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Nikhil bhagat (owner)     19 May 2013

Labour law glitch

Hi.. We are soon going to hire fresher marketing executives on bulk basis. We are planning to use HR outsourcing solution to take care of that. However we are stuck at the "Minimum wages act " of skilled labour and the consulting company said that skilled labour has to get a standard minimum wage (e.g around 8000 Rs ) for an attendance of 30 days. I understand this law is used to protect against exploitation of the labour but what if this guy is a Non-performer, i.e if he doesnt work according to terms already agreed upon during hiring and he doesn't achieve any of the goals given , does the company need to still pay him minimum salary just because law says so? Especially since this job is field work and hiring is in bulk no one can monitor if he was working or sitting at home watching tv and just putting a "present" mark on his attendance sheet. What provisions does a company have under law so that such exploitation by non performer doesnt happen? We could hire professional services of a lawyer from this club for this need...

Thanks in advance



Learning

 1 Replies

Kumar Doab (FIN)     19 May 2013

 

You need to put proper reporting, supervisory controls in place.

 The earned wages, field expenses, statutory benefits like PF, ESIC, Gratuity etc to the employees shall have to be paid.

 You can introduce performance linked incentive, sales commission etc to encourage sale, hence revenue generation and profits.


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