How Much To Pay An Employee Fired Within 7 Days

Hi,

I am the director of a company where we do not have an HR department. I have some questions that we have been struggling with for a few years:

1. If a new employee leaves in 4 days, 10 days, or before completing a month, are we liable to pay them?
a. Firing - In case of misconduct or misbehavior by the employee.
b. Firing - In case of false submission of documents, which are verified after a few days of hiring.
c. Employee quitting due to excessive pressure or incompetence.

2. We have observed some employees coming in from various agencies trying to poach our team for other companies. How should we handle this situation?

3. Can someone provide me with a probationary appointment letter, an appointment confirmation letter after the probation period is complete, and a list of the minimum holidays that are mandatory to be given in India? We often encounter different employees inquiring about their religious holidays or gazetted holidays. Our company operates as a service provider, and we cannot accommodate numerous holidays. What should be our approach?

Thanks in advance.

Hello Mr. Mahajan,

You seem to be sitting on a heap of issues with respect to your employees. I wonder how you would be managing the ER situation in your office. Your note consists of a series of queries, half of which are inter-related, and the rest have to do with policies/procedures. The answers to some of your queries are a bit descriptive, while the others require some files to be attached and sent. You may send me an email at mail8013, and I will revert to you with the details.

Cheers,
A.B.

Dear Mahajansahab,

The paragraph-wise replies are as below:

I am the director of a company where we do not have an HR. I have some questions which we have been having a problem with for a few years:

1. If a new employee leaves in 4 days, 10 days, or before even a month's completion, are we liable to pay him/her?

a. Firing - In case of misconduct from an employee or misbehavior.

b. Firing - In case of False submission of documents which are verified after a few days of hiring.

c. Employee Quitting seeing a lot of pressure or incompetency.

Comments: First and foremost, you have been running the company without an HR. What was the logic? Have you calculated the cost your company has incurred for not keeping HR? Does it outweigh the cost of having HR? In each of the above cases i.e., a, b, and c, you need to pay till the last working day of the employee. This is mandated by the Payment of Wages Act.

2. We have seen some employees come in from various agencies trying to take away our team to other companies, what to do with them?

Comments: These things are common everywhere, and your company should be no exception. Recently, Vishal Sikka has joined as the CEO of Infosys. Ever since he has joined, he has been pulling high-level staff from his ex-company, SAP Labs. To make sure that employees stay in your company, you need to create a conducive culture. What employee retention strategies have you employed? What is the manpower attrition percentage? Is it above or below the industry standard?

3. Can anyone provide me with a Probationary appointment letter, appointment confirmation letter after probation is complete, a list of minimum holidays which are mandatory to be given in India? Since we see different employees turning up and asking about their religious holidays or gazetted holidays. Our company is a service provider company and we cannot afford so many holidays, what to do?

Comments: For the formats of the appointment letters, search this forum. You will get sufficient formats. It is surprising to find that even after running the company for a "few" years, you are yet to finalize drafts of these basic documents. This activity should have been completed when the company was started. If you are from a service-based company, then you are covered under the Shops and Establishment Act of the state from which you operate your company. It is mandatory to declare closed holidays and provide leave as per this act. Generally, as per the Shops and Establish Act of most states, it is mandatory to provide 10 closed holidays. Of these, it is mandatory to provide holidays on Republic Day, Independence Day, and Gandhi Jayanti. Added to this is the state formation day, like in the state of Karnataka. The other six/seven are to be decided by the management of the company. However, check the law of your state.

Thanks,

Dinesh Divekar

Bangalore - 560092

The poster of this query needs to hire a capable HR person with 10-12 years of experience. Most of these queries can be sorted out by an HR person. The management, as a team, needs to work and create a conducive environment in which employees think twice before leaving. Mobility is a worldwide phenomenon. Certain departures will take place. One must have a plan of action. Keep an eye on key personnel to ensure they can be retained through a conducive, employee-friendly policy.

"We have seen some employees come in from various agencies trying to take away our team to other companies. What to do with them?" A strict policy on visitor entry for matters other than business-related can be introduced, and proper records of visitors using any VMS can be maintained. The best way to stop such departures is by winning employee loyalty. Obviously, your organization needs to revamp and have a proper HR department that is proactive, friendly, and professional in duties and attitudes.

Often, employers look at support services as a waste of investment and design their own customized list of holidays, their own minimum wages act, PF/ESI, etc. The joke is that many employers modify everything prescribed by labor law or Establishment Act and call it 'company policy'. A wonder! After confusion erupts, they realize it is a hot stove to sit on. So, it is very easy to start companies to fulfill one's own long-time dream without an action plan.

As a retired academic outside of HR, I tend to pose questions rather than respond to inquiries that lack sufficient details about the situation.

For instance, in this specific scenario, Mahajan Sahab should have provided additional information, such as:

1. What is the size of the company where he serves as a director?
2. Where is the company situated?
3. Why is there a lack of HR support? Is it due to the company being new or small and unable to afford HR services?
4. Has he conducted any online research on platforms like the web or CiteHR to see if there are existing resources on drafting appointment letters?
5. Why hasn't the company established any policies regarding holiday entitlements?

