A

Project Report

On

“BENEFITS FOR
BLUE COLLAR
EMPLOYEES”
At

Submitted in the partial fulfillment of the

Bachelor of Business Administration

At

Institute of Business and Computer Studies, Bhubaneswar

Corporate Guide: Faculty Guide:

Name- Mr. Vikash Kumar Name- Dr. Jyoti Ranjan Dash

Designation- Divisional in charge, CE (GDC) Designation- Assistant Dean

Submitted by:

OISHIK MISHRA
Roll No: 1641303026

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 ACKNOWLEDGEMENT

There is a famous saying:

“The theory without practical is lame and practical without theory is blind.”

I take the opportunity to express my gratitude to all of them who in some or other way helped me
to accomplish this challenging project in Tata Motors Ltd. No amount of written expression is
sufficient to show my deepest sense of gratitude to them.

I extend my warm and heartiest thanks to my mentor Mr. Vikash Kumar (Divisional In charge,
CE(GDC), Tata Motors Ltd.) for guiding me in completing my project successfully.

They had been instrumental in the success of the project in a various ways and has provided me
with the adequate information and in helping me to upgrade my learning process and skills
required for completing this project.

I would also like to thank Mr. P.S Mondal (DGM, ERC - J) for allowing me to conduct this
project in this organization.

I am also very thankful to Dr. Jyoti Ranjan Dash (Assistant Dean, Institute of Business and
Computer Studies) to guide me in proper way.

A special appreciative “Thank you” to all the staff at “Tata Motors Ltd” for their positive
support.

I also acknowledge with a deep sense of reverence, my gratitude towards my parents who have
always supported me morally and financially.

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 Institute of Business and Computer Studies

Declaration by the Student

I, Oishik Mishra, hereby declare that the Project titled, “Benefits for Blue collar
Employees”, has been carried out by me during my ‘Summer Internship Project
Training’ at Tata Motors Ltd. Jamshedpur from 12nd May, 2018 to 23th June, 2018
and is hereby submitted for the partial fulfillment of the requirement for the award
of Bachelor of Business Administration. To the best of my knowledge, the project
undertaken, has been carried out by me, and is my own work. The contents of this
report are original and this report has been submitted to the said organization and
to the Institute of Business and Computer Studies, Bhubaneswar and it has not
been submitted elsewhere, for the award of any Certificate/Diploma/Degree etc.

Name of the Student- Oishik Mishra

Roll No- 1641303026
BBA (Hons) Batch 2016-2019

Signature of Student -

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 TABLE OF CONTENTS

Chapter Number Chapter Name Page Number

1. Introduction 5
2. Objectives of study 10
3. Industry Profile 11
4. Company Profile 14
5. Responsibilities & Authorities of HR dept. 17
at Tata Motors Ltd.
6. Employment Procedure 18
7. Family Pension cum Life Insurance 21
Scheme
8. Gratuity 22
9. Increment 23
10. Certificate of Service 25
11. Commendatory Letters & awards for long 26
service
12. Holidays 27
13. Leave 30
14. Salary Payment, Loan & L.T.A 49
15. Seniority 53
16. Settlement of Accounts 55
17. Seva Nidhi Yojana 59
18. Superannuation 61
19. Research Methodology 62
20. Findings 73
21. Suggestions 74
22. Conclusion 75
23. Bibliography 76

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 INTRODUCTION
What is benefit? The term ‘benefit’ has been in vogue in Indian industry since long. This is
called by various names such as Fringe benefits, Wage supplements, supplementary
compensation, non- wage benefits, indirect wage, hidden payment, etc.
In simple words, benefits means membership based non financial rewards given to employees.
“Benefits define as any wage cost not directly connected with employee’s productive effort,
performance, service or sacrifice”.
The term Fringe benefits refer to various extra benefits provided to the employees, in addition to
the compensation paid in the form of wage or salary. It is also defined as those benefits which
are provided by an employer to or for the benefit of an employee and which are not in the form
of wages, salaries and time-related payments.
Different terms are used to denote benefits. They are welfare measures, social charges, social
security measures, supplements, sub-wages, employee benefits etc. The ILO described “ fringe
benefits as Wages are often augmented by special cash benefits, by the provision of medical and
other services or by payments in kind, that forms part of the wage for expenditure on the goods
and services”. In addition workers commonly receive such benefits as holiday with pay, low cost
meals, low-rent housing etc. Such additions to the wage proper are sometimes referred to as
fringe benefits. Benefits that have no relation to employment or wages should not be regarded as
fringe benefits even though they may constitute a significant part of the workers total income.
Thus, fringe benefits are those monetary and non-monetary benefits given to the employees
during and post “employment period which are connected with employment but not to the
employee contributions to the organization.

