APPOINTMENT OF SENIOR MARKETING EXECUTIVES (CONTRACT BASIS)
LIFE INSURANCE CORPORATION OF INDIA
Under the pretext the LICI took a regular mode of selection as is the case in LICI/Banks and other PSU’s . There was an ALL India Test , then Group Discussion of candidates who qualified for the same with required cut off as the case may be, then after set number of rounds of GD , the Interview board took the interview and then the final list of 100 candidates were published in the corporations site.
In the due course the Training of such candidates took place in an institute of national repute i.e. National Insurance Academy (NIA). On joining the respective offices the SME’s were provided with agreement letters for the mutual consent of the contract without Non Judiciary Stamp papers.
The agreement clearly mentioned that it is a contractual assignment of 3 years each with maximum term up to 3 times. Apart from this some major clauses where their mentioning that the concerned SME’s should be treated as in Branch Manager/Administrative Officer cadre in the Corporations existing regular service employees, and they should be given Salary Roll no. as in case of the regular employees and all travel allowances effective from the date of joining .
Alongwith this it is clearly mentioned that the Annual CTC of 6 Lacs consists of the 70% fixed i.e. 35000/- PM and rest of the 30% of compensation i.e. INR 1.80 Lac as variable. We have to earn by way of fulfilling certain sales criteria. All of us do not earn this whole amount also. Most of the SMEs have never earned any variable pay.
Further to this, a break up of the fixed part consisted of various heads as PF and Gratuity included, the clause suggests that the salary will be subjected to statutory deductions and Taxes as specified by the Government rules. In the current scenario the SME’s are not provided with the Salary Slips, PF Slips and other credentials like Form 16 every year. The agreement stated that SME’s appointed will not be under the ambit of LIC STAFF REGULATION ACT.
The PF includes the components of the employer contribution and employee contribution of 2000/- each per month which is deducted from his/her fixed salary, the criteria of the gratuity is also fixed as Rs. 965/- per month being again deducted from the SME’s fixed salary. All these deductions make the total amount of Rs. 4965/- per month which is deducted from the kitty of SME’s fixed salary. Gratuity is payable only after 5 years. What if an SME quits after 3/4 years. SMEs who have left or terminated have only been paid INR 2000/- (employer contribution) out of the total deduction of Rs. 4965/-.
Clause 8 of the Engagement Letter states that there would be salary increment of up to 10% per year until the contract is renewed with new terms and conditions, but no such criteria of increment was exercised till date. And now when the term of 3 years has come to an end, LIC has designed an increment criteria based on the earning of the variable pay and not on individuals business performance and considering the inflation other economic scenario. Not to mention that only a small percentage of the SME’s will qualify for the increment.
There are various internal competitions and rewards program floated for the existing employees for the growth of the corporations business, in which SME’s are not included barring few in which no cash prizes are declared, e.g.: Honoring & Certificate of appreciation program for the marketing officials.
Not to mention the disparity is at such a level that there is a regular scheme for the employees of the corporation working to the capacity of marketing assignments, enjoy the privilege of the corporation sponsored cars and the fuel expenses as the case may be according to various cadres, Now that SME’s are also taken for purely marketing assignments are not provided with sponsored car facility, rather we are asked to travel through cheapest means of transportation and are asked to report back within short timelines.
Now that every SME’s have completed there 3 years in the Corporation, the review of all had gone positive in the preceding years, but when the contract is on the verge of renewal or termination , Many of us are facing negative reviews, thus we are looking forward for a solution, since every SME’s have crossed their 30’s therefore we are not eligible to compete in maximum of govt. jobs.
Questions that are mentally disturbing SME’s
- What is the expectation from SME’s, whereas the process of inducting SME’s was tough since they have undergone such a rigorous ALL India Level Selection procedure conducted by IBPS.
- Why there is a deduction of Employer contribution of PF done from SME’s so called fixed pay ?
- Why there is a deduction of Gratuity of Rs. 965/- pm from SME’s Fixed Pay if we are contractual employees and our contract is for 3 years only ?
- Why is that the fate of the existing SME’s is decided after 3 years whereas the agreement states that either party can relieve from the services of the Corporation within 1 Months notice, then why waiting for the SME’s to cross their age of 30 years?
