The Social Security Code of 2020 is a crucial component of the Government of India’s efforts to simplify and modernize India’s labor laws. Passed in December 2019 and reviewed by the Parliamentary Standing Committee in July 2020, the Social Security Code was introduced as a new bill aimed at improving compliance with labor laws. The code’s goals include simplifying the labor laws, reducing the number of definitions, encouraging the use of technology to facilitate compliance and enforcement, and ensuring that the basic principles of worker welfare and benefits are upheld.

Social Security Code 2020: Bringing Clarity to Social Security Laws

The Social Security Code of 2020 encompasses a comprehensive system of social security benefits by consolidating, clarifying and rationalizing provisions from the following 9 central labor laws:

•  Employees’ Compensation Act, 1923
•  Employees’ State Insurance Act, 1948
•  Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
•  Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
•  Maternity Benefit Act, 1961
•  Payment of Gratuity Act, 1972
•  Cine Workers Welfare Fund Act, 1981
•  Building and Other Construction Workers Welfare Cess Act, 1996
•  Unorganised Workers’ Social Security Act, 2008

The Social Security Code 2020: A Closer Look at its Scope of Coverage

The Social Security Code of 2020 is a comprehensive legislation aimed at providing social security benefits to all employees and workers, regardless of the sector in which they work, including the organized, unorganized, and gig/platform sectors. The Code sets forth the requirements for the applicability of various social security schemes, such as the EPF Scheme, and the ESI Scheme, as designated by the Central Government which retains the power to alter these standards.

A Guide to the Social Security Code 2020: Key Provisions That Matter

The Social Security Code of 2020 outlines key provisions aimed at improving the welfare and benefits for workers in various sectors. Here are some of the main provisions of the code:

Employees Provident Fund (EPF)

Establishments with over 20 employees must comply with EPF provisions. Both the employer and employee contribute 10% of the employee’s wages to the fund.

Social Security Fund

The government will set up a Social Security Fund to implement welfare schemes for unorganized workers, and organizations may contribute to it as part of their Corporate Social Responsibility initiatives.

Benefits for Fixed-term Employees

Fixed-term employees are eligible for the same statutory benefits as permanent employees, proportional to the period of service if less than the qualifying period.

Gratuity

Gratuity is calculated based on a larger salary base, including basic pay and allowances. Basic pay must make up 50% of the employee’s cost to the company (CTC).

Take-home Salary and Employer Contributions to Provident Fund

The law requires employees’ basic salary to be at least 50% of their gross salary, leading to larger contributions to Provident Fund and gratuity and reduced take-home salaries.

Maternity Leave and Benefits

Women are entitled to 26 weeks of maternity leave, with up to 8 weeks prior to the expected date of delivery. To be eligible for maternity benefits, a woman must have worked 80 days in the current establishment in the last 12 months.

Record Keeping

Employers must maintain records of wages, leave, attendance, overtime, etc. and issue payment slips in electronic or paper form. Returns must be filed electronically or otherwise.

Employees State Insurance Corporation (ESIC)

ESIC coverage is now mandatory for all establishments with more than 10 employees, and organizations with fewer employees can choose to be voluntarily covered. It will provide benefits such as medical coverage and gratuities.

Registration and Compliance

New business establishments are required to obtain only one mandatory registration, and workers must be registered through Aadhaar.

Definition and Role of Aggregators

Nine categories of aggregators are designated for this purpose, including e-marketplaces, content and media services, food and grocery delivery services, and ride sharing services.

National Welfare Board – What you need to Know Here?

A legislative act from 2019 mandated the establishment of national and regional boards to manage the social security of workers in the informal sector. The National Welfare Board, as stated in the 2020 Social Security Code, has expanded its scope to include gig workers and platform employees along with unorganized workers.

The Board’s function is to recommend and oversee programs for these workers and is comprised of the following members:
• 4 representatives each from –

• Aggregators nominated by the central government
• Gig workers and platform workers, also nominated by the central government
• The director general of the Employees’ State Insurance Corporation (ESIC)
• Various state governments

Social Security Code 2020: Ensuring Compliance & Avoiding Consequences

The Social Security Code of 2020 brought about changes to the penalties for various offenses. For instance, the maximum sentence for obstructing an inspector from performing their duties has been reduced from a year to six months. Additionally, the penalty for unlawfully retaining the employer’s contribution from an employee’s wages has been altered to a fine of Rs 50,000 instead of a jail term of one year or a fine of Rs 50,000.

A New Path for Companies

The recent overhaul of labor laws in India represents a substantial transformation of the nation’s labor regulations. The four labor codes have been introduced to consolidate and simplify existing laws, making them more applicable and efficient in today’s economic and social environment. The responsibility of implementing these reforms falls
upon HR leaders in companies.

