Permanent Recruitment services – Let’s Discover the challenges entailed in the process

by Prompt Personnel | Aug 21, 2022 | Human Resources

Being a recruiter is exciting but it can be challenging at the same time. Your goal as a recruiter is to find the best applicants for a position by streamlining the hiring process but what happens when you hit a stumbling block and realise that you cannot find employees who have the right qualifications for the job you want to fill? It may signal that the process you rely on needs an upgrade.

The workforce is a very fluid environment that keeps changing due to technological advances and new roles being developed on a frequent basis. As a recruiter, you need to stay up to date on the career world changes and be ready to face any challenges that you are likely to face during the recruitment process. Staying ahead of the game and willing to make changes along the way ensures that you always find the best applicants for the job. Here are some things which Permanent Recruitment services face.

A Wide Pool of Candidates Without the Necessary Qualifications

Depending on where you are searching for potential new hires, it may seem that there are many candidates available but they don’t seem to have the qualifications you covet.

How and where you advertise the job roles you are looking to fill can have a huge impact on finding the right candidate date for the job. There are many recruiters who struggle to find qualified candidates as they do not cast a wide enough net or are not specific in what they are looking for in a candidate. When searching for candidates, make sure you provide specific details on the requirements, certifications and training needed for the job you want to fill. Then post the search on different websites, companies and locations. For e.g., if you are only searching for local applications or within your community, you are missing out on genuinely qualified applicants who are willing to move or work remotely.

Losing Candidates To Competors

In the recruiting world, connections were meaningful and business relationships took time. Though this is still true, thanks to the availability of jobs at just the click of a button, applicants interview you in the same way you interview them. In other words, you need to impress them with what you offer and be able to do so quickly.

Businesses are aware they need to have competitive job offers that include paid leave, benefits, flexibility and more. Your company must have offers for competitive salaries, flex time and room for growth.

Workers entering the job market know their worth and are not going to settle for less when there are better competitive job offers. Be willing to negotiate. Afterall, it is true that you get only what you pay for and the same is true for hiring new employees.

Providing A Good Interview Experience

As a recruiter, you are probably aware that first impressions matter. When candidates come in for an interview, as important as it is for candidates to make a good first impression, the company must make a good impression too.

You can make a good impression by showcasing unique benefits of working with your company. Afterall, the working relationship is mutual. The candidates want to know whether they will be in a supportive and collaborative work environment if they are hired.

Prompt personnel is one of the best staffing agencies in Mumbai which provides a range of end-to-end dynamic HR services. We have a team of highly experienced recruiters all over India. A comprehensive database and hi-tech automation help us to deliver the best candidates to ramp up your team in no time.

Know In Detail Why Contract Staffing Is Great For The Project-based Industry

by Prompt Personnel | Aug 12, 2022 | Human Resources

Contract staffing, also known as project-based hiring, allows the organization to recruit as per their project requirement, with a thorough understanding of the legal agreement that the recruitment is based on. Contract staffing services help lay out the agreement and find the right talent for your organization. It fetches productivity, professionalism and efficiency to the project development of the association. The company and the employee are both tied in an agreement for the duration of the project. Contract staffing companies in India have made project-based hiring gain advanced significance in this dynamic corporate world. After all, it provides the flexibility to decrease or increase the potency of the team in the organization, depending on the project requirement and business of the project-based industries. Hence, whether you are looking for contract staffing or have a specific project that needs certain skills, here are four ways that having a contractual workforce will benefit your project-based business:

Monetary benefits

A full-time employee offers an immense financial commitment to any organization. Aspects like salary, perks, compensation benefits, and furniture as well as equipment requirements come into the picture when an employee is hired on a full-time basis. Whereas, contractual employees are self-employed and usually don’t come with any obligations or liabilities in comparison to a full-time employee. The organization will save money on other supplemental aspects, like office space utilization, provident fund contribution, employee benefits, etc. When contract staffing services hire staff for the project, the organization is only required to reimburse them for the duration of the project.

Saves time

The contractual employees provided by the contract staffing companies in India are typically specialists in their pertinent field of expertise. This saves plenty of the time the organization would otherwise spend interviewing candidates and accumulating the administrative documents for new recruits just to see them leave in the middle of the project. Project-based hiring is especially beneficial during an emergency project requirement when employees are working under tight deadlines. In this case, the organization will get the immediate assistance of the contract staffing services for the project to be completed. Plus, hiring employees based on contract, on expertise, gives the organization more efficient project delivery timelines.

