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1. Employment Contracts
India does not mandate a written employment contract for local employees.
However, it is advisable for companies to use contracts to limit risk and define
the terms and conditions of employment.
Both the state and federal governments create and enforce laws pertaining to
employment, which can complicate compliance for those that are unfamiliar
with the country. HR managers should keep themselves updated and develop
employment contracts in accordance with these to prevent future legal
complications.
2. Wages
Under the Minimum Wages Act, 1948, all employers in the organized sector must
provide ‘the basic cost of living’ to employee categories specified within the
act. The Code on Wages Bill, 2019 further enables the federal government to fix
minimum statutory wage for millions of workers.
The Equal Remuneration Act, 1976 mandates non-discrimination for payment of
wages to men and women, while The Payment of Wages Act, 1936 orders the
timely disbursement of wages to employees.
Payment of wages below the minimum wage limits amounts to forced labor.
This is prohibited under the Bonded Labor System (Abolition) Act, 1976.
3. Termination of employment
Employees in India may only be terminated as per the terms and conditions
within their employment contract.
However, companies should note that all employers must adhere to the
federal and state labor laws when laying off or terminating workers – the
conditions drafted in company contracts cannot supersede these legal statues.
The Maternity Benefits (Amendment) Act, 2017 applies to all shops and any
establishments that employ over 10 workers. Under the Act, 26 weeks of paid
leave is available for women for the first two children, and 12 weeks
subsequently. Companies employing more than 50 people must also provide
crèche services.
The Paternity Benefits Bill, 2017 is set to be up for discussion in the next
parliamentary session. However, a significant number of organizations,
especially foreign companies like Microsoft and IKEA, already include a
mutually decided paternity leave clause within their company policy.
This practice has been well received by the Indian workforce and lauded as a
good HR move.
The Indian government has brought the safety of women in the workplace to the
forefront of its law making.
An Internal Complaints Committee must be set up by all organizations with
more than 10 employees in accordance with the norms laid out in the Sexual
Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013. All
complaints should be actively pursued, evidenced, and redressed immediately.
On these days, all institutions, whether public or private, must remain closed.
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Additionally, firms must inform the annual list of holidays and weekly offs
available to employees each year. The number of leaves and categories of
leave must ideally be explained in the employee contract.
Many laws in India, such as the Factories Act, 1948, also provide for the maximum
number of work hours and the amount of overtime wages to be paid to labor
employed.
Employers should note that including restrictive clauses into a contract might not
be enforceable through the Indian courts. The Contract Act, 1872, necessitates
the fundamental right of all citizens to carry on any profession, trade, or
business.
The best way to ensure enforceability is to restrict the scope of the clauses as
much as possible within these dimensions. However, this does not guarantee
legal protection to employers.
The Payment of Gratuity Act, 1972 provides the guidelines for gratuity owed to an
employee.
The number of years of service of the employee is the criteria for deciding the
amount of gratuity owed, and this payment by the company is obligatory by
law.
• Retirement;
• Resignation;
Similarly, the Employees Provident Fund Organization of India (EPFO) oversees and
regulates the Employee’s Provident Fund (EPF).
Under this scheme, the employer and employee contribute an equal amount
to the fund every month, which is accessible to the employee at certain points
in their career.
The EPF scheme is mandatory for a salary below Rs 15,000 (US$220) and
voluntary thereafter.
9. Impact of digitalization
The scope of work for HR departments has expanded to include the use
of digital technology, through apps and in-house databases, especially in
the service and consultancy sectors. This includes the use of online platforms and
applications for processes such as recruitment, learning and development, and
even day-to-day administration.
Job seekers in India are moving away from traditional work modes – such as a
‘9 to 5’ time pattern – to a more holistic view of career development.
Below mentioned are a few common challenges faced by the HR teams as per
recent surveys:
One of the major struggles that the recruiters these days encounter is the
requirement of resources to be hired in a very short span of time. With very little
time candidates are made to go through multiple rounds screening and
interviews, but the need of good calibre and talent is very important at the same
time. Also with multiple projects coming up with huge requirements of
resources as the companies are growing enormously in size, it is very challenging
for the recruiters to meet the expectations with hiring the required numbers
and talent as well.
