Analysis

(Manual)

The objectives and vision of PRECITOR METAL COMPOSITES PVT LIMITED is entirely
dependent on the ultimate performance of the several hierarchical team members (employees) at
every site and at the workplace. The complete professional commitment and capability of the
workers simply make or break the success of any company.
Having the right inputs given, by selecting the “right person for the right job”, and managing
their welfare and growth plays a highly vital role in the operations, which can neither be
underestimated nor ignored’.

Managing and controlling manpower, their performance and behaviour is not only a skill but is a
necessity to master. This manual is a guide to such management and the rules laid down are
applicable to every worker at the workplace.

This manual summarizes all major human resources policies and procedures that are currently in
force in the company.

The manual is intended to serve as a reference guide to full-time employees on the human
resources policies and procedures of as well as the rationale and principles of how they should be
implemented and enforced. The provisions stipulated in this manual shall be subject to change
from time to time at the discretion of management.

HUMAN RESORCE PHILOSOPHY:

PRECITOR recognizes the contributions of its employees and treats each

individual employee fairly and consistently in all matters, with a uniform
application of the following human resources philosophies:

• Human resources are best allocated to achieve optimum productivity and

efficiency.

• Pay and benefits offered are fair, equitable and competitive.

• Employees are always encouraged to well-equip themselves for the present

job and future development.

• Reward is based on merit. High performers are given priority to take up more
responsible positions.

• Two-way communications between employees and the management are

promoted as a means of building mutual understanding and trust.

• Workplace safety is given top priority to protect human health and enable
employees to deliver their best performance

. • The protection of human rights in employment is supported, as guided by

relevant statuory accepted principles.
RECRUITMENT POLICY:

The purpose of recruitment of is to acquire, in a cost effective manner, the optimum number of high
quality employees for the operations. In order to appoint the most appropriate persons for the
positions, it is crucial that potential candidates are drawn from a wide pool and equal opportunities
are ensured for all candidates. The following guidelines seek to ensure transparency and fairness
throughout the recruitment process and maximize the diversity of applicants.

SOURCING OF CANDIDATES:

The sourcing of the prospective candidates for any level will be based on the
following policies:

• The candidates will preferably come with a reference.

• The candidates will not have any criminal background
• The candidates will not have any physical disability which Prevents or
hinders him /her from performing the task. But if the disability is not
related to the responsibility which he/she Is being selected for, such
candidates may be given preference.

In shortlisting candidates for interviews, the following factors should be

considered:

• academic, professional and technical qualifications;

• working experience;

• job knowledge and technical know-how; and

• Knowledge of operating machines, tools, and working relevant to the

industry.
• Willingness to work within our company’s stipulated wage and personnel
development schemes.

There should be no discrimination on the grounds of age, sex, marital status,

family status, disability, race, nationality or religion unless these will impede the
prospective appointees' abilities to carry out normal job duties. All candidates
will be assessed fairly and equally irrespective of whether they are referrals or
direct applicants.

During the interviews,interviewers should only ask questions that relate directly
to the job requirements.
Candidates with history or inclination of anti –establishment activities, trade union
association, political affiliation, holding public or government association
membership are strictly not recruited at any level of the company and a
distinguishable marking is made on his /her resume for future reference.

After finalizing the candidate, the following instructions, guidelines, inputs and
documents will have to be handed over to the candidate:

The candidate’s pay structure has to be clearly specified, leaving no ambiguity in

this regard. The pay structure will primarily comprise of :

(1) his /her wage amount per month

(2) statutory deductions as per government laws

(3) statutory contributions as per government laws and , clear information need to
be provided with regards to any other allowances, benefits and / or facilities they
are entitled to.

Terms and conditions of the employment, responsibilities and severity of

indiscipline is explained,at the same time the company’s objectives of staff support
and growth opportunities is also made clear

The entire exercise is performed with an objective to motivate and encourage the
employee and not with the intention of creating fear of work.

