MakeavailablesuchinformationtotheInternalCommitteeortheLocalCommittee,
asthecasemaybe,asitmayrequirehavingregardtothecomplaintmadeunder
sub-section (1) of Section 9 regarding the procedure of making a complaint.
● Provideassistancetothewomanifshesochoosestofileacomplaintinrelationto
the offence under the Indian Penal Code or any other law for thetimebeing in
force.
● If a perpetrator is not an employee, the company/organization should help
employees to initiate legal action against the perpetrator for sexual harassment
under the criminal law like helping her to file an FIR with the Police.
● Treatsexualharassmentasamisconductundertheservicerulesandinitiateaction
for such misconduct.
● Monitor the timely submission of reports by the internal committee.
he Internal Complaints Committee will require facilitation and assistance from the
T
company/organization’s end to carry out the enquiries.
Appropriate processes will need to be created in that regard by the management.
ote for HR managers, legal and compliance teams: In 2018, MCA amended the
N
Companies there is a Companies (Accounts) Rules, 2014 requiring disclosure about
creation of ICC under the POSH Act in the directors’ report furnished annually. This is
important for HR managers, in-house counsels, CS and Chartered Accountants.
Compliance with respect to employment contracts
● S exual Harassment is classified as a form of misconduct under the POSH law.
There must be a specific clause in the employment contract with this regard.
● It must also point out the consequences of indulging into the Act of sexual
harassment which can include deduction of wages, termination of employment etc.
Handbook for HR Managers |62
Framing an anti sexual harassment policy
helawmandatesthateverycompanymusthaveananti-sexualharassmentpolicyasper
T
Rule 13 of POSH Rules, 2013.
obeeffective,anti-sexualharassmentpoliciesrequiresufficientcustomization,examples
T
based on the nature of workplace, clarity on whether a gender-neutral framework is
applicable or not, and must be supplemented by different kinds of trainings across
different workplaces.
In factory locations especially, training may need to be conducted in local languages.
nboarding and alignment of workforce towards anti-sexual harassment compliance is
O
important, otherwise it may lead to alienation between workers of different genders.
Compliance with respect to Annual Reports
he annual report whichtheComplaintsCommitteeshallprepareunderSection21,shall
T
have the following details:
● umber of complaints of sexual harassment received in the year;
N
● Number of complaints disposed of during the year.
● Number of cases pending for more than ninety days.
● Number of workshops or awareness programme against sexual harassment
carried out.
Nature of action taken by the employer or District Officer.
●
In some states such as Karnataka, compliance with t he POSH Act is one of the
preconditions necessary for the IT industry to claim exemption from the Industrial
Employment (Standing Orders) Act.
oststateshaveamendedtheirShopsandEstablishmentsActsandrequireorganizations
M
which need women employees to work beyond a certain timeatnighttoprovideacab
service and comply with the POSH Act.
What are the penalties under the Act?
Where is it given?
Nature of Contravention Nature of Penalty
ontravention of provisions of theAct F
C ine upto ₹50,000. However, claims for
by the employer wrongful termination of employees in
arbitration can even exceed 1 cr, asper
For example:- Failure to constitute an this case of Madras High Court
Internal Complaints Committee (pertaining to IT sector).
Handbook for HR Managers |63
ontraventionoftheprovisionsforthe L
C iable to twice the punishment, which
second time might have been imposed on a first
conviction for the same offence.
icense shall be liable to get cancelled
L
or withdrawn or non-renewed or
cancellation of the registration, as the
casemaybe,bytheGovernmentoflocal
authority required for carrying on his
business or activity.
hat are the biggest challenges in implementation
W
of POSH?
● T raining the ICC on how to receive and take action on complaints,
especially in the investigation and decision-making process, as they are
technical in nature.
● Decision-making requires the use of principles of law such as natural
justice, appreciation of evidence and the exercise of adjudicative skills,
which ICC members (including lawyers)maynothavesufficientpracticein
because they may not have been judges.
● Sensitization of 100% of the workforce (and implementation of refresher
programs).Thisisachallengeasemployeesworkindiversescenarios.This
is particularly a challengeforoff-siteworkers,consultantsandpeoplewho
do not speak English or Hindi asmostsensitizationprogramsaremadein
theselanguages.Trackingtheimplementationonsuchawidescaleisalso
a challenge.
● Maintenanceofconfidentialityofthecomplainantandaccusediscriticalbut
also a challenge in an organizational context.
● Onboardingofmaleemployeesintheimplementationprocesssothatthey
do not view the law adversely and in a way that restricts team-wide
collaboration.
● Gender neutral implementation of the law toensurethatmenandpeople
from other genders are also adequately protected.
● Dealing with malicious or false complaints.
● Implementation of the law when a member of the senior managementor
the head of the organization is involved.
● Dealing with unreported cases.
● Containing reputational damage due to non-handling or inadequate
handling of a case.
Handbook for HR Managers |64
art3:Templatesofimportantdraftsfor
P
HR Managers
Employment Agreements
The nature of arrangement is full time from the premises of the office.
● T heworkingrelationshipisfulltime.itisthemostheavilyregulatedagreementbecauseof
the nature of the working arrangement.
● Employees have a number of statutory obligations towards employees with respect to
passing of social security benefits to the employees, working hours, granting leaves.
● AnHRmanagerneedstoensurethatwhiledraftingemploymentagreementforthistype
of working relationship he adheres to a number of laws
● For example, the letter of appointment will be governed by shops and establishment Act
● While the employment agreement can be governed by standing orders and multiple laws
● The format of the employment agreement differs based on whether it is time-based
employment(full-time or part-time), fixed-term employment, regular employment,
temporary employment, etc.
● Ordinary employees and top level executives will have different employment contracts.
One has to strategically include non-compete, non-solicit, confidentiality, IP assignment
and other clauses.
● Agreements for top-level executive employees may also have provisions for stock
options, severance compensation and clawback of wages.
● You will also need to keep the provisions of appropriate statutes in mindwhiledrafting
key terms, such as the Minimum Wages Act, Payment of Wages Act and Shops and
Establishments Act.
Modifications for fixed-term employment arrangement
● F ixedtermemploymentarrangementallowsthecompanytoemploystaffonthebasisof
their actual requirement.
● Companies running seasonal businesses will be benefited by adopting such an
arrangement.
● For an HR manager, it offers flexibility in terms of hiring.
● Underafixed-termemploymentagreement,theemployeeconcernedisentitledtoallthe
statutorybenefitsotherwiseaccruingtoasalariedemployee,thisincludesamongothers
leave, overtime, provident fund, gratuity, bonus etc. as per the applicable laws.
● Similarly,deductionsgotowardsProvidentFundcontributions,insuranceamounts,labour
welfare funds, canteen facilities etc.
● TDS is deducted from salary as per section 192 of the Income Tax Act.
● The employee is taxed accordingly as per his taxable income slab.
● On termination of a fixed-term contract though, no severance dues become payable
which would otherwise havebeenapplicable,andnoconditionsprecedentarerequired
to be fulfilled as contemplated under Section 25 F of the Industrial Disputes Act.
Handbook for HR Managers |65
Consultancy Agreement/ Services Agreements
romtimetotime,HRmanagersengagevariousconsultantstoprovidespecializedservices,such
F
as an expert for anti-sexual harassment trainings to employees. They may also execute a
‘Services Agreement’ with anorganizationtoprovideanonlinetrainingwithcertificationonkey
employeepoliciesandPOSH.Understandingofdraftingandidentificationofkeydeliverablesand
milestones is very important to execute these agreements successfully.
Company policies
RManagershaveakeyroletoplayindraftingvariouskindsofHRpolicies.Thesepoliciesneed
H
frequent customization.
omeofthetermsofthesepoliciesmustbeinalignmentwithlaw,suchasleaveandattendance
S
policy or anti-sexual harassment policy.
t the same time, there isalotofscopeforcustomizationaspertheneedsoftheorganization
A
within these policies.
dditionalpoliciessuchasreimbursementpolicy,datasecuritypolicy,businesscontinuitypolicy,
A
datingpolicy,etc.canalsobedraftedandimplementedtoprovidecertaintytotheorganization’s
culture and operational framework.
Documents for disciplinary proceedings
R managers need to be familiar with drafting show cause notice, charge sheet, order of
H
suspension, final order of disciplinary authority. Apart from following certain procedural
requirements of natural justice, drafting must be clear and detailed, so that thedecisionofthe
disciplinary committee is not susceptible to be overturned in a challenge.
Manpower supply agreements for contract labour
anpower supply contracts for supply of contract labour need to be frequently drafted and
M
reviewed by HR managers. These contracts frequently have technical clauses which HR
managers.
Notices to contractors
rom time to time, HR managers are required to send various notices to contractors for price
F
adjustments, indemnityclaimsforsocialsecuritycontributions,orothercommunicationpursuant
to the contract. Where contractors are non-cooperative, these notices must be drafted with
rigour so that they can be used in evidence.
Response to notices of labour authorities
abour authorities frequently seekclarificationsandinformationfromorganizations.Theiraction
L
is often triggered due to complaints made by disgruntled employees. It is important to send
Handbook for HR Managers |66
ppropriate responses with full details to labour authorities and within the due date specified
a
under the notice, so that proceedings do not escalate. In specific cases, HR Managers are
involved in preparation of a defense and representation ofthemanagementbeforetheLabour
Commissioner’sCourt/ProvidentFundCommissioner’sCourtorESIhearingaswell.Thisusually
arises when an employee has filed a claim regarding unpaid wages or social security claims.
Templates of some of the documents are provided below for free.
o find out more about how to draft and customize variations like a pro, you can try out this
T
course.
Handbook for HR Managers |67
Template - EMPLOYMENT AGREEMENT
ote:Thissampleemploymentagreementcanbeusedasabasedraftforyouremployees.You
N
may need to modify this suitably to meet specific requirements.
[PRINT ON STAMP PAPER OF APPROPRIATE VALUE]
his Employment Agreement ("Agreement") is madeat[____]onthis[___]of[___],2011[Note:
T
Please insert the date of signing the agreement].
By and Between:
[INSERT NAME OF COMPANY / LLP / PARTNERSHIP], a company / LLP / partnership
incorporated in India under theCompaniesAct,1956/LimitedLiabilityPartnershipsAct,2008/
registered under the Indian Partnership Act, 1932, having its registered office at [INSERT
ADDRESS OF REGISTERED OFFICE OF COMPANY / LLP/ ADDRESS OF OFFICE OF
PARTNERSHIP],("Organization",whichexpressionshall,unlessitisrepugnanttothemeaningor
context, be deemed to include its successors and permitted assigns) of the First Part.
And
[_______],son of [___], aged about [___] years residingat [___]1 ("Employee") of the Second Part.
heOrganizationandEmployeeshallhereinafterbereferredtoasthe"Parties"inthecollective
T
and as a "Party" in the singular, as the context mayso require.
WHEREAS:
A. T he Organization is engaged in the business of [Insert briefly the business activity of
organization]
B. T he Organization and the employee have agreed to terminate the previous terms of
engagement of the Employee.
C. Insupersessionoftheprevioustermsofengagement,theOrganizationwishestoemploy
the Employee on the terms and conditions contained in this Agreement.
D. T he Organization has offered and Employee has accepted the position in the
Organizationas[_____][Note:Pleaseinsertthedesignation]onthetermsandconditions
as set out in this Agreement.
OW THEREFORE, in consideration ofthepromisesandthemutualcovenantssetforthherein,
N
the Parties hereto, intending to be legally bound, hereby agree as follows:
1. DEFINITIONS AND INTERPRETATIONS:
1.1. or the purposes of this Agreement the following terms shallhavethefollowing
F
meanings:
1
Note: Please insert the details relating to the employee.
Handbook for HR Managers |68
" B
oard" or "BoardofDirectors"meanstheboardofdirectorsoftheOrganization
as constituted from time to time.
"Effective Date" means the date of execution of thisAgreement.
1.2. eferencetoanystatuteorstatutoryprovisionincludesareferencetothatstatute
R
or statutory provision as amended, extended orre-enactedorconsolidatedfrom
timetotimeandallstatutoryinstrumentsororders(includingdelegatedlegislation
whetherbywayofrules,notifications,bye-laws,guidelines,asamended,extended
or re-enacted or consolidated from time to time);
1.3. ordselsewheredefined/explainedinthisAgreementshallhavethemeaningso
W
ascribed;
1.4. Words denoting the singular shall include the plural and vice versa;
1.5. Words denoting any gender include all genders; and
1.6. he headings in this Agreement are inserted for convenience only and shall be
T
ignored in construing this Agreement.
2. APPOINTMENT
he Organization hereby appoints theEmployeeasthe[_____][Note:Pleaseinsertthe
T
designation] of the Organization and Employee agrees to be employed with the
Organizationasthe[_____][Note:Pleaseinsertthedesignation]fromtheEffectiveDate
and be bound bythetermsandconditionslaiddownintheAgreement.TheEmployee's
principal place of employment shall be in [_____] [Note: Please insert city/cities and
countryofwork].TheEmployeemayberequiredto(i)relocatetootherlocationsinIndia
or abroad; and (ii) during his employment under this Agreement, the Employee shall
undertakesuchtravelwithinandoutsideIndia,fromtimetotime,asmaybenecessaryin
theinterestsoftheOrganization’sbusinessorasdirectedbytheBoardinconnectionwith
or in relation to the business of the Organization.
3. TERM
he term of the Employee's employment with the Organization will commence on the
T
Effective Date and will be valid from the date hereof. Subject to clause 7 (T
ermination)
below,theEmployeeagreestoremainemployedwiththeOrganizationforaperiodofat
least [__] years from the Effective Date.
4. POWER, FUNCTIONS AND RESPONSIBILITIES OF THE EMPLOYEE
4.1. he Employee shall report to the [__][Please insert the designation of the
T
person/department the employee must report to.] and shallalsobesubjectto
the overall supervision and control of the Board. The Employee shall be
responsible for [___].[Please insert the role of theEmployee.]
Handbook for HR Managers |69
4.2. he Employee agrees to comply with various Organization policies, rules and
T
regulations as may be updated from time to time unilaterally by the Organization.
5. DUTIES AND OBLIGATIONS
5.1. heEmployeeshallworkfulltimefortheOrganization,devotinghistime,attention
T
and skill tothedutiesofhisofficeandshallfaithfully,efficiently,competentlyand
diligentlyperformsuchdutiesandexercisesuchpowersasmayfromtimetotime
beassignedtoorvestedinhimandshallcomplywithalllawfuldirectionsgivento
him by or under the authority of the Board and use his best endeavours to
promote and extend the business of the Organizationandtoprotectandfurther
the interests and reputation of the Organization.
5.2. he Employeeshallactdiligentlyandtothebestofhisabilityinthedischargeof
T
hisdutiesandsubjecttoanyrestrictionsorlimitationsimposedbytheconcerned
officerorpolicyoftheOrganizationinthisregard.TheEmployee'sresponsibilities
will include but not be limited to the following:
[________] [Note: Describe or list out the roles, responsibilities, actions to be
taken by the employee in about 100-300 words. This is to be customised
depending on the job profile for each employee]
5.3. he Employee shall, unless prevented byill-healthordisability,devoteadequate
T
time,attentionandabilitiestothebusinessoftheOrganizationandshallfaithfully
servetheOrganizationandusehisbestendeavourstopromotetheinterestofthe
Organization.
5.4. he Employee shall at all times promptly give to the [_____] [Please insert the
T
designation of the person/department the employee must supply information
to. Such person/authority could be the same as in Clause 4.1 or some other
authority depending on the Organization's needs and structure] all such
information, explanations and assistance astheBoardmayrequireinconnection
with the business of the Organization.
5.5. uringthecurrencyofthisAgreement,theEmployeeshallnotdirectlyorindirectly
D
engage himself in any other business, occupation or employment whatsoever,
without the approval of the Organization.
6. COMPENSATION AND BENEFITS
6.1. In consideration of hisservicestotheOrganization,theOrganizationshallpayto
theEmployeeduringthetermofthisAgreement,grossremunerationofRs.[Insert
amount in figures] (Rupees [Insert amount in words]) per annum, subject to
deduction of tax at source. This remuneration shall be paid to the Employee in
accordance with the Organization’s normal payroll practices. The detailed
break-up of annual gross remuneration is annexed hereto as Schedule A.
6.2. ave and except as otherwiseprovidedinthisAgreementorasmaybedecided
S
bytheBoardfromtimetotime,theEmployeeshallbeentitledtoallsuchbenefits
Handbook for HR Managers |70
t hat may be available to him as per law/Organization policy for its
management-level employees generally, as in effect from time to time.
6.3. he Employee shall be entitled topaidvacation,personalleaveandsickdaysin
T
accordance with the Organization’svacationandleavepoliciesforitsemployees
generally, asineffectfromtimetotime.Notwithstandinganythingtothecontrary
contained in such policies, the Employee agrees and accepts that he shall not
havetherighttoencash,seekencashmentorcarryforwardanyunutilizedleavein
a given year. The Employee may however be permitted to carry forward his
unutilized leave with the prior approval of the [_______] [Pleaseinsertnameof
appropriate authority] of the Organization or the person in charge ofmanaging
human resources, subject to such conditions as may be imposed by the
Organization.
7. TERMINATION
7.1. Terminationfor Cause
heOrganizationshallhavetherighttoterminatethisAgreementatanytimewith
T
immediateeffectbynoticeinwritingforanyoneormoreofthefollowingreasons
("Cause"):
a) IftheEmployeeisintheopinionoftheOrganizationguiltyofinattentionor
negligence in the conduct of the business of the Organization or of any
otheractoromissioninconsistentwithhisdutiesorcommitsanyseriousor
repeated or continual breach of any of his obligations under this
Agreement; or
b) If the Employee is absent without leave for a period of [thirty (30) days]
[Note: Number ofdaysofabsenceentitlingtheownertoterminatemay
be modified subject to the needs of business owner];or
c) If the Employee is in the opinion of the Organization guilty of any act or
omission adversely affectingthegoodwill,reputation,credit,operationsor
businessoftheOrganization,orcommissionofanycrimeinvolvingmaterial
dishonesty or moral turpitude; or
d) If the Employee is in the opinion of the Organization guilty of any
dishonesty, fraud, breach of statutory duty, breach of confidentiality
obligations, pilferage and theft, attending work under the influence of
alcohol,drugsorotherintoxicatingsubstances,breachoftheOrganization
rules and policy, disobedience ofreasonableordersfromsuperiorsorthe
Board, causing actual or threatening physical harm or damage to
Organization property, or any other act of misconduct.
7.2. Voluntary Resignation, Death or Disability
a) T
heEmployeemayvoluntarilyresignfromhisemploymentasanEmployee
oftheOrganizationatanytimeongivingapriorwrittennoticeof3months
Handbook for HR Managers |71
t otheOrganization.TheOrganizationmayatitssolediscretionwaiveallor
part of the notice.
b) IntheeventofterminationoftheAgreementduetotheEmployee'sdeath
ordisability(physicalormental),theEmployeeshallbeentitledtothebasic
salary pro-rated to the date of termination. All other obligations of the
Organization towards the Employee pursuant to the Agreement shall
automatically terminate and extinguish.
c) In the event of termination of this Agreement pursuant to clause 7.1(a) or
7.2(a)beforetheexpiryof[Tobeinsertedbybusinessowner]2 yearsfrom
the Effective Date, the Employee shall be liable to pay the Organization
liquidateddamagesequaltothetotalgrosssalaryearnedbytheEmployee
during the previous[Tobeinsertedbybusinessowner]3 monthsfromthe
date of such termination.
7.3. Retirement and termination for ill-health
heageofretirementoftheEmployeefromtheservicesoftheOrganizationshall
T
be [Insert number] years. The Organization at its solediscretionmayextendthe
ageofretirementsubjecttotheapprovaloftheBoard.IftheEmployeeshallatany
time be prevented from ill-health or accident or any physical or mentaldisability
fromperforminghisdutieshereunder,heshallinformtheOrganizationandsupply
itwithsuchdetailsasitmayberequiredandifheshallbeisunablebyreasonof
ill-health or accident or disability, for a periodof[Insertnumber]daysormorein
any period of twelve consecutive calendar months, to perform his duties
hereunder, the Organization may forthwith terminate this Agreement.
7.4. Termination without Cause
otwithstanding anything to thecontraryhereincontained,theOrganizationshall
N
be entitled to terminate this Agreement at any time by giving the Employee [3
(three)]4 months’ notice in writing or payment of his basic salary in lieu thereof,
withoutassigninganyreasonorwithoutCause.Intheeventofterminationbythe
Organization under thisclause7.4orincaseofaresignationbytheEmployeeas
per clause 7.2(a), the Organization may require the Employee to absent himself
from its premises on garden leave and not participate in the working of the
Organization during the unexpired portion of the notice period.
7.5. Handover
pon the termination of this Agreement foranyreason,theEmployeeshallhand
U
over charge to such person nominated for thatpurposebytheOrganizationand
2
hisnumbershouldideallybelimitedto1-3years,thatis,thetimewhentheorganizationisinvolvedinimpartingskills
T
and training to the employee.
3
This number, in order for the clause to hold legally enforceable,shouldideallybelinkedinsomewaytothecost
incurred by the business owner for hiring and training the employee (including costs search costs and training cost).
4
Customized numbers may be inserted.
Handbook for HR Managers |72
s hall deliver to such person such papers, documents and other property of the
Organizationasmaybeinhispossession,custody,controlorpower,includingbut
not limited to any phones, computers, vehicles, etc provided by the Organization.
8. CONFIDENTIALITY AND INTELLECTUAL PROPERTY
8.1. he Employee shall not during the continuation of this Agreement or thereafter,
T
divulgeormakeuseofanytradesecretorconfidentialinformationconcerningthe
businessoftheorganizationoranyofitsdealings,transactionsandaffairsorany
informationconcerninganyofitssuppliers,agents,distributorsorcustomerswhich
theEmployeepossessesorcomesintopossessionwhileintheemploymentofthe
organization or which he may make or discover while in the service of the
organization and the Employee shall alsousehisbestendeavourtopreventany
other person from doing so. All data, documents, plans, drawings, photographs,
reports, statements, correspondence, etc. and technical information, know-how
andinstructionsaswellasbusinessdetailsorcommercialpoliciesthatpasstothe
Employee or which come to the Employee's knowledge shall be treated as
confidentialandtheEmployeeshallbeboundtokeepsecretallsuchconfidential
matters including papersanddocuments,computerfloppies,CDsorothermedia
containingthesameandshallnotdisclose,communicate,reproduceordistribute
the same or copies thereof to anyone except in the course of the rightful
discharge of his duties as the Employee of the Organization.
8.2. heEmployeeshallnotatanytimehereafterinanywaymakeknownordivulgeto
T
any person, firm or body corporate any of the methods, systems or other
information of anykindinrelationtotheaffairsoftheOrganizationwhethersuch
information is or was acquiredbyhimbeforeexecutionofthisAgreement,inthe
course of his employment hereunder or otherwise.
8.3. heEmployeeacknowledgesthatownershipof,andallright,title,andinterestin,
T
all work product, improvements, developments, discoveries, proprietary
information, trademarks, trade names, logos, art work, slogans, know-how,
processes, methods, trade secrets, source code, application development,
designs, drawings, plans, business plans or models, blue prints (whether or not
registrableandwhetherornotdesignrightssubsistinthem),utilitymodels,works
inwhichcopyrightmaysubsist(includingcomputersoftwareandpreparatoryand
design materials thereof), inventions (whether patentable or not, andwhetheror
not patent protection has been applied for or granted) and all other intellectual
propertythroughouttheworld,inandforalllanguages,includingbutnotlimitedto
computerandhumanlanguagesdevelopedorcreatedfromtimetotimebyorfor
theOrganizationbytheEmployeewhetherbeforeexecutionofthisAgreementor
afterwards (the "Intellectual Properties") shall vest in the Organization. The
Employee expressly agrees that all Intellectual Properties created by the
Employeeshallbeunderacontractofservice.Inconsiderationofhisemployment
with the Organization, the Employee hereby transfers and shall be deemed to
haveassignedinfavouroftheOrganization,allrights,titleandinterestinandtoall
the Intellectual Properties, together with the rights to sublicense or transfer any
Handbook for HR Managers |73
nd all rights assigned hereunder to third parties, in perpetuity. The Employee
a
agrees that such assignment shall be perpetual,worldwideandroyaltyfree.The
Employee agrees that notwithstanding the provisions of Section 19(4) of the
Copyright Act, 1957, such assignment in so far as it relates to copyrightable
material shall not lapse nor therightstransferredthereinreverttotheEmployee,
eveniftheOrganizationdoesnotexercisetherightsundertheassignmentwithin
a period of one year from the dateofassignment.TheEmployeeacknowledges
and agrees that he shall waive any right to and shall not raise any objection or
claimstotheCopyrightBoardwithrespecttotheassignment,pursuanttoSection
19A oftheCopyrightAct,1957.TheEmployeeshallassistandcooperatewiththe
Organization in perfecting the Organization's rights in the Intellectual Properties.