Coverage under benefits

The term benefits covers bonus, social security measures, retirement benefits like provident fund,
gratuity, pension, workmen compensation, housing, medical, canteen, co-operative credit,
consumer stores, educational facilities, recreational facilities, financial advice and so on. Thus,
benefits cover a number of employee services and facilities provided by an employer to his
employees and in some cases to their family members also. Welfare of employee and his family
members is an effective advertising and also a method of buying the gratitude and loyalty of
employees. But, while some employers provide these services over add above the legal
requirements to make effective use of their work force, some restrict themselves to those benefits
which are legally required.
Need for Extending Benefits

During the World War II certain non-monetary benefits were extended to employees as means of
neutralizing the effect of inflationary conditions. These benefits which include housing, health,
education, recreation, credit, canteen etc. have been increased from time to time as a result of the
demands and pressures from trade unions. It has been recognized that these benefits help
employees in meeting some of their life contingencies and to meet the social obligation of
employers.
Most of the organizations have been extending these benefits to their employees, year after year,
for the following reasons,

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 Employee Demands

Employees demand more and varied types of benefits rather than pay hike because of reduction
in tax burden on the part of employees and in view of the galloping price index and cost of
living.
Trade Union Demands

Trade Unions compete with each other for getting more and a new variety of benefits to their
members such as life insurance, beauty clinics. If one union succeeds in getting one benefit, the
other union persuades management to provide a new model fringe. Thus, the competition among
trade unions within an organization results in more and varied benefits.

Employer Preference

Employers prefer fringe benefits to pay-hike, as fringe benefits motivate the employees for better
contribution to the organization. It improves morale and works as an effective advertisement.

As a Social Security

Social security is a security that society furnishes through appropriate organization against
certain risks to which its members are exposed. These risks are contingencies of life accidents
and occupational diseases. Employer has to provide various benefits like safety measures,
compensation in case of involvement of workers in accidents, medical facilities etc with a view
to provide security to his employees against various contingencies.

To Improve Human Relations

Human relations are maintained when the employees are satisfied economically, social and
psychologically. Benefits satisfy the worker economic, social and psychological needs.
Consumer stores, Credit facilities, Canteen, Recreational facilities etc satisfy workers social
needs, whereas retirement benefits satisfy some of the psychological problems about the post-
retirement life. However, most of the benefits minimize economic problems of the employee.
Thus, benefits improve human relations.

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 TYPES OF BENEFITS

Organizations provide a variety of benefits. The benefits are classified under four heads as given
here under:

1. For Employment Security

Benefits under this head include unemployment, insurance, technological adjustment pay, leave
travel pay, overtime pay, level for negotiation, leave for maternity, leave for grievances,
holidays, cost of living bonus, call-back pay, lay-off, retiring rooms, jobs to the sons/daughters
of the employees and the like.

2. For Health Protection

Benefits under this head include accident insurance, disability insurance, health insurance,
hospitalization, life insurance, medical care, sick benefits, sick leave, etc.

3. For Old Age and Retirement

Benefits under this category include: deferred income plans, pension, gratuity, provident fund,
old age assistance, old age counseling, and medical benefits for retired employees, traveling
concession to retired employees, jobs to sons/daughters of the deceased employee and the like.

4. For Personnel Identification, Participation and Stimulation

This category covers the following benefits: anniversary awards, attendance bonus, canteen,
cooperative credit societies, educational facilities, beauty parlor services, housing, income tax
aid, counseling, quality bonus, recreational programs, stress counseling, safety measures etc. .

