Some common legal hassles that employees in India face while starting a new job or leaving the job for a new one, is due to his unawareness regarding the new job formalities that any employee should look into and duly fill up too. People often forget their PF number, do not receive salary on time or are unaware of their bonus benefits or gratuity rules.
Table of Contents
5 Most Important Formalities of employees in India:
- Basic compliances
- Allowances and benefits
- PF compliances
- ESI compliances
- Monthly compliances
These are important whether you are in your present job or you are starting a new job.
1. Basic compliance employees in India:
Upon starting a new job, there are a few things to remember. Before you join somewhere new, complete the following details. There are some basic compliances as follows:
Offer letter/gate pass:
You must have your offer letter with you at the day of joining.
Job role:
You must have a clearly defined role in a written format to avoid any exploitation later.
Office timing:
Confirm the timing of your work before starting a new job.
Notice period:
You must know the notice period before leaving the job to avoid any penalty later. It varies from one month to three months. Before you decide to switch over, give the notice as specified to the employer.
Bond:
You must know that most of the companies have a bond of a certain period and if you leave before the bond period, you will have to pay a penalty.
Probation period:
There is usually a probation period. For that particular period, you do not have a permanent employees in India status. Know your probation period which varies from 3 months to a year depending upon a company’s policy during which the employer watches you to judge your suitability for the job.
ID proof/adhaar card/pan card/permanent address/contact details in an emergency:
All these are necessary to submit when you are starting a new job. It is even more important for an employer that you submit all contact details on joining.
2. Allowances or benefits:
You should be aware of all the allowances and benefits that you can avail. Some are mandatory by the government. Some are office mandatory. It is convenient if you get all the details of your allowances in the written format before you are starting a new job.
You need to know about your INCREMENT CYCLE and APPRAISAL CYCLE which could be from 6 months to a year.
Employees in India must know about the GRATUITY amount that he would receive on leaving the job after serving the present company for a specific period. You should know the BONUS benefits also while starting a new job. Some companies also give you payment for OVERTIME but all companies do not offer this privilege. It is also important to have a festival holiday list on joining and you can ask for it from your HR.
Be aware of the number of paid CASUALTY LEAVES. Clarify whether you can avail them monthly or annually and how to utilize them. These leaves are not valid if it’s your probation period. Also know about the other benefits like travel, petrol or food allowances. If the company offers such benefits, remember to keep the vouchers as corroborative evidence.
3. PF compliances:
Knowing PF compliances is important for avoiding monetary loss when starting a new job.
- FORM 11 – It has to be duly filled so that your previous UAN reaches the new company. It is the responsibility of the employer to provide all details of Form 11. So, there is no inconvenience regarding refund, pension or transfer of the amount.
- FORM 2 – This is filled for the nomination. E-nomination can also be done if the physical copy of it is with you.
- UAN/PF NO. – If you are joining a new establishment and you have worked before in some other company, remember to feed your old UAN number to your PF portal when you join a new company. If it is your first job, generate a new UAN and your PF number also. Both are different and carefully feed your UAN number on your PF portal. Your UAN number remains same even on changing the company. The PF number keeps changing. Therefore, keep a note of both. PF number keeps on changing even if you rejoin the previous company.
- Even if you rejoin the same company, again and again, your PF number keeps changing and it is important that you know your PF number on joining the company.
- ACTIVATE UAN NUMBER – As soon as you get your UAN number, activate it immediately and modify the details if there is any mistake in the basic details. It will be difficult to modify it later if you leave the company to join another.
- CHECK BASIC DETAILS – Check all your basic details like name, father’s name and your date of birth. As soon as your employer feeds all these basic details on your PF portal, check them so that in case of any fault, they can be modified.
- UPDATE KYC AND GET THEM VERIFIED – It is important to update your KYC on your PF portal so that you do not need your employer’s help in case of a change of company. Get your KYC updated and verified. To avoid inconvenience, get the digital signature on your KYC.
- E-NOMINATION – A digital format of Form 2. Go to PF portal and fill it. You must know how to do it online and offline.
- TRANSFER OLD PF – If you were working in a company where you were given PF. If you haven’t availed the full and final settlement of your PF, it is necessary that you transfer the old PF amount to your new company. Inform your new employer about the transfer of your PF.
4. ESI compliances:
When employees in India starting a new job, take your ESI compliances so that you do not suffer in case of accidents or any other emergency.
- FORM 1- It is important for the employer to take all the details of new employees in India in a particular format and register online all these details and update them. You should register all details of Aadhar, father’s name, nomination number, and details of an employee’s family members. A company should get this ESI Form 1 filled by all his employees in India.
- MODIFY BASIC DETAILS – As soon as you have registered yourself in ESIC, check your basic details to see whether you have an old IP number and you have given it to your new employer or have they generated a new IP number. Get the dispensary corrected for yourself or your family members so that you can avail the facilities of a nearby dispensary and do not have to go to a faraway dispensary in case of an emergency.
- LINK AADHAR CARD – It is difficult now to get the facilities of ESIC without linking your Aadhar card to ESIC portal.
- ADD FAMILY DETAILS AND NOMINATION – Update all details of your family members like parents, spouse, and children. File their nomination and feed all the details like Aadhar and update online.
- E-PEHCHAAN CARD – It is very important to take a digital card print out of this, with your photo duly attested by your employer. If your employer does not cooperate, you can take the help of your local ESIC. Remember to take 3-4 copies of your E-PEHCHAAN card and give it to each family member. A copy of this has to be kept in your purse or file.
5. Monthly compliances:
- SALARY SLIP – Check your salary slip every month and check all calculations and bifurcations online. Take the physical copy of your salary slip and file them properly for future use.
- CHECK ESI CONTRIBUTION AND CHECK PF CONTRIBUTION – Check ESI contribution every month which normally gets deposited by the 15th of every month. Within one week it is updated online. Check it at the end of every month. Also, download your passbook so that you can check your PF balance regularly.
If these 5 compliances are carefully checked out when starting a new job, it saves an employer and employee both from lots of hassles, legal or monetary later.
For more information on starting a new job, check the following video:
Check another interesting read: 8 Tips On How To Increase Bank Balance.
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