Agile process

The hiring of contractual staffing becomes very project-intensive. The organization can create a yearly, weekly or monthly contract based on the project depth and requirement. Hence, variable staffing proves to be the most prominent benefit of project-based staffing. Contractual employees provided by contract staffing services can also replace the full-time employee who is on a sabbatical or is taking a leave. This ability enables the organization to meet its project deadlines. Therefore, a contractual workforce assists the organization to create a pipeline of successful project deliveries without hampering its overall obligations and finances.

Effective skillsets and flexibility

The experienced contractual employees hired by the leading contract staffing companies in India know their profession and job in detail and can jump into action right after they’re hired, allowing them to deliver instant results for the project. One of the outstanding benefits of project-based staffing is how it affords the contract staffing services the chance to be flexible in their hiring practices.

From saving up on time and cost and ensuring that the organization has the power to staff as per the demands of its project-based industry, to bringing in specialized talent with fresh standpoints to the table, contract staffing services will highly benefit the organization through the project-based employees. Prompt Personnel’s contractual hiring has found increasing prominence in various industries across different sectors.

Statutory Compliance with Labour Law: Everything You Need to Know

by Prompt Personnel | Aug 6, 2022 | Human Resources

Statutory compliance adherence furnishes an incredible deal of security, starting from employees’ minimum wages to the company’s business existence. Every country formulates its own set of rules for institutions to follow, which will be best explained by the labour law consultancy. Statutory Compliance in HR is important, as seen from both the organization’s and employees’ perspectives. Indian Government provides employee benefit acts as health and safety, minimum wages, industrial relations, social security, women and child employment, and organization benefit acts as provident fund, trade union, professional tax, ESI, etc. Rules regarding HR compliance are allocated to specific sectors:

Industrial Relations Guide for Statutory Compliance:

The Industrial Disputes Act, 1947

The industrial disputes act- of 1947, made provisions for settling and investigating disputes between employee-employee. The objective of this act is to ‘maintain harmony and peace in work culture in any Indian Establishment.’ This Act applies to the entire nation, including establishments for distribution, business, manufacture, and trade. However, it doesn’t encircle people at the administrative or managerial level and individuals subject to the Indian Navy, Indian Air Force or Indian Army.

Women’s Benefits:

Equal Remuneration act, 1976

As the name implies, the Equal Remuneration Act encompasses a gender-based equal payment policy for industries. It assures uniform payment to the employees irrespective of women or men to avoid any sort of gender bias. It came into the picture because payment given to women was lower than that of This came into the picture when the women were paid less than men, albeit the amount of work was the same. Labour law advisors suggest that non-compliance with this Act can involve serious penalties and fines.

Maternity Benefit Act, 1961

The maternity benefit act provides women in their motherhood with certain months of paid leaves during their maternity stage to take care of the child. It implies that after maternity, she can persist in the job without any disturbance from made leaves.

Social security:

The Payment of Gratuity Act, 1972

The payment of gratuity act guarantees advantages like incentives and gratuity to the employees working in private sectors, railways, shops, mines, oilfields, factories, and ports.

The Employees’ Provident Fund & Miscellaneous Provisions (Amendment) Act, 1952

The statutory provident fund act is administered for the social security of the employee. The labour law compliance suggests that the Employees’ Provident Fund Act is accountable for and liable for any firm employing more than 20 employees. Every employee of the establishment, during his/her employment, contributes some amount of their salary to the Provident Fund.

The Employees’ State Insurance – ESI Act, 1948

Employees’ State Insurance act guarantees absolute medical security, including injuries, maternity, and sickness for employees functioning in non-seasonal factories, including management with more than 10 employees and non-power and other organizations with more than 20 employees.

Tax Deducted at Source (TDS)

TDS or Tax Deducted at Source is a certain amount of monetary charges that are deducted from the employee’s income as an account of income tax to lessen the tax evasion afterwards. Employees can file a TDS return with the help of their respective labour law consultancy for the deducted tax, which they can get refunded.

Wages:

The Payment of Wages (Amendment) Act, 2017 (No.1 of 2017)

The Payment of wages Act guarantees the income of employees at a particular time without any additional deductions other than those articulated by the government authority. Labour law compliance suggests that this does not apply to workers having Rs. 24,000 wages each month.

Minimum Wages Act, 1948

The Minimum Wages Act, of 1948 by the Indian Parliament, states that it delivers minimum salaries/wages to unskilled and skilled labourers. The Indian Constitution has defined a precise living wage that includes primary livelihood, including education, food, comfort, health, and dignity.

Statutory Compliance with rules and ordinances in payroll is a profound legal matter for both organizations and employees’ social security. The Indian Government has declared eclectic acts and regulations to process employee payments and much more. According to the labour law consultants like Prompt Personnel, every establishment is liable to follow these rules to avoid any legal consequences. Whether to obey it or not might be a corporation’s individual decision, but it can have some severe implications.