8.4. he Employee shall forthwith communicate to the Organizationandtransfertoit
T
the exclusive benefit of all inventions, discoveries and improvements which he
may make or discover during the continuance of hisengagementrelatingtothe
Organization’stradeorbusinessandwillgivefullinformationastotheexactmode
ofworkingandusethesameandalsoallsuchexplanationandinstructions,tothe
officers and workmen of the Organization as may be necessary to enable them
effectuallytoworkthesameandwill,attheexpenseoftheOrganization,furnishit
with all necessary plans, drawings and models.
8.5. he Employee shall, whenever requested so to do by the Organizationwhether
T
during or after the termination of his employment hereunder, at the cost of the
Organization execute and sign any and all applications, assignments and other
instrumentswhichtheOrganizationmaydeemnecessaryoradvisableinorderto
apply for and to obtain letters, patent, design, registration or other forms of
protection for the aforesaid improvements, inventions and discoveries in such
countriesastheOrganizationmaydirectandtovestintheOrganizationthewhole,
right, title and interest therein.
8.6. list of all inventions belonging to the Employee and made by him before the
A
executiondateofthisagreementisannexedasScheduleB(E xcludedInventions).
IntellectualpropertyrightsinExcludedInventionswillnotbevestintheEmployer.
If any invention (not listed inScheduleB)isincorporatedinanyproduct,service,
program, process, machine, development or work in progress, or released or
unreleasedproductoftheEmployerbytheEmployee,theEmployershallhavean
irrevocable,exclusiveandroyalty-freelicensetoexerciseallrightsandexploitthe
inventiononaworldwidebasis,andwithoutanyrestrictionastotheextentofthe
Employee’s ownership or interest.
8.7. mployeehasidentifiedinScheduleCallagreementsthatwereenteredintowith
E
prior employers regarding preservation of confidential information and / or the
ownership of inventions. It is agreed that the Company does not expect the
employee to divulge confidential information of a prior employer or otherwise
violate any provision of such agreements. The Employee agrees to promptly
supply to the Company copies of any such written agreements upon request.
Handbook for HR Managers |74
9. NON-COMPETITION AND NON SOLICITATION
9.1. on-competition: The Employee acknowledges that he is, in the course of his
N
employmentwiththeOrganization,likelyfromtimetotimetoobtainknowledgeof
trade secrets, Intellectual Properties and other confidential information of the
Organization and its affiliates and to have dealings with the customers and
suppliers of the Organization. The Employee acknowledgestheimportanceand
commercial significance of the covenants under this clause, and admits and
acknowledges that he has various other technologies and information which if
deployed by him elsewhere or for a third party during the course of his
employmentorafterheceasestobeanemployeeorceasestobeassociatedwith
the Organization, would result in him competing against the Organization. The
Employee undertakes the following to the Organization:
hat heshallnot,forthedurationofemploymentwiththeOrganization,andfora
T
period of two (2)yearsafterthedateonwhichheceasestobeemployedbythe
Organization, either personally or through an agent, Organization or through a
partnership or as a shareholder, joint venture partner, collaborator, consultant,
advisor,principalcontractororsub-contractor,director,trustee,committeemember,
office bearer or agent or in any other manner whatsoever, whether for profit or
otherwise:
i) econcernedinanybusinessdirectlyorindirectlymanufacturing,operating,
b
sellingordistributingproductsorserviceswhichcompetewithanybusiness
then carried on by the Organization; and
ii) xcept on behalf of theOrganization,canvassorsolicitbusinessorcustom
e
for products ofasimilartypetothosebeingmanufacturedordealtinorfor
servicessimilartothosebeingprovidedbytheOrganizationfromanyPerson
who is a customer of the Organization;
9.2. on-solicitation:Fortwo(2)yearsfollowingterminationofEmployee’semployment
N
(i) the Employee shall not solicit, encourage, or induce or attempt to solicit,
encourage, or induce any (A) employee, marketing agent, or consultant of the
Organization to terminate his employment, agency, or consultancy with the
Organization or any (B) prospective employee with whom the Organization has
haddiscussionsornegotiationswithinsixmonthspriortoEmployee’stermination
ofemployment,nottoestablisharelationshipwiththeOrganization,(ii)induceor
attempt to induce any current customer to terminate its relationship with the
Organizationor(iii)induceanypotentialcustomerwithwhomtheOrganizationhas
haddiscussionsornegotiationswithinsixmonthspriortoEmployee’stermination
of employment not to establish a relationship with the Organization.
9.3. heEmployeeagreesthatanymaterialbreachorwrittenthreatenedbreachofthis
T
clausemaynotberemediedsolelybymonetarydamages,andthatinadditionto
any other remedies, the Organization is entitled to seek injunctive relief against
the Employee in a forum of competent jurisdiction for any such breach.
Handbook for HR Managers |75
9.4. he Employee agrees and acknowledges that the restrictions contained in this
T
clauseareconsideredtobereasonableinallthecircumstancesfortheprotection
of the legitimate interests of the Organization and shall be enforceable
independently. While the undertakings and agreements under clause 9 are
considered by the Organization and the Employee to be reasonable in all
circumstances, if one or more should be held to be invalid as an unreasonable
restraintoftradeorforanyotherreasonwhatsoeverbyafinaladjudicationofany
tribunalorcourtofcompetentjurisdiction,butwouldhavebeenheldvalidifpartof
thewordingthereofhadbeendeletedortheperiodthereofreducedortherange
of activities or area dealt with reduced in scope, the said undertakings and
agreements shall apply with such modifications as may be necessary to make
them valid and effective.
10. SETTLEMENT OF DISPUTES AND GOVERNING LAW
10.1. This Agreement shall be governed and interpreted according to the laws of India.
10.2. hePartiesshallseektoresolveanydispute,controversy,claimorbreacharising
T
outoforinrelationtothisAgreementincludinganyquestions,issuesordisputes
concerning its existence, validity or termination,byamicablearrangementandin
the spirit of compromise, and only if the Parties fail to resolve the same by
amicable arrangement and compromise within a period of fifteen (15) days of
receiptofwrittennoticeofthesamebytheotherParty,eitherPartymayresortto
arbitration as provided herein.
10.3. ny dispute, controversy, claim or breach arising out of or in relation to this
A
Agreement, including any questions, issues ordisputesconcerningitsexistence,
validity or termination, shall be referred to arbitration in accordance with the
ArbitrationandConciliationAct,1996ofIndia.Thearbitraltribunalshallconsistof
three members of whom the Parties shall nominate one each and the thus
nominated two members shall in turn appoint the third member. The arbitration
shall be conducted in English language at [______] [specify most convenient
location]. Dependingontheconsentofparties,thearbitratormaydecidetohold
proceedings at any other location.
10.4. hisagreementshallbesubjecttojurisdictionofcourtsat[______][specifymost
T
convenient location] only.
11. EQUITABLE REMEDIES AND INDEMNIFICATION
he restrictions contained intheclauses8and9arenecessaryfortheprotectionofthe
T
business and goodwill of the Organization and are considered by the Employee to be
reasonable for such purposes. The rights and obligationsofthePartiesunderclauses8
and 9 of theAgreementshallsurvivetheterminationofthisAgreementandshallnotbe
extinguished by termination ofthisAgreement.TheEmployeeagreesthatanybreachof
eithersuchclauseislikelytocausetheOrganizationsubstantialandirrevocabledamage
that is difficult to measure. Therefore, in the event of any such breach or threatened
breach, the Employee agrees that the Organization, in addition to such other remedies
Handbook for HR Managers |76
hichmaybeavailable,shallhavetherighttoobtainaninjunctionfromacourt,tribunalor
w
anyotherforumofcompetentjurisdiction,restrainingsuchabreachorthreatenedbreach
and therighttospecificperformanceoftheprovisionsofeithersuchparagraph,andthe
Employee hereby waives the adequacy of a remedy at law as a defense to such relief.
12. MODIFICATIONS OF THIS AGREEMENT
oamendment,modificationoradditiontothisAgreementshallbeeffectiveorbindingon
N
eitherofthePartiesheretounlesssetforthinwritingandexecutedbythemthroughtheir
duly authorized representatives; and subject to obtaining requisite approvals, if any,
following such execution.
13. SEVERABILITY
houldanypartofthisAgreementbedeclaredillegalorunenforceable,thePartieshereto
S
willcooperateinallwaysopentothemtoobtainsubstantiallythesameresultorasmuch
thereof as may bepossible,includingtakingappropriatestepstoamend,modifyoralter
thisAgreement.IfanytermorprovisionofthisAgreementshallbehereafterdeclaredbya
final adjudication of any tribunal or court of competent jurisdiction to be illegal, such
adjudication shall not alter the validity or enforceability of any other term or provision
unless the terms and provisions so declared are expressly defined as a conditions
precedent or as of the essence of this Agreement, or comprising an integral part of,or
inseparable from the remainder of this Agreement.
14. ASSIGNMENT
This Agreement being one for personal services cannot be assigned by the Employee.
15. NOTICE
ny communication required to be given under this Agreement shall be effective when
A
deliveredpersonallytothePartyspecifiedbelow;orwhenreceivedeither:(i) viacertified
or registered mail, return receipt requested, postage prepaid; or (ii) via express mail or
reputablecourierservice,bysuchParty.Anynoticeorothercommunicationrequiredtobe
given, shall be in writing and duly addressed to the parties at:
a. In the case of the Organization:
.R. Manager / [Insert name of appropriate authorityin Organization],
H
[Insert name, postal address, telephone number, emailid of Organization]
b. In the case of the Employee:
[Insert name, postal address, telephone number, emailid of Employee]
he Employee shall be obligated to informtheOrganizationofanychangemadetothis
T
address at any time.
Handbook for HR Managers |77
16. COUNTERPARTS
his Agreement will be executed in counterparts, each of which shall be deemed an
T
original, but all of which together shall constitute one and the same instrument.
I agree to be bound by the conditions of employment above.
Signed:
_____________________________________
_
Date:
______________________________________
Signed for and on behalf of the Organisation:
Signed:
______________________________________
Date: ______________________________________
All in the presence of:
1.
2.
Handbook for HR Managers |78
Template - EXECUTIVE EMPLOYMENT AGREEMENT
his Executive Employment Agreement ("Agreement") is made at [____] on this [___] of [___],
T
2014
By and Between:
[___], a [company / LLP / partnership] incorporated in India under the [Companies Act, 1956 /
LimitedLiabilityPartnershipsAct,2008/IndianPartnershipAct,1932],havingitsregisteredoffice
at[INSERTADDRESSOFREGISTEREDOFFICEOFCOMPANY/LLP/ADDRESSOFOFFICEOF
PARTNERSHIP],("Organization",whichexpressionshall,unlessitisrepugnanttothemeaningor
context, be deemed to include its successors and permitted assigns) of the First Part.
And
[___], son of [___], aged about [___] years residing at [___] ("Executive") of the Second Part.
he Organization andExecutiveshallhereinafterbereferredtoasthe"Parties"inthecollective
T
and as a "Party" in the singular, as the context mayso require.
WHEREAS:
A. T heOrganizationisengagedinthebusinessofsoftwareproductsforend-consumersand
it also sells (through collaborators) to a few enterprise-level clients.
B. C ompany desires assurance of the association andservicesoftheExecutiveinorderto
retain the Executive’s experience, skills, abilities, background and knowledge, and is
willing to engage the Executive’s services on thetermsandconditionscontainedinthis
Agreement.
C. T he Organization has offered and the Executive has accepted the position in the
OrganizationastheCEOoftheOrganisationonthetermsandconditionsassetoutinthis
Agreement.
OW, THEREFORE, inconsiderationofthepromisesandthemutualcovenantssetforthherein,
N
the Parties hereto, intending to be legally bound, hereby agree as follows:
Definitions and interpretations:
For the purposes of this Agreement the following terms shall have the following meanings:
" Board"or"BoardofDirectors"meanstheboardofdirectorsoftheOrganizationasconstituted
from time to time.
" E ffective Date" means the date of execution of thisAgreement.
Reference to any statute or statutory provision includes a reference to that statuteorstatutory
provisionasamended,extendedorre-enactedorconsolidatedfromtimetotimeandallstatutory
instruments or orders (including delegated legislation whether by way of rules, notifications,
bye-laws, guidelines, as amended, extended or re-enacted or consolidated from time to time);
Handbook for HR Managers |79
Words elsewhere defined/explained in this Agreement shall have the meaning so ascribed;
a. Words denoting the singular shall include the plural and vice versa;
b. Words denoting any gender include all genders; and
c. T heheadingsinthisAgreementareinsertedforconvenienceonlyandshallbeignoredin
construing this Agreement.
ate of Commencement: The Employment will commence from the _____ day of _______
D
201__ and be bound by the terms and conditions laid down in this Agreement.
lace of Work: The Executive shall be based for the time being at the headquarters of the
P
Organisation, currently located at [ ]. However, theExecutivemayberequiredto(i)relocateto
other locations in India or abroad; and (ii) during his employment under this Agreement, the
Executive shall undertake such travel within and outside India, from time to time, as may be
necessary in the interests of the Organization’s business or as directed by the Board in
connection with or in relation to the business of the Organization.
J ob Function: The Executive shall be employed as the Chief Executive Officer (CEO) of the
Organisation and he/she shall also be required to carry out associated functions which
commensurate with his positions as the CEO of the Company or as the organisation may
prescribe .may from time to time require.
heExecutivealsoagreestocomplywithvariousOrganizationpolicies,rulesandregulationsas
T
may be updated from time to time unilaterally by the Organization.
Duties and obligations:
a. T he Executive shall work full time for the Organization, devoting his time,attentionand
skill to the duties of his office and shall faithfully, efficiently, competently and diligently
performsuchdutiesandexercisesuchpowersasmayfromtimetotimebeassignedtoor
vested in him and shall comply with all lawful directions given to him by or under the
authorityoftheBoardandusehisbestendeavourstopromoteandextendthebusiness
of the Organization and to protect and further the interests and reputation of the
Organization.
b. T heExecutiveshallactdiligentlyandtothebestofhisabilityinthedischargeofhisduties
andsubjecttoanyrestrictionsorlimitationsimposedbytheconcernedofficerorpolicyof
the Organization in this regard.
c. T he Executive shall, unless prevented by ill-health or disability, devote adequate time,
attention and abilities to the business of the Organization and shall faithfully serve the
Organization and use his best endeavours to promote the interest of the Organization.
d. T heExecutiveshallatalltimespromptlygivetotheChairmanoftheBoardofDirectorsall
such information, explanations and assistance as the Board may require in connection
with the business of the Organization.
Handbook for HR Managers |80
e. D uring the currency of this Agreement, the Executive shall not directly or indirectly
engage himself inanyotherbusiness,occupationoremploymentwhetherpermanentor
temporary, without the approval of the Organization.
f. N othingcontainedhereinshallbeconstruedaspreventingtheExecutivefrominvestingin
anyotherbusinessorentitywhichisnotincompetitionwiththebusinessoftheCompany.
Nothing contained herein shall be construed as preventing the Executive from (1)
engaging in day to day personal business transactions and other personal matters (2)
serving on civic or charitable boards or committees, (3) advising young startups and
entrepreneurs andgettingassociatedwithstartupincubators,startupforumsandgroups
or (4) continue advisory and consultancy work with the companies the Executive
co-foundedinthepast,providedhowever,thatnoneofsuchactivitiesmateriallyinterferes
with the performance of his duties under this Agreement and provided further that the
BoardofDirectorsapprovesofeachsuchproposedappointmentwhichapprovalshallnot
be unreasonably withheld.
ours of Work: The normal hours of work shall be ______ a.m. to _______ p.m., or a total
H
number of _____ hours per week, as shall be set out by the Company from time to time.
However, the Executives may be required toworkforsuchadditionalhourswithoutpay,asper
theneedandrequirementofthebusinessorasmaybenecessaryfortheproperperformanceof
the duties by the Executive.
Salary and benefits:
a. In consideration of his services to the Organization, the Organization shall pay to the
ExecutiveduringthetermofthisAgreement,grossremunerationofRs.[Insertamountin
figures] (Rupees [Insert amount in words]) per annum, subject to deduction of tax at
source and other statutory deductions. Salary will be reviewed _______________.
PaymentshallbebydirectdebitintotheExecutive’sbankaccount,theaccountdetailsto
be provided by the Executive to the Organisation on the execution of this Agreement.
b. T he Executive shall be considered for an annual discretionary cash bonus up to [insert
percentage] % of the base annual salary based on performance and the satisfaction of
specified goals, including creation of new technology or innovation, as set by the
organisation from time to time.
c. T he Executive shall also be considered for Executive Stock Option Plan (ESOP) in a
mannerasdecidedbytheBoard.Thestockoptionshallvestthreeyearsfromthedateof
grant subject to Executive’s continued services with the Company through such date.
d. S ave and except as otherwise provided inthisAgreementorasmaybedecidedbythe
Board from time to time, the Executive shall be entitledtoallsuchbenefitsthatmaybe
available to him as per law/Organization policy for its management-level Executives
generally, as in effect from time to time.
eave: The Executive shall be entitled to paid vacation, personal leave and sick days in
L
accordancewiththeOrganization’svacationandleavepoliciesforitsExecutivesgenerally,asin
effectfromtimetotime.Notwithstandinganythingtothecontrarycontainedinsuchpolicies,the
Handbook for HR Managers |81
xecutive agrees and accepts that he shall not have the right to encash, seek encashment or
E
carry forward any unutilized leave in a given year.TheExecutivemayhoweverbepermittedto
carry forward his unutilized leave with the prior approval of the Board of Directors of the
Organization, subject to such conditions as may be imposed by the Organization.
rievance Procedure: The Company is most anxious that legitimate grievances raised by an
G
Executive are expeditiously and fairly resolved. Any Executive who has a grievance relating to
his/her employment should discuss it with the Company.
Termination for Cause:
a. T heCompanyhopesthatitwillnotbecomenecessarytodismissanExecutive,however,it
must be understood that there are certain breaches of Company Rules (hereinafter
“Cause”)forwhich,afterthefactshavebeenascertained,anExecutivemaybedismissed
orsuspended,withoutpay,pendingfurtherinvestigations.Insuchanevent,anExecutive
willbeaffordedafullrightofrepresentationofhis/hercasetotheCompanybeforeafinal
decision ismade.TheExecutivewillbedismissedintheeventofitbecomingabsolutely
clearthatno,orinsufficient,improvementontheaspectofperformanceisforthcoming.At
all times theOrganisationwillabidebyproceduralfairnesswhendealingwithdismissals
from the Company. For purposes of this clause, “Cause” shall mean:
b. E xecutive’sindictmentorconvictionofanycrimeinvolvingmoralturpitudeundernational,
state or local law;
c. E xecutive’sfailuretoperform(otherthanasaresultofExecutive'sbeingDisabled),inany
material respect, any of his duties or obligations under or in accordance with this
Agreement for any reason whatsoeverandtheExecutivefailstocuresuchfailurewithin
ten business days following receipt of notice from the Organisation;
d. E xecutive commits any dishonest, malicious or grossly negligent act which is materially
detrimental to the business or reputation of the Organisation, or the Organisation’s
business relationships, provided, however,thatinsucheventtheOrganisationshallgive
the Executive written notice specifying in reasonable detail the reason for the termination;
e. A ny intentional misapplication by Executive oftheOrganisation’sfundsorothermaterial
assets, or any other act of dishonesty injurious to Employer committed by Executive; or
f. E xecutive’s use or possession of anycontrolledsubstanceorchronicabuseofalcoholic
beverages, which use or possession the Board of Directors reasonably determines
renders Executive unfit to serve in his capacity as a senior executive of the Organisation.
g. In the eventtheOrganisationterminatestheExecutive'semploymentforcause,thenthe
Executive shall be entitled to receive through the dateoftermination:(1)hisbasesalary
and (2) the benefits provided in clause (vii) hereof including all accrued but unpaid
vacation.
h. T hisAgreementwiththeExecutivecanbeterminated,underthisclauseorclause(xi),only
byavoteoftheBoardofDirectors,providedthatpropernoticeofsuchproposedaction
was given to the Board of Directors.
Handbook for HR Managers |82
Termination without Cause:
a. N otwithstanding anything to the contrary herein contained, the Organization shall be
entitledtoterminatethisAgreementatanytimebygivingtheExecutive3(three)months’
notice in writing or payment of his basic salary in lieu thereof, without assigning any
reasonorwithoutCause.IntheeventofterminationbytheOrganizationunderthisclause
or in case of a resignation by the Executive as per clause (xiii), the Organization may
require the Executive to absent himself from its premises on garden leave and not
participate in the working oftheOrganizationduringtheunexpiredportionofthenotice
period.
b. In case of termination under this clause or clause (xii),theExecutiveshallbeentitledto
receiveallaccruedbutunpaid(asoftheTerminationDate)SalaryandBenefits,alongwith
aSeveranceAllowancecalculatedatfour(4) timesthelastannualpay,tobepaidinlump
sum within 60 days from the date of termination.
rovided,suchSeveranceAllowancewillnotbepayable,incaseofterminationunderthis
P
clause is made within one (1) year from the date of Commencement ofthisAgreement.
Executive will only receive the applicable Severance Payment if Executive: (i) complies
withallsurvivingprovisionsofthisAgreement and(ii)executesafullgeneralreleaseina
formacceptabletoCompany,releasingallclaims,knownorunknown,thatExecutivemay
haveagainstOrganisationarisingoutoforanywayrelatedtoExecutive’semploymentor
termination of employment with Organisation, andsuchreleasehasbecomeeffectivein
accordance with its terms prior to the 60th day following the termination date, and (iii)
agreesnotmakeanyvoluntarystatements,writtenororal,orcauseorencourageothers
tomakeanysuchstatementsthatdefame,disparageorinanywaycriticizethepersonal
and/or business reputations, practices or conduct of Organisation ((i)-(iii) are collectively
referred to hereafter as “Severance Obligations”) All other Organisation obligations to
Executive will be automatically terminated and completely extinguished.
Termination upon Change of Control:
a. IftheExecutive'semploymentisterminatedbytheCompanywithoutCauseinconnection
with or within [one year] after Change in Control, the Executive shall be entitled to
Severance Allowance as stated in clause (xi).
b. F or purposes of this Agreement, unless the Board determines otherwise, a Change of
Control of the Company shall be deemed to have occurred at such time as:
1. C
hange in Ownership. Any person is or becomes the beneficial owner, directly or
indirectly,ofvotingsecuritiesoftheOrganisation’srepresentingmorethan50%ofthe
Organisation’s outstanding voting securities or rights to acquire such securities
exceptforanyvotingsecuritiesissuedorpurchasedunderanyemployeebenefitplan
of the Organisation or its subsidiaries; or
2. S
ale. Any sale, lease, exchange or other transfer (in one transaction or a series of
transactions) of all or substantially all of the assets of the Company; or
Handbook for HR Managers |83
3. L
iquidation.AplanofliquidationoftheOrganisationoranagreementforthesaleor
liquidation of the Organisation is approved and completed; or
4. B
oard Determination. The Board determines in its sole discretionthataChangein
Control has occurred, whether ornotanyeventdescribedabovehasoccurredoris
contemplated.
otice Periods: The Executive may voluntarily resignfromhisemploymentasExecutiveofthe
N
Organizationatanytimeongivingapriorwrittennoticeof3(three)monthstotheOrganization.