The retail industry faces numerous challenges in today’s customer-driven market, including efficient workforce management, employee retention, and maintaining competitiveness. HR Tech in Retail industry play a crucial role in addressing these challenges and improving HR functions.

HR technology streamlines processes, improves data access, and enables informed workforce decisions. Integrating HR technology into the retail industry is essential to meeting market demands, retaining top talent, and staying competitive.

This blog covers the evolution of retail, HR challenges, available solutions, benefits, and the future of HR technology that retailers can use to make informed decisions and drive their business success.

The Retail Industry and Its Evolution:

Advancements in technology and e-commerce have transformed the retail industry, and HR technology has played a crucial role in this evolution. Manual and time-consuming HR processes have been streamlined with the introduction of digital platforms, cloud-based solutions, and mobile technologies.

HR management systems automate key functions such as employee onboarding, benefits administration, and performance management, while talent management systems and employee engagement platforms help retailers identify and develop top talent and improve employee experience.

By leveraging the latest HR technology solutions, retailers can manage their workforce effectively, track employee performance, monitor satisfaction, and make informed decisions, remaining competitive in a rapidly changing landscape.

HR Challenges Faced by The Retail Industry:

The retail industry faces unique HR challenges that can impact business success, such as employee turnover, attraction and retention, and managing diversity. To combat employee turnover, retailers must improve satisfaction and implement programs that incentive employees to stay.

Attracting and retaining top talent requires creating opportunities for career growth, development, and a good work-life balance, along with competitive compensation packages and a supportive work environment. Retailers must also manage diversity by creating an inclusive workplace culture, fostering diversity in recruitment and promotion, and providing training opportunities.

Cloud-Based HR Technology Solutions in the Retail Industry:

Retailers have various HR technology solutions to manage their workforce effectively, including HR management systems, talent management systems, and employee engagement platforms. HR management systems automate manual processes, including time and attendance tracking, payroll processing, and benefits management. Retailers gain real-time visibility into workforce status and make informed staffing and resource allocation decisions. Talent management systems identify and develop top talent through performance management, succession planning, and employee development tools. Employee engagement platforms enhance employee satisfaction and reduce turnover with tools like employee surveys, feedback systems, and recognition programs.

Benefits & Future of HR Technology in The Retail Industry:

The implementation of cloud-based HR technology solutions can bring significant benefits to the retail industry.
Firstly, it can improve the efficiency of HR processes by automating manual tasks and streamlining workflows.
Secondly, HR technology provides retailers with access to a wealth of data and analytics, enabling informed decision-making and data-driven insights into workforce trends and behaviors.

Additionally, cloud-based HR technology can enhance employee satisfaction by providing them with a self-service platform for managing their benefits, payroll, and time-off requests, as well as a communication platform for staying informed about company news and initiatives. This can increase employee engagement and lead to better retention rates.

When it comes to future of HR technology in the retail industry, Artificial Intelligence (AI) and Machine Learning takes the centre stage. With this, HR technology will become more sophisticated, providing retailers with even more insights into their workforce. Additionally, the use of gamification in HR technology is becoming increasingly popular, allowing retailers to create fun, engaging, and interactive experiences for employees.

Conclusion:

SAVVY HRMS is a leading provider of cloud-based HR technology software solutions, offering a wide range of SaaS solutions that simplify HR tasks for retail businesses of all sizes. The company is renowned for delivering high-quality solutions and exceptional customer service, ensuring that organizations receive the support they need to achieve their desired outcomes.

If you’re looking for a solution to simplify HR tasks in your retail business or organization, we highly recommend scheduling a demo with SAVVY HRMS today.

The ultimate HR checklist for startups is a comprehensive guide that outlines the key HR considerations and actions that startups should take to ensure the success and growth of their organization. The purpose of this checklist is to provide startups with a step-by-step guide for establishing and maintaining effective HR practices.

Human Resources (HR) plays a crucial role in the success of any organization, including startups. Startups face unique challenges and HR is critical in addressing these challenges. HR is responsible for attracting, hiring, and retaining talent, creating a positive and productive workplace culture, ensuring compliance with labor laws and regulations, and managing employee relations.

Effective HR management can help startups attract top talent, increase employee satisfaction, reduce turnover, and avoid legal and financial consequences. The checklist covers key HR areas such as planning and preparation, employee onboarding, performance management, compensation and benefits, compliance and legal matters, and employee engagement and culture. By following this checklist, startups can ensure that they have all of the HR processes and systems in place to support their growth and success.