Labour Codes Simplified – How does it impact employers/organisations?

by Prompt Personnel | Jul 27, 2022 | Human Resources

In India, labour is a contemporary issue, which means that both the Central and State governments can pass legislation on the subject. The recent approval of three labour regulations represents a significant step forward in the country’s broader reform journey, helping to align the labour ecosystem with the imperatives of India’s globalised economy.

At the same time, they provide much-needed coverage to the vast majority of workers who have found themselves outside the regulatory framework. Parliament established four labour codes — the Wage Code, the Industrial Relations Code 2020, the Code on Occupational Health, Safety, and Working Conditions 2020, and the Social Security Code 2020 — that consolidate many of the Central labour legislation.

What was the government’s motive for enacting the codes?

The government wished to make compliance easier and ensure equity for everybody. The new regulations would ensure that technology is used more effectively for varied compliance and effective enforcement. The new labour standards also raised questions about whether they would apply solely to blue-collar workers or all employees. The new labour codes state unequivocally that the laws would apply to all employees of an organisation, regardless of their role/level/nature of duties/salary (with minimal exceptions).

New Definition Of Wages

One of the most significant developments has been a shift in the definition of pay. The administration has attempted to simplify the new common wage definition across all four codes. The new definition of wages includes all remuneration components expressed in monetary terms or capable of being described in monetary terms. Specific exclusions in the new definition include statutory bonus, house rent allowance, conveyance allowance, commission, and so on. These exclusions, however, are restricted to 50% of the total salary (except gratuity and retrenchment compensation). This change in the concept of wages and its widespread application will have an influence on employee benefits and employer costs.

The Impact Of The New Wages Definition

The revised pay definition will have a direct influence on gratuity costs. Gratuity will now be payable to all present and prospective workers under the revised definition of earnings. Another significant change concerns the period evaluated for gratuity eligibility. The previous requirement of a minimum of five years of employment for fixed-term employees has now been decreased to one year.

This means that fixed-term employees will now be entitled to gratuity after only one year of service with a firm. The same does not apply to permanent employees who are not hired for a set amount of time. After five years of service, permanent employees will be eligible for a gratuity.

Labour law consultants should also emphasise that under the labour rules, any worker can now request leave encashment at the conclusion of each calendar year. Such leave encashment is based on ‘wages’ as defined by the Labor Codes.

Are you looking for a labour law consultancy? Prompt Personnel is all you need!

The radical revisions to the labour regulations are likely to give a significant boost to labour reforms and have an influence on numerous companies across all sectors. The government’s goal is for the new legislation to decrease complexities, make Labour law compliance easy, increase openness and accountability, and benefit both companies and workers. The new regulations are intended to improve labour law compliance dramatically, owing to heightened criminal consequences.

As many as 40 Central laws govern the labour ecology, and each state has its own set of rules. Many of these were written decades ago and were no longer relevant in the current environment of economic development, growth, global trade circumstances, technological advancement, and changing consumer and producer expectations.

Many firms are now looking for labour law consultants as they have been perplexed by the complex and ever-changing statutory rules. In this challenging business environment, Prompt Personnel is a labour law advisor that assists clients in protecting themselves from the potential penalties of non-compliance with labour rules. Their expertise and distinguished knowledge in statutory compliance have effectively kept numerous organisations from facing risks and potential losses.

Strategies for Reducing the Risks Associated with Temporary Staffing Agencies

by Prompt Personnel | Jul 21, 2022 | Human Resources

Nowadays staffing agencies look after the needs of various organizations to accommodate them with efficient working employees. And for that various needs, appropriate solutions are also solved by staffing agencies. However, with the staffing agency’s liabilities related to workplace issues, clients should not assume that penalties can be avoided.

Hiring temporary staffing services through an agency offers no protection against employment liability. In a few circumstances, the temporary worker might look forward to holding the client responsible as if the temporary worker was hired directly through the client under the theory of ‘joint employer’.

The context of joint employer liability emerges in various circumstances, which include wage, retaliation, hour, discrimination, and harassment. Assessments to determine joint employment differ through jurisdiction, law, and regulations and are often considered irregular and fluid.

Clients who look forward to using staffing agencies should take into consideration the following things to minimize their risk:

Review the Contracts

The contract between the client and agency should include that the agency will indemnify and defend the client for penalties, losses, and fees of the attorney in association with the employees from the staffing agency. It also includes claims related to wages. In addition to it, the contracts should include warranties and representations by the temporary staffing agency assuring the client that the agency will perform its duties to its employees entirely. The individuals sent by the agency to the client’s office premises will have to abide by the contract.