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 OBJECTIVES OF BENEFITS

The view point of employers is that benefits form an important part of employee incentives to
obtain their loyalty and retaining them. The important objectives of benefits are:

1.To create and improve sound industrial relations

2.To boost up employee morale.
3. To motivate the employees by identifying and satisfying their unsatisfied needs.
4. To provide qualitative work environment and work life.
5. To provide security to the employees against social risks like old age benefits and maternity
benefits.
6. To protect the health of the employees and to provide safety to the employees against
accidents.
7. To promote employee’s welfare by providing welfare measures like recreation facilities.
8. To create a sense of belongingness among employees and to retain them. Hence, fringe
benefits are called golden hand-cuffs.
9. To meet requirements of various legislations relating to benefits.

Need for Extending Benefits to Employees

(i) Rising prices and cost of living has brought about incessant demand for provision of extra
benefit to the employees.

(ii)Employers too have found that fringe benefits present attractive areas of negotiation when
large wage and salary increases are not feasible.

(iii)As organizations have developed or elaborate benefits programs for their employees, greater
pressure has been placed upon competing organizations to match these benefits in order to attract
and keep employees.

(iv)Recognition that benefits are non-taxable rewards has been major stimulus to their expansion.

(v)Rapid industrialization, increasingly heavy urbanization and the growth of a capitalistic

economy have made it difficult for most employees to protect themselves against the adverse
impact of these developments. Since it was workers who are responsible for production, it was
held that employers should accept responsibility for meeting some of the needs of their
employees. As a result, some benefits-and-services programs were adopted by employers.

(vi)The growing volume of labor legislation, particularly social security legislation, made it
imperative for employers to share equally with their employees the cost of old age, survivor and
disability benefits.

(vii)The growth and strength of trade unions has substantially influenced the growth of company
benefits and services.

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(viii)Labour scarcity and competition for qualified personnel has led to the initiation, evolution
and implementation of a number of compensation plans.

(ix)The management has increasingly realized its responsibility towards its employees and has
come to the conclusion that the benefits of increase in productivity resulting from increasing
industrialization should go, at least partly, to the employees who are responsible for it, so that
they may be protected against the insecurity arising from unemployment, sickness, injury and old
age. Company benefits-and-services programs are among some of the mechanisms which
managers use to supply this security.

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 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

 To identify the existing benefits at Tata Motors Ltd.

 To study the satisfaction level over the existing Benefits.
 To study the causes & their linkage to impact of benefits on salary structure.

SECONDARY OBJECTIVE:
 To give appropriate suggestions to improve the satisfaction level of labours over the
extra benefits.

 To help the organization in its endeavor to revise the employee welfare and
motivation system through providing fringe benefits.

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 INDUSTRY PROFILE

INTRODUCTION

Manufacturing industry refers to those industries which involve in the manufacturing and
processing of items and indulge in either creation of new commodities or in value addition. The
manufacturing industry accounts for a significant share of the industrial sector in developed
countries. The final products can either serves as a finished good for sale to customers or as
intermediate goods used in the production process. It is the production of merchandise for use or
sale using labor and machines, tools, chemical and biological processing, or formulation. The
term may refer to a range of human activity, from handicraft to high tech, but is most commonly
applied to industrial production, in which raw materials are transformed into finished goods on a
large scale. Such finished goods may be used for manufacturing other, more complex products,
such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell
them to retailers, who then sell them to end users and consumers.

Manufacturing has emerged as one of the high growth sectors in India. Prime Minister of India,
Mr. Narendra Modi, had launched the ‘Make in India’ program to place India on the world map
as a manufacturing hub and give global recognition to the Indian economy. India is expected to
become the fifth largest manufacturing country in the world by the end of year 2020.

The Government of India has set an ambitious target of increasing the contribution of
manufacturing output to 25 per cent of Gross Domestic Product (GDP) by 2025, from 16 per
cent currently.

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MARKET SIZE

India’s manufacturing sector has the potential to touch US$ 1 trillion by 2025. There is potential
for the sector to account for 25-30 per cent of the country’s GDP and create up to 90 million
domestic jobs by 2025. Business conditions in the Indian manufacturing sector continue to
remain positive.

INVESTMENTS

With the help of Make in India drive, India is on the path of becoming the hub for hi-tech
manufacturing as global giants such as GE, Siemens, HTC, Toshiba, and Boeing have either set
up or are in process of setting up manufacturing plants in India, attracted by India's market of
more than a billion consumers and increasing purchasing power.
Foreign Direct Investment (FDI) inflows in India’s manufacturing sector grew by 82 per cent
year-on-year to US$ 16.13 billion during April-November 2016.