The new joiners are provided with the safety kit as per their job like gloves, helmets,
shields etc.

Both Skilled, semi skilled workers are required in the factory for various operative
jobs.

Workers for CNC machine working such as punching,bending are highly trained and
skilled.

Machine operating knowledge,sheet handling know how is a necessity for such

workers .

Semi skilled workers are required in assembling,deburring,chemical pre treatment

etc.

Classification of Employees:

All employees in the factory will be classified under the following heads.

Permanent Employee
Is one who is employed at a permanent post and includes any person who has
satisfactorily completed the prescribed period of probation in the same or higher or
equivalent category in the factory, and has been confirmed in writing.
Probationer
Is one who is provisionally employed to fill a permanent vacancy and who has not
completed the period of probation of 06 (Six) months.

Temporary Employee
Is one who is engaged for work which is temporary in nature, or likely to be finished
within a limited period.

COMPENSATION:

Compensation is a systematic approach for providing monetary value to employees in exchange for work
performed. Compensation may be adjusted according the business needs, goals, and available resources.
Compensation is a tool used by management for a variety of purposes for the development of the
company.

Compensation may be used to:

• Recruit and retain qualified employees.

• Increase or maintain morale/satisfaction.
• Reward and encourage peak performance.
• Reduce turnover and encourage company loyalty.

Recruitment and retention of qualified employees is a common goal shared by all organizations. To some
extent, the availability and cost of qualified applicants for open positions is determined by market factors
Morale and job satisfaction are affected by compensation. Often there is a balance , that must be reached
between the monetary values, the employer is willing to pay and the sentiments of worth felt be the
employee. In an attempt to save money, employers may opt to freeze salaries or salary levels at the
expense of satisfaction and morale. Conversely, an employer wishing to reduce employee turnover may
seek to increase salaries and salary levels.
Compensation may also be used as a reward for exceptional job performance. Examples of such plans
include: bonuses, commissions, profit sharing,
What are different types of compensation?
Different types of compensation include:

• Base Pay
• Commissions
• Overtime Pay
• Bonuses, Profit Sharing, Merit Pay
• Healthcare benefit

Wages and salaries

Wages means all remuneration expressed in terms of money and include remuneration such
as overtime wages, wages for holiday and any sum payable on termination of employment. , it
does not include bonus which does not form part of remuneration payable,contribution to PF,
traveling allowance or gratuity.

Payment of wages:

Wages can be paid on daily, weekly, fortnightly or monthly basis, but wage period cannot be
more than a month. Wages should be paid on a working day. Wages are payable on or before
7th day after the ‘wage period’.

[‘Wage period’ is a ‘month’]. Thus, normally, wages should be paid by 7th of following month
and by 10th if the number of employees is 1,000 or more].

The company follows the following pattern:

• Wages paid on 7th of every month.

• Wage is paid in cash

• Monthly wage is paid.

Wages and salaries are fixed by the management based on designation, aptitude, skills and
experience of the workers and employees.

Increments are made on the basis of performance by the management.

Bonus: Payment of bonus is again the discretion of the Management on the basis of profits or
productivity.

However, employees within the coverage of the “Payment of Bonus Act” will be paid bonus as
per the statutory requirements. Employees drawing salary or wages upto Rs 3,500 per month are
entitled to bonus, if he has worked for at least 30 working days in an accounting year.

Minimum bonus @ 8.33% will be Rs 2,500 and maximum @ 20% will be Rs 6,000 for the year,
when salary of employee exceeds Rs 2,500 but is less than Rs 3,500.

Employee drawing salary/wage exceeding Rs 3,500 is not entitled to any bonus under the Act.

Employees dismissed on disciplinary reasons will not be entitled to bonus payment. Any
employee who has tendered his/her resignation and left service before any payment of bonus is
declared shall not be entitled to such payment irrespective of the period he/she has worked
during the year for which the bonus is declared. Bonus is only declared after Company’s
financial year-end.

