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In a fast-paced world, employees demand timely and accurate payment for their services. However, there are times for salary adjustments or delays. This is where salary arrears come into play.

But what are salary arrears? It is time we get this important payroll term on record.

What Are Salary Arrears?

Arrears of salary are due to an increase in the late payment period for a full or revised salary. It is paid later due to the change in pay or due to an error in its processing.

Any change of pay or benefit applied retroactively by the employer to an employee. Would entail a back payment of arrears for unpaid amounts for the preceding months.

Example:

If you have been promoted from a salary of ₹30,000 to a higher salary of ₹35,000 in April. The promotion is effective from January. You will also have to receive from your company an amount of ₹15,000 as arrears. For the months of January to March, in addition to the salary for April, that is, ₹5,000 x 3 months’ arrears, ₹15,000.

Common Reasons for Salary Arrears

Some of the reasons that could give rise to this are:

• Salary revision with retrospective effect

• Payroll errors or delayed processing

• Late joining formalities or documentation

• Missed bonus, overtime, or allowance calculations

How Are Arrears Calculated?

The calculation of arrears is quite simple. It involves:

• See what amount should have been paid.

• Subtracting from it the amount actually disbursed.

That is:

Old Salary: ₹40,000

 New Salary: ₹45,000

 With effect from January

 As revised in April

Arrears = ₹5,000 x 3 months

Arrears = ₹21,000

Hence, the above amount will be added to your April salary.

Do Salary Arrears Have an Effect on Taxable Income?

Yes, they are taxable. Since they are added to the current year’s income, it may even increase the taxable income to an extent. Such burdens arose due to the lump-sum payment of arrears. You may find assistance from your employer or a tax advisor in filing Form 10E to claim this benefit.

Look for These in Salary Arrears Payslip

When it’s credited. They usually reflect as a different component on your payslip for that month. You should check for:

• Arrears breakdown

• Covered period

• Calculations checked
• Being aware of this helps with financial planning. Making the entire process transparent.

Advantages of Receiving Arrears

• Fair compensation for the work done.

• Set aside delays in allowances or bonus adjustments.

• And it shows the company’s effort at rectifying payroll anomalies.

Most of the time, people feel that arrears are just delayed payments. 

Understanding Arrears Salary – A Real-Life Example

Probably the company revises its salary structure mid-year. The employees, from this month onward, are paid revised salaries. For the previous months, they are given the difference as arrears. 

Conclusion

Salary arrears may seem complicated. Simply put, it’s a company’s way of ensuring you are paid fairly for what you should have done in the past. This understanding provides you with the ability to track your salary arrears. So always check your payslip and reach out to the HR team if anything is unclear.

FAQ

Q1: Salary arrears in simple words?

It simply means those amounts that have been paid for prior months. Either as compensation for underpayment or for delay in implementing the new salary.

Q2: Are these bonuses?

No, these are not bonuses; they are dues from previous months, unlike bonuses, which are rewards.

Q3: Are these taxable?

Yes, that’s true. They form part of your total income. 

Q4: How can I check if I received arrears?

You can check your payslip; arrears are usually listed as a separate line item.

Q5: Can small companies pay salary arrears?

Absolutely. Any company, regardless of size, can initiate the processing of arrears in payroll. 

Reading Time: 2 minutes

Creating a safe and inclusive workplace is no longer a choice. It has become a necessity. The POSH Act (Prevention of Sexual Harassment Act) aims to address this very issue. And it exists in India, so that every employee, no matter what gender, can work freely. From harassment, fear, or discrimination. The human resource management software safeguards this policy in each organization

What is the POSH Act?

The Sexual Harassment of Women at the Workplace. Prevention, Prohibition, and Redressal Act, 2013. This historic legislation was one of the first milestones for India. Thus, providing them protection and dignity.

 

Vishaka Guidelines are the guide under which this act falls in. Issued by the Supreme Court in 1997 and became a full-fledged law in the year 2013.

Objectives of the POSH Act

The POSH Act was designed to eradicate sexual exploitation with a goal of having in place:

• Sufficient and safe working environment
• Process of complaint, preferably reporting, and redressal
• Creating awareness among the general public with regard to workplace conduct.

What Qualifies as Sexual Harassment? 