India has become one of the most attractive destinations for investments in the manufacturing
sector. Some of the major investments and developments in this sector in the recent past are:
- Honda Motorcycle & Scooter India plans to invest around Rs 600 crore (US$ 90 million)
to add a new line at its Narsapura facility at Karnataka, and launch at least 10-15 products
during FY 2016-17 in the country.
- Force Motors, a utility and commercial vehicles manufacturer, inaugurated its Rs 100
crore (US$ 15 million) manufacturing facility in Pune, which will supply engines and
axles to the Germany-based automobile manufacturer Mercedes-Benz.
- Isuzu Motors, the Japan-based utility vehicle manufacturer, has inaugurated its greenfield
manufacturing unit in Sri City, Andhra Pradesh, which was set up for Rs 3,000 crore
(US$ 450 million), with an annual production capacity of 50,000 units and is estimated to
generate around 2,000-3,000 jobs.
- Boeing Company, an American plane maker, and Tata Advanced Systems Ltd (TASL), a
fully owned subsidiary of Tata Sons, have entered into a joint venture to set up a new
facility in Hyderabad to manufacture Boeing AH-64 Apache helicopter fuselages.
- Canada’s Magna International Incorporated has started production at two facilities in
Gujarat’s Sanand, which will supply auto parts to Ford Motor Co in India and will
employ around 600 people at both units.

GOVERNMENT INITIATIVES

In a bid to push the 'Make in India' initiative to the global level, Mr Narendra Modi, Prime
Minister of India, pitched India as a manufacturing destination at the World International Fair in
Germany's Hannover in 2015. Mr Modi showcased India as a business friendly destination to
attract foreign businesses to invest and manufacture in the country.

The Government of India has taken several initiatives to promote a healthy environment for the
growth of manufacturing sector in the country. Some of the notable initiatives and developments
are:

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 - The Union Cabinet has approved the Modified Special Incentive Package Scheme (M-
SIPS) in which, proposals will be accepted till December 2018 or up to an incentive
commitment limit of Rs 10,000 crore (US$ 1.5 billion).
- The Government of India has removed the 12.5 per cent excise duty and 4 per cent
special additional duty (SAD) on the manufacturing of point-of-sale (PoS) machines till
March 31, 2017, which is expected to give a boost to the cashless economy as more PoS
machines will be deployed in the future.
- The National Institution for Transforming India (NITI Aayog), after its recent push for Rs
6,000 crore (US$ 900 million) textile sector package, aims to persuade the Government
for similar support in the manufacturing sectors with large-scale employment generation
opportunities, such as electrical and electronics engineering, footwear and light
manufacturing segments, which also have export potential.
- The Government of India plans to give a big boost to local manufacturing by introducing
the new 'Make in India green channel', which will reduce the time taken for cargo
clearance at ports from about a week to a few hours without any upfront payment of
duties.
- The Ministry of Heavy industries and Public Enterprises, in partnership with industry
associations, has announced creation of a start-up centre and a technology fund for the
capital goods sector to provide technical, business and financial resources and services to
start-ups in the field of manufacturing and services.

ROAD AHEAD

The Government of India has an ambitious plan to locally manufacture as many as 181 products.
The move could help infrastructure sectors such as power, oil and gas, and automobile
manufacturing that require large capital expenditure and revive the Rs 1,85,000 crore (US$ 27.75
billion) Indian capital goods business. India is an attractive hub for foreign investments in the
manufacturing sector. Several mobile phone, luxury and automobile brands, among others, have
set up or are looking to establish their manufacturing bases in the country.
With impetus on developing industrial corridors and smart cities, the government aims to ensure
holistic development of the nation. The corridors would further assist in integrating, monitoring
and developing a conducive environment for the industrial development and will promote
advance practices in manufacturing.

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 COMPANY PROFILE

TATA GROUP PROFILE

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India,
comprising over 100 independent operating companies. The group operates in more than 100
countries across six continents, with a mission 'To improve the quality of life of the communities
we serve globally, through long-term stakeholder value creation based on Leadership with Trust'.

Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-
six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support
education, health, livelihood generation and art and culture. In 2016-17, the revenue of Tata
companies, taken together, was $100.39 billion. These companies collectively employ over
695,000 people.