Performance bonus: Another principle that is followed to attract, motivate and retain the most
talented employees is to offer a Performance bonus. Bonus may be paid according to
performance of the permanent full time confirmed employee at the sole discretion of the
Management .thus a regular employee will have some portion of annual compensation tied
directly to business results. This is to ensure that the deserving employees receive the appropriate
recognition.

Healthcare benefits:

To provide the utmost care and safety for all employees to ensure their well being.
All employees are provided with personal protective equipment (PPE) based on their job
specifications

The company will, as far as practicable, provide a safe work environment for the health, safety
and welfare of our employees, contractors, visitors.
Following steps will be followed in order to maintain healthcare benefits
• develop and maintain safe systems of work, and a safe working environment
• provide protective clothing and equipment, and enforce its use
• provide information and training for employees
• assess all risks before work starts on new areas of operation, for example, buying new
equipment and setting up new work methods, and regularly review these risks
 • remove unacceptable risks to safety

All persons responsible for the work activities of other employees or the shop incharges are
accountable for:
• identifying practices and conditions that could injure employees, clients, members of the
public or the environment
• controlling such situations or removing the risk to safety. If unable to control such
practices and conditions, report these to their manager
• making sure workers use personal protective equipment (PPE), training workers to use
PPE correctly
• making sure PPE is maintained and working properly .

Health insurance is provided by the company for the following:

1. accident insurance

2. disability insurance

Free medical treatment is offered to insured employees at hospital and dispensaries run by the
E.S.I. Corporation. Periodical payments to the insured employee for the period of sickness at
specified standard benefit rate .injury in the course of employment resulting in
temporary/permanent disablement entitles the covered employee to a regular payment to
substitute his lost wages.

Accident Compensation payable:

The company will compensate an employee who has suffered an accident arising out of and in
the course of his employment resulting into death, permanent total disablement, permanent
partial disablement, or temporary disablement whether total or partial.

The employer is not liable to pay compensation for the injury to an employee under any of the
following circumstances:

• When injury does not cause total/partial disablement for more than 3 days;
• When injury, not resulting in death or permanent total disablement is directly attributable
to employee’s willful disobedience of the safety rules, or disregard of the safety devices,
or the employee having been under the influence of drink or drugs;
• When the employee has contacted a disease which is not directly attributable to a specific
injury caused by the accident or to that occupation; or
• When the employee has filed a suit for damages against the employer or any other
person, in a Civil Court.
 BENEFITS:

Social Security Benefits in India are Need-based

Social Security protects not just the subscriber but also his/her entire family by giving benefit
packages in financial security and health care. Social Security schemes are designed to guarantee at least
long-term sustenance to families when the earning member retires, dies or suffers a disability. Thus the
main strength of the Social Security system is that it acts as a facilitator - it helps people to plan their own
future through insurance and assistance. The success of Social Security schemes however requires the
active support and involvement of employees and employers.

As a worker/employee, one is a source of Social Security protection for himself and his family. As an
employer one is responsible for providing adequate social security coverage to all his workers.
Most social security systems in developed countries are linked to wage employment. In India our
situation is entirely different from that obtaining in developed countries.
We do not face the problem of exit rate from the workplace being higher than the replacement rate.
Rather on the contrary lack of employment opportunities is the key concern.

Major objectives of benefits are as follows:

• To create and improve sound industrial relations

• To motivate the employees

• To promote employees welfare

• To meet the requirements of various legal legislations.

BENEFITS IN FORM OF DEDUCTIONS IN SALARIES:

1. Employee state insurance

 2. Profession tax

3. Employee provident fund

4. Tax deduction at source

EMPLOYEE STATE INSURANCE:

ESI is extended in area wise to factories using power and employing10 or more persons and to non-power
using manufacturing units and establishments employing 20 or more persons.