Notwithstanding the foregoing, the Company, may, at its discretion, waive its right to notice.
etirement and termination for ill-health: The age of retirement of the Executive from the
R
servicesoftheOrganizationshallbe[Insertnumber]years.TheOrganizationatitssolediscretion
may extend the age of retirement subject totheapprovaloftheBoard.IftheExecutiveshallat
any time be prevented from ill-health or accident or any physical or mental disability from
performinghisdutieshereunder,heshallinformtheOrganizationandsupplyitwithsuchdetails
as itmayberequiredandifheshallbeisunablebyreasonofill-healthoraccidentordisability,
foraperiodof[Insertnumber]daysormoreinanyperiodoftwelveconsecutivecalendarmonths,
to perform his duties hereunder, the Organization may forthwith terminate this Agreement.
eathordisability:IntheeventofterminationoftheAgreementduetotheExecutive'sdeathor
D
disability (physical or mental), theExecutiveshallbeentitledtothebasicsalarypro-ratedtothe
date of termination. AllotherobligationsoftheOrganizationtowardstheExecutivepursuantto
the Agreement shall automatically terminate and extinguish.
andover:UpontheterminationofthisAgreementforanyreason,theExecutiveshallhandover
H
chargetosuchpersonnominatedforthatpurposebytheOrganizationandshalldelivertosuch
person such papers, documents and other property of the Organization as may be in his
possession, custody, control or power, including but not limited to any phones, computers,
vehicles, etc provided by the Organization.
Intellectual Property:
he Executive acknowledges that ownership of, and all right, title, and interest in, all work
T
product, improvements, developments, discoveries, proprietary information, trademarks, trade
names, logos, art work, slogans, know-how, processes, methods, trade secrets, source code,
application development, designs, drawings, plans, business plans or models, blue prints
(whetherornotregistrableandwhetherornotdesignrightssubsistinthem),utilitymodels,works
in which copyright may subsist (including computer software and preparatory and design
materials thereof), inventions (whether patentable or not, and whether or notpatentprotection
has been applied fororgranted)andallotherintellectualpropertythroughouttheworld,inand
for all languages, including but not limited to computer and human languages developed or
createdfromtimetotimebyorfortheOrganizationbytheExecutivewhetherbeforeexecutionof
this Agreement or afterwards (the"Intellectual Properties")shall vest in the Organization.
he Executive expressly agrees thatallIntellectualPropertiescreatedbytheExecutiveshallbe
T
under a contract of service. In consideration of his employment with the Organization, the
ExecutiveherebytransfersandshallbedeemedtohaveassignedinfavouroftheOrganization,
Handbook for HR Managers |84
ll rights, title and interest in and to all the Intellectual Properties, together with the rights to
a
sublicense or transfer any and all rights assigned hereunder to third parties, in perpetuity.The
Executive agrees that such assignment shall be perpetual, worldwide and royalty free. The
Executive agrees thatnotwithstandingtheprovisionsofSection19(4)oftheCopyrightAct,1957,
such assignment in so far as it relates to copyrightable material shall not lapse nor the rights
transferred therein reverttotheExecutive,eveniftheOrganizationdoesnotexercisetherights
under the assignment within a period of one year from the date of assignment. The Executive
acknowledges and agrees that he shall waive any right to and shall not raise anyobjectionor
claims to the Copyright Board with respect to the assignment, pursuant to Section 19A of the
CopyrightAct,1957.TheExecutiveshallassistandcooperatewiththeOrganizationinperfecting
the Organization's rights in the Intellectual Properties.
a. A listofallinventionsbelongingtotheExecutiveandmadebyhimbeforetheexecution
date of this agreement is annexed as Schedule A (Excluded Inventions). Intellectual
propertyrightsinExcludedInventionswillnotbevestintheOrganisation.Ifanyinvention
(not listed in Schedule A) is incorporated in any product, service, program, process,
machine, development or work in progress, or released or unreleased product of the
Organisation by the Executive, theOrganisationshallhaveanirrevocable,exclusiveand
royalty-free license to exercise all rights and exploittheinventiononaworldwidebasis,
and without any restriction as to the extent of the Executive’s ownership or interest.
b. E xecutive has identified in Schedule B all agreements that were entered into withprior
Organisationsregardingpreservationofconfidentialinformationand/ortheownershipof
inventions. It is agreed that the Company does not expect the Executive to divulge
confidentialinformationofapriorOrganisationorotherwiseviolateanyprovisionofsuch
agreements.TheExecutiveagreestopromptlysupplytotheCompanycopiesofanysuch
written agreements upon request.
c. S ubjected to the other provisions of this agreement, the Executive is free to pursue
independent projects during his non-work time. Any intellectual property developed or
inventedbytheExecutiveresultingoutofsuchindependentprojectswouldbelongtothe
Executive. However, such projects should not be in direct competition with the
Organisation and should be limited tonon-worktimes,maynotbeattheexpenseofan
Executive’s job performance or interfere in any way with the business needs and
operations of the Organisation and may not impose costs on Organisation.
d. T he Executive agrees to indemnify the Organisation from any intellectual property
infringementclaimsmadebyapriorEmployerorathirdparty,whicharisesoutofinclusion
or usage of anythirdpartyintellectualpropertyintheproductsmadefororonbehalfof
the Organisation or any intellectual propertydevelopedorcreatedforthebenefitofthe
Organisation by the Executive. Such infringing intellectual property may include without
limitationanyintellectualpropertyof(i)anyformeremployer,(ii)anypersonforwhomthe
Executive has performed or currently performing consulting services in independent
capacity, or(iii)anyotherpersontowhomtheExecutivehasalegalobligationregarding
the use or disclosure of such intellectual property.
Handbook for HR Managers |85
Confidentiality:
a. T heExecutiveshallnotduringthecontinuationofthisAgreementorthereafter,divulgeor
make use of any trade secretorconfidentialinformationconcerningthebusinessofthe
Organizationoranyofitsdealings,transactionsandaffairsoranyinformationconcerning
any of its suppliers, agents, distributors or customers which the Executivepossessesor
comes into possession while in the employment of the Organization or which he may
makeordiscoverwhileintheserviceoftheOrganizationandtheExecutiveshallalsouse
hisbestendeavourtopreventanyotherpersonfromdoingso.Alldata,documents,plans,
drawings, photographs, reports, statements, correspondence, etc. and technical
information,know-howandinstructionsaswellasbusinessdetailsorcommercialpolicies
thatpasstotheExecutiveorwhichcometotheExecutive'sknowledgeshallbetreatedas
confidentialandtheExecutiveshallbeboundtokeepsecretallsuchconfidentialmatters
including papers and documents, computer floppies, CDsorothermediacontainingthe
same and shall not disclose, communicate, reproduce or distribute the same or copies
thereof to anyone except in the course of the rightful discharge of his duties as the
Executive of the Organization.
b. T he Executive shall not at any time hereafter in anywaymakeknownordivulgetoany
person, firm or body corporate any of themethods,systemsorotherinformationofany
kind in relation to the affairs of the Organization whether such information is or was
acquired by him before execution of this Agreement, in the course of his employment
hereunder or otherwise.
on-Competition Agreement: The Executive acknowledges that he is, in the course of his
N
employmentwiththeOrganization,likelyfromtimetotimetoobtainknowledgeoftradesecrets,
IntellectualPropertiesandotherconfidentialinformationoftheOrganizationanditsaffiliatesand
to have dealings with the customers and suppliers of the Organization. The Executive
acknowledges the importance and commercial significance of the covenantsunderthisclause,
and admits and acknowledges that he has various other technologies and informationwhichif
deployed by him elsewhereorforathirdpartyduringthecourseofhisemploymentorafterhe
ceasestobeanExecutiveorceasestobeassociatedwiththeOrganization,wouldresultinhim
competing against the Organization. The Executive undertakes the following to the Organization:
a. T hatheshallnot,forthedurationofemploymentwiththeOrganization,andforaperiod
of two (2) years after thedateonwhichheceasestobeemployedbytheOrganization,
either personally or through an agent, Organization or through a partnership or as a
shareholder,jointventurepartner,collaborator,consultant,advisor,principalcontractoror
sub-contractor,director,trustee,committeemember,officebeareroragentorinanyother
manner whatsoever, whether for profit or otherwise:
b. B e concerned in any business directly or indirectly manufacturing, operating, selling or
distributingproductsorserviceswhichcompetewithanybusinessthencarriedonbythe
Organization; and
Handbook for HR Managers |86
c. E xceptonbehalfoftheOrganization,canvassorsolicitbusinessorcustomforproductsof
asimilartypetothosebeingmanufacturedordealtinorforservicessimilartothosebeing
provided by the Organization from any Person who is a customer of the Organization;
Non-solicitation:
a. F or two (2) years following termination of Executive’s employment(i)theExecutiveshall
not solicit, encourage, or induce or attempt to solicit, encourage, or induce any (A)
Executive, marketing agent, or consultant of the Organization to terminate his
employment, agency, or consultancy with the Organization or any (B) prospective
Executive with whom the Organization has had discussions or negotiations within six
monthspriortoExecutive’sterminationofemployment,nottoestablisharelationshipwith
the Organization, (ii) induce or attempt to induce any current customer to terminate its
relationship with the Organization or (iii) induce any potential customer with whom the
Organization has had discussions or negotiations within six months prior to Executive’s
termination of employment not to establish a relationship with the Organization.
b. T heExecutiveagreesthatanymaterialbreachorwrittenthreatenedbreachofthisclause
may not be remedied solely by monetary damages, and that in addition to any other
remedies, the Organization is entitled to seekinjunctivereliefagainsttheExecutiveina
forum of competent jurisdiction for any such breach.
c. T heExecutiveagreesandacknowledgesthattherestrictionscontainedinthisclauseare
considered to be reasonable inallthecircumstancesfortheprotectionofthelegitimate
interests of the Organization and shall be enforceable independently. While the
undertakings and agreements under clause xx and clause xxi are considered by the
Organization and the Executive to be reasonable in all circumstances, if one or more
shouldbeheldtobeinvalidasanunreasonablerestraintoftradeorforanyotherreason
whatsoever by a final adjudication of any tribunal orcourtofcompetentjurisdiction,but
wouldhavebeenheldvalidifpartofthewordingthereofhadbeendeletedortheperiod
thereof reduced or the range of activities or area dealt with reduced inscope,thesaid
undertakingsandagreementsshallapplywithsuchmodificationsasmaybenecessaryto
make them valid and effective.
everability:ShouldanypartofthisAgreementbedeclaredillegalorunenforceable,theParties
S
heretowillcooperateinallwaysopentothemtoobtainsubstantiallythesameresultorasmuch
thereof as may be possible, including taking appropriate steps to amend, modify or alter this
Agreement. If any term or provision of this Agreement shall be hereafter declared by a final
adjudicationofanytribunalorcourtofcompetentjurisdictiontobeillegal,suchadjudicationshall
not alter the validity or enforceability of any other term or provision unless the terms and
provisions so declared are expresslydefinedasaconditionsprecedentorasoftheessenceof
this Agreement, or comprising an integral part of, or inseparable from the remainder of this
Agreement.
ssignment: This Agreement being one for personal services cannot be assigned by the
A
Executive.
Handbook for HR Managers |87
otice: Any communication required to be givenunderthisAgreementshallbeeffectivewhen
N
delivered personally to the Party specified below; or when received either: (i) via certified or
registered mail, return receipt requested, postage prepaid; or (ii) via express mail or reputable
courierservice,bysuchParty.Anynoticeorothercommunicationrequiredtobegiven,shallbein
writing and duly addressed to the parties at:
In the case of the Organization:
[Insert name of appropriate authority in Organization],
[Insert name, postal address, telephone number, email id of Organization]
In the case of the Executive:
[Insert name, postal address, telephone number, email id of Executive]
heExecutiveshallbeobligatedtoinformtheOrganizationofanychangemadetothisaddress
T
at any time.
Settlement of disputes and governing law:
a. This Agreement shall be governed and interpreted according to the laws of India.
b. T hePartiesshallseektoresolveanydispute,controversy,claimorbreacharisingoutofor
in relation to this Agreement including any questions, issues or disputes concerning its
existence, validity or termination, by amicable arrangement and in the spirit of
compromise,andonlyifthePartiesfailtoresolvethesamebyamicablearrangementand
compromisewithinaperiodoffifteen(15)daysofreceiptofwrittennoticeofthesameby
the other Party, either Party may resort to arbitration as provided herein.
c. Incaseofnonresolutionofanydisputeordifferenceinthemannerspecifiedabove,the
sameshallthenbemandatorilyreferredtoArbitration,thenumberofarbitratorsshallbea
Sole independent arbitrator appointed through mutualconsent.Thearbitratorshallbea
competent and reputable individual who is a lawyer andhasexperienceofatleastfour
years and must have prior experience to work with startups.
d. T he Arbitrators shall not be limited by the CodeofCivilProcedure,1908andtheIndian
Evidence Act and shall be free to chart out the procedure to be followed in arbitration.
e. T hearbitrationproceedingsshallcommenceonandfromthedateofappointmentofSole
Arbitrator and the award shall be made within aperiodof60daysfromappointmentof
Sole Arbitrator.
f. The proceedings of arbitration and the award shall be made in English.
g. T he venue of proceedings shall be in [place] and thearbitrationshallbesubjecttoThe
Arbitration&ConciliationAct,1996andrulesframedthereunderandunderjurisdictionof
the courts at [place].
Handbook for HR Managers |88
h. T hefeespayabletotheArbitrators(includingarbitratorfeesandcostsbutexcludingany
filing fee payable by a Party commencing the arbitration) shall be borne equally by the
Parties; provided, the total fees payable to the arbitrator shall not exceed INR 40000.
quitable remedies and indemnification: The restrictions contained in the clauses (xvii), (xviii)
E
and (xix) are necessary for the protection ofthebusinessandgoodwilloftheOrganizationand
areconsideredbytheExecutivetobereasonableforsuchpurposes.Therightsandobligations
ofthePartiesunderclauses(xvii),(xviii)and(xix)oftheAgreementshallsurvivetheterminationof
this Agreement and shall not be extinguished by termination of this Agreement.TheExecutive
agrees that any breach of either suchclauseislikelytocausetheOrganizationsubstantialand
irrevocable damage that is difficult to measure. Therefore, in the event of any such breach or
threatenedbreach,theExecutiveagreesthattheOrganization,inadditiontosuchotherremedies
which may be available, shall havetherighttoobtainaninjunctionfromacourt,tribunalorany
other forum of competent jurisdiction, restraining such a breach or threatened breach and the
righttospecificperformanceoftheprovisionsofeithersuchparagraph,andtheExecutivehereby
waives the adequacy of a remedy at law as a defense to such relief.
lterationtoTermsofEmployment: AnyalterationsintheRegulationsofEmploymentaffecting
A
staff individually will be notified by a letter or memorandum, but any general alteration will be
communicated in a Circular to be seen by all members of staff.
J urisdiction: Any dispute arising out of or in conjunction with this Agreement shallbereferred
exclusively to the Courts in the State of _______.
greement:TheSchedules,ContractTermsandannexuresformpartofthisAgreementandany
A
referenceto”thisAgreement”includestheSchedules,annexures,AgreementTermsandrecitals
in the introductory paragraphs.
I agree to be bound by the conditions of employment above.
Signed:
_____________________________________
_
Date:
______________________________________
Signed for and on behalf of the Organisation:
Signed:
______________________________________
Date: ______________________________________
Handbook for HR Managers |89
All in the presence of:
1.
2.
Handbook for HR Managers |90
Consultancy Agreement
onsultancy Agreement is executed when the company wants to employ someone in the
C
capacityofaconsultant.Itisaserviceagreementonlybutdiffersfromafulltimecontractonthe
following points.
● cope of work
S
● Freedom and flexibility to work
● Specific skill sets required like taking the services of chartered accountants
● Degree of control is limited by the employer.
● The payment ofsalarycandiffer.Normallyconsultancyfeeispaidsubjecttochargingof
GST.
● The company is not liable to pay social security benefits in such working relationships.
Treatment of a company's intellectual property becomes a contentious issue.
●
Please scroll to the next page for the template
Handbook for HR Managers |91
Template - CONSULTANCY AGREEMENT
This Consultancy Agreement (Agreement) is enteredinto on this [●] day of [●] (Effective Date):
BY AND AMONG:
[●],acompanywithCIN[●]incorporatedunderthelawsof[●],andhavingitsregisteredofficeat
[●], hereinafter referred to asClient;
AND
[●],anindividualwith[AadharNumber/PANNumber][●]andpermanentaddress[●],hereinafter
referred to asConsultant;
heSellerandthePurchaserarehereinafterindividuallyreferredtoasaPartyandcollectivelyas
T
theParties.
OW THEREFORE, in considerationofthepromisesandthemutualcovenantssetforthherein,
N
the Parties hereto, intending to be legally bound, hereby agree as follows:
1. Agreement
1.1. Thepartieshaveenteredintothisagreement(“theAgreement”)fortheregulation
oftheappointmentoftheConsultantfortheperiodof[…](“theTerm”)andservices
as set out in[…]tobeprovidedtotheClientinaccordancewiththetermsofthis
Agreement (“the Services”).
1.2. he parties acknowledge that this Agreement contains the whole agreement
T
between the parties and that neither party has relied on any oral or written
representations(otherthansetoutexpresslyinthisAgreement)madetoitbythe
otheroranyofitsemployeesoragentshavingmadeitsowninvestigationsintoall
relevant matters.
2. Services
2.1. he Client pursuant to the Contract engages the Consultant to provide the
T
Services to the Client and the Consultant agrees to providetheServicesforthe
Term upon the terms and subject to the conditions of the Contract.
2.2. nless otherwise agreed by the parties in writing, the Client shall at its own
U
expense supply the Consultant with allnecessarydocumentsandmaterials(“the
Documents”),andallnecessarydataorotherinformationrelatingtotheServices,
within sufficient time to enable the Consultant to provide the Services in
accordance with this Contract.
2.3. heServicesshallinsofarasisreasonablypracticablebeprovidedinaccordance
T
with the requirements set out in [the Schedule] but subject to this Contract and
shall be performed at such times as the Consultant shall in its sole discretion
decide.
Handbook for HR Managers |92
2.4. heClientshallaffordtotheConsultantallreasonableco-operationinallmatters
T
relating to the performance of the Consultant’s obligations under the Contract.
2.5. hroughout the Term of the Contract the Client shall afford the Consultant such
T
access to the Client’s information or records and other materials relevant to the
Services as the Consultant may require in connection with or to provide the
Services.
2.6. he Client shall be responsible for complying with all laws and regulations
T
includingparticularlyinconnectionwiththecollection,use,anddisclosureofdata
under or pursuant to this Contract and shall comply with the [___] (where
applicable).
2.7. heConsultantdoesnotwarrant,guaranteeorundertakeanymatteronbehalfof
T
any third party supplier or service provider.
2.8. he property, copyright, and any other intellectual property rights inanyClient’s
T
Documents shall belong to the Client. The property, copyright, and any other
intellectualpropertyrightsinanyoftheConsultant’sdocumentsormaterialsshall
belong to the Consultant, subject only to the right of the Client to use the
Consultant’s documents and materials during the Term.
2.9. he Client warrants that any ClientMaterialanditsusebytheConsultantforthe
T
purposeofprovidingtheServiceswillnotinfringethecopyrightorotherrightsof
any third party, and the Client shall indemnify the Consultant against any loss,
damages, costs, expenses or other claims arising from any such infringement.
2.10. he parties agree not at any time during the term to divulge or allow to be
T
divulged to any person any confidential information relating to the business or
affairsoftheotherpartytothisContractsaveasprovidedbylaworwiththeother
party’s prior written consent.
[COMMENT:Thisisakeyclauseasitspecifiesthedualnatureofconfidentialityto
bemaintainedbythecontractingparties,i.e.,theConsultantshallnotdiscloseany
informationreceivedbytheClientduringthecourseofthecontracttoanyperson
and the same is expected of the Client.]
3. Fees, Expenses and Charges
3.1. ubject to any special termsagreedinwritingbytheparties,theClientshallpay
S
the consultancyfeesandotherchargesfromtimetotimefortheprovisionofthe
Services as set out in the [Schedule] (“the Fees”).
3.2. he Consultant shall not be entitled to vary the Fees at any time during the
T
duration of the Contract without prior written approval of the Client.
3.3. ll FeesandsumsquotedpayabletotheClientundertheContractareexclusive
A
of any [relevant tax], for which the Client shall be additionally liable at the
applicable rate from time to time.
Handbook for HR Managers |93
[COMMENT: Relevant tax is subject to the prevailing tax regime of a particular
country.Forexample,ifthiscontractismadewithintheterritoriesofIndia,thenthe
relevant tax would be Goods and Services Tax.]
3.4. heClientshallalsoberesponsibleforallexpensestogetherwithsuchadditional
T
sumswhichareagreedbetweentheConsultantandtheClientfortheprovisionof
the Services and any Additional Services or which, in the Consultant’s sole
discretion, are required as a result of the Client’s instructions or lack of
instructions,theinaccuracyofanyClientdocumentsormaterialoranyothercause
attributable to the Client.
3.5. he Fees and any additional sumspayableshallbepaidinfullbytheClientinto
T
such account as the Consultant shall reasonably instruct from time to time.
3.6. If payment is not madeontheduedate,theConsultantshallbeentitled,without
limitinganyotherrightsitmayhave,tochargeinterestontheoutstandingamount
(bothbeforeandafteranyjudgment)attherateof[…%]abovethebaseratefrom
timetotimeof[…]Bankplcfromtheduedateuntiltheoutstandingamountispaid
in full.
3.7. heClientshallreimbursetheConsultantforalloutofpocketexpenses,incurred
T
by it in connection with the Services for the Client.
[COMMENT: Recommended clause under clause 3.7: In doing so, according to
clause3.7,theClienthastherighttoaskforcorrespondingreceiptsoftheincurred
expenses by the Consultant in connection with services.]
3.8. he Consultant will not be obliged to provide Services unless all Fees and
T
disbursementsduetoitinrelationtotheprovisionoftheServicesarereceivedas
provided in this Contract.
4. Warranties and Liability
4.1. he Consultant warrants to the Client that the Services will be provided using
T
reasonable care and skill.
4.2. ll dates, periods or times specified in this Contractareestimatesonlyandtime
A
shall not be of the essence fortheperformancebyeitherpartyofitsobligations
under this Contract.
[COMMENT: It is to be noted that prevalence of this clause inthiscontractshall
servearepulsiveeffect,since,oneoftheconditionsmentionedforterminationof
the contract has time as the essence. Also, expiration of the contract,subjectto
this clause, is sensitive to recurrent postponement or untimely preponing.]
4.3. heConsultantspecificallyundertakesatalltimestokeepconfidentialanyofthe
T
Client’s confidential information (including this document, the lists or specific
customer details and information relating to the Client’s business or affairs) and
specifically not to disclose (whether or not for profit) such lists or information to
Handbook for HR Managers |94
ny competitor of the Client or any other person, firm or company engaged in
a
similar activity during the Term and at any time following the date of expiry or
termination of the Contract.
[COMMENT:Thisisakeyclausewithrespecttosurvivaloftheconfidentialclause
in this agreement. As perthelanguageandintentofthisclause,confidentialityis
sought-after to be maintained for a period with no limitation. Such a clause is
subject to modifications and/or negotiations depending upon contracting parties.]
4.4. he entireliabilityoftheClienttotheConsultantunderorinconnectionwiththis
T
ContractshallnotinanyeventexceedtheamountoftheFeespaidbytheClient
to the Consultant for the provision of the Services.
[COMMENT:Thisisakeyclausewithrespecttospecifyingthemaximumliabilityof
theClienttowardstheConsultantinconnectionwithprovisionofservicestobethe
total amount of the fees paid/accrued to the Consultant.]
4.5. he Consultant agrees to indemnify and keep the Client fully and effectually
T
indemnified from and against any loss claim or liability whatsoever incurred or
sufferedbytheClientasaresultofnegligenceoranydefaultbytheConsultant(or
its employees, agents or representatives) of its obligations however arising in
connection with the Services.
4.6. xceptinrespectofdeathorpersonalinjurycausedbytheClient’snegligence,or
E
as expressly provided in this Contract, the Client shall not be liable to the
Consultant by reason of any representation (unless fraudulent), or any implied
warranty,conditionorotherterm,oranydutyatcommonlaw,orundertheexpress
terms of the Contract, for any loss of anticipated savings, business revenues or
profits (whether categorised as direct or indirect), or any indirect, special or
consequential loss (including losses arising from business interruption, wasted
management time, loss of goodwill, data and all other such loss whether or not
arising in the normal course of business), damages, costs, expenses or other
claims.
4.7. ach of the Client and the Consultant shall be released from their respective
E
obligationsandshallnotbeliabletotheotherorbedeemedtobeinbreachofthe
Contractbyreasonofanydelayinperformingoranyfailuretoperformanyoftheir
obligationsundertheContractifthedelayorfailurewasduetoanycircumstances
or cause beyond the relevant party’s reasonable control.