Each Tata company or enterprise operates independently under the guidance and supervision of
its own board of directors and shareholders. There are 29 publicly-listed Tata enterprises with a
combined market capitalisation of about $130.13 billion (as on March 31, 2017). Tata companies
with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power,
Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and
Indian Hotels.

Many Tata companies have achieved global leadership in their businesses. For instance, Tata
Communications is #1 international wholesale voice provider and Tata Motors is among the top
ten commercial vehicle manufacturers in the world. Tata Steel is among the top fifteen best
steelmakers and TCS is the second largest IT services company in the world by market cap and
profit. Tata Global Beverages is the second-largest tea company in the world and Tata Chemicals
is the world’s second-largest manufacturer of soda ash. Employing a diverse workforce in their
operations, Tata companies have made significant local investments in different geographies.

In tandem with the increasing international footprint of Tata companies, the Tata brand is also
gaining international recognition. Tata companies bring to their customers worldwide a whole
host of reputed brands, which touch their lives every day. Brand Finance, a UK-based
consultancy firm, has valued Tata’s multi-brand portfolio at over $23 billion in 2016.

With its pioneering and entrepreneurial spirit, the Tata group has spawned several industries of
national importance in India: steel, hydro-power, hospitality and airlines. The same spirit,
coupled with innovativeness, has been displayed by entities such as TCS, India’s first software
company, and Tata Motors, which made India’s first indigenously developed car, the Tata Indica
and the smart city car, the Tata Nano. Pursuit of excellence has similarly been manifested in
recent innovations like the SilentTrack technology developed by Tata Steel Europe and the next-
generation Terrain Response, including infrared laser scanning to predict terrain, and Wade Aid
to predict water depth, by Jaguar Land Rover.

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 The Tata trusts, majority shareholders of Tata Sons, have endowed institutions for science and
technology, medical research, social studies and the performing arts. The trusts also provide aid
and assistance to nongovernment organisations working in the areas of education, health care and
livelihoods. Tata companies themselves undertake a wide range of social welfare activities,
especially at the locations of their operations, as also deploy sustainable business practices.

Going forward, Tata companies are building multinational businesses that seek to differentiate
themselves through customer-centricity, innovation, entrepreneurship, trustworthiness and
values-driven business operations, while balancing the interests of diverse stakeholders including
shareholders, employees and civil society.

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 TATA MOTORS PROFILE

Tata Motors Limited (TML), a USD 42 billion organization, is India’s largest automobile
company by revenues. The company is a leading global manufacturer of cars, utility vehicles,
buses, trucks and defence vehicles and is working towards developing Smart Mobility Solutions
for Smart Cities. Tata Motors is also developing a smart range of EVs, to accelerate the adoption
of Electric Vehicles (EV) in the country, supporting the government’s mission on electric
vehicles.

Incorporated in India, in the year 1945, Tata Motors is a part of the USD 100 billion Tata group
and has operations across India, UK, South Korea, Thailand, South Africa, and Indonesia.

A leader in the Indian commercial vehicle market, Tata Motors also ranks amongst India’s top
passenger vehicle manufacturers, with over 9 million vehicles plying on Indian roads. The
company has played an instrumental role in transforming the country into a destination for
world-class automotive manufacturing and continues to work towards building the nation. Tata
Motors has always been at forefront of innovating technologies and providing products and
experiences catering to the discerning needs of our customers across both passenger and
commercial vehicles business. With its corporate brand identity - Connecting Aspirations, Tata
Motors continues to create segment-defining products that will fire up the imagination of
customers - generation after generation; reiterating the company’s promise of offering better
journeys.

With some of the worlds’ most iconic brands, including Jaguar Land Rover in the UK, Tata
Daewoo in South Korea, and a network of 76 subsidiaries globally, the company has
consolidated its position as the Tata Motors Group. In India, Tata Motors’ presence cuts across
the length and breadth of the country with a manufacturing base spread across its biggest
industrial hubs; Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).

Recognized for its world-class quality, originality, engineering and design excellence, the
company is on the path of shaping the future of mobility in India. With a strong team of 4,500
engineers, scientists and technicians at the company’s Engineering Research Centre, Tata
Motors’ R&D centres span multiple geographies, including Pune (India), UK and South Korea.
For the rapidly changing automotive environment, Tata Motors launched its sub-brand – TAMO.
TAMO acts as an incubating center of innovation towards new technologies, business models
and partnerships in order to define future mobility solutions. It operates as an agile, ring-fenced
vertical, in the first step on a low volume, low investment model to provide fast tracked proves
of technologies and concepts. TAMO will transform the experience of interfacing and interacting
with customers and the wider community. It will provide a digital ecosystem, which will be
leveraged by Tata Motors to support the mainstream business in the future.

