Hiring Talent And Managing Payroll In India

Agreements

• Indefinite or open-term agreement: If an employment agreement isn't assigned otherwise, it is regarded as a permanent employment contract. A permanent employment agreement may specify either full- or part-time work. Employees with this contract often receive all types of statutory perks and rights.
• Fixed-term agreement: Fixed-term agreement in India can be for a term of lesser than 4 years. If the term under this agreement exceeds 4 years, it is considered an indefinite contract. Fixed-term employment offers employment security along with the advantages that a permanent employment contract could have to offer.
• Casual employment agreement: This type of contract can be terminated only when services are required for a certain job or period. This employment may be available daily, weekly, or monthly.

Onboarding Process

• A job description is prepared by the HR teams. They collaborate with the unit that has a job vacancy.
• The description is then uploaded on the official website of the company along with other platforms like LinkedIn.
• Some companies may even publish job vacancies in local newspapers. The advertisement can remain for a couple of days to a week.
• Candidates apply for the job by proving their eligibility. They are further shortlisted based on rounds of screenings and interviews.
• Final shortlisted candidates then negotiate their terms and conditions with the employer. After the mutual agreement, the candidate is hired as an employee.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• The health benefits in India include the Employees' State Insurance Scheme (ESIC), Employees' Provident Fund, Gratuity, statutory leaves; and Maternity Leave.

Working Hours and Overtime

• Work hours: An employee is expected to work about 9 hours per day. The standard work hour in India must not exceed 48 hours per week.
• Break: Employees are entitled to an unpaid lunch break of about 30 minutes between working hours.
• Overtime: Overtime in India under corporates must not exceed 12 hours per week. The employer must give 200% of the regular wage during overtime.

Social Security

Taxes for Employees

Termination

• Resignation by the employee
• Retirement age
• Expiration or non-renewal of the job contract;
• Employee dismissal for grave wrongdoing (such as theft, fraud, etc.);
• Collective dismissal for financial reasons (such as bankruptcy, restructuring, etc.).
• The employee must get a notice period of 30 days before the termination. The termination letter must state a valid reason for the termination.

Severance Pay

Employees or Contractors

• A person who works for a company and earns a wage or salary is called an employee.
• An organization or person who hires people to work for them is called an employer or contractor.
• A duty of payment of overhead surcharges is paid by the company if found guilty.
• The company has to pay all the related interests and sanctions on the behalf of a misclassified employee.

Final Words