[COMMENT:ThisisaForceMajeureclausereleasingtheClientandtheConsultant
from any liabilities or obligations in times of situations, unforeseeable in nature,
which compel non-performance of the contract.]
4.8. pon occurrence of a force majeure event, the parties shall use reasonable
U
endeavours to resolveandminimizeanydelaybutatthediscretionoftheClient,
this Contract shall be terminated without further liability.
Handbook for HR Managers |95
[COMMENT:Recommended clause: The client to ensure timely and efficient
performanceofthepromisebytheConsultant,i.e.,provisionofexpertservicesin
the corresponding field of expertise and recovery of any
costs/expenses/claims/damages/loss suffered due to the negligence of the
Consultant can ask the Consultant to either deposit a particular amount of
performance security or inform the Consultant that a particular percentage (for
examples,2.5%)ofthetotalfeesshallbeconsideredastheperformancesecurity
which shall be with the Client till the expiration of the contract.]
5. Termination
5.1. The Contract may be terminated:
5.1.1. forthwith by either party if the other commits any material breach of any
term of this Contractandwhich(inthecaseofabreachcapableofbeing
remedied) shall not have been remedied within [thirty (30)] days of a
written request to remedy the same;
5.1.2. nytimeuponserviceof[[…]([…])]months’noticebyeitherpartyinwriting
a
to the other;
5.1.3. forthwithbytheConsultantiftheClientfailstomakepaymentofanysums
due hereunder on the due date:
5.1.4. forthwithbyeitherpartyiftheothershallbecomeunabletopayitsdebtor
otherwise suffer insolvency events;
5.1.5. forthwithbytheClientuponnoticetotheConsultant,intheevent,thatthe
Clientoritsemployeesoragentsshallengageinanyconductprejudicialto
the business of the Client or in the event that the Client reasonably
considersthataconflictorpotentialconflictofinteresthasarisenbetween
the parties.
5.2. nyterminationoftheContractpursuanttothisclauseshallbewithoutprejudice
A
toanyotherrightsorremediesapartymaybeentitledtoundertheContractorat
law and shall not affect any accrued rights or liabilities of either party nor the
coming into or continuance in force of any provision which is expressly or by
implication intended to come into or continue in force on or after such termination.
6. Notices
6.1. ny notice or other communications to be given under the Contract shall be in
A
writing and may be delivered by hand or sent by first class prepaid recorded
delivery post (or if the recipient is in another country by prepaid airmail) to the
relevant address(es) stated in the Contract (or to such other address as the
addressee may from time to time have notified for that purpose) or sent by
facsimile transmission or electronic mail.
Handbook for HR Managers |96
6.2. ommunications shall bedeemedtohavebeenreceived,ifdeliveredbyhandat
C
the time of delivery; if posted, [three (3)] working days;[(ten(10)]workingdaysif
prepaid airmail) after posting; and if sent by fax transmission, at the date of
transmission.Inthecaseofelectronicmail,uponreceiptatsuchaddressexceptif
receipt is not on a business day, in which case the next following business day.
7. Miscellaneous
7.1. ll other warranties terms and conditions, express or implied by statute or
A
otherwise, are excluded to the fullest extent permitted by law.
7.2. [In the event of any conflict between the provisions of this Contract and the
Schedule, this Contract shall prevail.]
7.3. ofailureordelaybyeitherpartyinexercisinganyofitsrightsundertheContract
N
shallbedeemedtobeawaiverofthatright,andnowaiverbyeitherpartyofany
breach of the Contract by the other shall be considered as a waiver of any
subsequent breach of the same or any other provision.
7.4. he parties acknowledge and agree that the Contract shall not establish or
T
constitute any relationship of partnership, joint venture, franchise or agency
betweenthepartiesexceptasotherwiseexpresslyprovidedoragreedandneither
party shall have the power to bind the other without the other’s prior written
consent.
7.5. he Consultant shall act with the utmost good faith towards the Client and the
T
Consultant agrees to maintain accurate records and to disclose in writing any
relevant facts relating to potential conflicts of interest to the Client.
7.6. heConsultantshallnotassign,transfer,mortgage,chargeorotherwiseencumber
T
or deal with in any othermanner(includingadeclarationoftrust)alloranyofits
rights or obligations under this Contract without the written consent of the Client.
7.7. eferences to the Consultant include its personal representatives, permitted
R
assigns and successors in title.
7.8. ach party warrants its power to enter into the Contract and has obtained all
E
necessary approvals to do so.
7.9. xceptasexpresslyprovided(includinginrespectofindemnity),thepartiesdonot
E
intendanytermofthisContracttocreateanyrightsorbenefitstoanyotherparty
other than the parties to the Contract or to be enforceable pursuant to the
Contracts [___] but this does not affect any right or remedy of any third party
which exists or is available apart from the Act.
7.10. IfanyprovisionoftheContractorthisContractisheldbyanycompetentauthority
to be invalid or unenforceable in whole or in part, the validity of the other
provisions of the Contract or this Contract and the remainderoftheprovisionin
question shall not be affected.
Handbook for HR Managers |97
7.11. eference to any statute or statutory provisions shall be deemed toincludeany
R
statutorymodificationsorre-enactmentsthereoforanyrulesorregulationsmade
thereunder or any enactment repealing and replacing the Act referred to.
7.12. nless the context otherwiserequires,wordsimportingthesingularshallinclude
U
thepluralandviceversa;wordsimportingthemasculinegendershallincludethe
femininegenderandviceversa;andreferencestopersonsshallincludebodiesof
persons whether corporate or incorporate.
Law
helawof [___]shallapplytothisContract,andthepartiessubmittotheexclusivejurisdictionof
T
the [___] courts.
COMMENT: Recommended arbitration clause:
ny dispute, controversy or claim arising out of or relating to this contract, or the breach,
A
termination or invalidity thereof shall be settled by arbitration in accordance with the Rules of
Arbitration of the Access orJusticeInstitute,andtheandtheawardmadeinpursuancethereof
shall be binding on the parties.
The parties agree that the arbitration proceedings shall be conducted bywayofsubmissionof
written pleadings, documents and submissions made by the parties without any oral hearing.
he parties agree thatthewrittenpleadingswillbesubmittedtothearbitratorappointedbythe
T
said Institute who will resolve the dispute and differences hereunder by fast-track procedure.
he arbitrator shall take a decision in a time-bound manner after consideringonlysuchwritten
T
arguments. The decision or award so given by the Arbitrator shall be binding on the parties
hereto. In case, one of the parties does not take part in the arbitration proceedings and/or
obstruct the arbitration proceedings, the Arbitrator shall pass ex parte order which would be
enforceable on both the parties.]
IN WITNESS WHEREOF the Parties hereto have executedthisAgreementonthedayandyear
first above written.
Signed and delivered for and on behalf of:
or and on behalf of [Client]
F
1. [Insert Signature (& seal, where applicable)]
2. Authorised Signatory
Name:
Designation:
or and on behalf of [Consultant]
F
1. [Insert Signature (& seal, where applicable)]
2. Authorised Signatory
Name:
Designation:
Handbook for HR Managers |98
INWITNESSWHEREOF,thePartiesheretohaveexecutedthisAgreementasofthedayandyear
first above written.
For [INSERT NAME AND SEAL OF [Insert seal of Organization]
ORGANIZATION]
___________________
_ ___________________
_
Director / CEO / HR Manager [Insert signature of Director / CEO/
Manager]
___________________
_ ___________________
_
Witness Witness
[Insertnameaddressandsignatureofwitness] [Insert name address and signature
of witness]
____________________ ____________________
[To be inserted: Name, address and Signature of Employee
designation of employee]
Employee
___________________
_ ___________________
_
Witness Witness
[Insertnameaddressandsignature [Insert name address and signature of
witness] of witness]
SCHEDULE A
Details of Remuneration
Handbook for HR Managers |99
Break up of salary Rs. (Per annum)
asic salary
B
Perquisites
Performance Related Bonus
Any other -
Sub total
Organization's contribution to PF
Gross salary
SCHEDULE B
List of Excluded Inventions
[To be inserted]
SCHEDULE C
List of Prior Agreements
[To be inserted]
Contract Labour
● C ontract labourers are hired for specific work through a third partymanpowerprovider.
Contract labourers are not on the payroll of the company. An example of contract
labourersincludeemployingcaterersthroughathirdparty.Thecontractlabourerscanbe
hired and fired depending on the work requirement.
● As an HR manager youneedtoknowthattheobligationsforstatutorycompliancesand
maintenance of rests with the contract labourer. You don't need to worry about
retrenchment compensation.
● You need to collate the documents and records with the contractor at the time of an
inspection or audit.
Trainee arrangements can be of various kinds
● It can be an apprenticeship which is regulated by the apprenticeship Act and rules.
Basically the apprenticeship will be trained under an employee which will be imparted
training and education for honing a specific skill or craft with regard to a particular
vocation.
● The duration of the program and the terms of non completion of the program are
mentioned are important clauses in an apprenticeship contract.
Handbook for HR Managers |100
● W hile internship arrangements are not heavily regulated, theorganisationsmayprovide
fortheirownsetoftermsandpolicieswithregardtopaymentofstipend,workinghours,
leaves etc
● But a few regulations may still apply like prevention of sexual harassment at workplace.
● An employment agreement is the parent document governing the terms of the
employment relationship.
● Drafting and reviewing the employment terms is a crucial skill for HR managers. The
scopeandtermsofanemploymentcontractvarieswiththepositionandtheindustryone
is hiring for.
● It is also to be kept in mind that an appointment letter coupled with standing orders
suffices in most cases.
Standing Order
he standing orders regulate rules related to conditions of employment as per the Standing
T
Orders Act, 1946. They are to be pre approved byacertifyingofficerwhichcanbeacertifying
labour commissioner. It is also required that certified standing orders should be displayed ata
conspicuous space in the factory. Certain states like Karnatakafollowanautomaticcertification
process,where,ifnoobjectionisreceivedbythecertifyingofficertoastandingorderproposed
by the establishment within a certain time period, it stands automatically certified.
Matters covered in the standing order include but are not limited to
● lassification of workers
C
● Working in shifts
● Attendance
● Termination and suspension
● Redressal mechanism for the employee
● Transfer and vacancy
hestandingordersarerequiredtobe displayedataconspicuousplaceinthefactorypremises
T
either in English, Hindi or regional language as understood by the workers of the factory.
neofthekeychallengesinthisregardisabouttheapplicabilityoftheStandingOrderstotheIT
O
andITeSsector-theindustrydoesnotwantittobeapplicableowingtoconcernsthatitreduces
their cost competitiveness and operational flexibility by increasing the rights available to
members of the workforce.
Insights About Application of Statutes
hecontractualarrangementwithamemberoftheworkforceisdeterminedandgovernedbythe
T
applicabilityofstatutoryprovisions.Ifcertainstatutoryprovisionsorbenefitsareapplicable,they
may not be capableofbeingexcludedbythecontract.Thefollowinginsightsinthatregardare
useful:
● S
exual Harassment of Women atWorkplace(Prevention,ProhibitionandRedressal),Act,
2013isapplicabletoallmembersoftheworkforce,i.e.permanentemployees,temporary
Handbook for HR Managers |101
mployees, contract labour, employees or consultants who work from home, interns,
e
apprentices and even visitors who interact with your workforce.
● Maternity Benefit Act applies to members of the workforce who are engaged as
employees, consultants or contract workers (not, however, to interns, trainees and
apprentices).
IndustrialEmployment(StandingOrders)Act,1946isapplicabletoallworkerswhoworkin
●
an establishment, whether they are permanent, temporary or contractual, or even
apprentices.
Important Policies
Code of Conduct and Ethics Policy
samarketingmanager,youaredealingwithanumberofclientsonadaytodaybasis.Whatifa
A
distributorofyourcompanyoffersyouabusinessproposaltoworkwithyoupersonally?Canyou
enter into a contract with the distributor?
his is where a Code of Conduct and Ethics Policy comes into the picture. It guides the
T
employees on the standards of professional conduct expected from them in situations where
employees might feel conflicted ethically.
Code of Conduct and Ethics Policy essentially guides employees in theperformanceoftheir
A
responsibilities and duties in the organisation.
he company expects thattheactionsoftheemployeesmustbeinlinewiththevision,mission
T
andcorevaluesofthecompany.Itactsasareferencepointfortheemployeesonthestandards
ofprofessionalconductexpectedfromtheemployees.Everycompany’scodeofconductreflects
the company’s philosophy.
hile everycompany’scodeofconductisunique,acodeofconductandethicspolicybasically
W
captures the following elements:
● company’s core values and principles
A
● Standards of professional conduct expected
● Confidentiality
● Tackling situations of conflict of interest
● Dealing with a business opportunity
● Protecting business assets and intellectual property
● Workplace safety
● Definitions and detailed explanations of key terms
● Sufficient examples to clarify grey areas and enable employees to understand what is
permitted and what is not
ou may have a look at how well and concisely Google has drafted its codeofconductpolicy
Y
here
Handbook for HR Managers |102
Whistle Blower Policy
● ItwasaformerseniorexecutivewhoblewthewhistleintheSatyamcase.Whereanother
employee or even a member of the senior management of the organisation is at fault,
employeeswhobecomeawareofitneedtobeprovidedwithasafereportingmechanism
to report such wrongdoings. Their identity needs to be protected too.
● A Whistle Blower Policy provides a clear reporting framework wherein employees are
encouraged toreportwrongdoingsanddiscloseinformationwhichheorshebelievesto
be malpractice within the organisation.
● What if an employee makes a wrong accusation against a senior executive in the
managementoutofpersonalgrudge?Well,thewhistleblowingpolicy mustprovideforthe
consequences of makingafalseaccusationagainstastaffmemberoraseniorofficialin
the management.
● Whistleblower policies of listed companies are created as per SEBI Regulations. The
provisions in a whistleblower policy can relate to reporting violations of the Code of
Conduct as well.
● Here is a list of links to the published whistleblower policies of different companies:
1 . Hindustan Unilever Limited -whistleblower policy
2. Bajaj Finserv -whistleblower policy
3. JSW Steel Limited -whistleblower policy
4. Eicher Motors Limited -whistleblower policy
5. Britannia Industries Limited -whistleblower policy
6. Maruti Suzuki India Limited -whistleblower policy
7. Larsen & Toubro Limited -whistleblower policy
8. Orbit Exports Limited -whistleblower policy
9. Shree Cement Limited -whistleblower policy
10. Hindalco Industries Limited -whistleblower policy
11. Grasim Industries -whistleblower policy
12. Tata Steel Limited -whistleblower policy
13. Adani Ports and Special Economic Zone Limited -whistleblowerpolicy
14. Infinite Computer Solutions (India) Limited -whistleblowerpolicy
15. Hero Motocorp Limited -whistleblower policy
16. Infosys Limited -whistleblower policy
17. Cipla -whistleblower policy
18. Sun Pharmaceutical Industries Limited -whistleblowerpolicy
19. Surana Solar Limited -whistleblower policy
20.Mangalam Drugs and Organics Limited -whistleblowerpolicy
21. Ruchi Soya Industries Limited -whistleblower policy
22.Uttam Value Steels Limited -whistleblower policy
23.APL Apollo Tubes Limited -whistleblower policy
24.Simplex Realty Limited -whistleblower policy
25.York Exports Limited -whistleblower policy
26.Shalimar Productions Limited -whistleblower policy
27. Shanti Educational Initiatives Limited -whistleblowerpolicy
28.Sagarsoft (India) Limited -whistleblower policy
Handbook for HR Managers |103
9.Sutlej Textiles and Industries Limited -whistleblower policy
2
30.Reliance Industries Limited -whistleblower policy
Conflict of Interest Policy
● Y our company is going to enter into a joint venture with another company named XBC
limited. Your relative is the MD of XBC Limited. You are one of the directors of the
company intending the joint venture with XBC ltd. Can you take part in such a transaction?
● Whenanemployee’spersonalinteresthasthepotentialtoinfluencethedecisionmaking
of the company, a conflict of interest arises.
● Suchconflictofinterestsituationscanarisewhenhiringapersonalsoorwithdealingwith
the suppliers or customers of the company.
● AConflictofInterestPolicylistsoutthematerialtransactionsandcircumstancesthatmight
give rise to a conflict of interest situation.
● Itshouldlistoutamechanismtodisclosesuchtransactionsandconsequencesofbreach
and non-disclosure.
Please scroll to the next page for the template
Handbook for HR Managers |104
Template - CONFLICT OF INTEREST POLICY
● O ur Company is committed to conducting business inamannerthatensuresthatevery
business judgment and decision making isoffairnatureandisnotinfluencedbyundue
personal interests.
● W henanemployee’spersonalinterestseitherinfluence/havethepotentialtoinfluenceor
are perceived to influence their decision making at our Company, a conflict of interest
situation results.
● T hesesituationsmayincludebothcloselyrelatedpersonsandfriends.Makingjudgments,
taking decisions, or pursuing actions when facing a conflict of interest, may make it
difficult for ourCompanytoperformworkobjectivelyandeffectivelyandmayhavelegal
and regulatory consequences.
● E speciallywhenthereisaconflictofinterestwhilehiringaperson,makingadecisionwith
respect to customers, making any decision in course of your work or making any
purchase, you must inform your reporting manager in writing.
ollowingarethepoliciestobefollowedbytheemployeesoftheCompanyinordertoavoidany
F
kind of conflict of interests which might harm the reputation and integrity of the Company:
● E mployees are expected to recognize when they have or might develop a conflict of
interest relationship with another employee, customer, regulator, inspector or any other
person dealing with the company.
● E mployees should consult with the Reporting Manager if in doubt about what
circumstances might create a conflict of interest.
● E mployees must disclosetotheirReportingManageranyconflictsofinterest.Disclosure
musttakeplaceassoonastheemployeeidentifiesthattheremaybeaconflictofinterest
and, whenever possible, before the employee engages in the conduct in question.
● N ewly hired employees specifically must disclose all conflicts of interest with the
Company during the hiring process or immediately afterwards so that these can be
discussed with the top management.
● B usinessisdynamicandwhencircumstanceschange,existingdisclosuresmaynolonger
be accurate or complete. When this happens, the employee must freshly disclose the
conflict of interest.
VIOLATION OF POLICY:
● W hen an employee fails to disclose a conflict of interest to the Reporting Manager as
required by this policy, the employee shall be informed as to why it is believed that a
conflict exists and be given the opportunity to explain his/her non-disclosure.
● If, after hearing the response and making further queries, the Reporting Manager
determines that the employee has failed to disclose a conflict of interest, he/she may
Handbook for HR Managers |105
ecidethatdisciplinaryactionshouldbetakenbytheCompanyandshallhavetherightto
d
recover the costs as damages as decided on a case to case basis.
● This will depend on the materiality of the conflict and the reasons for non-disclosure.
Handbook for HR Managers |106
Business and Travel Policy
● If you are a marketing employee, chances are your work might involve a lot of travel,
meeting clients, attending trade fairs etc. The MD of your company has to attend a
conference in London, he demands a business class air ticket? Is it reasonable and
justified?
● If an employee goes for a personal meeting during work hours, will he be reimbursed,
afterall,heisgoingduringofficehours?Whetheryouwillallowtheinternalauditorofthe
companyreimbursementofhis2ndACtrainticketsornotaresomeofthequestionsthat
a business and travel policy seeks to answer.
● The policy is designed to assist employees in reporting expenses incurred while
conducting the company’s business or representing the company on its assignments.
● It sets out what expenses the company will approve and reimburse.
● It will include the name/ email id oftheperson/departmenttowhomyouneedtoreport
your expenses.
● It can also include terms putting an upper limit on the amount of allowed expenditure.
● It can also include a deadline for reporting such expenses and of course a list of
disallowed expenses.
Please scroll to the next page for the template
●
Handbook for HR Managers |107
Template - BUSINESS & TRAVEL EXPENSE POLICY
● T his policy is designed to assist employees in reporting expenses incurred while
conducting the Company’s business activities.
● T he Company will reimburse employees for approved business travel and associated
out-of-pocket expenses that are reasonable and necessary while representing the
Company on business assignments.
● T he Company expects Employees to act responsibly and professionally when incurring
and submitting costs. This includes, for example, travel fares, accommodations, meals,
telephone and documentation/printing charges, and purchases made on behalf of the
Company.
GENERAL GUIDELINES:
Booking
● E mployeesmustsendanemailto[providefinanceemailid],copyingtothe[financehead
or appointed personnel], in case of business related travel and wait for instructions.
● Employees must arrange all travel through the online booking tool.
Food and Local Travel
mployeeswillbereimbursedandgivenatravelallowanceofuptoRs.[enteramount]perday,if
E
they are travelling for business purpose, on productionofproperinvoices.Incaseofexpenses
over Rs. [enter aforementioned amount], a prior approval in writing is required from the Company.
Travel to Outstation town/cities
● E mployeesshould,asfaraspossible,booktheirjourneyssufficientlyinadvancetoobtain
the best possible prices. The Company will reimburse employees in case of a
pre-approved business travel.
● T he Company does not pay for cabs as a mode of transport, to and fro from both the
stations.
● IfEmployeesusetheirvehiclesforbusinesstravel,theamountwillbereimbursedasper
the amount spent on petrol and for appropriate parking fees.
● The Company is not responsible for traffic or parking violations.
● [Ifcostefficiencyisanimportantagendaforthecompany,likeforastartup,anadditional
clause can be added encouraging employees to stay inbackpackershostels,travelby
cheapest flights and save costs while travelling on business for the company]
EXPENSE REPORT SUBMISSION DEADLINE:
Handbook for HR Managers |108
● T o receive reimbursement, it is insisted that the employees should submit a completed
expense report within [enter number] days of incurring the expense, accompanied by
receipts in order to support such expense.
● Original receipts are required for reimbursement of all expenses, which include:
Ø Original boarding passes for airplane / train travel
Ø Credit Card or Debit Card Receipts
Ø Detailed Merchant Receipts
● Receipts must be accompanied by a summary which outlines:
Ø The nature of the expense
Ø The name and titles of the individuals involved
Ø The purpose for the expense
● A ll expense reports must be submitted to the Administrative Department and Finance
within a maximum of [enter number] days of incurring such expense. Expense reports
receivedafter[enteraforementionednumber]dayswouldnotbeacceptedandwouldbe
considered void for the purpose of reimbursing such amounts.
● Each expense reported must then be approved by the Finance.
REIMBURSEMENT TO EMPLOYEE:
● P aymentwillbemadedirectlytotheemployee'sbankaccountalongwithhis/hermonthly
salary.
● E xpensesnotsupportedbyareceiptornotproperlyapprovedbytheFinancewillnotbe
subject to reimbursement.
● T heCompanyreservestherighttowithholdreimbursementwhileitinvestigatesexpense
itemsifithasanyreasontosuspectfoulplay.Abuseofthepolicy,includingfalsificationof
expense reports, will result in disciplinary action, up to and including termination ofthe
employment apart from recovery of any amount received in a fraudulent way.
NON-REIMBURSABLE EXPENSES:
● T he Company has agreed to reimburse certainbusinessandtravelrelatedexpensesas
mentioned above and shall notreimburseforanyotherexpenseswhichareincurredby
an employee. The following is a general list of non-reimbursable expenses. The list is
inclusive in nature.
● Toiletries, cosmetics, medicines, or grooming products
● Expenses incurred by spouses, children or relatives
Handbook for HR Managers |109
● Alcohol
● Sightseeing or personal side trips
● P ersonalentertainment,suchasbooks,magazines,newspapers,hotelroommovies,hotel
room mini-bar charges, sporting events, etc.
● Valet and laundry services on trips
● [add any other expenses
Handbook for HR Managers |110
Data Security Policy
● D ata security has become a buzzword. In therecentpast,dataleakshavehappenedat
Facebook.
● Acompany’sbusinessrunsonavarietyofconfidentialinformation,includingpersonaland
other customer data. Such info might range from confidential business strategies to
launching a new product.
● What if the pendrive through which you were transferring your sensitive data was not
encrypted?
● Itcanalsohappenthatanemployeewhohasleftthecompanyhasaccesstoconfidential
information such as client lists, which, if leaked, could harm the reputation or business
plans of the company, and personal information of customers, which is statutorily
protected against disclosure.
● A Data Security Policy safeguards the company from potential risksofdatabreaches.It
imposes responsibility on employees for data protection too.