Sustainability and the spirit of ‘giving back to society’ serves as the guiding philosophy at Tata
Motors; along with good corporate citizenship, which is strongly embedded in the company’s
DNA. Through the Affirmative Action Programme, it has touched the lives of more than 5 lakh
people in FY 16-17.

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 RESPONSIBILTIES AND AUTHORITIES OF HUMAN RESOURCE
DEPARTMENT AT TATA MOTORS LTD
RESPONSIBILITIES

- Assessment of manpower requirement.

- Organizing recruitment
- Identifying training need and organizing program in consultation with related
departments.
- Assessment of effectiveness of training, keeping corrective action, if necessary.
- Correspondence with related Government Departments like Labor, Factory
Inspector, Pollution Control, Safety etc.
- Organizing meeting with workmen representatives.
- Assessing the personal problems and taking advance action for maintaining
industrial harmony relationship.
- Maintenance of Attendance Registers of all employees.
- Preparation of wages and salaries to all employees.
- Maintaining a healthy, safe and fun work environment to ensure a level of comfort
amongst the employees and eliminate any stressful or awkward atmosphere that may
hinder the performance of the staff.
- To ensure better housekeeping by forming committee and regular audit by the
committee member.
- To ensure Safety and 5s in plant.

AUTHORITIES

- Timely preparation and sending of Government returns like EPF, ESIC, and
Employment Exchange etc.
- Preparation of accident reports and submission of the same to the concerned officials.
- Recommendation of Leave & Advances.
- Recommendation for Punishment & Appreciation of employees in the Department.

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 EMPLOYMENT PROCEDURE
 INTRODUCTION

The procedure to be followed in respect of employment of certain category of people as

mentioned below has been finalized in agreement with Telco Workers’ Union in the course of
conciliation proceedings before the Labour Commissioner, Bihar as per three separate
memoranda of settlement dated 01.05.81 and two bipartite agreements dated 13.05.81,the salient
feature of which are outlined herein :
(a) Wards of employees with long years of service and of deceased and superannuated
employees, for employment in unskilled, semi-skilled, clerical and stenographic
posts;
(b) Ex-temporary workers, for employment in unskilled, semi-skilled, clerical and
stenographic posts; and
(c) Ex-trade apprentices trained in Tata Motors, who have completed Apprenticeship
training up to 1980 and who are already registered in the sub-regional employment
exchange at Jamshedpur by 15.11.80, for employment in grades E-2 and L-6.

 EMPLOYMENT OF WARD OF EMPLOYEE

1. An employee having completing five years of satisfactory service in the company is

entitled to register his ward for employment, provided such ward has completed
eighteen years of age on the basis of date of registration.
2. Where an employee dies having completed five years of service in the company, but
the ward has not completed eighteen years of age at the time of death of the employee
and as such is not eligible for registration, he may get himself registered within a
period of three years from the death of the employee, provided he will be completing
eighteen years of age within a period of five/six years from the date of death of the
employee.
3. An employee is entitled to register only one ward, on the basis of the length on his
service and will be required to make a declaration in writing to the effect that none of
his wards have previously been employed in the company.
4. If one ward of the employee has already been registered for employment, no other
ward will be registered unless the registration and claim made in favour of the
previous ward is surrendered in writing. Only one such change in registration will be
allowed.
5. Only that ward of an employee who has been registered for employment will be
eligible for selection for apprenticeship training. If he is selected for apprenticeship
training, he will be considered for employment on the strength of the service of his
parent.

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 6. An employee will have the choice of two alternative jobs, trades for which he may
like his ward to be considered for employment.
7. An employee, whose ward has been dismissed or discharged on grounds of
misconduct or who abandons his service in the company, will not be entitled to get
another ward registered for employment. In the case of death of a ward, however,
within two years of his employment in the company, the employee can get another
ward registered in his place.
8. In the event of dismissal or discharge of an employee for a serious misconduct or his
resignation from the service of the company, the registration of the ward will be
cancelled.