Every employee drawing wages upto Rs. 7500.00 per month is required to be
insured under the employee state insurance Act 1948.
But does not include any person whose wages (excluding overtime) exceed the limit prescribed by
the Central Government.
The limit is 15000 per month now with effect from 1 October 2010.

Contribution Rates:

• Employees- 1.75% of wages

• Employers- 4.75% of wages

 Low paid workers in receipt of daily wages up to Rs. 40/- have been exempted from payment of
their share of contribution. Earlier this limit was Rs. 25/-. This measure has benefited about six
lakh insured workers across the country.

The objective is to secure sickness, maternity, disablement and medical benefits to employees of
factories and establishments and benefits to the dependents of such employees.

Obligations for the company:

• Declaration from the employees covered and submit same to E.S.I. office and obtain employees’
Insurance Number and Identity Cards.
• To deposit employees and his own contributions.
• No reductions in the wages of an employee is made on account of contribution made by him.
• Prescribed records/registers are maintained.
• To report to the E.S.I. authorities of any accident, arrange for first-aid and transportation of
employee to the hospital.
• To inform E.S.I. office, dispensary/hospital in case of death of an employee immediately.
• Not sick employee is put to work and is allowed to leave if he has been issued the prescribed
certificate.
• No employee is dismissed or discharged during the period he/she is in receipt of
sickness/maternity/ temporary disablement benefit, or is under medical treatment or is absent
from work as result of illness duly certified or due to pregnancy or confinement.

Tax Deduction at Source: Tax will be deducted at source for all employees at the
designated rates every month and a copy of the income tax returns that have been filed will be
kept in employees’ personal file of the employee concerned.
PROFESSION TAX:

Profession Tax is a state level tax in India on Professionals, trades, callings and employment. The
following Indian States levy professional tax - West Bengal, Karnataka Maharashtra, Andhra Pradesh,
Gujarat, Tamil Nadu and Madhya Pradesh.

Profession Tax is applicable both on Individuals and Organizations (Company, Firm, and Proprietary
Concern, Corporation or any other corporate body.

Profession tax in west Bengal:

The West Bengal State Tax on Professions, Trades, Callings and Employment Act, 1979 (commonly
known as Profession Tax Act) came into force with effect from 1.4.1979 with the object of levying tax on
professions, trades, callings and employments.

TYPES OF TAXPAYERS

There are basically two types of taxpayers:

1. Employers
2. Self-employed persons

In case of employees liable to pay tax, the employer is liable to pay tax on behalf of his employees after
deduction of tax from the salary or wages paid to the employees at the time of disbursement.

A self-employed person, on the other hand, will pay tax himself.

For payment of tax, an employer will have to obtain a ‘Certificate of Registration’ while a self-employed
person will have to obtain a ‘Certificate of Enrolment’ from the appropriate Profession Tax Officer.

Gross salary range Profession tax

- 1,500.00 -
1,501.00 2,000.00 -
2,001.00 3,000.00 - Provident fund:
3,001.00 5,000.00 30.00
5,001.00 6,000.00 40.00
The Employees’ Provident Funds and miscellaneous
6,001.00 7,000.00 45.00
provisions Act, 1952
7,001.00 8,000.00 50.00
8,001.00 9,000.00 90.00
Objectives
9,001.00 15,000.00 110.00
The Employees’ Provident Funds and Miscellaneous
15,000.00 above 130.00 Provisions Act, 1952 aims to provide for the
institution of provident funds, family pension fund and deposit linked insurance fund for employees in
factories and other establishments.

Every employee, including the one employed through a contractor who is in receipt of wages up to
Rs.6,500.00 per month shall be eligible to becoming a member of the funds.
Voluntary Coverage
The employer and majority of employees of an establishment may agree for the voluntary application of
the provisions of the Act in relation to that establishment. For this purpose, they should make an
application to the Central Provident Fund Commissioner, who may by notification, extend the provisions
of the Act to that establishment with effect from the date of such agreement or any subsequent date
specified in such agreement.