Please scroll to the next page for the template
Handbook for HR Managers |111
Template - DATA SECURITY POLICY
● C ompanies must protect restricted, confidential or sensitive data from loss to avoid
reputation damage and to avoid adversely impacting our customers. The protection of
data in scope is a critical business requirement, yet flexibility to access data and work
effectively is also critical.
● T hese policiescoveranyemployee,part-timeorfull-timeorindividualwithaccesstothe
data.
● The data protection policies must ensure that the Company:
● Complies with data protection law (if any) and follow good practice
● Protects the right of employees, customers and partners
● Is open about how it stores and processes individuals’ data
● Protects itself from the risks of the data breach
EMPLOYEE RESPONSIBILITY FOR DATA SECURITY:
● Y ou are requirednottoreferencethesubjectorcontentofsensitiveorconfidentialdata
publically,orviasystemsorcommunicationchannelsnotcontrolledbytheCompany.For
example,theuseofexternalemailsystemsnothostedbytheCompanytodistributedata
is not allowed.
● P lease keep a clean desk. To maintain information security you need to ensure that
in-scope data is not left on your desk unattended.
● Y ou need to use a secure password on all your systems. These credentials must be
unique and must not be used on other external systems or services.
● T erminated employees will be required to return all records, in any format, containing
information.
● Y oumustimmediatelynotifytheconcernedauthorityintheeventthatadevicecontaining
in-scope data is lost (e.g., mobile phones, laptops, etc).
● Intheeventthatyoufindasystemorprocesswhichyoususpectisnotcompliantwiththis
policy or the objective of information security, you have adutytoinformtheconcerned
authority so that they can take appropriate action.
● Ifyouhavebeenassignedtheabilitytoworkremotelyyoumusttakeextraprecautionto
ensure that data is appropriately handled. Seek guidance from yourmanagerifyouare
unsure as to your data security responsibilities.
● Please ensure that assets holding data in scope are not left unduly exposed.
● D
ata that must be moved within the Company is to be transferred only via business
providedsecuretransfermechanisms(e.g.,encryptedUSBkeys,fileshares,officialemail,
Handbook for HR Managers |112
tc). You must not use other mechanisms to handle in-scope data. If you have a query
e
regarding use of a transfer mechanism, or it doesnotmeetyourbusinesspurpose,you
must raise this with your Reporting Manager.
● A ny information being transferred on a portable device (e.g.,USBstick,laptop)mustbe
encryptedinlinewithindustrybestpracticesandapplicablelawandregulations.Ifthere
is doubt regarding the requirements, seek guidance from the Reporting Manager.
Handbook for HR Managers |113
Health and Safety Policy
Health and Safety Policy needs no introduction. Your employees are your most valuable
A
resource. Providing a congenial, safe and hygienic workplace is your first priority.
uppose you are running a manufacturing company, not only providing a safe workplace is a
S
statutoryobligationonyoubutalsoyourmoralresponsibility.Imagine,ifheavymachinerybreaks
down, what corrective course of action will you be guided by to mitigaterisks?Whatreporting
framework do you have in place forsuchsituations?Whataboutthepollutionlevelsorsewage
discharge mechanisms in your factory? Do you have safety markings and fencing in place?
Every company must have a proper framework to ensure the health and safety at the workplace.
health and safety policy must also state the responsibilitiesoftheemployeesformaintaining
A
workplace safety.
Please scroll to the next page for the template
Handbook for HR Managers |114
Template - HEALTH & SAFETY POLICY
POLICY:
● T his policy applies to all the Company’s staff including its directors, part-time and
fixed-term employees, temporary staff, work from homeemployees,casualstaff,interns.
This Company reserves a right to amend the policy at any time as it deems fit.
● A t this Company, we believe that no other asset in the Companyisasimportantasthe
people who contributewiththeirworktoourcultureandbusinessresults.Thereforethe
CompanyiscommittedtothesafetyandhealthoftheEmployees,customersandvisitors,
and recognizes the need to comply with applicable regulations governing accident
prevention and ensure safety of all the Employees.
● O verall responsibility for observing safety standards belongs to senior management to
ensure a safe and healthy work environment. As an integral part of managing the
business, the senior management is accountable for managing workplace health and
safety with strong leadership and credibility.
● E mployeeinvolvementisindispensabletoestablishandmaintainsafetyandhealthinthe
workplace.AlltheEmployeesshoulddoeverythingintheirpowertominimizerisksinthe
workplace, to exercise cautionatworkactivitiesandtoconductthemselvesinamanner
that does not endanger them or their fellow Employees or customers.
The arrangements made in order to maintain the Health and Safety policy are:
● Maintenance of First Aid kid at the workplace
● Regular risk assessment of the workplace
● Consultation with employees on the matter of health and safety
● Reviewing the policy whenever a change is made in the workplace
● To provide adequate control of the health and safety risks arising from our work activities
● T o adhere to office timings, unless the workload is excessive and cannot be managed
within work hours.
● To prevent accidents and cases of work-related ill health
● To maintain safe and healthy working conditions
EMPLOYEE RESPONSIBILITIES:
HEALTH
● A ll employees must strictly adhere to work timings of the office, unless theworkloadis
excessive and cannot be managed within work hours.
Handbook for HR Managers |115
● A n employee that feels that their workload is excessive and cannotbemanagedwithin
the workinghoursmustreportthesametotheirManager.TheManagershallworkouta
solution to the same in coordination with the [appropriate authority].
● A ny employee staying beyond [mention time] in the office premises must intimate their
Reporting Manager through email each time the same happens.
● A n employee must disclose any serious healthconditionstotheirReportingManagerat
the time of joining and/or whenever he possesses the knowledge of the same. The
Reporting Manager is to assess the impact of the health condition on the Company’s
business and take a call with respect to his/her employment.
● T heCompanymaydecidetoretaintheemployeewithaserioushealthcondition,severe
healthissuesoraccident-riddenonwork-from-homebasis,iftheneedsoarises.Itistobe
noted that such decisions shall be taken up on cases to case basis by the Leadership.
SAFETY
● A n employee must immediately report any unsafe condition or health hazard to the
Reporting Manager.
● Inthecaseofaccidentsthatresultininjury,regardlessofhowinsignificanttheinjurymight
appear, employees must immediately notify the Reporting Manager.
● E mployees who violate safety standards, who cause dangerous situations which might
leadtoaccidents/injury,orwhofailtoreportorremedysuchsituations,maybesubjectto
disciplinary action, up to and including termination.
● E mployees are responsible for maintaining their work areas in an organized and
presentablemanner.Workareasshouldalsobemaintainedinaclean,healthyandorderly
fashion so as to prevent unsafe, unhygienic situations, accidents and injuries.
Handbook for HR Managers |116
Leave and Attendance Policy
eallhavethatoneemployeewhoisalwaysrunninglatebutworksovertimetomakeupforit.
W
How many overtimes would you allow?
Ifthisisallowed,anemployeewillworkathisownwillandcreateaveryconvenientandflexible
schedule for himself.
hat if there is a machinery breakdown in your factory on a Sunday? Can you ask your line
W
manager to forego his Sunday? How will you compensate him for it?
here is an intrinsic cost involved for a companywhenanemployeeisabsent.Itcanaffectthe
T
overall productivity of your team.
ellow colleagues might be required to take up your work which mighteatuptheirproductive
F
hours too. Besides, absenteeism beyond permissible leaves has a bearing on your take home
salary too.
A Leave and Attendance Policy is drafted to answer all such questions.
asictermsinaLeaveandAttendancePolicyincludeworkingdaysandworkinghours,criteriafor
B
availingsickandprivilegeleaves,criteriafordealingwithlatecoming,situationspermittingwork
from home, etc.
eave and Attendance Policy needs to be in accordance with applicablestate-levelShopsand
L
Establishments Laws or Factories Act (as applicable) and holiday-related legislations.
Please scroll to the next page for the template
Handbook for HR Managers |117
Template - LEAVE AND ATTENDANCE POLICY
Objectives:
The leave policy has been created keeping in mind the following objectives:
● People are able to take holidays effectively and with clarity;
● Performance of colleagues is not affected by absence at work;
● W ork of the company, productivity and deliverables are not impacted due to your
absence.
Policy:
● Working Days And Working Hours:
○ O
fficialworkingdaysarefrom[ ]to[ ]. For any day that
youdonotshowupinaweek,putinextrahoursonotherdaystocompletethe
backlog.
○ O
fficialworkinghoursarefrom[ ]amto[ ]pmonweekdaysand[ ]amto
4.00] pm on Saturdays. Sundays are weekly off days.
○ Integrityisoneofthekeyingredientsin[companyname]workenvironment.Come
ontimeandleaveontime–unlessthereisabacklogthatrequiresyoutostaytill
lateoradeadlineforanurgentproject.Nobodywillholdyoubackifyourworkis
done earlier. We encourage you to come early and finish early.
○ [iftherearedifferentbranchesandworkingdaysand/orofficetimingsvariesfrom
branch to branch, a table can be provided stating the details of the same]
● If Employee/Consultant is required to work on a Sunday or holiday:
○ In case of exigencies, if an employee is required to work on Sundays or on
holidays with approval from ReportingManagers,thatpersonshallbeallowedto
take a day off subject to the employee working for [ ] hours. The Reporting
Managershallbearinmindtheteam-coordinationincaseanymembertakesaday
off during such a weekday.
○ F
or example: If the Sales Head or the Marketing Head decides to work on a
Sunday and takes Monday off, the respective teammembersmustbealignedin
order to make sure work happens smoothly without any negative impact on
Monday.
● Criteria for Work From Home:
○ T
his option can be granted only withthealignmentofthe[appropriateauthority]
andtheyaresatisfiedthattherewillbenoimpactonthework.Ifyouaretakingthe
Handbook for HR Managers |118
ption of work from home, 8 hours of work structure must be sent to [
o
] Department copying [appropriate authority].
● Criteria For Taking Half-Day:
○ H
alfdayiscountediftheemployeeworksfor[ ] hours of the day and work
structure on such day needs to be sent (you need to send structure to [
] Department copying [appropriate authority]).
● Submission of Daily Report:
○ S
ubmission of daily reports is also compulsory. If your Reporting Manager
complains in writing about not submission of a daily report that day will alsobe
considered as leave.
○ E
mployeeshavetosubmitdailyreportstotheirReportingManagerbeforeleaving
the office.
● Casual Leaves:
ll employees including probationers and trainees will be entitled to __ days Casual
A
Leaveduringacalendaryear.Theseleaveswillbecreditedtotheindividual'saccountat
the beginning of the year. An employee can avail casual leave, subject to the following:
○ A
maximum of __ day’s casual leaves can be availed in amonth.Alsonotmore
than__casualleavescanbeavailedatonetime,unlessabsenceisduetoillness.
In such a situation a certificate must accompany the leave application from a
Medical Practitioner.
○ Casual leave cannot be clubbed with any other leave
○ Incasecasualleaveisavailedbecauseofmedicalreasonsitcanbeclubbedwith
privilegeleavesifthedurationofleaveismorethanthecasualleavebalanceinan
individual’s account.
○ A
holidayoraweeklyoffcaneitherbeprefixedorsuffixedwithcasualleave.Any
holiday / weekly off falling during casual leave period shall be counted as leave.
[Note: The leaves must be in alignment with the relevant state-level Shops and
Establishments Act for each workplace.]
● Privilege and Sick Leaves:
○ W
hatconstitutesaprivilegeleave?Privilegeleavesor earnedleavesshallmean
aleavewhichisplannedandpreapprovedbytheemployer.Thesedonotinclude
casual leaves.
○ W
hatconstitutesasickleave?Sickleaveshallmeanaleaveofabsencegranted
because of illness. In addition, in the interest of the women working in the
Handbook for HR Managers |119
c ompany,afemaleemployeecanclaimonedayofsickleavepermonthincaseof
menstrual discomfort.
❏ E
mployeeswhohavecompleted[ ]period,eg.oneyear]ofcontinuous
employment:
- umber of Privilege leaves in a year: [
N ] days
- Number of Sick Leaves: [ ] days in a year
❏ L
eavesforemployeeswhohavenotcompleted[ ]period,eg.oneyear]
of continuous employment:
- n employee who has completed a period of [___] months in
A
continuous employment, shall be entitled to not less than [___]
days privilege leave for every such completed period.
- An employee who has completed a period of four months in
continuous employment, shall be entitled to [___] sick leaves for
every such completed period.
❏ E
mployeeswhohavenotcompleted[ ] period, eg. one year] of
continuous employment:
- ny leave will be without any pay leave
A
- Sick leave of more than one day will be approved on providing
appropriate medical documents. It will be adjusted against future
leave entitlement.
○ P
rivilege leave earned during the previous year shall be credited to employees’
individual account on first of January of the followingyear.Anyunusedprivilege
leave will be added to the nextperiod,providedthatinnocasesuchnumberof
accumulated privilege leave will be more than [ ] days at any point of time.
○ U
ndue number of holidays must not be taken. In case of prolonged sick leave
impact on work has to be kept in mind.
○ L
eavesrequirewrittenconfirmationfromaLeadership.Privilegeleavescannotbe
taken continuously for more than [ ] days.
○ F
or leaves planned for more than [ ] days (inclusive of weekends), informthe
Leadership a month in advance in order to allocate your projects accordingly.
○ F
or more than [ ] days of continuous sick leave, one mustsubmitappropriate
relevant medical documentation, including diagnostic tests results, doctors’
prescription and medical shop bills (not one but all of these).
○ E
very leaveneedstobeapprovedbytheLeadership.Dropanemailatleastone
week in advance and get it approved. Leaves are not tobetakenatthecostof
work.Itishighlyrecommendedthatyoucreateandshareaworkablestructurefor
Handbook for HR Managers |120
nsuringhowworkwillgetdonewithoutdisruptionanddelaysandtakealignment
e
of the person you report to and the Leadership.
○ If twoormorepeoplefromthesameteamistakingleaveonthesameday/period,
alignment must be taken from the [appropriate authority].
○ L
ast minute leaves are not encouraged. Last minute leaves are likely to impact
yourown,yourcolleagues’andthecompany’sworkandtheresultsyouproduce.
It shall also trigger disciplinary actions.
○ T
he Leadership holds the right to approveordisapproveyourleavesdepending
on the current project, your requirement for special projects, and your backlog.
● Attendance Protocol
[the following clause can be included if the company has access card reader system]
○ Attendance through Access Card Reader System
heAutomaticAccessMachineisavailableatthecompanyoffice.Itislocatedat
T
the[entrancegateorthereception].Identitycardscumaccesscardsareallotted
toeveryemployeeofthecompanysituatedattheofficewhichcapturesrecords
of the attendance. Every employee has to punch/swipe their identity card cum
access cards at the time of entering or leaving the office premises.
therspecificationswhichcanbecoveredundertheAttendanceProtocolclause
O
are :
■ W hat happens when the employee forgets to bring his ID cum access
card
■ ‘Out-door’ status in case employee is visiting another branch of the
company or attending to office work outside the premises
■ Ifthereisanoptionof‘tour’whentheemployeeisonofficialtourforthe
company]
[If there are multiple offices/branches/locationsofthecompany,andthe
employeeisonvisitsuchotherlocationwhereaccesscardreadersystem
is installed, it can be provided here that, “the employee must swipe
his/her card at such respective location”]
[the following clause can be included if the company has SARS sheet system for
attendance of employees]
○ Attendance through SARS sheet
heSARSsheetisavailableatthecompanyofficeandisplacedatthe[entrance
T
gate or reception]. The SARS sheet ensuresthattheattendanceiscapturedfor
every employee working at theoffice.Hence,allemployeesinordertocapture
their attendance have to follow the guidelines given below.
Handbook for HR Managers |121
● T
heSARSsheetshouldbelegiblyfilledandproperlymaintainedwithout
any scribbling or overwriting. Employees have to ensure thattheywrite
their correct employee code, name and signature in the SARS sheet.
● N
oemployeeisallowedtosignforfuturetimings,futureattendanceand
for proxy for friends and colleagues for a future date. This is a serious
offence involving integrity and code of conduct. Disciplinary action
including termination can be taken against the concerned employee(s).
uty of the [appropriate authority eg. Manager/Coordinator] while
D
maintaining the SARS sheet
he SARS sheet should be placed at the office in the morning and after the
T
reportingtimetotheoffice,theSARSshouldbekeptunderlockandkeyunder
the supervision ofthe[appropriateauthority].savailableatthecompanyoffice.
The SARS sheet ensures that the attenda
● A
ll employees who come late to the office should approach the
[appropriate authority] in order to mark their attendance in the SARS
sheet.
● T
he [appropriate authority] should ensure that the sheet is legibly
completed for the HR to comprehend.
● T
he[appropriateauthority]isrequiredtokeepacopyoftheSARSsheet
at their end for future records before sending the same to the HR
department.
● In case an employee’s details are incomplete i.e. employee name,
employeecode,branchcodeandsignatureisnotcompleteintheSARS
sheet,theattendanceoftheconcernedemployeewillnotbemarkedin
the payroll.
Duty of the HR personnel
● O
nreceivingtheSARSsheet,theHRpersonnelshouldensurethatthe
sheet is duly filled. Incase of any discrepancy in the SARS sheet the
same has to be informed via mail to the immediate [reporting authority].
● O
nce the comments are received from the Immediate [reporting
authority] the HR personnel should update the same in the system.
● T
he data that is collated should be sent to the payroll team forsalary
processing.
● A
lso note that there will be an audit of the SARSsheetsbeforesalary
processingbyourInternalAuditTeamwhowillcalculatethenumberof
leaves as per the policy.
Handbook for HR Managers |122
Late Coming:
● Ifyoucomeatanytimeafter[ ] am, you will be considered late and
being late on three occasions in a month will be counted as one leave. This
absence will be adjusted against a privilege leave.Ifatthattimeyouhaveno
privilege leaves remaining, this will be adjusted against your salary.
● If you are late bymorethananhour[specifytime],itwillbecountedasahalf
day.Yoursalarywillbedeductedprorataduetounauthorizedabsence.Ifyou
take leave without due authorization under this policy, you would still be
expectedtofinishyourdeliverablesinsuchawaysothatyourteammatesare
notaffectedandworkcanprogressuninhibited.Ifyoufailtodothis,thatwould
reflect on your performance review, bonus and future increments.
● U
nauthorized absence inamonthcanleadtodisciplinaryaction,extendingto
deduction of salary or termination of existing consultancy arrangements in
appropriate cases.
Holidays and Festivals:
1 st January, 26th January, 15th August, 2nd October, Holi, Dussehra, Diwali, and 25th
December (Christmas) are official holidays. If you need a holidayforanyotherfestival,
make a request to the [appropriate authority] and it will be considered.
[a list of holidays covering more festivals can be provided here]
orthepurposeofthispolicy,yearwillbecountedastheperiodbetween[specifyformat
F
for a year, eg. 1st January to 31st December].
Handbook for HR Managers |123
Media Policy
uppose you are approached by amediahousetorespondtoaparticularqueryorinformation
S
about the company. The information to be sought can be about a new product launch, a new
competitive entrant etc.
Media Policy comes in handy in such cases providing a set of guidelines to deal with the
A
manner of communication with the media. Normally it is advised to authorise a spokesperson
from the marketing or public relations team to handle media calls.
hile drafting the policy, it must be ensured that no person other than the authorised
W
spokesperson interacts with the media without a prior written authorization. It must also be
ensured that media is directed to the authorisedspokespersonassoonastheycontactsucha
person.
ediacallsneedtoberespondedquicklyandprofessionally.Itisimportanttokeepinmindthat
M
the reporter’s deadline is met. You see, the manner in which the call is handled will be the
reporter’sfirstimpressionaboutthecompanywhichcanlaterreflectinthecoveredarticleabout
the company.
Please scroll to the next page for the template
Handbook for HR Managers |124
Template - MEDIA POLICY
his policy exists to assure that information disclosed by the Company is timely, accurate,
T
comprehensive,authoritativeandrelevanttoallaspectsoftheCompany.Adherencetothispolicy
isintendedtoprovideaneffectiveandefficientframeworktofacilitatethetimelydisseminationof
information.
GUIDELINES FOR TALKING TO THE MEDIA:
reporter,producerorothernewsmediamaycontactanemployeeforanumberofreasons,for
A
example:
● To get information about our Company.
● T o get information or comment about an action or event thatcouldimpactourindustry,
newcompetitiveentrants,newproduct/courselaunches,changesingovernmentpolicies
or anything else related to or incidental to the business of the company.
hefollowingguidelinesaretobefollowedbytheemployeesifthereisanoccurrenceofanyof
T
the above mentioned events:
● E verybody except for specifically authorised persons from the marketing team is
prohibited from discussing anything with the media about the company, employees,
consultants, affairs of the company, business or anythingelseatallwithoutpriorwritten
permission from the company. Violation of this will be considered a serious breach of
discipline and may lead to immediate termination.
● R efer all media calls to the authorised spokesperson. Please do not say you are not
allowedtotalktoareporterorhavetogetpermissiontodoso.Instead,youcandirectthe
reportertodirectlycontacttheresponsibleperson.Forthetimebeing,thepersonwillbe
[name, email id and number of concerned person]
● W henever taking a call fromthemedia,thesamecourtesyandprofessionalisminwhich
we approach customers should be displayed towards the media.
● P leaseactquicklywhenapproachedbythemediatoensurethatthereporter’sdeadline
is met. This is important because the way thiscallishandledmaybethereporter’sfirst
impressionoftheCompanyandthatfirstimpressionmayendupinthestorypublishedor
the news segment broadcast.
● In order to promote our Company, it is important to respond quickly, courteously and
professionally to all media calls.
● P leaseremembertocontacttheMarketingTeamifandwhenyouhavebeenapproached
by the media. Even thoughyouhavereferredthemedia,theMarketingTeammayneed
your help to prepare a response.
● D
onotletareportercompelyoutoanswerquestionsonthespot.Justpolitelytellthem
that you are not the best person to answer these questions and redirect them to the
responsiblespokesperson.Ifyouhavebeenauthorisedinwritingtospeaktothemedia,it
Handbook for HR Managers |125
is always beneficial to prepare in advance in order to provide accurate and relevant
information.
● D o not call a reporter directly withoutfirstconsultingthespokesperson.Ifyounotethat
there is a reporter amongst our customers, immediately alert the authorised
spokesperson about the same.
● T he media cannot enter our facility to photograph or film without permission from
[concerned person].
Handbook for HR Managers |126
Personnel File Policy
● I was once asked to hire an intern by my former boss, Iwentthroughafileofprevious
internshipapplicationsandresumesofpastinterns.Iwasabletofindtherightcandidate.
Forgetabouthiring,somethingassimpleasknowingyouremployee’sbloodgroupcanbe
useful if an accident at the workplace happens in a factory .
● A Personnel File Policy includes information related to an employee’s job application,
resume, records of training, documentation of performance appraisals and pay
adjustments, benefits (if any), medical records and other employment records.
● It must also state the name of the reporting manager or department entrustedwiththe
responsibility of maintaining the personnel file. Generally it is the administrative
department entrusted with this responsibility.
● The policy must also state the grounds of granting access to the personnel file to
managersoremployeeshimself.Foreg,amanagermayrequirethefileaccessatthetime
of hiring a former employee.
● Such grant requests must be recorded in writing preferably via email to the concerned
designated person or the administrative department.
Please scroll to the next page for the template
Handbook for HR Managers |127
Template - PERSONNEL FILE POLICY
● T heCompanymaintainsapersonnelfileoneachemployee,subjecttopresentlaws.The
file includes information related to an employee’s job application, resume, records of
training, documentationofperformanceappraisalsandpayadjustments,benefits(ifany),
medical records and other employment records.
● E mployee files are maintained by the Administrative Department and are considered
confidential.
● M anagers,otherthanthedesignatedadministrativerepresentativesmayonlyhaveaccess
to personal file information on a need-to-know basis.
● A manager considering the hire ofaformeremployeeortransferofacurrentemployee
may be granted access to the file.
● E mployees may view his or her personnel file by requesting an appointment with the
AdministrativeDepartment,byemail.Employeesmaynotremove,alterormakecopiesof
any of the documents in the file andthereforeitmustbereviewedinthepresenceofa
staff person.
● E mployees are responsible for notifying the Administration about change in any family
status, including name, addresses, telephone number, marital status, beneficiaries,
dependents and any scholastic achievements.