 EMPLOYMENT OF EX-TEMPORARY WORKERS

1. In arrangement with the Sub-Regional Employment Exchange, Jamshedpur, the live

register of the existing ex-temporary workers will be updated every year as on 31th
March. The seniority of the workers will be determined on the basis of their total working
period as on that date.
2. Names of ex-temporary workers, who fail to report for employment, will be removed
from the register/list of ex-temporary workers.
3. Ex-temporary workers already borne on the live register of the Employment Exchange
and/or the Central Employment Bureau will have the option to apply for change of trades
which will be considered but only once.
4. Recruitment of ex-temporary workers in jobs of permanent nature will be made on the
basis of trade-wise seniority.
5. Names of ex-temporary workers who have found employment elsewhere will be removed
from the register/list.
6. Only those ex-temporary workers who have a satisfactory record of service and whose
performance and conduct are satisfactory will be considered for permanent employment.

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  EMPLOYMENT OF EX-TRADE APPRENTICES

1. An ex-trade apprentice, who satisfactory completes his apprenticeship training in1981

or subsequent years and seeks employment in the company, will have to apply for
registration for temporary employment on the expiry of one year and with within a
period of 18 months after having passed the NCVT test, if in the meantime he has not
been able to secure employment elsewhere. Registration, however, will not be
automatic and will be under the discretion of the company. After registration, he may
be including in the pool of temporary workers.
2. In future, offer of permanent employment to ex trade apprentices, along with other
suitable candidate included in the pool of temporary workers, will depend upon
vacancies in grade E-2 which may be available for direct recruitment after normal
promotion of employees in grade E-1.
3. Offers of employment/ temporary work will be subject to verification of characters
and antecedents of the apprentices and their satisfactory conduct during
apprenticeship and in subsequent periods.
4. No ex- trade apprentice, who is found guilty of misconduct during and after the
period of apprenticeship, will be registered for employment and, if he is already
registered, his name will be removed from the register/list.

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 FAMILY PENSION-CUM- LIFE ASSURANCE SCHEME

1. Introduction :
This a Government of India Scheme introduced with the object of providing some long-
term protection to the families of worker-members of the Provident Fund, dying
prematurely while in service. The benefits under the Scheme are in addition to those
payable under the Provident Fund Scheme.

2. Eligibility :
All employees in receipt of salary/wages (Basic Pay, P.P., D.A.) up to and including Rs.
1600/- p.m. who are enrolled as members of the Provident Fund for the first time on or
after 1-03-1971 are compulsorily brought under the Scheme.

3. Benefits under the Scheme :

The benefits payable under the Scheme are as follows:

(a) Family pension – In the event of an employee dying while in service before attaining
sixty years of age, one of the members of his family (widow/widower, up to her/his
death or re-marriage, or eldest surviving minor son till he attains the age of 18 years,
or the eldest surviving unmarried daughter until she reaches 21 years of age or gets
married, whichever is earlier, in that order) will get pension.
(b) Retirement Benefit – A member retiring at the age of sixty would be entitled to a
minimum lump sum payment of Rs. 40000/- irrespective of the rate last drawn by
him.
(c) Withdrawal Benefit – A member who leaves the service of the Company for reasons
other than death can withdraw the benefit due under the Scheme on a proportionate
basis as prescribed therein.
(d) Life insurance benefit – A lump sum amount, besides the pension, is payable to the
family member of an employee who dies while in service as life assurance benefit.

21 | P a g e
 GRATUITY
 Introduction :
Gratuity is payable to all permanent employees as per the revised Gratuity Rules of the
Company, which came into force from 1-04-1974. Where there is no specific provision
in the rules in respect of any matter, the relevant provision of the payment of Gratuity
Act, 1972, which came into force with effect from 16-09-1972, and the rules made there
under, will be applicable.

 Eligibility :
(a) An employee who has completed five years of continuous service or more is eligible
for gratuity at the rate of fifteen days’ salary (basic pay, P.P., D.A.) for every
completed year of service or part thereof in excess of six months, based on the last
wages/ salary drawn by him, subject to a maximum of twenty months’ salary.
(b) The term ‘continuous service’ means uninterrupted service and will include periods
of temporary service, probation and paid apprenticeship provided the employee is
confirmed without a break in service, lay-off, strike or lock-out, which is not illegal,
and periods spent on authorised leave and deputation on special duly.
(c) Where the services of an employee are terminated on account of death or
disablement, gratuity is payable irrespective of the period of his service.