One of the most common issues we see in the recruitment process is that the
candidates not being able to submit the credentials or academic validations in
relation to the roles they became eligible to apply for the jobs at hand. It takes
a lot on the part of the recruitment team to actually put across clearly the need
for the validations to ensure the authenticity of the candidature. Even
considering the credentials have been authenticated with the candidates being
offered the Job, the next step of the negotiation of salary is an important aspect
that recruiters face.
3. Benchmarking Salaries / Remuneration
4. Job Shopping
The recruiters face one of the big hurdles of ensuring that the candidate actually
does not go shopping basis of an offer made. In such a situation, what would be
the ideal reply of a candidate if the recruiter says that he cannot make an offer
because he is job shopping? Definitely, the expected response would not be
anything to do with money, as every candidate should be aware of the fact that
there are tons of companies which offer huge pay packets but never get the
employee reach anywhere close to his career goals. A good recruiter can always
identify during the course of an interview, that a candidate is comparing salaries
with the opportunities offered. In such a situation the recruiter should be smart
enough to quickly understand that entire process is a waste of time.
5. Joining Date and on Boarding Issues
To get a joining date is another of the challenging process and scarcely talent led
domains such as Biotech, Research, specialised IT jobs involving IOT and AI, even
more difficult. Once it done, the next step is get the candidate to actually join
on the date set after a mutual agreement. Until then, constant follow up with
the candidate is very important so as to ensure that he onboard the company
on the said date and time. Later, starts the process of inducting the candidate
into the organisation, introducing the personnel to the organisation and getting
him/her to embrace the culture and ethos of a Company as it’s the people which
make an organisation.
But, are the managers sure that they have provided the right description of the
job to the new employee? If not sure, the managers need to engage themselves
with the new employee on his/ her understanding of the new roles and
responsibilities with frequent discussions and spending ample time in meeting
often so as to set the expectations on communications, discussions, meetings,
working hours , tasks, performance and results.
An individual health insurance policy, like its name suggests covers the
treatment cost of a single individual. This cover can be availed for yourself,
parents including your spouse and children.
Under this plan, every family member gets an individual sum insured. For
example; if your plan sum insured is Rs 10 lakhs, each family member gets to
use up to 10 lakhs each for that policy period, i.e. if you’re buying an individual
plan for three members, the collective sum insured for the three would be Rs
30 lakhs.
It means that if something were to happen to all/more than one of your family
members at the same time, this health insurance policy will be enough to
cover them all due to the separate sum insured amount.
2. Family Floater Health Insurance
Under such plans, a single sum insured is available for all individuals under one
policy. This entire sum can be disbursed for treatment of one person
respectively, in which case no subsequent claims are covered in the event of
another medical emergency.
Senior citizens are not eligible under family floater plans, as their medical
needs tend to be more complicated.
3. Senior Citizen Health Insurance
Tailor-made to suit all medical expenses of aged individuals, such plans can
only be obtained by people above the age of 60 years. Comprehensive
coverage for different types of illnesses which might develop due to old age is
extended.
4. Group Health Insurance
All pre and postnatal care expenses incurred during pregnancy are covered
under maternity insurance cover. Medical bills of a new-born are included for
the first three months as well. However, such policies come with a waiting
period of two years.
Oftentimes, the treatment costs you estimate while availing a health insurance
cover can increase over time even though your sum insured remains
unchanged.
Under such circumstances, you can choose to avail a top-up for your existing
cover, instead of purchasing a separate policy. This top-up policy helps to
increase the overall sum insured which you can use in case of any emergency.
But to avail the top-up, you will first need to choose a deductible amount. For
example, if you go for top-up plan of Rs. 3 Lakhs with a deductible of Rs.
50,000.
Then, at the time of claim, you will first have to bear this Rs. 50,000 from your
pocket. Once the deductible amount is exhausted, the insurance provider will
come into the picture and will borne the remaining expenses up to 3 Lakhs.
These health insurance plans are designed to meet all healthcare expenditures
a person might incur in their lifetime. It is significantly different from life
insurance plans, as the latter provides financial coverage based on the life or
death of an insured individual.