• Unwanted physical contact or advances
• A demand or request for sexual favours
• Sexually colored remarks
• Showing pornography

These actions create actual or perceived intimidation, a hostile work environment. Or an offensive environment within the workplace.

Scope of the POSH Act

The POSH Act covers the following population: 

Any woman working for an organization. Or working for various organizations. Namely, contractors, interns, daily-wagers, part-timers, and so on. 

All workplaces- private offices, government, NGOs, schools, colleges, hospitals, etc. 

Both the organized sector and the unorganized sector. 

It should be noted that though the Act is specifically for women. Many organizations apply similar policies for the benefit of all genders. Voluntarily towards an inclusive and equal society. 

Internal Committee (IC)-The Heart of Redressal

As mandated under the law. 

• Senior woman employee
• Two committed employees, female or jurists.
• There would be one external from an NGO. Or an association on women’s rights.

The IC hears complaints, looks into cases with confidentiality, and makes recommendations for action based on its findings.

Importance of Awareness and Training

Awareness is a key factor in making the POSH Act work in actual life. Employees should receive regular workshops, seminars, and training sessions to imbibe acceptable behaviours, reporting mechanisms, and recognize their rights and responsibilities. A culture of employee safety, open communication, and gender equality will boost morale and productivity in the workplace.

Conclusion

The POSH Act plays an important role. Only if the organizations follow the law seriously and build a culture of respect. And accountability, they will avoid legal problems. And have workplaces where all feels valued and safe. 

FAQs

Q1: Under whom does the POSH Act apply? 

The Act applies to all working women, including interns and employees on a part-time or contract basis.

Q2: What is the work of the IC? 

The IC has multiple roles. It examines complaints. Also provides recommendations for action against sexual harassment. 

Q3: Is there any way for men in the POSH Act? 

Many companies have gender-neutral policies in hr management. You need to clarify it first.  

Q4: List the consequences of what happens when an organization goes against the provisions of the POSH Act. 

Here is the list. Penalties, cancellations of licenses, and branding fallouts arise out of non-compliance.

 

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The new job is a thrilling phase. Mostly, the very first step of this journey is a probation period. Whether they are compatible with each other. A lot of companies nowadays use tools such as employee management software. That helps track progress, record feedback & make decision-making easier during the trial phase.

In this article, we will be looking into what a probation period is. The purpose it serves, and how long it generally lasts. And certain pointers to help you cruise through this early stage. 

What is a Probation Period?

In general, a probation period is a trial phase at the inception of employment. When the interaction is analyzed by the employer and the other person, i.e. employee as well.  It is, to all intents and purposes, an employer’s assessment of how the new hire is performing. Developing skills and integrating culturally within the wider organisation. Whether the role constitutes a stepping stone in their career. Or a dissatisfying situation due to his or her expectations. 

Purpose of the Probation Period

The several goals contained in the probation period are:

For Employers

The probation affords a defined timeline to assess the new employee’s knowledge. Attitude toward work and adaptation to the company culture.

For Employees

This period gives an opportunity to check the expectations of the staff. And also serves to know whether the role fits in with their professional aspirations.

Typical Length of a Probation Period

The particular role in question. 3 months to 6 months. Nevertheless, some firms may extend this timeline. Especially for positions requiring specialized skills or complex responsibilities.

Important Aspects During The Probation Period 

Performance Evaluation

During this stage. The performance & productivity of the employee against set targets are evaluated. 

Feedback and Support 

Regular feedback helps the employee in evaluating himself/herself. And knowing more about the area in which he/she need to improve.

Training and Development

The training programs are also attended by employees. These training programs are concerned with imparting skills relevant to their jobs.

Notice Period

During probation, the notice period is reduced. As against that given to confirmed or permanent employment. 

Elevation of Probationer into a Permanent Employee

The transition is as follows:

Salary Revisions

Revisions on compensation will pertain to any permanent position

Confirmation of Role

The job is recognized officially – Yes/No on the employee side.

Conclusion

To sum up, the probation period is a crucial phase in the employment lifecycle. By knowing its purpose and the major elements. You can make that period work well for you in beginning the way to a successful career thereafter.

FAQs

Q1: Can an employee resign while on probation?

