Employment (HR) Policies/Practices and Compliance Audit

Employment (HR) Policies/Practices and Compliance Audit 

KEY OUTCOMES

• HR-related decisions were taken through a decision-making matrix and thus consistently applied across the business, saving management time and reducing ambiguity when communicating with the rest of the team.

• The HR Audit document became the list of projects and initiatives that were scheduled to be completed in order of importance to the business to ensure legal and best practice compliance.

• HR system was sourced, handbooks and policies were introduced, employment contracts were updated and rolled out, governance system was developed, and all I relations issues were resolved.

• We identified a potential Claim that could be raised from the PF department amounting to 25 crores (approx.) and a risk mitigation and remediation

plan was implemented

The Company

Medium-sized IT /Software service provider.

The Problem

The business had recently experienced growth, which necessitated the hiring of a large number of additional staff members quickly. The company's current

Procedures could not support the growth, which led to many HR Area-related problems/ challenges.

The business lacked the in-house expertise necessary to recognize /identify and implement

the improvements that were needed for the HR practices and procedures.

Our Approach

To better understand the business's goals in the short, medium, and long terms as well as the existing HR processes, we spoke with

the senior management team.

We looked at the problems they had with HR practices & policies due to which leadership was required to spend a huge amount of time handling/managing People and process issues.

Actions

• We identified the essential processes and policies that were required as a minimum and put these processes in place immediately to ensure smooth functioning &legal compliance and resolve the current issues

• Developed a detailed report highlighting the good areas and the areas of concern, including longer-term considerations to ensure that the business achieved its goals.

 The report used a traffic light system:

1. Green to identify areas that were fit for the purpose

2. Amber indicated areas that would benefit the business if these actions took place

3. Red highlighted areas that required immediate attention.

Litigation Law in India

 Litigation

While employment litigation was not particularly common a few years ago, the situation is rapidly changing in India. In employment lawsuit issues, we have represented a number of clients. Advising clients on litigation strategy, drafting and issuing legal notices, responding to legal notices, drafting claim documents, representing clients before labour courts and high courts, and coordinating with local counsel to pursue litigation in the appropriate courts across India are all part of our services.

Litigation and ADR

Corporate litigation differs from most other forms of lawsuits in that it is a risky venture. Corporate litigation is more than just a case of one company suing another. It also encompasses any legal processes involving a firm or corporation, as well as efforts used to avoid litigation as well as litigating and resolving commercial disputes.

We offer a well-developed Litigation and ADR Practice Group with seasoned management and o associates and litigators that aid clients with strategic decision-making in litigation and ADR cases. The skilled attorneys with in-house advocacy knowledge serve clients in a variety of forums across the country, including the Hon’ble Supreme Court of India, several High Courts, and Tribunals.

We have gained an in-depth understanding of many law topics as a result of our experience across various practice groups. Commercial disputes, recovery processes, and property disputes are the emphasis of the Practice Group. Our extensive expertise has allowed us to obtain a thorough understanding of a variety of legal issues. Commercial disputes, recovery processes, property disputes, violation of intellectual property rights, constitutional issues, service issues, banking claims, insolvency, white-collar crimes, and other conflicts.

Startup and Contract Management in India

Startup and Contract Management

 

Contracts are the foundation of any business. A contract is necessary to ensure the successful completion of the task and is an excellent mechanism to secure redress if the work is not completed. For business owners, having a basic understanding of the different facets of contract administration can be useful.

According to the Indian Contract Act, of 1872, all agreements are considered contracts if they are freely entered into by parties who are legally able to do so, are formed for a legal consideration with a legal purpose, and are not specifically stated to be void.

Employee contracts are among the most important things to consider when beginning a business. In the beginning, founders frequently worked together with their own circle of reliable friends. While this ensures a certain level of ease and efficiency for business operations, it is always advisable to outline and formalize employee contracts with information about salary, the scope of work, and stock options (if any) with even your first few employees. Startups can lower their risks later on by having this clarity from the start.

Startups frequently employ contract employees and suppliers in their early stages of operation, and having a strong contract management system will guarantee that the necessary safeguards are in place to ensure that necessary work is completed on schedule.

NDAs are a crucial contract that entrepreneurs may find advantageous to have. Startups frequently succeed in a crowded market with intense competition, and they regularly debate ideas with a wide range of people, including possible investors, employees, and customers.

