Frequently Asked Questions

We offer both standard HR policy manuals and customized manuals tailored to each company’s specific needs and requirements. We work closely with our clients to understand their business and size and create policies that align with their goals and values.

We take data security very seriously and have implemented robust measures to safeguard our clients’ information. We use secure servers, firewalls, and encryption to ensure data confidentiality and integrity. Additionally, we have strict access controls and privacy policies in place to protect against unauthorized access or disclosure of data.

Yes, we provide dedicated HR Managers who work closely with our clients to manage their HR functions virtually. Our HR Managers have extensive experience in managing HR processes and are trained to handle all aspects of HR, from recruitment and onboarding to employee engagement and performance management.

No, there is no lock-in or minimum commitment period for our services. Our clients can choose to discontinue our services at any time, without any penalty or termination fees. Only one-month prior information is required.

Yes, we stay up-to-date on the latest changes and updates related to labour compliances and proactively inform our clients of any changes that may impact their business. We also work with our clients to ensure compliance with all applicable laws and regulations.

We use advanced technology and online tools to manage HR functions virtually. We have a cloud-based HRMS platform that allows us to manage all HR processes, from onboarding, Payroll management, performance management and employee separation process online. We also use video conferencing, email, and messaging platforms to communicate with our clients and their employees.

Our HR Managers have extensive experience in managing HR functions for various industries and sectors. They hold degrees in HR or related fields and have undergone rigorous training to ensure they are equipped to handle all aspects of HR management.

Yes, we provide a monthly HR dashboard that provides key HR metrics and insights to our clients. The dashboard includes information on New Joining, Leave attendance reports, and Payroll summary, among other things.

Yes, you can upgrade or downgrade your plan based on your changing needs and requirements. We offer flexible plans that can be tailored to each company’s specific needs.

Yes, you can continue to use our HRMS platform even if you no longer require our Virtual HR services. The platform can be used to manage all HR functions, from employee onboarding to separation management, and can be customized to meet your changing needs.

If you buy Virtual HR services there are no additional implementation charges.

Yes, Emgage HRMS can be integrated with biometric devices. Our HRMS platform has the capability to integrate with various types of biometric devices, such as fingerprint scanners and facial recognition systems, to provide a more secure and efficient way to manage employee attendance and time tracking. This integration allows for seamless data transfer between the biometric device and the HRMS platform, reducing the need for manual data entry and improving data accuracy.

KRAs provide clarity and focus by identifying the key areas where efforts and resources should be directed to achieve desired outcomes. They help in aligning individual and team goals with the broader organizational goals, ensuring that everyone is working towards the same objectives. KRAs are often used as a basis for setting Key Performance Indicators (KPIs) that measure the progress and success of achieving the desired outcomes.

KRAs (Key Result Areas) represent broad areas of responsibility or major goals, while KPIs (Key Performance Indicators) are specific and measurable indicators used to assess performance within those areas. KRAs provide the context and direction, while KPIs track progress towards achieving desired outcomes.

The purpose of defining KRAs and KPIs is to set clear expectations, align goals, measure performance, drive accountability, support decision-making, facilitate performance management, and enhance focus and productivity.

KRAs and KPIs should be reviewed and updated regularly, typically as part of performance review cycles, strategic planning updates, or in response to role changes or performance challenges. Continuous improvement and feedback should inform the periodic updates to maintain their relevance and effectiveness.

Challenges in implementing KRAs and KPIs include defining relevant metrics, data collection and quality issues, resistance to change, alignment with organizational culture, overemphasis on short-term goals, lack of clarity and communication, goal conflicts, unrealistic expectations, focus on quantity over quality, and lack of feedback and support. Addressing these challenges requires thoughtful planning, employee involvement, effective communication, data-driven decision-making, and a culture of continuous improvement.

KRAs and KPIs aid in career development and performance improvement by guiding employees’ career paths, identifying development needs, providing feedback, supporting goal-setting, recognizing achievements, and mapping required skills for advancement.

www.emgage.work/free-kra-kpi-templates Download Free

PF contributions provide a disciplined approach to saving for retirement, ensuring a financial safety net for employees. Secondly, the employee’s contributions to the PF are eligible for tax deductions under Section 80C of the Income Tax Act. Thirdly, PF accounts earn a competitive rate of interest, which helps the funds grow over time. Additionally, PF balances are safe and backed by the government, ensuring security and stability. Finally, PF funds can be withdrawn upon retirement, resignation, or under specific circumstances, providing a source of financial support during such times.

