"PIP" stands for Performance Improvement Plan.

It's a formal document outlining

an employee's performance deficiencies and setting clear expectations for
improvement within a specific timeframe. It's a tool used to address
underperformance, failure to meet job goals, or behavioral issues, and is often
considered a last step before potential termination if performance doesn't
improve.

KPI (Key Performance Indicator) is a measurable value that gauges how well an
individual, team, or organization is performing towards a specific objective. KPIs
help track progress, identify areas for improvement, and make informed
decisions. Commonly used KPIs include financial, customer service, process,
sales, and marketing metrics

In Human Resources (HR), attrition refers to the natural reduction of employees

in an organization due to factors like resignations, retirements, or other
departures. It's a metric that HR professionals use to track the rate at which
employees leave, which can impact the company's stability, productivity, and
overall success.
Attrition rate is calculated by dividing the number of employees who left during a
specific period by the average number of employees during that same period,
and then multiplying by 100 to express it as a percentage. Good attrition rate is
generally considered to be 10% or less.

Timesheets are an accurate way of keeping track of employee productivity,

payroll, and work that has been done on behalf of a client. Timesheets are
especially important because lax or informal time tracking processes can result in
duties that are unaccounted for and inaccurately billed.

ESI in salary refers to the Employee State Insurance (ESI) contribution, a

mandatory social security scheme in India. It's a contributory fund where both
employers and employees contribute a percentage of wages to provide benefits
like medical care, sickness, maternity, and disability support to insured
employees and their families.

TDS on salary falls under the purview of Section 192 TDS. Under this tax
provision, employers are entitled to deduct tax at source on the salary amount
payable to an employee. It is because the salary received from the employer is
categorised as income, and the same attracts a TDS based on the average
prevailing rates of tax. The ITA makes it mandatory for employers to deduct TDS
on salary if they pay a salaried income to their employees. However, such a
deduction can only be carried out if the salaried income is more than the
minimum exemption limit. Usually, TDS on the salary section is refundable.
However, such a refund is only possible if the amount of tax deducted is more
than an employee’s tax liability.

In HR, key labour laws include those concerning minimum wages, working hours,
overtime, leave entitlements, social security, workplace safety, termination, trade
unions, and industrial disputes, ensuring fair treatment and worker rights.

Recent Indian labour law changes, include four Labour Codes (Wages, Social
Security, Industrial Relations, and Occupational Safety, Health, and Working
Conditions). The aim is to simplify and consolidate existing laws, with a focus on
social security, minimum wages, and streamlining processes.

What are the 4 Labour Codes implemented in 2025?

The introduction of four new labour codes—Code on Wages, Industrial Relations

Code, Occupational Safety, Health and Working Conditions Code, and the Code
on Social Security—has significantly reshaped employment regulations.

EMPLOYEES’ STATE INSURANCE ACT, 1948, dated 19th. April, 1948. An Act
to provide for certain benefits to employees in case of sickness, maternity and
employment injury and to make provision for certain other matters

Key Highlights of the Act:

1. Objective:​
To provide benefits to employees in the case of:

●​ Sickness​

●​ Maternity​

●​ Employment injury-employment injury" means a personal injury to an

employee caused by accident or an occupational disease arising out of
 and in the course of his employment. "employee" means any person
employed for wages in or in connection with the work of a factory or
establishment​

●​ And to make provisions for related matters such as medical care and
compensation.

Gross salary is 21K.

Important Definitions:

●​ Employee: Anyone working for wages in or in connection with a

factory/establishment covered by the Act.​

●​ Employer: Includes both principal and immediate employers.​

●​ Wages: Include all remuneration in cash but exclude contributions to

pension funds, travel allowance, gratuity, etc.
●​ Employment Injury: Injury caused due to employment, even outside India.​

●​ Insured Person: A person who contributes and is eligible for benefits.​

●​ Dependants: Widows, children, parents, and other financially dependent

relatives.

Applicability: Applies to factories ,shops, hotels, restaurants, cinemas, and

newspaper establishments; employing 10 or more persons.

Administered by the Employees' State Insurance Corporation (ESIC), an

autonomous body under the Ministry of Labour and Employment.​

ESIC is responsible for implementing and managing the scheme, including

registration, contribution collection, and benefit disbursement.

Composition and Term

●​ Includes a Chairman, Vice-Chairman, and representatives of central/state

governments, employers, employees, and the medical profession.​

●​ Term: 4 years for most members.

ESI Fund

●​ All contributions go into the Employees’ State Insurance Fund.​

●​ The fund is used for:​

○​ Paying benefits​

○​ Maintaining hospitals and dispensaries​

○​ Admin costs and audit expenses​

○​ Rehabilitation programs

Types of Benefits

1.​ Sickness Benefit: For temporary sickness (cash payments).​

2.​ Maternity Benefit: For pregnancy, miscarriage, and related illness.​

3.​ Disablement Benefit: For injuries (temporary or permanent).​

4.​ Dependants’ Benefit: To family members if death occurs due to

employment injury.​

5.​ Medical Benefit: Free medical treatment.​

6.​ Funeral Expenses: Payment for funeral of deceased insured person.