The establishment covered on voluntary basis is required to comply with the provisions of the Act at par
with other covered establishments and cannot opt out of coverage on a subsequent date.

The Employees' Provident Funds and Miscellaneous Provisions Act is intended to provide wider terminal
benefits to the industrial workers. For example, the Act provides for payment of terminal on reaching the
age of superannuation, voluntary retirement and retirement due to incapacity to work.

Employees provident fund organization program:

PROGRAM TYPE FINANCING COVERAGE

NAME
Employees mandatory Employee- Firms with
provident 12% +20
fund Employer- employees
3.67%
Government-
none
Employees mandatory Employee- Firms with
pension none +20
scheme Employer- employees
8.33%
Government-
1.16%
Employees mandatory Employee- Firms with
deposit none +20
linked Employer- employees
insurance 0.5%
scheme Government-
none

Fringe benefits:
The term fringe benefits refer to the extra benefits provided to the employees in addition to normal
compensation paid in the form of wages and salaries. These are indirect compensation help to raise living
conditions.

Fringe benefit is a form of social security, provided to improve human relations and is decided on
employer’s preference and employee’s post and need.

Following fringe benefits are provided by the company:

• Facility for the use of mobile phones.

• Repair of personal vehicles in need based.

• Reimbursement of fuel of vehicle

Employees Gratuity:

Gratuity is a lump sum payment to employee when he retires or leaves service. It is

basically a retirement benefit to an employee so that he can live life comfortably after retirement.
However, under Gratuity Act, gratuity is payable even to an employee who resigns after
completing at least 5 years of service.

Gratuity will be paid in accordance with Payment of Gratuity Act, 1972. For the purpose of
gratuity, fraction of a year's service shall be computed proportionately.

Gratuity is payable to a employee who has been in continuous dedicated and satisfactory service
for not less than 5 years and/or who:

a) Dies while in service; or

b) Retires from service at the age of 58; or

c) Whose service is terminated owing to disablement due to accident.

d) Resigns from the job..

Thus, the Act is applicable to all employees - workers as well as persons employed in
administrative and managerial capacity. The Act is applicable to all employees, irrespective of
the salary.

In case of death and disablement, the condition of minimum 5 years’ service is not applicable.
 Gratuity is payable @ 15 days wages for every year of completed service. In the last year of
service, if the employee has completed more than 6 months, it will be treated as full year for
purpose of gratuity.
Calculation of gratuity- Monthly wages/26*15*number of years of services

Maximum gratuity payable is Rs 4 lakhs. Of course, employer can pay more. Employee has also
right to get more if obtainable under an award or contract with employer.

Gratuity received upto Rs. 3.50 lakhs is exempt from Income Tax. Gratuity paid above this limit
is taxable.

LEAVE POLICY: To communicate to the employees the types of leave available for them.
All leave calculation is calculated on a calendar year basis.

Earned leave:
Earned leave is per 20 days of working and is credited to the employee on 1st January of every
year. Provided that they have worked for a minimum of 240 days falling during the previous
year.

1.67 days per month that is 20 days in a year.

For the purpose of calculating earned leave weekly holidays and annual festival holidays and
government holidays are not included, if they come in the period of earned leave.

An employee cannot take earned leave more than three times in a year. Employees will have to
apply 5 days in advance to have their earned leave granted.

Unavailed EL can be encashed and leave can be accumulated as well.

Casual Leave:

Employees are given 5 days casual leave to attend to their personal and urgent requirements.
These leaves cannot be clubbed with earned leave or other leaves, without the permission of the
HR head.

Employees will have to apply in advance in the Leave Application to have their casual leave
granted. This leave cannot be encashed or accumulated for next year. Casual leave will lapse if not
availed.

Many companies do not have this leave; those which provide casual leave, generally the range is
7 to 12 days.
Sick leave:

Every employee will be allowed 4 days sick leave on full pay in a calendar year. Granting of
Sick Leave will be at the sole discretion of the Management. Employees covered by ESI will get
benefits as per ESI scheme. Absence for 3 days and more on sickness ground shall be supported
by a medical certificate from a panel Doctor in case of ESI covered employees, and from a
Registered Medical Practitioner in the case of Non ESI employees.