I value the insights shared by experts; however, I believe that responding without first understanding the full context could lead to unnecessary debates, as seen in the discussion at https://www.citehr.com/527285-met-ac...hicle-pg3.html.

Guys, thanks for replying. I seriously think we should hire an HR before anything else. Seeing the gravity of our situation and judging your responses, I think it was a bad decision not to hire an HR.

To answer Nashbramhall, here you go:

1. What is the size of the company for which he is a director?
Ans: About 30 employees.

2. Where is the company located?
Ans: We have offices in Delhi & Amritsar.

3. Why is there no HR? Is it because the company is new or because it is small and cannot afford one?
Ans: It's because I never thought I needed one... Bad decision on my part.

4. Has he done any search on the web/CiteHR to check if there is already any information on drafting appointment letters?
Ans: Yes, I found lots of appointment letters & other stuff but because of the absence of a talented HR, I think I'm goofing up big time by mixing different types of appointment letters.

5. Why has the company not established any policies on holiday provision?
Ans: We are forced to make new policies every year because staff changes very rapidly. Earlier, I thought it was due to my hiring skills not being good enough, but now I think HR is missing. Every year, a new type of staff comes in and they complain about holidays. We started by offering 24 to 36 holidays a year 6 years back but now have come down to about 8 National Holidays + 5 extra holidays a year in case employees have a grave emergency, which is again another loophole.

All this is adding to employee dissatisfaction, I think. What do you guys suggest? What should I look for in a good HR for my company? Any good resources or recommendations for our Delhi-based office?

I think this is the next big task for me!! Your help is solicited and appreciated.

Look for an HR person who has at least 10-12 years of experience in any reputed organization.

The first thing is to set up a proper organization for HR. Legal compliances will need to be listed out and complied with, and proper interlinked records maintained thereof.

A standard set of formats including appointment letters, leave application formats, and other standard communication formats can be kept online for easy access and filling.

Depending on the state where your offices operate, specific compliances related to labor, safety, women employees, etc., need to be adhered to. The leave policy should align with your industry and include specific holidays as per the State Government regulations.

Conduct rules, promotion rules, work timings, and holiday work should be clearly outlined. Ensure fire safety of premises by having fire extinguishers, fire alarms, fire exits, etc., in place.

Install CCTV cameras in important areas and at entrances of premises, with warning signs indicating that CCTV is in operation. Conduct exit interviews to address high attrition rates and examine the causes behind them.

Follow proper recruitment procedures which include interviews, practical tests, background verification, etc. Establish training and induction guidelines applicable to your industry and production processes.

Though the list is extensive, a small team of HR employees can efficiently set up a functional office and manage HR matters effectively.

The significance of this HR setup lies in the fact that it allows your attention to focus on production, quality, new products, and target markets rather than routine HR tasks.

Conduct a cost-benefit analysis to understand the necessity of having a functional and professional HR setup. Best of luck.

Dear Mr. Mahajan,

HR is not about hiring an HR person. Whether you have 30 employees or 3000 employees, you can still operate without a designated HR person provided you have well-laid-down HR policies that are automated.

In the context of the information provided, I suggest that you do not need to engage an HR person. Perhaps you can engage a Senior HR consultant who can advise you regularly.

1. Whether to pay if an employee leaves within a few days.

Legally, you need to pay. You need to deduct PF, and you need to deduct ESI. How one manages practically is a different question. If you engage an HR assistant, he or she cannot make decisions as it is an ethical question. Only you need to make a decision. Consider how you can manage practically. Consult an HR consultant with experience.

2. Firing

Firing on account of misbehavior implies stigma, and legally you cannot terminate unless there is an inquiry.

Firing on account of misrepresentation again requires a charge sheet and an inquiry for termination. The process is not as complicated as it sounds. My advice is not to engage anyone unless certificates are verified. However, issue a letter asking him to submit certificates, and if he does not comply, issue another letter stating that his services would be terminated. If there is still no compliance, then terminate his services. Drafting these letters is very critical.

If a person quits due to work pressure, let him quit.

3. Business is all about managing competition. If they take your employees, you should not get discouraged. You need to refine your HR processes and policies yourself. You do not need an HR officer for this. I reiterate, engage a consultant for a year or so.

4. Offer letters are available on the internet, but consult someone before you start using them.

5. Holidays. Legally, you need to provide 9 days of holidays. In some states, it is more. Finalize the holiday list yourself and display it. There will be three/four national holidays, and the rest will be festival holidays.

Putting in place a professional HR system - whether outsourced, hiring a senior consultant, or in-house - is essential. Using technology to maintain records, generate reports, handle payrolls, legal deductions, etc., will also be a good idea. Managing human resources is important to achieve production targets and other key result areas (KRAs) of the company. Ad hoc arrangements of directors looking after routine affairs of HR will be counterproductive.