Handbook for HR Managers |128
Anti Sexual Harassment Policy
● Inapost-me-tooworld,sexualharassmentisabigdangertoeveryorganization.Itisnot
enough to just comply with laws, but companies must be seentobetakingaproactive
stanceiftheydonotwanttofaceahugebacklashfromsocialmediaandpossibleboycott
and disruption of work.
● E mployeesarenowopeninguponsocialmediawiththeirallegationsevenbeforetaking
the formal recourse available to them. Not only does it pose a threat to thecompany’s
perception in the eyes of the public but also causes hindrancesinconductingaproper
investigation with regard to the allegation too.
● In many cases,wheretheseniorpersonnelhasbeenaccusedofsexualharassment,the
HR finds it difficult to make them accountable.
● T hat's where a clearly defined policy on sexual harassment comesintothepicture.The
policyshouldprovideforinstanceswhichconstitutesexualharassmentdifferentiatingwith
instances which do not constitute sexual harassment.
● Itmustalsoprovideforproperredressalmechanism,timelineswithinwhichthecomplaint
needs to be resolved, the details about the constitution of an ICC committee, remedial
actions available to the aggrieved person, assurance against retaliation among other
things.
Please scroll to the next page for the template
Handbook for HR Managers |129
Template - POLICY ON PREVENTION OF SEXUAL HARASSMENT AT
WORKPLACE
1. OBJECTIVE
○ [nameofthecompany](hereinafterreferredasthe“Company”)aimstoprovidean
equalopportunityspaceinclusiveforindividualsirrespectiveoftheirgender,caste,
community,race/ethnicity,color,socialstatus,civilstatus,age,physicalability.The
Companytakesastrongstanceagainstanyformofdiscriminationandharassment
arising out of the above-mentioned reasons. Affirmative action will be taken to
ensure that all decisions of this entity are free of any discrimination and
disciplinary action will be initiated against any individual or group caught in
engaging in such activities.
○ T
he laws ofIndiarequiresustolaydownguidelinesandaforumforredressalof
grievances related to sexual harassment. This policy takescompletecognizance
of the latest legislation by the government of Indià`TheSexual Harassmentof
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and its
notification published on 9th December 2013 (“Act”). This Act is to provide
protectionagainstsexualharassmentofwomenatworkplaceandforthematters
connected herewith or incidental thereto.
○ T
he Company acknowledges that individualscoveredbythescopeofthispolicy
aretobeinformedofthispolicyandtohaveaccesstotheinformationneededto
preventsexualharassment.TheCompanywillopenly,publiclyandwidelydisplay
this code of conduct together with the contact information of the designated
Internal ICC members and external parties authorized to process complaints.
○ F
or the purpose of clarification, this policy will be equally applicable to all
employees, part time or full time, those who are working on work from home
assignmentsandconsultants,irrespectiveoftheirgenderandwillcoversame-sex
sexual harassment.
2. SCOPE OF PROTECTION
○ T
his policy applies to all categories of Company’s employees (management and
regularemployees),consultantsanddirectorsirrespectiveoflocationwithinIndia,
temporary workers, trainees, interns, employees on contract at client sites and
other individuals associated with the Company. Forthepurposeofidentification,
above mentioned categories will be referred to as “Company employees”. This
policy does not include the end users of the Company's products and its services.
○ T
heconductofCompanyemployeeswillbeapplicableinallwork-relatedsettings
andactivities,whetherinsideoroutsidetheworkplace,andincludesbusinesstrips
and business-related social events. Any meeting or engagement required for
Company official work activity is covered by this policy.
Handbook for HR Managers |130
○ T
his policy applies to the conduct of the Company employees toward other
internalCompanymembers,externalindividualsintheroleofacustomer,supplier,
contractor and third-party vendors.
3. ACTIONS IDENTIFIED AS SEXUAL HARASSMENT
○ T
he Company takes astrongstanceagainstanyformofdiscriminatingtreatment
that demeans its community member/s basedongender,caste,community,race
and ethnicity, color, social status, civil status, age, physical ability.
○ A
t the Company, all employees are expectedtoupholdthehigheststandardsof
ethical conduct at the workplace and in all their interactions with business
stakeholders. The employees have a responsibility to:
1. Treat each other with respect;
2. Follow the letter and spirit of law;
3. R
efrain from any unwelcome behavior that has a sexual connotation (of
sexual nature);
4. R
efrain from creating hostile environment at workplace via sexual
harassment; and
5. R
eport sexual harassment experienced and/or witnesses to appropriate
authorities and abide by the complaint handling procedure of the company.
''Sexualharassment’'includes(butitisnotlimitedto)anyoneormoreofthefollowingunwelcome
and inessential acts or behavior (whether directly or by implication) namely:
1. Physical contact and advances; and/or
2. A demand or request for sexual favors; and/or
3. Making Sexually colored remarks; and/or
4. Showing pornography; and/ or
5. A ny other unwelcome and inessential physical, verbal or non-verbal conduct of sexual
nature; and/or
6. C reating a hostile work environment for employees by putting a complainant (ofsexual
harassment)indisadvantageouspositionw.r.t.employment,associatedprivileges,benefits
& career enhancement in connection or related to any act or behavior of sexual
harassment.
7. P hysical contact and advances such as touching, stalking, making sounds which have
explicit and / or implicit sexual connotations / overtones, molestation;
Handbook for HR Managers |131
8. D isplayofpictures,signsetc.ofsexualnature/connotation/overtonesintheworkareaand
work-related areas;
9. V erbal ornonverbalcommunicationwhichoffendstheindividual’ssensibilitiesandaffect
her/his performance and has sexual connotation/overtone/nature;
10. Repeatedly asking to engage in a romantic relationship;
11. T easing,voyeurism,innuendosandtaunts,physicalconfinementand/ortouchingagainst
one’s will and likely to intrude upon one’s privacy;
12. Sexual harassment is not limited to demands for sexualfavors.Italsomayincludesuch
actions as:
● Sex-oriented verbal "kidding," "teasing" or jokes;
● Repeated offensive sexual flirtations, advances, or propositions;
● Continued or repeated verbal abuse of a sexual nature;
● Graphic or degrading comments about an individual or her appearance;
● Display of sexually suggestive objects or pictures;
● Subtle pressure for sexual activity; or
● Inappropriate physical contact.
hefollowingcircumstances,amongothercircumstances,ifitoccursorispresentinrelationtoor
T
connected with any act or behaviour of sexual harassment may amount to sexual harassment:
1. Implied or explicit promise of preferential treatment in employment; or
2. Implied or explicit threat of detrimental treatment in employment; or
3. Implied or explicit threat about present or future employment status; or
4. Interferes with work or creating an intimidating or offensive or hostile work environment or
5. Humiliating treatment likely to affect the health or safety of the community members.
ake note that above mentioned are applicable but not limited to hiring, firing, performance
T
appraisal, promotion/demotion, assignments, monetary appraisal of any individual part of the
Community.
1. A lltheaboveisprohibitedthroughanymodeofcommunicationincludinginperson,over
the phone, on voice mail, through pen and paper, on e-mail, inside of oroutsideofthe
workplace, through chat, through SMS or any other form of communication.
2. S
exual harassment does not refer to occasional compliments of a socially acceptable
nature, or consensual personal and social relationships without a discriminatory
employment effect. However, note that at the company, you are not allowed to have
Handbook for HR Managers |132
s exual or romantic relationships with colleagues or customers, and if youreallywantto
engage in one, you must inform the management right away so that we can avoid a
conflictofinterestsituation.Henceitshouldbeclearthatanyromanticorsexualadvances
towards colleagues wouldbeunacceptableandunwelcome.However,allsuchactsmay
not constitute sexual harassment unless the same is personally intimidating, hostile, or
offensive.
OBLIGATIONS OF THE COMPANY EMPLOYEES
ach member of the Company employees is obligatedtofollowthispolicyforthemselves.This
E
policy also obligates anyone to report any incident observed as a thirdpartytotheauthorized
ICC members. It is the combined responsibility of the employees to withhold the values and
principles of equal opportunity and zero discrimination for all involved.
COMPLAINT MECHANISM
nappropriatecomplaintmechanismintheformof“InternalComplaintsICC”hasbeencreatedin
A
the Company for time bound redressal of any complaint made for violation of this policy.
AUTHORIZED COMMITTEE - INTERNAL COMPLAINTS COMMITTEE (ICC)
1. T heInternalComplaintsCommittee(“ICC”)willbeconstitutedtohandleandaddressany
incident arising out oftheviolationofthispolicy.ThedetailsoftheICCmemberswillbe
madeavailableopenlyandtheCompanyemployeesmaycontactanyoftheICCmembers
directly.
2. The following members of the Company will constitute the ICC:
residing Officer:
P
Member:
Member:
Member:
External Member:
3. T he ICC members will have a tenure of3yearsfromthedateoftheirappointment.The
ICC will receive complaints; investigateeveryformalwrittencomplaintreceivedbythem
under this policy; provide conciliation, if requested; recommend appropriate actions for
punishment for any substantiated allegations of harassment; and take actions
discouraging and preventing employment related harassment.
4. IfanycomplaintarisesagainstthePresidingOfficeroranyofthemembersoftheICC,the
Presiding Officer or the member as the casemaybe,willrecusehimselforherselffrom
theproceedingsandanalternatemembershallbeappointedinhisorherpositiontothe
ICC bytheCompanyBoardofDirectors,withexceptionofanaccusedboardmemberto
avoid any conflict of interest.
Handbook for HR Managers |133
DUTIES AND FUNCTIONING OF ICC
1. T he ICC will ensure that they remain in open communication with the Company
employees to ensure the absence of any violation of this policy.
2. T he ICC will ensure that they maintain any records of any observed and informed
incidents for the purpose of future proceedings.
3. T he ICC will ensure absolute transparency in its activities and initiatives, be ready to
disclose necessary information to the respective stakeholders when required and
investigate the complaints while abiding by the principles of natural justice.
4. T he ICC will ensure absolute integrity and honesty with respect to keeping their own
biases aside and ensure that they will hold the responsibilitiesofbeingpartofICCand
Company Community.
5. T he ICC will develop the standards for its day to day functioning by identifying its
performance metrics, initiatives, timelines, record keeping and evaluation of its members.
6. T he ICC will ensure confidentiality of identity of individuals involved, details of the
incidents, proceedings of the matter resolution, andwillonlydiscloseinformationwitha
reasonrequiredtoprotectapossibledamagegreaterthanonecausedbywithholding
the information. This decision will require a vote of majority and be executed accordingly.
7. P roceedingscanbeheldandparticipantsofanyproceedingsoftheICCcanjointhrough
video conferencing facilities such as Google hangout or GoToMeeting.
PROCEDURE FOR FILING AND DEALING WITH THE COMPLAINTS
1. Filing of the Complaint:
nyonecanlodgeacomplaint,onlyinwriting,withtheICC.Emailcanbesentto[ ]. The
A
ICC is required to maintain physical records signed by the complainant for future
purposes before initiating aformalinvestigation.Electronicallysigneddocumentswillbe
acceptedonlyfromtheindividualswhoseidentification(emailaddressorphonenumber)
is part of the member profile at the Company. No anonymous complaints will be acted
upon.
2. Dealing with complaints:
Informal resolution option: Once a complaint is accepted, the ICC will aim first and
foremost for any form of resolution that is possible through conciliation to identify a
possiblecaseofmisunderstandingandmiscommunicationandexplorestepstoamicably
settlethematterbetweenthecomplainantandtheaccused.Theaboveprocesscanonly
be initiated if the complainant agrees to the same.
3. Investigation:
If either of the parties (complainant and accused) disagree with the conciliation, the
InternalComplaintsICCcancarryouttheinvestigationprocesswhichshallinvolvetaking
Handbook for HR Managers |134
s tatements from the witnesses. After the investigation process, the ICC is required to
prepare a report. Thisdocumentisconfidentialinnatureandwillnotbeprovidedtothe
involved parties. The claimant or accusedcanchoosewhetherornottofileacomplaint
withthepoliceincaseofseriousoffences.Ifapolicecomplaintisfiled,theCompanywill
extend support either to the potential victim or the alleged accused unless the
investigationresultsinanunclearoutcome.Evenincaseswhereacomplaintisnotfiled,
the Company is liable to take corrective measures which may involve dismissing the
accused.
4. Documentation:
very detail of the incidents, complaints, investigation, hearings, evidence, conclusions,
E
agreements and closures will be documented and recorded in soft copy form. These
records will be maintained by theICCinasafeandsecuremanner,andshallbeshared
with both the complainant and the accused.
5. A t the end of an investigation, final recommendations will be made and sent to the
management for execution. Recommendations will incorporate one or more of the
following to be used as sanction for the actions proven guilty of: employment status,
location of work, team, function, financial penalty, legal action.
6. In the event that the matter is found to befrivolousinnatureandintentandfalse,strict
actionswillbetakenagainstthecomplainant.Theaccusedmayormaynotchoosetobe
a party of this process.
7. Intheeventthatthematterisfoundtobeameremisinterpretationoftheeventsoccurring
and does not require any action to be taken against the complainantortheaccused,a
document stating it, signed by all parties involved will be maintained by the ICC.
8. In case the ICC finds the degree of offence to be serious enough that a criminal case
should be pursued under the India Penal Code, then this fact shall be mentioned inits
report and appropriate action shall be initiated by the employer for making a Police
Complaint.
9. W here sexual harassment occurs as a result of an act or omissionbyanythirdpartyor
outsider,theCompanyshalltakeallstepsnecessaryandreasonabletoassisttheaffected
person in terms of support and preventive action.
Timelines:
1. The following timelines will be applicable for the activities of the ICC:
a. A
ccepting a complaint: Any complaint can be accepted if it is reported within a
period of 90 days of the incident.
b. Initiatingtheproceedings:Afterreceivingthecomplaint,ICChas10daystoinitiate
the investigation unless it is a matter of extreme urgency. However, immediate
action and dialogue must happen with a written response once thecomplaintis
received informing the complainant.
Handbook for HR Managers |135
c. Investigation: ICC has a maximum 90 days to lookintothematterandcomplete
the investigation.
d. S
ubmissionofreport:ReportsubmissiontotheManagementmustbedonewithin
10dayswherethemanagementhas60daystoimplementthesuggestionsmade
in the report.
e. T
hese timelines are prescribed and mandated to be followed in all instances
except when the complainant, accusedorICCcanprovideavalidwrittenreason
for the extension accepted by all parties involved.
GUIDELINES ON THE RECOMMENDATIONS TO BE SUGGESTED BY ICC
1. T herecommendationssuggestedbytheICCaftertheinvestigationofthecomplaintmay
varyonthedegreeofoffencecommittedbytheaccused.Sexualharassmentcomplaints
may have a combination of one or more of the following categories: mental trauma,
emotional, physical and professional damage.
2. Such recommendations may range from the following options:
a. Formal apology
b. Counselling
c. Written warning to the accused and a copy of it maintained in the employee’s file.
d. Change of work assignment / transfer for either the accused or the complainant.
e. Suspension or termination of services of the employee found guilty of the offence
f. Direction to the accused to pay monetary compensation to the complainant.
CONFIDENTIALITY OF THE PROCEEDINGS
1. ealing with the complaints will be done in an utmost confidential manner amongst all
D
parties involved including the ICC members. Any individual violating confidentiality will
result in financial and legal action against the person. This will be decided by the ICC
members on case to case basis.
2. T
he Company will ensure that the complainant or witnesses are not victimized or
discriminated against while dealing with complaints of sexual harassment.
ASSURANCE AGAINST RETALIATION
hispolicyseekstoencourageallemployeestoexpressfreely,responsibly,andinanorderlyway
T
opinions and feelings about anyproblemorcomplaintofsexualharassment.Retaliationagainst
persons who report or provide information about sexual harassment or behavior that might
constitute sexual harassment is also strictly prohibited. Any act of reprisal, including internal
interference, coercion, and restraint, by an employee, violates this policy and will result in
appropriate disciplinary actions.
Handbook for HR Managers |136
Handbook for HR Managers |137
Physical Contact with Customers Policy
● A PhysicalContactPolicywithCustomersisbasicallyframedtoensurethatemployeesin
customer-facingroles(e.g.atashoporabranch)areguidedbyprofessionalbehaviorat
all times when dealing with customers. It aimstodiscourageunwantedphysicalcontact
with customers.
● Whenyoumeetsomeoneonbehalfofthecompany,yourbehaviorandconductmightbe
perceived by the other party as a reflection of the company’s culture.
● Generally professional meetups are restricted to handshakes and greetings. Highest
standards of courtesy and politeness is expected from the parties.
● Standards ofprofessionalconductespeciallybecomeimperativewhenmeetinginpublic
areas.
● A physical contact with customers policy can provide for appropriate and inappropriate
manner of physical contact while dealing with customers.
● Measures to take in caseacustomerorasupplierisuncomfortablewithanyconductor
gestures by an employee with a reporting manager. Such measures may include
reassignment or changing the reporting manager.
Please scroll to the next page for the template
Handbook for HR Managers |138
Template - PHYSICAL CONTACT WITH CUSTOMERS POLICY
his policy appliestoalltheCompany’sstaffincludingitsCo-Founders,part-timeandfixed-term
T
employees, temporary staff, work-from-home employees, casual staff, interns. This Company
reserves a right to amend the policy at any time as it deems fit.
POLICY
● O ur Company discourages Employees from engaging in any intimate or inappropriate
physical contact with any customers/clients/leads that interact with the employees.
● T his is to communicate thatunwantedphysicalcontactbetweentheemployeesandthe
customers is inappropriate and will strictly not be tolerated.
● It is the policy of the Company that no employee shall initiate any unwanted physical
contact with our customers, at our places of business, business events or Company’s
social events.
● Unwanted physical contact comprises of:
● H ugging, Patting, stroking, rubbing, holding, touching or kissing or any other physical
contact that is unwanted
● A ny kind of massage, such as amassageontheback,neck,headoranyotherpartof
the body
PROCEDURE:
The following procedures are to be undertaken by all the employees of the Company:
● A ny physical contact with ourcustomersmustbeconsistentwithaprofessionalworking
environment. Physical contact between employees and customers will be restricted to
providing necessary assistance, handshakes, or a pat on the back.
● E mployees should avoid situations which could lead to a non-professional relationship
withourcustomers.Ifsucharelationshipshouldbegintodevelop,theinvolvedemployee
shoulddiscussthepossibilityofjobreassignmentwiththeirReportingManagerorinsome
other way limit contact with the involved customer.
● E mployeesshouldcloselymonitoractivitiesbetweentheotheremployeesandcustomers
in all commonorpublicareasoftheCompany’splaceofbusinessorattheplaceofany
Company related activity or outings.
● E mployeeswhowitnessanyotherEmployeeandcustomerengagedinoverlyaffectionate
or inappropriately sexual behavior while participating in any public or common areas,
should be asked to refrain from this behavior.
● A ll the employees are required to report any non-professional and/or questionable
interactions between any employees and customers that they observe, or have heard
about, to their Reporting Manager.
Handbook for HR Managers |139
● If the Company determines that unwanted physical contact has occurred between an
employee and a customer, effective punitive action will be taken appropriate to the
circumstances.
● A ny person responsible for unwanted physical contact will be subject to disciplinary
action, up to and including termination.
Handbook for HR Managers |140
Probationary Policy
● N ewemployeesneedtimetoacclimatisethemselveswiththeworkingatmosphereofthe
company. They also require orientation and training in some cases to move towards
expected levels of competency desired by the employer.
● Thefirstfewmonthsofemploymentrepresentanopportunityforboththeemployeeand
the Company to determine if the original hiring decision was best for all involved.
● A Probationary Period Policy contains details of terms of probation like period of
probation, performance review and assessment, extension and grounds of termination
during and after probation.
Please scroll to the next page for the template
Handbook for HR Managers |141
Template - PROBATIONARY POLICY
he Company recognizes that new employees will need time to become familiar with the
T
workplaceandtomovetowardcompetencyintheirposition.Thefirstfewmonthsofemployment
represent an opportunity for both the employee and the Company to determine if the original
hiring decision was best for all involved.
nindividualwhohasbeennewlyhiredshallserveaprobationaryperiodof[
A ] working
months.
● [ ] Months –Non-Managerial,Managerial,Professional&TechnicalORanyOff-Site
Employees
● Probationary period for part-time employees will be as per above.
he probationary period does not include time the individual spent as an intern. However,
T
probationary periods may be waived with the approval from the [appropriate authority].
PROBATIONARY REVIEW:
● T he probationary review must be conducted priortotheendoftheprobationaryperiod
that applies.
● The probationary review shall be signed by the [appropriate authority].
● T he supervisor/manager mustprovideongoingsupervisionandkeepthenewemployee
informed on his/her performance relative to the Company’s expectations.
CHANGE OF STATUS:
n employee cannot change from a probationary status to employment status unless his/her
A
probationary review shows an acceptable assessment.
EXTENSION OF PROBATIONARY PERIOD:
● T heprobationaryperiodmaybeextended,withthereasonsfortheextensiongiventothe
employee in writing.
● Probation should be considered active employment only.
● Iftheindividualisabsentduringtheprobationaryperiod(i.e.,illness,vacation),thelength
of extension totheprobationaryperiodshallbeappropriatetothecircumstanceineach
case.
TERMINATION:
● T he employee's performance shall be periodically assessed during the probationary
period and the results discussed with her\him. If the employee's performance is
unsatisfactory, employment may be terminated, in writing, during or at the end of the
probationary period.
Handbook for HR Managers |142
● D uring the probation,theemploymentshallbeterminatedafter15daysfromthedateof
receipt of the notice by the Company. Giving a notice during the probation period,
however, is not mandatory for the Company.
● A ftertheendoftheprobationaryperiod,theterminationhappensafter[90]daysfromthe
receipt of the notice by the Company if it is the employee giving a notice. For the
Company, it will have to give a notice of [30] days minimum.
● A dministrationmustbenotified[ two (2)] weeks before the end of the probationary
period when the Manager suspects that a termination recommendation will be proposed.
Handbook for HR Managers |143
Computer Equipment and Internet Usage Policy
● IoncekeptatabonmyinternetandWhatsAppusageduringofficehours.IrealisedIlost
2 hours of the productive time unconsciously replying to WhatsApp messages,
respondingtoemails.Istruggledtocompletemyworkforthatday.Well,timespentonthe
internet for non-personal use affects productivity big time.
● Working online is part and parcel of the nature of work in many organisations. You are
chatting with a client on WhatsApp. Will you not respond to your mother’s text?
● A Computer Equipment and Internet Usage Policy intends to provide employees and
consultants with rules and guidelines abouttheappropriateuseofcompanyequipment,
network and Internet access. This policy applies to all employees and consultants with
access to Internet and related services through the Company network infrastructure.
● The thumb rule is usage supporting business activities and job functions are allowed.
● Services like working on the company's online dashboard, internal chat rooms can be
accessed.
● Thepolicyalsoprovidesforactivitieswhicharenotpermitted.Itcanrangefromblocking
access to a Facebook account to restricting access to confidential business information.
Please scroll to the next page for the template
Handbook for HR Managers |144
Template - USE OF COMPUTER EQUIPMENT & INTERNET USAGE POLICY
● T his policy applies to all the Company’s staff including its [Founders], part-time and
fixed-term employees, work-from-home employees, temporary staff, casual staff
consultants,andinterns.ThisCompanyreservestherighttoamendthepolicyatanytime
as it deems fit.
● T hispolicyintendstoprovideemployeesandconsultantswithrulesandguidelinesabout
the appropriate use of company equipment, network and Internet access. This policy
appliestoallemployeesandconsultantswithaccesstotheInternetandrelatedservices
through the Company network infrastructure.
COMPUTER USE:
● C omputers (desktops or laptops), Computer files, the e-mail system, and software
furnishedtoemployeesaretheCompany’spropertyintendedforbusinessuse.Generally,
allconsultantsareexpectedtousetheirowncomputersandsoftwareforwork.Theyare
responsibletoensurethatnopiratedsoftwareorillegalhardwareisusedfortheworkof
the company.
● Incidental and occasional personal use of the company’s computers, voice mail and
electronic mail systems is permitted, but any information and messages storedinthese
systems by the employees will be treated as Company Property.
● A n employee should have no expectation that anypersonalinformationstoredbythem
on the Company’s computers and/or communication systems are private and confidential.
● U se of apasswordtoprotectafileoranystoredcommunicationwithoutauthorizationis
prohibited. To ensure compliance with this policy, computer and email usage may be
monitored.