Q4. Explain the evolution of human resource management.
1. Depressed
2. Chronic Procrastinators
3. Unmotivated
4. Motivated
5. Achievers
6. High Achievers
Beginners
As a beginner what you do is way more important than how you do it. In the
first 2 stages, it’s necessary to get out of a rut and start doing something. If you
start doing something and get excited about it, you can quite quickly catapult
yourself to the Motivated stage, skipping the Unmotivated stage altogether.
Depressed
Not all episodes of depression are equal and they differ in severity.
You might show weak symptoms of being depressed. These are called moods
and the good thing is they’re fleeting and can go away fast. Especially, if you
help the process by achieving something.
If we were to use the gym metaphor again, the equivalent of the Depressed
stage is being obese and spending all one’s time in bed or on the couch. To
move forward, the person has to start walking.
Chronic procrastinators
This is another beginner stage. Most people also don’t start here. However,
many people slip here during high-school, college, or a particularly boring or
stressful period at work.
They usually fail because they take on many things at once, focus on wrong
areas, or self-sabotage themselves because they get scared (of responsibility,
failure…).
Unmotivated
Unmotivated people are still beginners, but unlike chronic procrastinators they
appear to function normally on the outside. By unmotivated, we mean lacking
internal motivation. People here function by getting motivated externally
(getting a diploma, getting a salary, etc). They do things because they have to.
This is the stage where most people spend the majority of their lives.
In gym terms, this is a person who “has” to go to the gym because someone
told them it’s good for them, but they don’t have any positive feelings towards
exercising. It’s a chore for them. If the person wants to move forward, the goal
is to go to the gym regularly and slowly start liking it. That might entail finding
physical activities that they enjoy.
Intermediates
Intermediates start to stumble upon a new problem. For beginners, the main
problem is doing things they planned or set out to do. Intermediates don’t
struggle with doing things most of the time and they’re better at starting,
resolving fears, and not giving in to instant gratification. Instead, they struggle
with the issue of how to do more or work more effectively in general.
Motivated
People at this stage have already discovered a positive feedback loop that fuels
their internal motivation. They don’t dread work like people at the stages
before. They understand that difficult tasks have to be done to succeed. They
also like how good it feels to be disciplined. This is not to say they’re successful
all the time, but people here are much better at saying no to immediate
gratification.
In gym terms, these are talented athletes. They’re showing a lot of potential
but plenty of work awaits them to reach full potential. To get more out of their
training, they need to start focusing on the little details.
Achievers
At this stage, people don’t struggle with what they do. They know how to
begin, how to divide a large task into smaller subtasks they can complete, and
they can successfully overcome fear most of the time. If they have fears, stress,
and anxiety they acknowledge them but they don’t act on them. They very
rarely choose something that isn’t in their best interests. They know that the
long term choice will bring them more happiness through delayed gratification.
This stage becomes fun because people get excited about what they do and
about the future possibilities.
For achievers, the bottleneck of productivity is how they do things. They have
reached the upper limits of what they can do with the current methods they’ve
adopted or come up with. To expand their horizons further, they need to start
looking for outside methodologies to boost their productivity. When they start
optimizing things, it can appear to onlookers that these people are wackos.
The reality is, they’re showing up every day and want to get more out of every
second of their time and energy.
However, these people can still struggle with self-confidence. This is called
imposter syndrome. They’re good at what they do, but don’t they know they're
good. Many achievers underestimate how effective they are compared to
other people and can feel insecure about their abilities and efforts.
In gym terms, this person is an amateur competitor who always places in the
top 3. If he keeps doing what he is doing, he might become a professional.
High Achievers
This stage is what internal motivation can lead to. High achievers appear to
other people like gods of discipline. But they aren’t. They just established really
good working habits and love the satisfaction their work brings them. They
really enjoy what they do and might say they’re following their passion. When
high achievers focus on something, they get great at it.
The main difference between high achievers and achievers is that they’ve been
doing it for longer. High achievers have true self-confidence. They know what
they stand for and can achieve anything they set out to do because they’ve
proved it many times to themselves and to others. Often this self-confidence is
demonstrated by their humility and quiet certitude about their abilities.
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