Master HR Planning & Preparation: Essential Steps for Success

A. Establishing HR policies and procedures

HR policies and procedures provide the framework for how HR activities are conducted within a startup. They define the rules and guidelines for how HR will support the organization, how employees will be treated, and how HR issues will be resolved. Establishing HR policies and procedures is a critical step in the HR planning process, as it helps ensure that HR practices are consistent, fair, and compliant with relevant laws and regulations.

Some of the key HR policies and procedures that startups should establish include:

• Employee handbook
• Anti-discrimination and harassment policies
• Leave policies (e.g., vacation, sick leave, etc.)
• Performance evaluation procedures
• Disciplinary procedures
• Privacy and data protection policies

B. Creating an HR budget

Creating an HR budget is a crucial step in the HR planning process. The HR budget should be based on the organization’s HR requirements and should take into account the costs associated with HR activities such as recruiting and hiring, employee benefits, and HR technology and systems. The HR budget should be reviewed and updated regularly to ensure that it remains aligned with the organization’s needs and goals.

C. Identifying HR requirements and finding the right talent

Identifying HR requirements and finding the right talent is essential for the success of any startup. Startups should assess their HR needs based on their business goals and growth plans, and identify the skills, experience, and qualifications required for each HR role. Startups should also consider their budget constraints, company culture, and other factors when making hiring decisions.

To find the right talent, startups should consider a variety of recruitment methods such as job postings, employee referrals, and social media, as well as utilizing online recruitment tools and resources.

Empower New Hires with a Streamlined Onboarding Experience

A. Defining the onboarding process.

The onboarding process is a critical component of HR, as it helps new employees’ transition smoothly into their role and the organization. The onboarding process should be well-defined and include clear steps and expectations for both the new employee and the organization. The steps in the onboarding process may include orientation sessions, training sessions, and completion of required forms and paperwork. The onboarding process should also providenew employees with an overview of the company culture, expectations, and benefits.

B. Developing onboarding materials and training programs.

To ensure a successful onboarding experience, startups should develop a comprehensive set of onboarding materials and training programs. Onboarding materials should include information on company policies, procedures, and expectations, as well as information on company culture and benefits. Training programs should be tailored to the specific needs of the new employee and should cover any skills or knowledge that the employee needs to perform their role effectively. Startups should also provide ongoing training and development opportunities to help employees continue to grow and improve in their role.

C. Gathering necessary employee information and documentation.

In order to comply with legal requirements and ensure the accuracy of employee records, startups should gather all necessary employee information and documentation during the onboarding process. This may include information such as the employee’s personal information, tax forms, and emergency contact information. Startups should also obtain signed copies of any relevant HR policies, such as the employee handbook, and any other required documentation, such as non-disclosure agreements or confidentiality agreements. It is important to properly store and secure all employee information and documentation in accordance with relevant privacy laws and regulations.

Transform Performance Management for Optimal Results

A. Setting performance goals and expectations

Performance management is the process of setting performance goals and expectations for employees and regularly evaluating their progress and performance. Startups should establish clear performance goals for each employee, based on their role and responsibilities, and communicate these goals to the employee. These goals should be measurable and aligned with the overall goals of the organization. Regular performance feedback and coaching can help employees stay on track and make improvements, while also fostering a positive and productive workplace culture.

B. Implementing performance evaluations and feedback processes

To effectively manage employee performance, startups should implement a regular performance evaluation process. This process should include regular check-ins and feedback sessions between the employee and their manager, as well as formal performance evaluations at predetermined intervals. Feedback should be constructive and provide specific, actionable steps for improvement, while also acknowledging the employee’s strengths and contributions. The performance evaluation process should also provide employees with an opportunity to give feedback to their manager and to discuss their career goals and development plans.

C. Offering performance improvement and development opportunities

In addition to regular performance evaluations and feedback, startups should also offer performance improvement and development opportunities to employees. This may include training and development programs, mentorship opportunities, and coaching and feedback sessions. These opportunities help employees continue to improve their skills and advance in their careers, while also supporting the growth and success of the organization. Startups should regularly assess the effectiveness of their performance improvement and development programs and make changes as needed to ensure they are meeting the needs of both employees and the organization.

Compensation & Benefits: The Key to a Thriving Workforce

A. Determining compensation and benefits packages

Compensation and benefits packages play a critical role in attracting and retaining top talent, and in supporting employee satisfaction and motivation. Startups should carefully consider their compensation and benefits offerings and determine packages that are competitive and aligned with the organization’s overall goals and budget. This may include base salary, bonuses, health insurance, retirement plans, paid time off, and other benefits. It is important to regularly review and assess compensation and benefits packages to ensure they are still aligned with the organization’s goals and are keeping up with industry standards.