● T he Company mayhavetorespondtoproperrequestsresultingfromlegalproceedings
thatcallforelectronicallystoredevidence.TheCompanywillalsoconductinvestigations
where complaints of unacceptable behavior towards Computer usage have been made.
● T heCompanyiscommittedtohaveaworkplacethatisfreeofharassmentandsensitive
to the diversity of employees. Therefore, employees are not allowed to useComputers
and email in ways that are disruptive, offensive to others, or harmful to morale. The
Computersystemcannotbeusedtodisplay,download,oremailsexuallyexplicitimages,
messages, or cartoons. The Computer system cannot be used for ethnic slurs, racial
comments, off-colour jokes, or anything that another person might consider to be
harassment or disrespectful.
● T heCompanyreservestherighttoenteranyofthesesystemstoinspectandreviewdata
recorded in these systems. Employees who violate this policy will be subject to
disciplinary action, up to and including termination.
INTERNET USE POLICY
Handbook for HR Managers |145
InternetaccesstoglobalelectronicinformationresourcesontheWorldWideWebisprovidedby
theCompanytoassistemployeesinobtainingwork-relatedinformation.Thefollowingguidelines
have been established to help ensure responsible and productive Internet use:
● W hile internet use is intended for job-related activities, incidental and occasional brief
personal use is permitted within reasonable times.
● N etworkadministratorsmayfiltercontentorrestrictaccesstositeswheneveritdeemsfit
or appropriate or on instructions from the senior management.
● Internet data that is composed, transmitted or received via the Company’s computer
communications systems are considered to be a part of the official records of the
Company and, as such, are subject to disclosure to law enforcement and other third
parties.
● C onsequently, Employees should alwaysensurethatthebusinessinformationcontained
inInternetemailmessagesandothertransmissionsareaccurate,ethical,appropriateand
lawful.
● D ata that is composed, transmitted, accessed, or received via the internet, must not
containcontentthatcouldbeconsidereddiscriminatory,offensive,obscene,threatening,
harassing, intimidating, or disruptive to an employee or other person. Examples of
unacceptable content may include, but are not limited to, sexual comments or images,
racial slurs, gender specific comments, or any other comments or images that could
reasonably offend someone on the basis of race, age, sex, religious or political beliefs,
national origin, disability, sexual orientation, or any other characteristic protected by law.
● E mployees should take the necessary anti-virus precautions before downloading or
copying any file from the internet. Downloaded files are to be checked for viruses and
compressed files are to be checked before and after decompression
The following are some examples of prohibited activities that violate this Internet Usage Policy:
● Sending or posting discriminatory, harassing, or threatening messages or images
● Using the Company’s time and resources for personal gain
● Stealing, using, or disclosing someone else's code or password without authorisation
● Copying, pirating, or downloading software and electronic files without permission
● S ending or posting Confidential Information, trade secrets, or proprietary information
outside of the Company
● Violating copyright law
● Failing to observe licensing agreements
● E ngaging in unauthorized transactions that may incur a cost to the Company or initiate
unwanted internet services and transmissions
Handbook for HR Managers |146
● S ending or posting messages or material that could damage the Company’s image or
reputation
● Participating in the viewing or exchange of pornography or obscene materials
● Sending or posting messages that defame or slander other individuals
● Attempting to break into the computer system of another Company or person
● Refusing to cooperate with a security investigation
● S ending or posting chain letters, solicitations, or advertisementsnotrelatedtobusiness
purposes or activities
● U sing the internet for political causes or activities, religious activities, or any sort of
gambling
● Jeopardizing the security of the Company’s electronic communications systems
● Passing off personal views as representing those of the organisation
● Sending anonymous email messages
● Engaging in any other illegal activities
VIOLATION OF THE POLICY
● A buse of the internet access provided by the Company in violation of the law or the
Company’spolicieswillresultindisciplinaryaction,uptoandincludingterminationofthe
employment.
● E mployees and consultants may also be held personally liable for any violations of this
policy.
Handbook for HR Managers |147
Dress Code
The Dress Code reflects the work culture of the company.
● N ormally in IT companies or startups you will observe a casual or semi formal attire
reflecting a millennial or relaxed work culture.
● In engineering companies, you willobserveaformalcolourcodeddresscode.Theyare
also supposed to wear caps and boots while operating in work areas because of their
proximity to heavy machinery.
● Normallyadresscodepolicymustprovidethattheemployeesmustusetheirjudgement
to dress up in a way that makes them look presentable in a professional atmosphere.
● Italsomustenlistoccasionswheredressingupformallyisexpectedfromthe employee.
Such occasions canincludeattendingclientandbusinessmeetings,attendingcorporate
events or workshops.
Please scroll to the next page for the template
Handbook for HR Managers |148
Template - DRESS CODE POLICY
POLICY
● T heappearanceofemployeesisareflectionofthecompanyandworkenvironment.Itis
important that all employees are aware of the dress code expectations.
● C ompany has chosen tooffera[smart-casual/businesscasual/business]dresscodefor
employees. Employeesareexpectedtousegoodjudgmentandtoshowcourtesytotheir
co-workers by dressing in a manner that is presentable and appropriate.
● S houldemployeesbeaskedtoattendbusinessmeetingswithclients,eitherinCompany’s
offices or otherwise, they should dress in appropriate business attire. Maintaining a
professional,businesslikeappearanceisveryimportantfortheethicsandappearanceof
the Company.
● S hould the employees be asked to attend workshops or events, either in Company’s
premises or otherwise, employees must use their own discretion to dress in an attire
appropriate for the workshop or event.
Hygiene
mployeesareexpectedtomeetthehygienerequirementsduringregularbusinesshoursforthe
E
duration of their employment:
● Maintain personal cleanliness by bathing daily
● Maintain oral hygiene
● Use deodorant / anti-perspirant to minimize body odour
● N o heavily scented perfumes, colognes and lotions. Thesecancauseallergicreactions,
migraines and respiratory difficulty for some employees.
● Clean and trimmed fingernails.
● Wash hands after eating or using the restrooms.
Personal Grooming
● Clothing must be clean, pressed, in good condition and fit appropriately.
● Socks or hose must be worn with shoes.
● Neat and well groomed hair, sideburns, mustaches and beards.
● Moderate make up
● Well combed and secured long hair
● No dark glasses (unless prescribed by a physician)
Handbook for HR Managers |149
● L imitedjewelryandnodanglingorlargehoopjewelrythatmaycreateasafetyhazardto
self or others.
● T attoos that are perceived as offensive, hostile or that diminish theeffectivenessofthe
employee’s professionalism must be covered and not visible to the staff, customers or
visitors.
[in case your company has proper business attire,andhasacasualfridaypolicy,thefollowing
clause can be added to the policy]
Casual Friday
he Company has a “Casual Friday” policy wherein the employees are welcome to wear
T
workplace appropriate casual clothing. While Casual Friday allows the employeestodressina
more casual fashion, they should take into account the necessity to continuously conduct
themselves in a professional fashion, and dress in such a way that will not create a negative
perception by customers, either internal or external.
[In case your company hasapolicythatspecificclothingitemswhichareinappropriatewillnot
permitted in the office premises, a list of the same can be provided in a clause as follows]
● Inappropriate Attire (also applicable on Casual Friday)
● The following items are not permitted in office premises during normal working hours :
● Sweat Pants;
● Jogging Pants;
● Pants that expose the midriff, underwear or leggings;
● Gym shorts;
● Bicycle shorts or other athletic shorts;
● Low-cut tops;
● Halter-tops;
● Spaghetti strap tops;
● Tops that expose the midriff or underwear;
● Mini-skirts;
● Any form of clothing that is mesh, sheer, see-through or otherwise inappropriate for work;
● Any form of clothing that is generally offensive, controversial or disruptive;
● A ny form of clothing that is overtly commercial, contains political, personal or offensive
messages;
Handbook for HR Managers |150
● Plastic flip-flops or sandals;
● Beach footwear.
VIOLATION OF POLICY:
If any employeeisfoundtobedressedinappropriatelyforbusinessmeetings,work,workshops
oreventseitherintheCompany’spremisesorotherwise,and/ordoesnotcomplywiththedress
code policy, they will be cautioned in writing. This may negatively reflect on your future
increments and promotion.
Handbook for HR Managers |151
Customer Data Policy
● A Customer Data Policy ensures that the records of the company’s customers are kept
confidential.
● It also keeps the relationships of the customers with the company confidential.
● No employee other than those authorized in writing shall divulge any information or
records of a customer to anyone outside the Company.
● No employee orconsultantisallowedtoshareanycustomerdataorcompanydatabase
with
● Anybody outside the company
● With their own personal email id or data dump
● Anybody inside the company who does not need the data
● Ifanydataissharedonaneedtoknowbasis,aftertherequirementisover,suchaccess
to data must be revoked.
● The policy must also mention that the customer data can be shared with government
agencies based on legitimate requirements.
● The customer informationis soughtbytheCompanyforproperbusinesspurposesonly
the purpose for obtainingsuchpersonalinformationistoprovidecustomerswithquality
service.
Please scroll to the next page for the template
Handbook for HR Managers |152
Template - Customer Records & Confidentiality Policy
● It is the policy of the Company that both the records of our customers and the
relationships between our Company and our customers are confidential.
● N o employee other than those authorized in writing shall divulge any information or
records of a customer to anyone outside the Company.
● O ur Company shall cooperate with governmental agencies in their properly-made,
legitimate requests for information.
● W e understand the special duty we have with safeguarding our customer'sinformation.
ThoughthisinformationmayberequiredtobeobtainedbylaworsoughtbytheCompany
for proper business purposes, such personal information is also vital to our ability to
provide its customers with quality service.
● N o employee orconsultantisallowedtoshareanycustomerdataorcompanydatabase
with:
1. Anybody outside the company
2. With their own personal email id or data dump
3. Anybody inside the company who does not need the data
● Ifanydataissharedonaneedtoknowbasis,aftertherequirementisover,suchaccess
to data must be revoked.
POLICY:
The following code of conduct has been implemented in our Company:
● T heCompanyroutinelycollectsCustomerDataandotherinformationaboutitsCustomers
tobetterservethemandtoofferapplicablecoursesand/orproductsandservicestomeet
their needs and expectations.
● U nder no circumstances is Customer Data sharedwithathird-partyunlessnecessaryto
providedirectservicesfortheCompany. Typicalinformationisderivedfromwebhosting
and our Employee-Customer contact.
● T heonlyemployeeswhoareauthorizedtohaveaccesstoCustomerDataarethosewho
need it to do their jobs. This Customer Data is protected and kept confidential. The
Companyshallmaintainphysical,electronic,andproceduralsafeguardsthatcomplywith
regulations to protect Customer Data and information.
● T heCompanymayshareCustomerDatawithotherdepartmentsandemployeesinorder
tobetterservetheCustomer,ortoinformtheCustomeraboutotherCompanyproductsor
services.
Handbook for HR Managers |153
● T he Company may shareCustomerDatawithothercompaniesthatperformservicesfor
us or on our behalf.
● Customer Data may be disclosed as permitted or required by law.
Handbook for HR Managers |154
Dating Policy/ Fraternization Policy
team leader is dating another team leader and their relationship ends on a sour note. The
A
bitterness of a failed relationship will likely lead to bad working relationshipsandapooroffice
environment.
hatifamanagerisdatinganewjoinee,thepowerequationhereisnotequal.Othersmightfeel
W
thatthemanagerisbeingpartialtowardsthejoinee.Lastyear,Intel’sCEOBrianKrzanichhadto
resign over a relationship with an employee.
ating in office might give rise to a conflict of interest situation. However social interactions
D
amongst colleagues can’t be prohibited outrightly.
A Dating Policy is imperative to give a clear and defined approach in handling such situations.
hile drafting a Dating Policy a cautionary approach is advisable as extended courtesies or
W
favouritism can cause unwanted problems for the organisation. The following additional points
must be kept in mind.
In case, the employee is dating another co-worker, the following mechanisms can be
implemented:
W
● ritten disclosure to the reporting managers
● Alignment from the reporting managers
● One of the e
mployees could betransferredtoadifferentteam,departmentorreporting
manager
● One of the employees may have to resign and work in a different organization.
he management must also reserve the right for termination of theemploymentifthesituation
T
warrants,suchaswhenadisclosureaboutdatingwhichwastobemadeasperthedatingpolicy
has not been made.
Please scroll to the next page for the template
Handbook for HR Managers |155
Template - DATING POLICY
avoritism or extended courtesies can create unwanted problems for a Company. While the
F
Company doesnotencourageco-employeedating,theCompanycautionsemployeesnottolet
such fraternization affect their job performance and we reserve the right to take appropriate
action, on a case by case basis.
heCompanyallowssocialorfriendlyrelationshipsbetweenemployeesoutsideofficeprovided:
T
bothpartiesmutuallyandvoluntarilyconsenttothesocialrelationship;therelationshipdoesnot
breachcorporatevalues,andtherelationshipdoesnotaffectjudgmentorperformanceofduties
ofinvolvedemployeesornegativelyimpactthecommongoodoftheCompany.However,dating
a co-worker or having a sexual relationship is not allowed unless the same is specifically
disclosed to the management in writing.
he reason for suchprohibitionisthatsucharelationshipisboundtocreatemultipleconflictof
T
interestsituations.Theruleequallyextendstostudents,customers,vendors,consultants,interns
or any other people dealing with the company on a regular basis.
Here are some examples:
● A purchase manager is in a dating relationship with a vendor. His judgment may be
influenced in such a scenario.
● A manager is dating a new joinee. The power equation here is too unequal and other
people in the team of the manager may think that he is being partial.
● A consultantisdatingacustomerorastudent.Thismightleadtoabadreputationofthe
organization if the parents of such a student are upset.
● A consultant is pursuing an intern as a romantic interest. This can lead to severe
problems.
● A teamleaderisdatinganotherteamleader,andlatertheirrelationshipmeetsasourend.
Thebitternessofafailedrelationshipislikelytoleadtocomplicatedworkingrelationships
and bad environment in the workplace.
Ifyoumustdateacoworker,pleaseinformthemanagementfirstsothatwecanavoidorminimize
such conflict of interest.
Dating a student or a customer is strictly prohibited in any circumstances.
lsonotethatourcompanyhasapolicyprohibitingsexualharassmentintheworkplace.Sinceit
A
isclearthatsexualrelationshipwithaco-workerisprohibited,webelievethiswouldreducethe
possibilityofunwarrantedsolicitationattheworkplace.Thispolicyappliestoallemployeesofthe
Company, including supervisors, consultants, managers, and executives.
Handbook for HR Managers |156
POLICY:
o ensure that dating your colleague or others dealing with the company does not adversely
T
affect the workplace, employees who enter into such relationships must comply with the
following:
● Employees who develop such relationships must immediately notify and disclose all
relevant circumstances to the Reporting Manager. The Reporting Manager on receiving
such information shall intimate the [appropriate authority] about the same.
● A gree to possible reassignment/transfer if the employees are working out of the same
Company premises. The management will decide who shall be re-assigned/transferred.
● U ntil the decision has been made with respect to reassignment/transfer by the
[appropriate authority], both the employees must behave professionally at all times,
avoiding indiscreet behavior while at the workplace or while on Company time or
business including refraining from public displays of sexual affection, sexual innuendo,
suggestive comments and sexually oriented joking.
● N otify the Reporting Manager and the [appropriate authority] should the relationship
terminate during the period the decision is being made by the [appropriate authority].
he Company reserves the right to terminate the employment of either of the co-employees
T
should the need arise to do so. The decision with respect to the same shall lie with the
co-employees dating.
VIOLATION OF POLICY:
mployees found in violation of this policy may be subject to suspension or immediate
E
termination of their employment.
Handbook for HR Managers |157
Social Media Policy
● W hatifyouhadanargumentwithacolleagueintheofficewhoisalsoafacebookfriend.
You both start posting status updates about each other. Think about it, can you do so?
What if in the wave of retaliation, you post something that leaks internal details or
confidential information of the company. What if you start posting defamatory content
about the company itself.
● Take another situation, youarefiredfromyourjobonaccountofdisciplinaryaction.You
start writing negative reviews about the Company on Facebook to vent out your
frustration.
● Ours is an Instagram generation, thelinebetweenwhattoshareonlineandwhatnotto
share online is becoming increasingly blurry. It is a risky proposition in the case of a
company.
● Imagineifyouareanonlinecontentmanagerworkingforaleadingblog,nowtheremust
be a clear distinction made whatever you postonsocialmediaorbloginyourpersonal
capacitydoesnotrepresenttheviewsofthecompany.Asocialmediapolicycoverssuch
situations.
● ASocialMediaPolicyprovidesguidanceforemployeeuseofsocialmedia,whichshould
be broadly understood for purposes of this policy to include blogs, wikis, microblogs,
message boards, chat rooms, electronic newsletters, online forums, social networking
sites, andothersitesandservicesthatpermituserstoshareinformationwithothersina
contemporaneous manner.
Please scroll to the next page for the template
Handbook for HR Managers |158
Template - Use Of Social Media By Employees Policy
● T his policy applies to all the Company’s staff including its part-time and fixed-term
employees, work-from-home staff, temporary staff, casual staff, consultants and interns
(theentiregroupisreferredtoasEmployeesinthispolicy).ThisCompanyreservesaright
to amend the policy at any time as it deems fit.
● T hispolicyprovidesguidanceforEmployeeuseofsocialmedia,whichshouldbebroadly
understood for purposes of this policy to include blogs, wikis, microblogs, message
boards, chat rooms, electronic newsletters, online forums, social networking sites, and
other sites and services that permit users to share information with others in a
contemporaneous manner.
POLICY:
o assist the Employees in making responsible decisions about the use of social media, the
T
Company has established the following guidelines for appropriate use of social media:
● E mployees are solely responsible for what he/she posts online, which is not part and
parcel of his or her work profile at theCompany.Theyshouldmakeitevidentonsocial
media that theyarepostingtheirownopinionandnotthatofthecompany.Theyshould
clarify this wherever appropriate and necessary.
● P lease understand thatemployeesandconsultantswhorepresentthemselvesaspartof
the company to the public, such as content marketing executives and marketing
managers for example,areconsideredtobespokespersonsofthecompanyevenwhen
theyarenotactinginsuchcapacity.Itisimportantinthesecasestomakeitclearthatitis
yourpersonalopinionwhenyouarenotrepresentingthecompany,anditiscriticaltoerr
on the side of abundantcautionratherthanotherwise.Utmostmaturityinthisrespectis
needed from all of you.
● E mployees must not create/post online content that may harm the reputation of the
Company in any manner.
● B eforecreatinganonlinecontenttheemployeemustconsidertherisksandrewardsthat
are involved in the content, as they might adversely affect the employee’s job
performanceandtheperformanceofthefellowemployeesandmayresultindisciplinary
action.
● A lthoughnotanexclusivelist,somespecificexamplesofprohibitedsocialmediaconduct
include posting commentary, content, or images that are defamatory, pornographic,
proprietary, harassing, libelous, or that can create a hostile work environment.
● E
mployees must notpostworkrelatedcomplaintsorcriticismsregardingaco-employee
or the company on a socialmediaoutlet.Useofanystatements,photographs,video,or
audiothatreasonablycouldbeviewedasmalicious,obscene,threatening,orintimidating,
that disparage customers, members, associates, or suppliers, or that might constitute
harassment or bullying is strictly prohibited. Examples of such conduct might include
offensive posts meant to intentionally harm someone's reputation or posts that could
Handbook for HR Managers |159
c ontribute to a hostile work environment on the basis of race, sex, sexual orientation,
disability, religion, or any other status protected by law or company policy.
● E mployees must strive to be honest and accurate when posting information or news
abouttheCompany,andifanhonestmistakeismade,thentheEmployeeisexpectedto
correct it
● E mployeesmustnotpostanyinformationorrumorsthattheyknowtobefalseaboutthe
Company, fellow employees, members, customers or suppliers.
● E mployees must maintain the confidentiality of Company’s trade secrets and private or
confidential information. Trade secrets may include information regarding the
development of systems, processes, products, websites, know-how, andtechnology.An
Employeeisstrictlyprohibitedtopostinternalreports,emails,circulars,data,statusofany
project, policies, procedures, or other internal business-related communications.
● E mployees are not permitted to create a link from his/her blog, website,orothersocial
networking site to the Company website.
● E mployeesshouldrefrainfromusingsocialmediawhileonworktimeoronequipmentthe
Company provides, unless it is work-related.
● U seofEmployee’sofficiale-mailaddressestoregisteronsocialnetworks,blogs,orother
online tools utilized for personal use is prohibited.
● E mployeesareallowedtoposttheirofficialdesignationsinrelationtotheirjobprofilewith
theCompanyonsocialmediaduringthetermoftheiremployment.Theyareexpectedto
mention on LinkedIn, Twitter and Facebook that they work with the company. Theyare
also expected to follow official social media accounts of the company.
● A ftertheirstintatthecompanyisover,employeesmustimmediatelyindicatewithrespect
toallreferencesoftheirofficialdesignationontheirsocialmediaprofilesthatthestinthas
ended. They should not communicate on their profile anything that indicates or
misrepresents in any way that they continue to be working with the company.
● E mployees must handover access to all social media accounts of the Companytotheir
Reporting Manager at the end of their employment.
● E mployees are expected to immediately notify the management of the companyifthey
come across any harmful information or misrepresentations about the company or a
colleague on social media so that the company can address the same.
● W henwritingpersonalblogposts, articles,postingvideosortweetsetctheymustmakeit
clearthattheopinionisoftheirownandnotofthecompany,unlesstheyareauthorised
by the company to represent the company as a spokesperson.
VIOLATION OF THE POLICY
● A buse of this policy in violation of the law or the Company’sotherpolicieswillresultin
disciplinary action, up to and including termination of employment.
Handbook for HR Managers |160
● Employees may also be held personally liable for any violations of this policy.
Handbook for HR Managers |161
Equal Opportunity Policy
● A n Equal Opportunity Policy reflects a company’s commitmenttoprovidingaworkplace
without any form of discrimination or harassment amongst employees.
● Itmuststatethecriteriaforpromotionorappraisalisbasedonmerit.Itcanalsostatethat
training opportunities are provided to everyone equally.
● It must also state that the company does not discriminate on the grounds of sex, age,
gender, race, disability, HIV status etc to reflect a diversified work culture.
● It must also provide details of a reportingmanageroragrievanceredressalmechanism
for employees to report cases and concerns of discrimination.
● Anyspecialarrangementsforpersonssufferingfromanydisabilitymustbementionedlike
providing a wheelchair or accommodation.
Please scroll to the next page for the template
Handbook for HR Managers |162
Template - EQUAL OPPORTUNITY POLICY
● O ur Company is committed to the principle of equal employment opportunity for all
employees and to providing employees with a work environment free of discrimination
and harassment.
● T o provide equal employment and advancement opportunities to all individuals,
employment decisions at our Company will be based on merit, qualifications and abilities.
● W edonotdiscriminateinemploymentopportunitiesorpracticesonbasisofrace,colour,
creed, religion, sex, national origin, social or ethnic origin, sexual orientation, age,
citizenship, physical or mentaldisability,HIVstatus,oranyothercharacteristicprotected
by the laws.
● A ffirmativeactionwillbetakentoensurethatallemploymentdecisions,includingbutnot
limited to those involving recruitment, hiring, promotion, training/development,
compensation, benefits, transfer, termination, layoff, discipline and discharge, are free
from unlawful discrimination.
● T heCompanywillmakereasonableaccommodationsforqualifiedindividualswithknown
disabilities unless doing so will result in an undue hardship.
● If an employee has any queries or concerns about any type of discrimination in the
workplace or if any employee or job applicant feels that he/she has been subjected to
discrimination by employees or management of the Company, is encouraged and
requested to bring these issues to the attention of the Reporting Manager/Person
ConcernedandreporttheincidentorcomplaintdirectlytotheReportingManager/Person
Concerned, who will investigate thematterandattempttoresolveit.Youcanalsoemail
such a problem to directly to the CEO to [email id of the CEO]
● Employees are free to raise concerns over discrimination without fear of reprisal.
● A nyemployeeormemberofthemanagementhavingfoundtobeinvolvedinanytypeof
unlawful discrimination will be subject to disciplinary action as deemed fit by the
Leadership, up to and including termination of employment.