Sick leave can neither be combined with casual leave nor encashed.

Other than this leave can be granted on death of family member,it varies from 2 to 4 days.

Annual Holidays:
Employees will be given 14 days leave for festivals and other government holidays.The lists of
such holidays is decided by the management.List is put up on the notice board, and is
communicated to the employees.

Organization management declares 14 Holidays on 1st week of January month.

Allowance:
Conveyance allowance:

Conveyance allowance is not meant for profit purpose and the sole reason for granting it to the
employees is to reimburse the expenses incurred by them in connection with the journeys
undertaken exclusively and wholly for the official work of the company.

“Conveyance” means any automobile used for personal transport and maintained in running
conditions such as car,scooters,motor cycles, it does not includes heavy transport vehicles.

RULES regarding conveyance allowance:

• This allowance will not be admissible to an employee who does not own a vehicle in
his/her name.

• Registration in the name of the employee will be treated as sufficient proof of ownership.

• Allowance will be admissible for one vehicle only.

Conveyance allowance is provided on the basis of number of days attended by the

employee in a month.

Attendance allowance:
Employees who have worked on all days without any leaves being availed in any month will be
eligible for an attendance incentive.

This is paid in form of an extra day wage.

Mobile Phones For certain employees, mobile phones have been issued by the Company
with a ceiling limit for talk time. Expenses incurred over and above the ceiling will be payable
by the employee. For certain Employees who are eligible to claim for re-imbursement of mobile
phone
usage, the ceiling will be fixed by the management on case to case basis and accordingly can be
claimed once in a month on production of the bill and receipt.

Working hours:
A worker should not work for more than 48 hours in a week. A worker cannot be employed for
more than 9 hours of work in a day.

The concept of 9 hours is applicable when number of working days is 5.

The periods of work of adult workers in a factory each day is so fixed that no period shall
exceed five hours and that no worker shall work for more than five hours before he has had an
interval for rest of at least half an hour.

Shift work is an employment practice designed to make use of the 24 hours of the clock, rather
than a standard working day. The term shift work includes both long-term night shifts and work
schedules in which employees change or rotate shifts.

Shift work was once characteristic primarily of the manufacturing industry, where it has a clear
effect of increasing the use that can be made of capital equipment and allows for up to three
times the production compared to just a day shift. It is common in heavy industry, particularly
automobile and textile manufacturing and is becoming more common in locations where a shut-
down of equipment would incur an extensive restart process

The company follows the given norms

 Timings of shift for workers : 6.00 am to 1.00 pm

2.00 pm to 9.00pm

There is no third shift in the factory that is after 9’ o clock.

 6 days of work in a week, with one weekly off on Sunday.

  Break of one hour once in the working day or two breaks each of half an hour.

 Company can assign its employee to work in any shifts.

 Shifts will be alternated to ease the employees.

 No person less than 14 years of age is employed in the factory.

 For administrative staffs timing is 10.00am to 6.00 pm

Overtime:
Beyond the standard shift hours, if extra work is required by the company workers are expected
to overtime for which extra compensation is paid. It is followed as per the factories act.

Extra wages for overtime: If a worker works in a factory for more than nine hours in any day or
for more than forty- eight hours in any week, he shall, in respect of overtime work, be entitled to
wages at the rate of twice his ordinary rate of wages

Workers may be asked to work on holidays if required and they will be entitled to extra wages
for overtime.

Total working hours including overtime should not exceed 60 in a week and total overtime hours
in a quarter should not exceed 75.

Register of overtime is maintained for the workers.

[Quarter means a period of three consecutive months beginning on the 1st of January, the 1st of
April the 1st of July or the 1st of October.]