An occupational disease is a disease or disorder that a person develops due to

exposure to harmful elements at the workplace over time

EPF ACT 1952(EMPLOYEES PROVIDENT FUND ACT) -

An Act to provide for the institution of provident funds,pension fund and

deposit-linked insurance fund for employees in factories and other
establishments.

Enacted on: 4th March 1952​

Came into force: 1st November 1952​
Administered by: Employees’ Provident Fund Organisation (EPFO)
Important Definitions

●​ Employee: Anyone working for wages, directly or indirectly (includes

contractors and certain apprentices).​

●​ Employer: Person with control over the establishment.​

●​ Basic Wages: Cash earnings, excluding dearness allowance, bonus,

commission, etc.​

●​ Contribution: The amount paid by the employer and employee to the fund.​

●​ Pension Scheme: Provides monthly pension after retirement or disability.​

●​ Insurance Scheme: Offers deposit-linked insurance benefits to families in

case of death.​

To provide retirement and social security benefits to employees, such as:

●​ Provident Fund (PF)- 1952- The Employees' Provident Fund (EPF) is a

retirement savings scheme mandated by the government, primarily aimed
at helping employees save a portion of their salary during their working
years for use after retirement or under specific circumstances (e.g.,
medical emergency, housing, etc.).

You can withdraw PF under the following conditions:

1.​ Retirement,Unemployment for more than 2 months.​

2.​ Partial withdrawals allowed for: Marriage,Education,Medical treatment ,

Purchase/construction of house , Repayment of home loan

​
Pension (EPS)-1955​

●​ Insurance (EDLI)- employee deposit linked insurance-1976: Provides life

insurance benefits linked to employee deposits.

●​ Types of Pension Benefits

 1.​ Superannuation Pension: On reaching 58 years with at least 10 years of
service.​

2.​ Early Pension: From age 50 (reduced by 4% per year short of 58).​

3.​ Disablement Pension: For permanent total disability before retirement.​

4.​ Widow Pension: Payable to the spouse after the member's death.​

5.​ Child Pension: Monthly pension to up to two children (25% of widow

pension).​

6.​ Orphan Pension: If both parents die, the child receives 75% of the widow
pension.

Out of the 12% employer contribution to EPF:

●​ 8.33% of the employee’s wages (up to ₹15,000/month) goes into the

Pension Fund.​

●​ The Central Government contributes an additional 1.16% of the same

wage amount

The Factories Act, 1948

●​ The Factories Act, 1948 (Act No. 63 of 1948), is an Indian legislation

designed to ensure the health, safety, welfare, and proper working
conditions of workers in factories.
●​ It came into force on April 1, 1949.
●​ The Act applies to the areas or sites where manufacturing processes are
carried out with ten or more workers using power.
●​ The Act mandates the approval, licensing, and registration of factories and
requires occupiers to notify inspectors before commencing operations. It
establishes a hierarchy of inspecting staff, including Inspectors and
Certifying Surgeons, to monitor compliance and enforce regulations.
●​ Health-related provisions in the Act cover cleanliness, disposal of wastes
and effluents, adequate ventilation and temperature, control of dust and
fumes, prevention of overcrowding, proper lighting, safe drinking water,
sanitary latrines and urinals.
●​ Safety provisions are extensive and include requirements for fencing of
machinery, maintenance of hoists( to lift or pull something) and lifts,
 safeguards against dangerous fumes, gases, and fires, and regulation of
the use of pressure plants and lifting equipment.
●​ The Act further outlines specific safety duties for occupiers and
manufacturers and mandates the appointment of safety officers in large
factories.
●​ The working hours of adult workers are strictly regulated: they cannot work
more than 48 hours a week or 9 hours a day and must be given adequate
rest intervals. Children below 14 years cannot be employed, and
adolescents aged 15–18 must obtain a fitness certificate.
●​ The Act prescribes penalties for violations, including obstruction of
inspectors, illegal employment of minors, and failure to comply with safety
measures. Supplemental provisions deal with appeals, display of notices,
record-keeping, and rule-making powers of both Central and State
Governments.

P-Maps in HR
1. Performance Maps

●​ Definition: Visual tools used to assess and display employee performance versus
potential.​

●​ Purpose: Commonly used in talent management, succession planning, and

employee development.​

●​ How it works: Often aligned with the 9-box grid framework:​

○​ One axis represents performance (low to high),​

○​ The other represents potential (low to high).​

●​ Use Cases:​

○​ Identifying high-potential (HiPo) employees.​

○​ Designing personal development plans.​

○​ Making promotion and training decisions.​

2. Process Maps
●​ Definition: Diagrams that document the steps of specific HR processes.​

●​ Purpose: Helps standardize, optimize, and analyze workflows.​

●​ Common Processes Mapped:​

○​ Recruitment and hiring​

○​ Onboarding​

○​ Training and development​

○​ Performance appraisals​

○​ Exit procedures​

●​ Benefits:​

○​ Pinpoints bottlenecks and inefficiencies.​

○​ Improves compliance and consistency.​

○​ Enhances automation opportunities.