B. Administering payroll and taxes

In addition to determining compensation and benefits packages, startups must also ensure they are properly administering payroll and taxes. This includes accurately calculating and distributing employee pay, withholding and remitting taxes, and filing required payroll tax returns. Startups should also ensure they are complying with state and federal labour laws and regulations, such as minimum wage laws, overtime laws, and laws related to tax  withholding.

C. Ensuring compliance with labour laws and regulations

To avoid legal and financial consequences, startups must ensure they are compliant with all relevant labour laws and regulations. This includes compliance with laws related to minimum wage, overtime, equal employment opportunity, and workplace safety, as well as regulations related to payroll and taxes. Startups should regularly review and assess their HR practices and procedures to ensure they are in compliance with all relevant laws and regulations, and should seek the advice of legal counsel as needed. By maintaining compliance with labour laws and regulations, startups can create a safe and fair workplace environment, while also mitigating their risk of legal action.

Streamline Compliance and Legal Matters

A. Understanding and complying with labour laws and regulations

Labour laws and regulations play a critical role in shaping the HR practices of startups. These laws and regulations outline the rights and responsibilities of employers and employees, and ensure that workplaces are safe, fair, and inclusive. Startups must have a comprehensive understanding of relevant labour laws and regulations, including those related to minimum wage, overtime, equal employment opportunity, workplace safety, and taxes. By understanding and complying with these laws, startups can create a safe and fair workplace environment, while also mitigating their risk of legal action.

B. Implementing anti-discrimination and harassment policies

Discrimination and harassment can have a devastating impact on employees, and can also damage the reputation and financial stability of a startup. Startups must implement strong anti-discrimination and harassment policies to ensure that their workplace is safe and inclusive for all employees. These policies should clearly outline prohibited behaviours and procedures for reporting and addressing incidents of discrimination and harassment. Startups should also provide training and education to employees on these policies and procedures, and regularly assess and update them as needed.

C. Maintaining employee records and ensuring data privacy

Maintaining accurate and complete employee records is a critical component of HR management. Startups must keep accurate records of employee information, including contact information, job history, and compensation and benefits information. These records must be kept confidential and secure to ensure employee privacy and to comply with relevant data privacy regulations. Startups must also have a comprehensive data privacy policy in place, outlining the use and protection of employee data, and must regularly assess and update their data privacy practices to ensure they are in compliance with all relevant laws and regulations. By maintaining accurate employee records and ensuring data privacy, startups can ensure the confidentiality and security of employee information, and mitigate their risk of legal action.

Boost Employee Engagement and Strengthen Your Startup’s Culture

A. Creating a positive and inclusive workplace culture

Employee engagement and workplace culture are critical components of a successful startup. A positive and inclusive workplace culture fosters employee satisfaction, motivation, and commitment, while also attracting and retaining top talent. To create a positive and inclusive workplace culture, startups should establish clear values and expectations, create a safe and inclusive environment, and encourage collaboration and teamwork. This may involve offering diversity and inclusion training, promoting work-life balance, and creating opportunities for employee engagement and feedback.

B. Offering opportunities for employee engagement and development

In addition to creating a positive and inclusive workplace culture, startups should also offer opportunities for employee engagement and development. This may include regular employee events and activities, training and development programs, and opportunities for employee recognition and feedback. These opportunities help employees feel valued and supported, and can also improve their skills and knowledge, leading to improved job performance and satisfaction.

C. Encouraging open communication and feedback

Open communication and feedback are critical to maintaining a positive and productive workplace culture. Startups should encourage employees to communicate openly and provide feedback to their managers and the organization. This may involve establishing regular check-ins and feedback sessions, creating opportunities for employee surveys and suggestion boxes, and promoting a culture of transparency and trust. By encouraging open communication and feedback, startups can foster a workplace environment that is supportive, collaborative, and responsive to the needs of employees.

Conclusion

The ultimate HR checklist for startups is a comprehensive guide to help startups establish effective HR practices and create a positive and productive workplace environment. This checklist covers key HR areas including planning and preparation, onboarding, performance management, compensation and benefits, employee engagement and culture, compliance and legal matters. By following this checklist, startups can ensure they are meeting the needs of their employees, while also mitigating their risk of legal action and promoting their long-term success.

In conclusion, effective HR management is critical for the success of any startup. Startups should prioritize the implementation of strong HR practices and procedures, including those outlined in the ultimate HR checklist. Additionally, startups should regularly assess and update their HR practices to ensure they are in line with the
evolving needs of their employees and the organization. Startups should also seek the guidance of experienced HR professionals and legal experts as needed, to ensure they are fully compliant with all relevant laws and regulations.

By taking a comprehensive approach to HR management, startups can create a positive and productive workplace environment, while also promoting their long-term success.