Attendance

• Every employee shall “PUNCH IN” and “PUNCH OUT” his attendance through the time
office at the time of entering and leaving the factory premises, at shift start, close and
during rest intervals as and when such facilities are made available.

• Every employee shall be present at the place of his work in his or her respective
departments at the start of the shift time.

• A period of fifteen (15) minutes late coming after shift start is provided for employees
who are unable to come in time due to unavoidable circumstances.
 • In any case the employee shall not come late more than (2) two such occasions in a
month; and if in any case an employee(s) comes late more than twice (2), appropriate
deductions from the wages shall be made.

• Employees’ coming late more than 15 minutes from scheduled shift timing shall be liable
for disciplinary action.

• Deductions from the wages shall be in proportion with the time of late coming.

• Any employee who after punching his card is found absent from his place of work at any
time during the working hours without permission shall be liable for disciplinary action
for loitering and wages shall be deducted for the period she / he was not found in the
place of work.

Attendance incentive is provided by the company in the form of extra pay if employee is
present at work for the whole month

Separation policy:
Separation policy provides unbiased and equitable treatment to all employees who are leaving
and thus providing them with necessary requirement for a smooth separation.

Employees may be asked to discontinue their services by giving one months notice if the work
and performance is found to be not benefitting the company’s need and not upto the mark.

The reasons for termination are given below:

1. Insanity, physical infirmity, contagious / infectious disease, continued ill health,
medical unfitness for employment as declared by a certified medical officer.
2. Convictions by any ordinary court on any criminal proceedings involving moral
turpitude
3. Engaging in any vocation outside that of the company without written permission of
the manager or found to have been working elsewhere during the period of leave of
duty.
4. Loss of confidence by the company in an employee holding a position of trust or
confidence and any other reasonable cause
5. Absence by an employee on grounds of sickness for continuous period of 12 months
 6. Violating company’s decorum.

7. Revealing company matters outside to the competitors.

8. Involvement in anti company acts, spreading of false rumours.

9. Disobedient behavior.

Upon termination, employees shall return all company assets in their possession. All payments
due to the employee or the management will be settled in full before the discharge.

Voluntary leaving of service: Employees who voluntarily resign from the Company are
supposed to provide one month prior notice before their resignation. This notice should be in
writing and should briefly state the reason for leaving and the anticipated last day of work.

Any employee shall be superannuated from the service of the factory on completion of the
age of sixty (60).

As per employee pension scheme employee is liable to receive contributions in form of pension.

Retrenchment policy:
Retrenchment refers to mode of termination of employment under specific
conditions.

• In case of retrenchment three month salary is paid to the retrenched employee

If the management decides to reduce the manpower in the factory due to necessity, it can
retrench the employees .Retrenchment can be done due to following reasons:

1. Loss of business.

2. Changing economic conditions.

3. Change in product line

4. Obsolescence.

5. War

6. Inflation.

Transfer:
In the interest of the factory’s work process, any employee shall be liable to be transferred at the
discretion of the management from one job to another or from one department / section to
another or from one unit or factory of the company to another.

Code of conduct and disciplinary procedures:

Employees are expected to act in accordance with the highest standards of

personal and professional integrity honesty and ethical conduct, while working
on the Company’s premises, at offsite locations where the Company’s business
is being conducted, at Company sponsored business and social events, or at any
other place where they are representing the Company. Honest conduct is
considered to be conduct that is free from fraud or deception.

Following are examples of employee conduct that are not permitted and will result in
corrective action and/or termination of employment on enquiry.