Exercise Due Diligence

Before attaining services from the staffing agencies the client should conduct thorough background research which should include the number of clients they provide their service to, the location of their business operations, and the period they have been in business. Clients should connect with the current clients of the staffing agencies and request references from the agency to determine their work ethics. It is advisable to search concerning the litigation to determine if the staffing agency has any record of litigation formerly.

Require Proof of Insurance

Clients should acquire proof of worker’s compensation insurance coverage mandatorily before involving a staffing agency and need the verification at frequent intervals. The staffing agency should ideally maintain EPLI- (Employment Practices Liability Insurance).

The client might want to carry out some oversight of the compliance of the staffing agency with applicable laws and regulations before getting their services although such involvement could have negative and positive effects. By being more involved in everyday practices, the clients are more likely to be considered joint employers of the workers temporarily retained through the agency.

Staffing agencies should also carry out cautionary actions. Often agencies are titled as defendants in discrimination and harassment lawsuits for the allegation of wrongful conduct that take place on the premises of the clients. Temp staffing companies in India along with other things must ensure that their clients have policies like harassment complaints & anti-discrimination practices in place, and take action promptly to undertake and correct any improper activity of which agencies are notified and made aware.

Indian Companies’ Statutory Payroll Compliance – A Crisp Guide

by Prompt Personnel | Jul 15, 2022 | Human Resources

There are many potential legal issues related to compliance, from employees’ fair treatment of labor to protecting the company from absurd wage or benefit demands by trade unions or combative employees. While a company wants to adhere to all laws, legal details may easily slip through the cracks if the necessary attention is not given to them.

A company’s non-compliance with these regulations can lead to serious legal issues, including fines, penalties, and imprisonment.

The complexity of doing business has increased tremendously as you need to sync the operational and legal aspects of your organization. Statutory Payroll compliance is one of the key aspects you need to consider when you have employees working within your organization.

Payroll distribution primarily refers to the method associated with processing employee salaries. However, payroll is not just about paying salaries to employees. The Government has established many acts that organizations must follow to stay compliant.

With the help of this brief guide, we’ll discover what these acts mean for Indian companies when processing payroll. Let’s have a look at it.

What is Statutory Payroll compliance?

The word statutory means “of or related to statutes”- rules and regulations. Compliance means adherence. Thus, Statutory Compliance means adhering to rules and regulations. Statutory payroll compliance refers to following (adhering to) payroll regulations. It is the legal framework that an organization must comply with when dealing with employees. There are different state and central labor laws. The HR of the company needs to be constantly updated with Labour Laws as their nature is ever-evolving and it affects the organization at multiple levels.

If you are finding it challenging to constantly stay updated with regard to new policies that the government updates, you can seek professional help from labor law consultants like Prompt Personnel.

The Growing Complexity of Payroll Compliance in India

As of 2025, business has become more complex, and hence, businesses must seamlessly align their legal and operational components. One of the most important factors that any business with employees needs to consider is statutory payroll compliance. Payroll requirements must be followed regardless of the industry, be it manufacturing, retail, IT, or any other.

Payroll distribution, broadly speaking, is the procedure used to manage employee compensation. However, payroll is more than just paying salaries. Businesses must follow several laws and regulations passed by the Indian government to continue to comply with labor laws.

Why do we need Statutory Payroll Compliance?
It is primarily to protect the rights of the employees and ensure they get their fair share to lead a content life. This compels organizations to adhere to policies such as minimum wage. It also assures employees protection from being overburdened with work in poor conditions

By complying with these laws the organization can avoid penalties, enjoy protection from unreasonable demands from trade unions, and in general mitigate risk. These laws set by the government help companies profit from a motivated workforce. It prompts the employees to put more focus and dedication to their tasks. Plus, with these benefits in place, it is easier to attract the best talent available in the job market.

Let’s have into these acts and learn about them in brief. Keep in mind that these acts can vary from state to state.

Advantages of Statutory Compliance for the organization:

Avoiding penalties
Protection from arbitrary demands from trade unions
Protects the company from legal troubles
Helps you increase awareness related to compliance

Employee Salaries and Benefits

Payment of Wages Act

This act ensures that companies pay wages on time. Keeping wages unpaid for more than a month carries penalties. As per the provisions of the Payment of Wages Act, 1936, wages need to be paid to employees before the expiry of the 7th day of the last day of the wage period, where the number of employees is less than 1000. In case the number of employees is less than 1000, wages must be paid before the expiry of the 10th day of the last day of the wage period. The preferred mode of salary under this act is cash, cheque, or directly depositing it in the bank.