Yes, an employee can resign while on probation. However, the probation may be shorter. For particulars, refer to the employment contract.

Q2: Is probation a legal requirement?

Right away answer No. However, it is a general practice. Followed by many organisations to assess new hires efficiently.

Q3: Can the probation time be extended?

If employers feel that they require an additional term. To properly assess the performance. They can extend the probationary period.

Q4: Do employees get benefits during probation?

Employees generally get the statutory benefits during probation. However, certain other benefits may be granted upon confirmation.

 

 

 

Reading Time: 3 minutes

Having the right people on your team can make or break your success in today’s world. Of intense competition that every business faces. Making well-defined recruitment strategies is crucial. If you are a growing startup or an established corporation. Developing a smart and structured hiring plan helps you with the right people.
We will delve into key concepts such as talent acquisition. Hiring process and employee retention, and how they fit into this larger picture.

What are the Recruitment Strategies?

Recruitment Strategy gives a hand to organizations to qualify and retain the top workforce. For open vacancies. It clearly states the entire process of hiring, from how and where you will find candidates.
It is about hiring that truly matters. Aligning your hiring objectives with the set-up for the long term. Culture and success of the company.

Recruitment Strategies are Important

A robust recruitment strategy leads to a bunch of advantages beyond hiring people. It helps an organization:

Decrease hiring time and cost

Acquire better-quality recruits

Regularize recruitment efforts

Foster a strong employer brand

Retain an organization’s top talent for a longer duration

A good recruitment strategy will translate into smarter hiring decisions. And, hence, a more productive workforce overall.

Components of a Successful Recruitment Strategies

Let’s take a look at those elements that lead to success in any recruitment strategy:

1. Job Profile

Job profiles are the first communication between the potential candidate and the organization. A description should be precise, clear, and relevant to the responsibilities. And expectations of that job.

2. Targeting Sources for Candidates

Know where the good candidates are hanging out: worker boards, LinkedIn, and niche platforms. Or employee referral networks. Adapt your sources to target the talent that is most relevant to you.

3. Structured Screening and Interviewing

Introduce screening tools that should be applied to filter resumes. On the basis of experience. Skills and cultural fit. Follow that with a consistent interviewing process. Combining behaviour-oriented questions with technical questions.

4. Focus on Employer Branding

You should market your values, work culture, benefits, and growth opportunities. And hence, the more candidates view themselves as aligning with that company. The more likely they are to apply for and accept higher job offers.

5. Recruitment Metrics

Keep a record of all the important metrics, such as time-to-hire, cost-per-hire. And job-seeker satisfaction. Such insights will guide you to polish your strategy over time.

Integrating Talent Acquisition and Employee Retention

While the recruitment strategies focus on filling positions. Talent acquisition looks at long-term workforce planning. It is concerned with determining possible future skill needs. And finding the right people proactively.
On the other hand, employee retention means keeping hired talent engaged. Retention initiatives, such as onboarding programs. Growth opportunities and a positive work environment. Run parallel to your hiring goals.

Hiring Process Improvement Suggestions

Before proceeding to the sourcing stage, delineate the attributes of an ideal candidate.
Involve your current employees in the referral or interview process.
Obtain candidate feedback to improve their hiring experience.
Maintain clear and timely communications all the way through the hiring process.

Conclusion

A recruitment strategy is a strategic tool for organizations to grow with the right people. A well-built and consistently executed recruitment process saves time. Reduces costs and achieves results in harmony with your company vision.
The recruitment strategy is something, whether you hire your first or the thirtieth employee. It is the bedrock on which long-lasting success lies.

FAQs

Q1: What is Recruitment & Talent Acquisition? State the differences between these two.

Recruitment fills immediate job openings while talent acquisition is a long-term approach. Whereas hiring involves workforce planning and talent pipeline development.

Q2: How do I formulate a recruitment strategy?

Recruitment strategies generally start with defining your needs, defining ideal candidates. Identification of sourcing platforms & design a better working process. And then indexing the results.

Q3: Why must employer branding be used for recruitment?

In order to draw better candidates. Employer branding acknowledges things that make your company a good place to work.

Q4: What are the advantages of a good recruitment strategy? List them.

Reduced time, Better hire, Cost to hire, Building stronger teams, Better retention, etc.