Although this is crucial for the expansion of the company, it exposes fledgling businesses to dangers including the theft of ideas and other confidential business data. Ideas that may have been offered in good faith could be misused and work against the interests of the company.

Nondisclosure agreements, also known as NDAs, must be created and used by startups when sharing sensitive company information with anyone outside the organization to prevent such situations.

Startup and Protection of Intellectual Property

 

 

Startups can leverage the 'Scheme for Startups Intellectual Property Protection(SIPP) under the Startup India initiative. Code, algorithms and research findings are some of the most common intellectual property owned by organizations.

The scheme was set up to nurture and mentor innovative and emerging technologies among startups and help in the protection and commercialization of intellectual property. For the effective implementation of the scheme, facilitators have been empanelled by the Controller General of Patents, Trademarks and Design.

Start-up and  contract management

Contracts are the foundation of any business. A contract is necessary to ensure the successful completion of the task and is an excellent mechanism to secure redress in the event that the work is not completed. For business owners, having a basic understanding of the different facets of contract administration can be useful.

According to the Indian Contract Act, of 1872, all agreements are considered contracts if they are freely entered into by parties who are legally able to do so, are formed for a legal consideration with a legal purpose, and are not specifically stated to be void.

One of the most important things to consider when beginning a business is employee contracts. In the beginning, founders frequently worked together with their own circle of reliable friends. While this ensures a certain level of ease and efficiency for business operations, it is always advisable to outline and formalize employee contracts with information about salary, the scope of work, and stock options (if any) with even your first few employees. Startups can lower their risks later on by having this clarity from the start.

Startups frequently employ contract employees and suppliers in their early stages of operation, and having a strong contract management system will guarantee that the necessary safeguards are in place to ensure that necessary work is completed on schedule.

NDAs are a crucial contract that entrepreneurs may find advantageous to have. Startups frequently succeed in a crowded market with intense competition, and they regularly debate ideas with a wide range of people, including possible investors, employees, and customers.

Although this is crucial for the expansion of the company, it exposes fledgling businesses to dangers including the theft of ideas and other confidential business data. Ideas that may have been offered in good faith could be misused and work against the interests of the company.

Nondisclosure agreements, also known as NDAs, must be created and used by startups when sharing sensitive company information with anyone outside the organization in order to prevent such situations.

Start-up and Labour Laws

 

Startup and Labour Law

When you are established as a company, you are subject to several labour laws regardless of the size of the organization. Adhering to labour laws is integral to every organization, small or big.

Laws with regard to minimum wages, gratuity, PF payment, weekly holidays, maternity benefits, sexual harassment, and payment of bonuses among others will need to be complied with.

With regards to labour laws, startups registered under the Startup India initiative can complete a self-declaration (for nine labour laws) within one year from the date of incorporation in order and get an exemption from labour inspection. The nine labour laws applicable under this scheme are:

•      The Industrial Disputes Act, of 1947

• The Trade Unit Act, of 1926

• Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996

• The Industrial Employment (Standing Orders) Act, 1946

• The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

• The Payment of Gratuity Act, 1972

• The Contract Labour (Regulation and Abolition) Act, 1970

• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

• The Employees’ State Insurance Act, 1948.

Startups under this scheme will have to file a self-certified return for the second and third years in order to continue with the exemption. Having a well-designed employee policy can be a major differentiator for startups. An attractive employee policy is a key to attracting and retaining good talent. Employee policies can also prove to be the starting point for boosting employee morale and increasing productivity.

Startup Taxation and Accounting Laws

Startup Law 

 

A broad variety of taxes, such as central tax, state tax and even local taxes, may apply to certain businesses. Different business and operating sectors attract different taxes; knowing this beforehand can be useful.

A startup can avail of income tax exemption for 3 years as well as tax exemptions from capital gains and investments above Fair Market Value. The Government of India launched the 'Startup India' initiative to promote startups and introduced many exemptions and tax holidays for startups.

The conditions that startups need to qualify to leverage these exemptions are:

• The startup should not be more than 7 years old (or 10 years for biotech) from the date of incorporation.

• Is incorporated as a Registered Partnership, Limited Liability Company or Private Limited Company.

• Turnover in any year should not have exceeded 25 crores.

• The startup should not have been formed by splitting or reconstructing an existing business.