Minimum Wage Act

It is a central legislation that fixes the minimum wage rate for employees. This will differ from state to state and sector to sector. Provincial governments also take part in drafting this act. There are a number of factors that affect the minimum wage of a state, such as the cost of living, the wage period (whether it’s hourly, weekly, or monthly), and the type of job. By doing so, employers ensure their employees are not exploited, that they are remunerated for their work and that they live lives of dignity.

Bonus Payment

Under this act, workers in factories and organizations with more than 20 employees are entitled to annual bonuses. It takes into account the salaries of employees and the profits of the organization when calculating the salary.

Maternity Benefits

Women who are pregnant are eligible for fully paid leave from work under the Maternity Benefits program. Employers with more than 10 employees are subject to it. In order to qualify, female employees must have worked for the establishment for at least 80 days in the past year. Based on her average daily wage on the days she is absent, calculations are made. This is applicable to women working in factories, plantations, mines, government establishments, and any other establishment that follows the rules of the central government.

Labour Laws for Social Security and Industrial Relations

Employee State Insurance Act (ESI): This act helps employees when they face unexpected challenges. These can include medical emergencies or disability situations related to the workplace. ESI is mandatory for companies that have more than 10 employees working in a non-seasonal factory. The ESI Scheme is a self-funding program. Employer and employee contributions are primarily used to support the ESI funds, which are provided monthly at a fixed percentage of salaries received. State governments are also responsible for 1/8th of the cost of medical benefits, as stated in the FAQs. But it is only applicable to those who are earning less than or up to Rs. 21,000 per month. Each contribution cycle is of 6 months, with the employer paying 3.25% and the employee contributing 0.75%. Once the employee crosses Rs. 21,000, they are no longer applicable for ESI.

Employees Provident Fund (PF)

This is the most significant contribution to social welfare for an employee. Both the employer and the employee contribute 12% of their basic pay and DA to the employee’s retirement fund. An employee’s contribution towards their PF is eligible for tax exemption. It is mandatory for companies with more than 20 employees to comply with PF. Non-compliance with PF can result in heavy fines and, in worst-case scenarios, imprisonment.

Labour Welfare Fund Act

This act enhances the conditions of laborers in certain industries. Improving workers’ working conditions, providing social security, and improving their living standards, aim to increase their quality of life. This varies from state to state. It’s the state labor welfare board that will decide on the amount and frequency of the contribution. There are 16 Indian states where this is applicable and 21 states where it’s not. Make sure you find out whether this is applicable in your state.

Gratuity

The combination of the gratuity and provident fund creates an attractive package for the employees’ safety and welfare. As statutory compensation, gratuities are among the most important regulations for a company. It is given by the employer to an employee who has completed a minimum of 5 years in their organization.

Tax Liabilities

Tax Deduction at Source (TDS) is undoubtedly one of the most crucial parameters to adhere to. It’s suited for various streams of income, including salaries, interest, and commission. The taxation depends on the individual earnings of the company. TDS for the employee is only calculated when the individual earns more than 2.5 lakhs annually.

Statutory compliance can make or break a company’s reputation. There are tons of rules and regulations involved, and these have to be adhered to perfectly, every time. It would be a wise decision for a company to spend enough resources that can help them maintain a spotless compliance record. In order to manage the demanding regulatory environment, you can get in touch with Labour Law consulting firms that will protect you against non-compliant issues.

The Role of HR in Ensuring Statutory Compliance

Human Resource (HR) professionals need to be kept abreast of changing labor laws to stay compliant since changes affect organizations at various levels. Being up to date on any amendments to minimum wages, ESI contributions, or tax slabs is important for you.

Consulting expert advice from labor law consultants such as Prompt Personnel can assist you in being compliant conveniently if you’re unable to keep up with the government’s constant policy updates.

The Role of Labour Law Consultants in Payroll Compliance

In India, laws and regulations are constantly changing, and it can be quite challenging to manage statutory payroll compliance. Legal compliance in all ways is made possible by having experienced labor law experts such as Prompt Personnel, all without disrupting business operations.

100% compliance with the law without disrupting business operations.
Proper payroll processing in accordance with statutory
To make your business aware, give frequent reminders about labor law.
Reducing risks and avoiding

Conclusion

In India, rules and laws keep changing, and it can be quite challenging to manage statutory payroll compliance. Spending money on payroll compliance today will spare your business legal issues and financial losses in the future.

Need expert advice? Call Prompt Personnel today for professional labor law consulting services!

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