Yes, it is possible to withdraw money from your Provident Fund (PF) before retirement, subject to certain conditions. The EPFO allows partial withdrawals from the PF account for specific purposes such as medical emergencies, marriage, education, home loan repayment, home construction, and more. The amount that can be withdrawn depends on the purpose and the years of service completed. However, it’s important to note that complete withdrawal of PF before retirement is generally not permitted unless the individual remains unemployed for a continuous period of two months or more. Early withdrawals may also be subject to tax implications and penalties as per the applicable rules and regulations.

In order to claim your Provident Fund (PF) upon retirement ensure that your employer has updated your exit details with the Employees’ Provident Fund Organization (EPFO). After retirement, you can submit a duly filled Form 19 (PF withdrawal form) to your regional EPFO office or through your employer. Include necessary documents such as a copy of your bank passbook, a cancelled cheque leaf, and a copy of your PAN card. The EPFO will process your claim, and the PF amount, along with any applicable interest, will be credited to your registered bank account.

Yes, there are penalties and consequences for non-compliance with Provident Fund (PF) rules and regulations. If an employer fails to deduct or deposit the PF contributions, they may be liable to pay penalties, interest, and damages as per the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Non-compliance can result in legal action, including prosecution and imprisonment. Similarly, if an employee fails to contribute their share of PF or withdraws the PF balance prematurely without meeting the specified conditions, they may be subject to penalties, tax liabilities, and potential disqualification from certain benefits.

The maximum limit on contribution is currently set at 12% of the employee’s basic wages plus dearness allowance. This means that both the employee and the employer are required to contribute a maximum of 12% of the employee’s eligible wages towards the PF. However, it’s important to note that an employer has the option to contribute more than the statutory limit if they choose to do so, but the employee’s contribution is capped at the specified limit.

Yes, you can nominate someone to receive your Provident Fund (PF) balance in case of your demise. The nomination can be made by filling out a nominee form provided by the Employees’ Provident Fund Organization (EPFO) or through the EPFO member portal. The nominee can be any family member, including a spouse, children, or parents. It’s advisable to keep the nomination updated and ensure the details are accurate. In the event of the member’s demise, the PF balance is paid to the nominated individual, providing financial support to the family members.

The interest earned on your Provident Fund (PF) contributions is credited to your PF account. The interest rate is determined by the Employees’ Provident Fund Organization (EPFO) based on the prevailing market conditions and is compounded annually. The interest earned on PF contributions is tax-exempt and helps your PF balance grow over time. The EPFO declares the interest rate for each financial year, and it is credited to your PF account at the end of the financial year. The accumulated interest adds to the overall growth of your PF balance, contributing to your retirement savings.

Yes, you can take a loan against your Provident Fund (PF) balance in India. The loan facility is available through the EPFO’s Scheme of Advances. Under this scheme, you can apply for a loan against your PF balance for specific purposes such as medical treatment, home construction, marriage, education, or meeting financial emergencies. The loan amount is limited to a certain percentage of your PF balance, and the interest rate on the loan is typically lower compared to commercial loans. The loan is repaid through monthly instalments, and the PF balance serves as collateral for the loan.

Yes, there are tax benefits associated with the contributions made to a Provident Fund (PF). The employee’s contributions to the PF are eligible for tax deductions under Section 80C of the Income Tax Act. The contributions made towards the PF, subject to a maximum limit of ₹1.5 lakh per financial year, can be deducted from the employee’s taxable income. This reduces the overall tax liability of the employee. It’s important to note that the employer’s contribution to the PF does not qualify for additional tax benefits for the employee.

The interest rate for Provident Fund (PF) contributions is determined by the Employees’ Provident Fund Organization (EPFO) based on the prevailing market conditions and the organization’s financial performance. The EPFO’s Central Board of Trustees (CBT) reviews the interest rate annually and decides on the rate to be credited to the PF accounts. The interest rate is typically declared at the end of each financial year. The EPFO takes into account factors such as the government’s investment policies, returns on investments, and the financial stability of the fund while determining the interest rate for PF contributions.

The organizational structure of a company refers to how roles and responsibilities are distributed among employees. It can be functional, divisional, matrix, flat, hierarchical, team-based, or network-based, and significantly impacts the company’s operations and culture.

The organization is divided into departments or divisions based on functional areas, product or service lines, geographic regions, customer groups, project-based needs, or a combination of these criteria. This division aims to improve efficiency and specialization while aligning with the company’s goals.

The reporting hierarchy in the organization follows a top-down structure, starting with top-level management (CEO, President), followed by senior management (VPs, Directors), middle management, supervisors/team leaders, and frontline employees. This structure ensures clear authority and communication channels throughout the organization.

The organizational structure supports collaboration and coordination among teams through cross-functional teams, open communication channels, collaborative spaces, clear reporting lines, incentives for collaboration, shared goals, regular meetings, technology and tools, team training, diverse skill sets, supportive leadership, and knowledge sharing. This fosters innovation, efficiency, and a positive work culture.

