- Why it’s important for a company to adhere compliance :-
In all business operations, compliance has a huge impact. Companies incur a lot of time and money in meeting the regulatory compliance but a single flaw in their systems can lead to troublesome situation and might call for huge fines.
Documents are the most important and foremost assets that a company should maintain as per compliance. Non-availability of documents and non-conformance to regulatory document life cycle requirements can result in huge fines and regulatory sanctions.
A company can avoid huge penalties & legal action by adhering proper compliance. That can be possible by maintaining proper filing alongwith a checklist of mandatory documents e.g., PF, ESIC & Gratuity forms to be filled by the employee along with his/her personal documents.
Checklist of mandatory documents : –
- Passport Size Photo, copy of Resume
- Employee ID Proof – Aadhar Card, Pan Card, Voter ID, Driving License & Passport (any of these).
- Education Credentials – 10th & 12th Mark Sheet & Certificate, Graduation/Post Graduation documents.
- Previous Employment – Offer & Appointment letter, Salary slip, Relieving & Experience Letter, Promotion or Increment Letter, if any & Bank statement for salary validation purpose.
- Corporate Salary Accounts – A corporate salary account must be opened by the company for its employees.
- PF, ESIC & Gratuity Forms, etc.
- Form 1 (Declaration of ESIC Nomination) – the candidates whose gross salary is less than INR 21,000, that means they will be covered under ESIC & Form 1 along with Aadhar card of self and family members required for ESIC.
- Form 2 (Declaration of PF Nomination) – Basically, The EPF Form 2 is for the purpose of declaration and nomination under the Employee’s Provident Funds and Employees Family Pension Schemes.
- Form 11 (Declaration for No Deduction of PF) – Form 11 is used for declaration of an employee for both Provident fund and Pension scheme. The Form 11 declaration is to be taken from employees who are not eligible for PF as well. This will be for the official record purpose and can be shown in the case of any inspection.
- Gratuity Form F (Declaration of Nomination) – Gratuity is a sum of money paid by an employer to an employee rendered in the company. However, gratuity is paid to the employees who complete 5 or more years with the company.
It states that every employee is eligible to get a gratuity (lump sum amount) at the time of leaving the job. The amount of Gratuity is fixed based on a formula. According to Gratuity Act, every employer, who has 10 or more employees, has to follow the gratuity law.
- Signed & Acceptance copy of Offer, Appointment Letter
An Offer Letter is an invitation & confirmation to a potential candidate who gets shortlisted during the interview process, to become an employee in organization. The Offer letter contains the details of Employment like salary structure, benefits, job responsibilities, Reporting manager’s name with contact number and Job location, venue.
Appointment letters provide more information than Offer letters. An appointment letter can be used as proof of upcoming employment and is considered a formal copy of the contract, for which the candidate has agreed by accepting the job offer.
Both offer and appointment letters are legal documents for employees which are necessary to prove their employment status.
It is mandatory to get the signed and acceptance copy of Offer and Appointment Letter from the employee in order to be compliant and adhere the process.
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