Handbook for HR Managers |163
Protection of IP from Employees, Consultants and Vendors
● F or a company like Apple which leverages its IP portfolio to obtain a business and
competitive advantage,a robust policy to contain guidelines on the protection of its IP
assets from possible cases of infringement is very essential.
● Your marketing manager might have access to confidential customer lists,anemployee
working in a R & D Department may have access to a groundbreaking innovation or a
trade secret which offers the company an edge over the company’s competitors.
● A policy for IP protection must cover non disclosure obligations expected from the
employees, consultants and vendors. Additionally, it must provide for cases which give
rise to IP infringement and risk mitigation strategies to combat the same.
Important notices
Charge Sheet/ notice of enquiry
● Ifanemployeeregularlyviolatesrulesorcodeofconductoftheorganisation,hecanbe
issued a chargesheet.
● Forinstance,Ifaworkmanishabituallycominglatewithoutanysufficientcause,hecanbe
issuedawarningletterthrice,ifherepeatstheoffenceevenafterbeingissuedawarning
letter for the third time, a charge sheet is framed to initiate the enquiry against him.
● The Charge Sheet must contain full disclosure of facts which makeupamisconductso
thattheemployeeisawareofthecasemadeagainsthimforlatecoming,inourexample
the wordhabitualreflectsthenatureoflatecomingsoitmustbeincluded.Basically,the
essential elements forming the misconduct must be reflected in the chargesheet.
● Youcan’tbringapunitiveactionforanitemwhichisnotinthechargesheet.itwilltakethe
employee by surprise and would amount to a defect in procedure.
● Other elements of chargesheet include time of committing offence, previous facts
showing habit forming tendencies, a reference to the standing order or service rules
under which the misconduct falls.
Please scroll to the next page for the template
Handbook for HR Managers |164
Chargesheet
Date: ………….
egd. Post with Acknowledgement Due
R
To
Mr………….
E.Code:…………..,
Dept…………………….
Charge Sheet cum Show cause Notice
It has been noticed that you are absenting from duty without leave or intimation to the office
from……… till date from your attendance record. You were repeatedly called on your mobile
number but you declined the line manager’s calls during this period. Your absence from duty
caused dislocation of work between colleagues.
You have been previously issued 2 warning letters in this regard on_(date)_____ and
_____________.
Inviewoftheabove,yourrepeatedabsencefromworkonmultiplepreviousoccasionsisdeemed
callous and habitual.
It amountstomisconductunderStandingOrder….26.1 ofthecompany,applicabletoyouwhich
reads as follows.
Standing Order….(iii): Habitual absence without leave or absence without leave for 10
consecutive days or overstaying the sanctioned leave without sufficient grounds or proper or
satisfactory explanation.
tanding Order ……(iv): Absentwithoutleavefor10consecutivedaysormoreshallbedeemed
S
voluntarily abandoning his / her services from the company.
herefore, you are hereby directed to show cause in writing within 48 hours ofreceiptofthis
T
chargesheetcumshowcausenoticeastowhyanappropriatedisciplinaryactionshouldnotbe
taken against you.
In case you fail to submit a timely explanation, it will be presumed that you admit the charges.
Accordingly, further disciplinary Action will be taken against you in accordance with law.
uthorised signatory
A
Supervisor
Cc to: Concerned dept
Handbook for HR Managers |165
Show Cause Notice
● Issuance of a Show Cause Notice is an absolute necessity when it comes to disciplinary
proceedings,asitconstitutescommunicationoftheallegedwrongdoingtotheemployeeand
a chance to be heard.
● WritingsuchnoticeswouldoftenbethejobofHRmanagersthoughoccasionallylawyersmay
be called in.
● The reasons for issuing such notice are usually (and are desired to be) spelled out in the
employee handbook.
Please scroll to the next page for the template
Handbook for HR Managers |166
Template - Show Cause Notice
Date:
ame of Employee
N
Designation / Department
Dear ____________________
LETTER OF EXPLANATION
It has been reported that you have been found to have committed the following acts of
isconduct:
M
a)_____________________
b)_____________________
c)_____________________
ouareherebyrequiredtoprovideawrittenexplanationintotheallegationsstatedaboveonor
Y
before DD/MM/YYYY.
lease take note that if your explanationisnotreceived,theManagementwillassumethatyou
P
are guilty of the said allegations above and have no explanation to offer in your defense.
Yours faithfully,
____________________________
(Name of Signatory and Designation)
Handbook for HR Managers |167
Inquiry Report
emorandum
M No._________________ date______ against Shri
_________________Design___________
I
PREAMBLE
he undersigned was appointed vide order No.__________dated________toinquireintothe
T
chargesframedagainstthesaidShri_______videthesaidMemorandum,inpursuancethereof,
the inquiry was conducted in accordance with …………….... (Rules/Regulations/Codeofconduct,
etc.). The order sheets are at Annexures. Therecordsoftheproceedingsconductedareatthe
Annexures.
hri ________ Desig______ was appointed as the Presenting Officer by the Disciplinary
S
Authority vide order No____________ dated_________.
hri________________Design___________wasassociatedbyShri___________(CSO)ashis
S
DA.
II
IMPUTATIONS AND CHARGES
(Define the facts and imputations vis a vis the charges and defence of the CSO against such
charge. If there has been a shift in the defense, indicate that also).
III
heprosecutionproduceddocumentaryandoralevidencevideAnnexure-IIandIV.Thedefense
T
produced documentary and oral vide Annexure IIIandV.TheCSOwasgivenanopportunityto
state his defense at the close of the prosecution evidence vide his statement at Sl.No.4 of
Annexure-I. The examination of the CSO by the IO has been recorded vide item
No._______Annexure-V.
IV
SSESSMENT OF EVIDENCE AND FINDINGS
A
(enclosed)
lace:
P
Date:
Inquiry Officer Name_______________
Designation__________
Handbook for HR Managers |168
Notice for Termination of an Employee
● It must be ensured while drafting a termination letter/ notice to an employee, that the
reason of termination is properly disclosed.
● Sufficient notice period must be given as per the terms of employment contract.
● If no notice periodisgiven,thensufficientsalaryandcompensationforthatperiodmust
be given.
● All the details about the handover must be specified.
● It must be ensured that it is signed by the person authorised to terminate the person.
Handbook for HR Managers |169
Miscellaneous
Offer Letter
● It is a formal document which contains details about the starting date of employment,
offered salary, grounds for termination, rules and regulations of the company.
● It states designation, grade, name of department, details of leave entitlement etc.
● It needs to be signed by the employee and the employer.
Please scroll to the next page for the template
Handbook for HR Managers |170
Sample Offer Letter
AME OF THE COMPANY
N
CIN no.
Registered office address
ame
N
Address of the candidate
Offer Letter of your engagement
Dear________
ongratulations! We are pleased to confirm your engagement with _____________on a
C
retainer basis in the position of‘_____________.We are delighted to make you the offer.
ou will be entitled to an overall monthly remuneration of INR ____________(subject to
Y
applicable tax deductions 10% TDS).
orthefirst3months,youwillbeonprobation,incaseifonewishestoleavethepositionin
F
theprobationperiod,then1monthnoticeperiodismandatorywhichifnotfulfilledsalaryand
incentives will be withheld for the last month.
e may ask you to leave the position with immediate effect in case of non-performance,
W
mismatch of skill sets with the work requirements, disciplinary issues or any other reason.
ther terms of your engagement will be mentioned in a separate retainer
O
agreement/consultancy contract. You may commence working latest by (date)
ou are requiredtosubmityourAcademicCertificates,IDProofssuchasAadharCard,PAN,
Y
PreviousEmploymentCorrespondenceswhichincludesOfferLetter,ExperienceLetter,Salary
Slip within 7 days of joining, otherwise the offer letter will stand invalid and cancelled
automatically.
e are confident you will be able to make a significant contribution to the success of our
W
organization and look forward to working with you.
ours truly,
Y
COO,
Director
Handbook for HR Managers |171
EXIT MEMO
o,
T
_________
Subject:
Dear [Employee Name],
hank you for your service to ___________________ [hereinafter the Company] for the past
T
[insertno.ofmonths/yearsserved].Wedeeplyappreciatethetimeandeffortthatyouhaveput
in the Company.
Please ensure the following in relation to your exit from the Company:
1. Completion of exit formalities:
a. S
ubmission of a duly signed resignation letter addressed to the HR and your
managing supervisor at the time of your exit.
b. Submission of the ‘no dues’ certificate
c. C
ompletion of the exit interview scheduled by HR (alternatively, this can be
completionoftheexitfeedbackformasprovidedbyHRorasexistingontheHR
portal of the company).
2. O fficial Property to besubmittedback(thismaybeplacedinanannexure,wherethe
receipt of the assets will be confirmed by respective departments)
ubmission of the following items to the HR immediately after submission of your
S
resignation letter:
.
a IM Card
S
b. ID/Access Card
c. Visiting Card
d. Mobile Handset
e. Laptop
f. Keys to your office / cabinet / drawers
g. Any other property
3. Formalities to be completed in relation to Confidential Information/Trade Secret
A. M
eeting with Manager / Supervisor and formal handover of all the Confidential
Information / Trade Secrets furnished to you in connection with your employment.
B. S
ubmissionofacertificate(aspertheformatprovidedbytheCompany)toconfirm
that all Confidential Information (as defined in the employment agreement) has
beenhandedoverandthatnoConfidentialInformationisretainedwithyouinany
form including any copies.
Handbook for HR Managers |172
4. R emovalofreferencetocurrentlybeinginemploymentwiththeCompanyfromsocial
networking sites, for eg. Facebook, LinkedIn and any other networking sites
hismemoistoinformyouaboutthetermsandconditionswhichwouldbeapplicableand
T
binding on you after termination of your employment with the Company as per the
Employment Agreement and Trade Secret / Confidentiality Agreement.
Non Compete and Non Solicitation:
1. Y
ou cannot engage in any activity or business whichisthesameorsubstantially
similartotheCompany’sbusinessfor12monthsfromthedateofyourresignation
or termination of your employment directly or indirectly, without the written
consent of the Company’s management.
2. Y
ou cannot work directly with any of the customers / affiliates / vendors and
competitorsoftheCompanyforaperiodof12monthsfromthedateoftermination
of your employment with the Company.
3. Y
ou will not, for 12 months after termination /cessationofyouremploymentwith
the Company, solicit, or cause any organization directly or indirectly owned or
controlled by you to solicit, any employee of the Company to leave the
employment of the Company.
4. Y
ou will not,solicitforemployment,hireorengageasanindependentcontractor,
orcauseanyorganizationdirectlyorindirectlyownedorcontrolledbyyoutosolicit
for employment, hireorengageasanindependentcontractor,anypersonwhois
employed by the Company for a period of 12 months after termination of your
employment with the Company.
5. In case you engage in any activityorbusinesswhichisthesameorsubstantially
similar to the Company’s business before expiry of 12 months from the date of
termination of your employment and without taking the written consent of the
Company,theCompanyhastherighttoclaimdamagesagainstyouforthelosses,
expensesincurredbytheCompany,whichwillbedecidedonacasetocasebasis.
The Companyshallinitiatecriminalproceedingsagainstyouundertheapplicable
criminal,cyberandIT,intellectualpropertylawsandotherlaws.TheCompanyshall
also initiate arbitration as defined in the Employment Agreement against you to
claim damages.
Non Disclosure of Trade Secrets/Confidential Information
1. Y
ou will return all Confidential Information (as defined in the Employment
Agreement), including copies thereof irrespective of storage or presentation
medium, including all electronic and hard copies thereof, and any other material
containing or disclosing any ConfidentialInformationwhichisinyourpossession,
power and control. You will not make or retain any copies of such Confidential
Information and destroy any such Information in your possession.
Handbook for HR Managers |173
2. Y
ouwillforeverholdandmaintaintheConfidentialInformationoftheCompanyin
strictest confidence for the sole and exclusive benefit of the Company.
3. Y
ou will not use any Confidential Information (defined in the Employment
Agreement)inanymannerforyourbenefitorcopyorpublishorotherwisedisclose
it to others for their benefit or to the detriment of the Company after the
termination of your employment with the Company, without the prior written
consent of the management of the Company.
4. U
ntilsuchtimethatyoureturnanddestroyConfidentialInformation,theCompany
will,inadditiontoinitiatinglegalproceedingsforrecoveryofthesame,beentitled
to withhold your salary, emoluments or other dues. The Company shall claim
damagesagainstyouforthepotentiallosstothebusinessoftheCompanyforthe
next 5 years due to breachofyourEmploymentAgreementandthelossofsuch
Confidential Information.
5. IfyoufailtohaveameetingwiththeManager/Supervisor,formallyhandoverallthe
materials furnished to you, including Confidential Information, and complete the
exitformalities,theCompanyshallinitiatelegalactionagainstyouforthebreachof
contractual obligations. The Company can initiate criminal action against you for
datatheftofthematerialsoftheCompany,includingConfidentialInformation.The
Company shall claim damages against the Employee forthepotentiallosstothe
business of the Company for the next 5 years duetobreachoftheEmployment
Agreement and the loss of such Confidential Information.
6. Y
our obligation to maintain the confidentiality and security of Confidential
Information of the Company remains even after your employment with the
CompanyisterminatedandcontinuesforsolongassuchConfidentialInformation
remains a trade secret.
ehopethatyouhadafruitfuljourneywithusandwehopetomaintainanamicablerelationship
W
with you in the future. We wish you luck for your future endeavours.
or ___________________ Ltd.
F
(Signature)
esignation: HR
D
(Signature)
[Insert Name of the Employee]
Letter Of Appointment for Advisor / Consultants
Date _________
Name of the employee
Handbook for HR Managers |174
Address____________
Dear (First name),
ith reference to the discussions you have had with us, we are pleased to appoint you as
W
“_______” for our Group companies on the following terms and conditions:
1. You will be paid a consolidated amount of Rs._______ (Rupees _______only) per annum.
2. The above consolidated amount will consist of the following:
a) Rs. _________ per annum as fixed pay, and
b)Rs._________perannumasvariablepaywhichislinkedtoyourperformanceandthat
f the company.
o
3. T his appointment is for a period of two years effective dateofyourjoiningandmaybe
renewed on a mutual basis. This arrangement is with effect from _______ and will be
valid for a period of _______years/s.
4. Inthiscapacity,youwillbelocatedat____andwillreportto_______oranyotherperson
nominated by the company. However, your services could be transferred to any other
Departments/Divisions of the Company. Notwithstanding your appointment in this
company, your services could be reassigned to anyothercompanyofthe(Organization
Name) Group.
5. Y oumayalsobeassignedsuchotherdutiesasmaybecomenec(OrganizationName)yat
the discretion of the Management in any Branch or office of the Company and/ or its
Subsidiaries or Associate Companies.
6. Y ou will be eligiblefor18daysleavepro-ratedpercalendaryear.However,leavewillbe
allowed subject to exigencies of work.
7. Y ouwillbeprovidedcomprehensiveAccident/MedicalHealthInsuranceforyourandyour
spouse.
8. It is clarified that in addition to the above, you will not be entitled to any other benefits.
9. T his appointment can be terminated by giving three-month notice on either side or
payment in lieu of shortfall in this notice period.
10. You shall observe all rules and regulations of the company.
11. D uringthetenureoftheassignmentwiththecompany,youwillnotengageyourselfinany
other assignments or gainful employment without consent of the management.
12. You are required to maintain the highest order of secrecy with regards to the work or
confidential information oftheCompanyand/oritssubsidiariesorAssociateCompanies
Handbook for HR Managers |175
ndincaseofanybreachoftrust,yourappointmentmaybeterminatedbytheCompany
a
without any notice.
13. The Company lays emphasis on all statutory compliances and you should ensure
compliance with various statutes in your area of operations.
indlysignacopyofthisletterinacceptanceoftheabovementionedtermsandconditionsand
K
return the same for our records.
Regards
ame of Business Head
N
Designation
Company
Handbook for HR Managers |176
raft Complaint against SexualHarassmentattheWorkplaceto
D
be submitted in six copies
Date: [●]
[●] [Insert name of any member of the InternalComplaintsCommittee(ICC)/LocalComplaints
5
Committee, as applicable ]
[●][Insertaddressoftheemployerandorganizationwithrespecttowhomthecomplaintisbeing
made]
Dear [Sir / Ma’am],
Subject:Complaint against sexual harassment at theworkplaceas per Section 9(1) of Sexual
Harassment of Woman at Workplace (Prevention, Prohibition and Redressal) Act, 2013
1) Iamcurrentlyworkingas[a/an][●][mentionthecapacityinwhichyouareworking]inthe
organization mentioned above.
2) T hisistoinformyouthatIhavebeensubjectedtocertaininstancesofsexualharassment
at the workplace, which are described below:
3) [Insert dates and the event / series of events and actions which in your opinion
constitutesexualharassment.Describetheeventsbriefly.Clearlymentionthename
and designation of the perpetrator]
4) Istronglybelievethattheabovementionedact(s),constitutes“sexualharassment”asper
Section 2(n) of Sexual Harassment of Woman at Workplace (Prevention, Prohibitionand
Redressal) Act, 2013.
5) T his has been an extremely disturbing incident for me. I request you to commence an
inquiry into the matter and take all necessary measures that are prescribed under the
Sexual Harassment of Women at Workplace (Prevention, ProhibitionandRedressal)Act,
2013 and under the organization’s policy to ensure that my grievance is adequately
redressed.
6) I possess certain evidence with me pertaining to the incident, which I can furnishupon
request – it may help the committee in conducting the inquiry.6
7) T
he incident has made mefeelunsafeinthecurrentworkingenvironment–therefore,I
willrequestyoutokindly[grantmeleavefor[●]days/transfermetoanotheroffice][you
canrequestaspecificmeasure]aninterimmeasure,pendingcompletionoftheinquiry,or
5
ThecomplaintmustbemadetotheLocalComplaintsCommitteeiftheorganizationemployslessthan10peoplein
the concerned premises or if the complaint is against the employer himself.
6
Thesecouldbeelectronicorhardcopycommunication(SMSes,emails,notes),photographs,audiorecordingsorany
other means. Oral evidence can also be provided, although documentary evidence and recordings will be more
reliable.
Handbook for HR Managers |177
rant me any other suitable interim measure, as the [Internal Complaints Committee /
g
Local Complaints Committee] [choose as applicable]feels appropriate.
8) [I hereby state that the incident occurred at a place which does not have an Internal
Complaints Committee and within the territorial jurisdiction of the Local Complaint
Committee, and hence got the jurisdiction to initiate and conduct inquiry proceedings
under the Act.][Insert this paragraph in case thecomplaint is made before a LCC]
9) K indly intimate me with the response of the Committee. I request and expect you to
maintain utmost confidentiality. I shall be grateful for your consideration of the matter.
Thanking You,
Yours sincerely
[●] [Insert signature]
[●] [Insert your name and designation
You might also like
- Legal Handbook For HR Managers (1 - 4) (7 - 57) MergedNo ratings yetLegal Handbook For HR Managers (1 - 4) (7 - 57) Merged55 pages
- Legal Handbook For HR Managers Compressed-1596632562100% (1)Legal Handbook For HR Managers Compressed-1596632562178 pages
- Legal Handbook For HR Managers Compressed-1596632562No ratings yetLegal Handbook For HR Managers Compressed-1596632562178 pages
- In Tax Presentation Employer Compliances 07.03.2024 NoexpNo ratings yetIn Tax Presentation Employer Compliances 07.03.2024 Noexp24 pages
- List of 50+ Skills Which Will Enable You To Accelerate Your HR CareerNo ratings yetList of 50+ Skills Which Will Enable You To Accelerate Your HR Career3 pages
- Payment of Wages Under The Code of Wages 2020No ratings yetPayment of Wages Under The Code of Wages 20208 pages
- A Comprehensive Handbook On Labour Laws For The H.R Professionals of India.No ratings yetA Comprehensive Handbook On Labour Laws For The H.R Professionals of India.217 pages
- Handbookon Workers Statutory Monetary Benefits 2018 EditionNo ratings yetHandbookon Workers Statutory Monetary Benefits 2018 Edition80 pages
- Mr. GSV Murthy: 21 Years of HR, IR & Legal Rich ExperienceNo ratings yetMr. GSV Murthy: 21 Years of HR, IR & Legal Rich Experience2 pages
- Code of Labour and Employment Law (Labour Code)No ratings yetCode of Labour and Employment Law (Labour Code)33 pages
- The Code On Wages 2019: India's First Step Towards Consolidation of Labour Laws100% (2)The Code On Wages 2019: India's First Step Towards Consolidation of Labour Laws50 pages
- Guidelines For Final Project Submissions: 3/9/2020 Girish Balasubramanian MBA-2019-21 1No ratings yetGuidelines For Final Project Submissions: 3/9/2020 Girish Balasubramanian MBA-2019-21 121 pages
- Human Resources Policies Petro IT (Travel Policy Changes)No ratings yetHuman Resources Policies Petro IT (Travel Policy Changes)62 pages
- RSM India Publication - New Labour Codes in IndiaNo ratings yetRSM India Publication - New Labour Codes in India184 pages
- BSBMGT502 Manage People Performance Assessment Task 1-InstructionsNo ratings yetBSBMGT502 Manage People Performance Assessment Task 1-Instructions15 pages
- The 100+ Business Models by FourWeekMBA - Full Library95% (41)The 100+ Business Models by FourWeekMBA - Full Library780 pages
- Business Plan Template: Professional Business Plan81% (681)Business Plan Template: Professional Business Plan26 pages
- 15000+ ChatGPT Prompts, (Crafti - Pro) - Tareas93% (27)15000+ ChatGPT Prompts, (Crafti - Pro) - Tareas367 pages
- Business Plan Project: A Step-by-Step Guide To Writing A Business Plan81% (86)Business Plan Project: A Step-by-Step Guide To Writing A Business Plan13 pages
- Digital Marketing in 2023. A Quickstart Guide (Martin Pidsley) (Z-Library)88% (25)Digital Marketing in 2023. A Quickstart Guide (Martin Pidsley) (Z-Library)101 pages
- Building A Marketing Plan: A Complete Guide73% (15)Building A Marketing Plan: A Complete Guide20 pages
- 226 ChatGPT Prompts A-Z ChatGPT Prompt Engineering BootCamp90% (20)226 ChatGPT Prompts A-Z ChatGPT Prompt Engineering BootCamp120 pages
- Startup Accelerator Programmes: A Practice Guide82% (261)Startup Accelerator Programmes: A Practice Guide31 pages
- McKinsey Handbook - How To Write A Business Plan97% (29)McKinsey Handbook - How To Write A Business Plan116 pages
- The Art of Asking ChatGPT For High-Quality Answers A Complete Guide To Prompt Engineering Techniques (Ibrahim John) (Z-Library)97% (33)The Art of Asking ChatGPT For High-Quality Answers A Complete Guide To Prompt Engineering Techniques (Ibrahim John) (Z-Library)52 pages
- How To Create A B2B Marketing Strategy Foundation Marketing86% (7)How To Create A B2B Marketing Strategy Foundation Marketing39 pages
- 0-A Rare Guide To SAP SD - FAZULL RAHMANNo ratings yet0-A Rare Guide To SAP SD - FAZULL RAHMAN108 pages
- Introduction To HAZID and ENVID Reviews Fundamentals and Initiation To The PracticeNo ratings yetIntroduction To HAZID and ENVID Reviews Fundamentals and Initiation To The Practice32 pages
- Modern Investment Management An Equilibrium Approach 1st Edition Bob Litterman FullNo ratings yetModern Investment Management An Equilibrium Approach 1st Edition Bob Litterman Full94 pages
- Porter's Value Chain Model - Full Guide - With ExamplesNo ratings yetPorter's Value Chain Model - Full Guide - With Examples10 pages
- Project Scope Management Plan 2 Bsbpmg530No ratings yetProject Scope Management Plan 2 Bsbpmg5303 pages
- Toward A Circular Economy: Investments For A Thriving Planet®No ratings yetToward A Circular Economy: Investments For A Thriving Planet®20 pages
- Lecture Note 18 - Founding Team and Early RecruitsNo ratings yetLecture Note 18 - Founding Team and Early Recruits35 pages
- OPS 01 - Fleet Superintendent's Onboard Meeting ChecklistNo ratings yetOPS 01 - Fleet Superintendent's Onboard Meeting Checklist3 pages
- Specialist Cost and Management Accounting Techniques: A C C A G L O B A L B O X - C O MNo ratings yetSpecialist Cost and Management Accounting Techniques: A C C A G L O B A L B O X - C O M1 page