1. Insubordination
2. Non compliance of orders and instructions of the company
3. Causing loss and damage
4. Exposing the company’s assets to loss and prejudice
5. Unruly behavior and violence in the work premises
6. Sexual harassment against women employees in work place
7. Theft of company’s assets and properties
8. Regular late attendance
9. Absenting from work for more than 15 days without intimation or leave
10. Regularly leaving the workplace during work hours without permission
11. Utilizing computers,phones,internet services provided for company’s work ,for personal
work and for passing confidential information and data to outsiders
12. Spreading false rumours about the company and its executives within the workplace and
outside
13. Involvement in any criminal proceedings as accused and in the event of arrest in
connection with any criminal case.
14. Working for others engaged in similar business
15. Indulging directly or indirectly in intimidating the employees of the company to rise
against the company and disturb its functioning
16. Sending /circulating spam mails against the officers of the company.
17. Violation of terms and conditions of service and rules of the company
18. Smoking, gambling, use of drugs and alcohol in the company premises

Corrective actions will include the following:

• Verbal notifications/warnings
• Written notifications
• Suspension
Personal conduct:
The company expects its employees to maintain a high standard of conduct and work
performance to make sure the business maintains its good reputation with customers and clients.
Good personal conduct contributes to a good work environment for all.

This involves all employees:

• observing all policies and procedures

• treating colleagues with courtesy and respect
• treating customers and clients in a professional manner at all times
• working safely at all times

Dress code policy:

As a minimum standard, dress should be clean, neat and professional.
Management also reserves the right to request an employee to dress to an appropriate standard as
a condition of employment.
Uniform is provided to the operative workers.

Phone and internet use:

It is expected from the employees to keep their personal phone calls to a reasonable level.
Email facilities are provided for formal business correspondence.
Care should be taken to maintain the confidentiality of sensitive information.
Limited private use of email is allowed if it doesn’t interfere with or distract from an employee’s
work.

Communication policy:

To develop conscientious intra-personal relationships all through the factory, both vertical and
horizontal; thereby having an unhindered channel of information flow communication policies
are framed.

Notice Boards: All communication from the management to the employees will be put up on the
notice board as early as possible by the management. Employees are responsible to read the
necessary information placed on the notice board.
Suggestion Box: All suggestions and queries relating to infrastructure, facilities, amenities and
basic management of the factory may be dropped into the suggestion box .The suggestion will
definitely be taken into consideration by the management. And any communication in this regard
would be put up on the notice board.
The keys for the suggestion box will be with HR head and the suggestion box will be opened /
sealed in the presence of the executive head. The suggestion box will be opened once every week
on Friday’s.
The Management once in every ten days will meet to discuss and review factory’s progress; in
these meetings the suggestions / queries raised by the employees will be handled and actions
taken will be filled in the action plans, one copy will be posted on the notice board.
Note: The employee(s) is at liberty to meet and discuss with the Factory Manager or
appropriate authorities their thoughts and queries on matters pertaining to the factory at a
mutually convenient time before or after the shift time and with the HR personnel during the
break, within the factory premises.
Procedure for Handling Complaints:Under normal working conditions, Employees
who have a job-related problem, question or complaint should first discuss it with their
immediate Superior. At this level, Employees usually reach the simplest, quickest, and most
satisfactory solution. If the Employee and Superior cannot solve the problem, the Company
encourages the Employee to escalate the issue upwards in the management hierarchy until the
problem is resolved.

Grievances: For every individual employee, his own grievance is most important. Secondly,
even if the employee has the best,he would still like to have better.It is, therefore but natural that
the employees will sometimes have a grievance, which may be real or imaginary and also must
be settled immediately.

For effective and efficient functioning of the Department, it is desirable that the grievance of an
employee, whether real or imaginary, is settled immediately.

A grievance shall be first reported to the immediate superior. The employee should seek
redressal of his / her grievance as the immediate Supervisor is the first source of information,
help, advice, encouragement and training and is the person directly responsible for assigning,
directing and reviewing the employee’s work. The Supervisor shall talk with the employee
working under his supervision about the grievance and try to redress the same.
Grievances should be reported to the Management only in writing. The Management shall
respond, in writing and within a reasonable time, as to whether the grievances would be given
due consideration or otherwise. The Management may opt to implement corrective measures
immediately or at their discretion, take time to review and consider the grievances.