The organizational structure contributes to the company’s goals by enhancing efficiency, defining roles, promoting specialization, enabling adaptability and innovation, optimizing resource allocation, empowering employees, focusing on customers, supporting scalability, reinforcing company culture, and facilitating performance evaluation and improvement.

The organizational structure facilitates innovation and adaptability through cross-functional collaboration, decentralized decision-making, flat hierarchies, a collaborative culture, experimentation, task forces, clear objectives, customer-centricity, knowledge sharing, flexible resource allocation, and a focus on continuous improvement. This empowers the organization to respond effectively to changes and drive innovation.

The company ensures alignment between the organizational structure and its core values and culture through values-driven decision-making, leadership example, values integration, employee onboarding and training, transparent communication, cultural assessments, employee engagement surveys, recognition and rewards, culture champions, performance management, and cultural training and development. This alignment strengthens the company’s identity and supports long-term goals.

The purpose of an HR policy is to set clear guidelines, ensure fairness, compliance, and support organizational goals. It protects employee rights, addresses challenges, and promotes a positive work culture.

To ensure HR policies align with company goals and values:

Collaborate with leadership and stakeholders.Review mission and values.Understand the organizational culture.Align with business objectives.Regularly audit policies.Gather employee feedback.Benchmark best practices.Comply with laws and ethics.Communicate and train employees.

HR policies should be reviewed and updated annually, with ongoing monitoring for feedback and legal changes. Additionally, significant organizational changes and best practice benchmarking should trigger policy reviews.

To ensure HR policies comply with laws and regulations:

1. Employ legal expertise or consultants.
2. Stay updated on legal changes.
3. Conduct policy audits.
4. Train the HR team.
5. Ensure consistency and transparency.
6. Consolidate policies in an employee handbook.
7. Maintain accurate records.
8. Establish internal review committees.
9. Engage external legal counsel for periodic review.

HR policies are communicated and implemented through:

Employee handbook distribution.Orientation and onboarding sessions.Training sessions and workshops.Internal communications and updates.Town hall meetings and gatherings.Online platforms and intranet.Signed acknowledgments.Departmental managers’ reinforcement.Visual aids and posters.Translations for diverse workforces.Annual policy reviews.Q&A sessions for clarification.

HR policies are designed to be accessible and easily understood by all employees through various approaches:

Use of clear and simple language, avoiding complex terminology.Presenting policies in a well-organized and concise format.Incorporating visual aids like infographics and charts.Ensuring online accessibility on company intranet or website.Conducting training sessions and workshops to explain policies.Distributing employee handbooks with compiled policies.Regularly communicating updates through emails or newsletters.Establishing a feedback mechanism for questions and clarification.

The process for implementing changes to HR policies:

Identify the need for change.Review and research the policy.Develop proposed changes.Consult with stakeholders for input.Seek necessary approvals.Conduct legal review if required.Plan communication to inform employees.Provide training if needed.Set implementation date.Monitor and evaluate the changes.Gather feedback from employees.Document the entire process.Periodic policy reviews for continuous improvement.

The Minimum Wages Act, 1948 – No registration required. Applicable for 1 person also

The Industrial Disputes Act,1947 – No registration required. Applicable to 1 person also.

The Payment of Wages Act, 1936 – No registration required. Applicable for 1 person also.

Shops & Establishment Act – Applicable when 1 employee is appointed. Registration needs to be obtained when 10 or more employees are appointed.

Professional Tax Act – Applicable when 1 employee is appointed.

The Workmen’s Compensation Act, of 1923

The Payment of Bonus Act, 1965 – Applicable when 10 or more employees are appointed. Once applicable lifetime applicable. No registration is required.

The Factories Act, 1948 – Applicable when 10 or more employees are appointed. A factory License needs to obtain.

The Equal Remuneration Act, 1976 – Applicable when female employees are appointed.

Interstate Migrant Workmen Act – Applicable when 10 or more employees are appointed.

Building and Other Construction Workers Act, 1996 – Applicable when 10 or more employees are appointed.

Employees State Insurance Act, 1948 – Applicable when 10 or more employees are appointed. Registration required

The Payment of Gratuity Act.1972 – Applicable when 10 or more employees are appointed. No Registration required

The Maternity Benefit Act, 1961 – Applicable when 10 or more employees are appointed. No Registration required

Labour Welfare Act – Applicable when 10 or more employees appointed

Prevention of Sexual Harassment Act (posh) – Applicable when 10 or more employees appointed

Employment Exchange Act – Applicable when 10 or more employees appointed

Provident Fund Act – Applicable to companies when 20 or more employees are on board

Contract Labour act – 50 employees (direct + indirect)