 Nomination :
(a) Every employee will have to make a nomination in favour of one or more members of
his ‘family’ as defined in the Act for received gratuity in the event of his death.
(b) If at the time of making nomination, an employee has no ‘family’, the nomination may
be made in favour of any person or people, but if he subsequently acquires a ‘family’
(say, by marriage or adoption or the parents becoming dependent), such nomination
will become invalid and the employee shall have to make a fresh nomination in favour
of one or more members of his ‘family’.

 Forfeiture :
The gratuity payable to an employee will be forfeited if his services have been
terminated for any act of willful omission or negligence resulting in damage or loss to
the property of the Company to the extent of such damage or loss. It will be wholly
forfeited if his services have been terminated for riotous or disorderly conduct or any
other act of violence or for any act which constitutes an offence involving moral
turpitude.

22 | P a g e
 INCREMENT

1. Introduction :
The annual increment due to an employee in his grade will be granted to him, as a
matter of course, on the completion of each year of service, unless withheld by a
special order.

2. Qualifying service for eligibility of increment :

The periods of acting in a higher post, all authorized leave with pay, absence or leave
without pay up to ninety days in a scale increment year, as well as suspension
pending enquiry and as punishment, will count as qualifying period of service period
of service for eligibility of annual increment.

3. Shifting of increment date :

In the case of an employee who absents himself or takes leave without pay for more
than ninety days in a scale increment year, his increment date will be shifted by the
entire number of days of absence or leave without pay, i.e. if he had availed himself
of 120 days leave without pay in a scale increment year, his increment date will be
shifted by 120 days. When the increment date is so shifted, the employee will get his
next increment only on the completion of twelve months from the date to which it has
been shifted, which date will remain his due date of increment for subsequent years.

4. Increment falling due during the suspension period :

When an increment falls due to an employee during the period of his suspension
pending enquiry of any misconduct committed by him, it will not be granted to him
till a final decision is taken in the case. If he is dismissed or discharged from service
with retrospective effect from the date of his suspension as a result of the enquiry, the
question of granting any increment to him will not arise. In other cases, it will be
granted to him from the date it was actually due unless with held as punishment.

5. Withholding of increment as punishment :

(a) In the case of an employee governed by the Industrial Disputes Act, the increment
due will be withheld only as punishment for any serious act of misconduct
committed by him, after complying with the usual formalities of domestic
enquiry; in other cases, it will be withheld after giving a reasonable opportunity to
his employee to explain his conduct.
(b) Withholding of the increment due to an employee for a specific period as
punishment will not normally have the effect of postponing his future increments,
i.e. it will not have cumulative effect, unless specifically ordered otherwise at the
time of imposing the punishment.

23 | P a g e
 6. Crossing of E.B. :
(a) When an employee reaches the efficiency bar level in his skill of pay, the
increment due to him at that stage will be granted, only on his being permitted to
cross the efficiency bar by the competent authority. It cannot be claimed as a
matter of right.
(b) An employee will be given three chances to qualify himself for crossing the
efficiency bar, including the first chance. If he fails in all the three chances, he
will be not be granted any increment for a period of three years from the date
from which it was originally due, after which his case will be revived and decided
on its merits.
(c) The postponement of an increment due to an employee for not having qualified
himself to cross the efficiency bar will not have the effect of postponing his future
increment. That means if an employee fails in the first chance but qualifies
himself in the second or third chance, at the time of his qualifying, he will be
fixed on the same salary which he would have got had he not being stopped at the
efficiency bar level, i.e. the loss will not have cumulative effect except when he
fails thrice. The original due date of increment will also remain unaltered.

24 | P a g e
 CERTIFICATE OF SERVICE

1. Introduction

A service certificate of is issued to an employee (other than a probationer found

unsuitable and discharged) at the time of his separation from the service of the Company.

2. Contents:
The service certificate will generally be as per the pro forma prescribed for the purpose,
and will contain the following particulars :

Name Training, if any Date of leaving

Ticket number Last pay drawn Cause of leaving
Designation Grade Ability, and
Department Date of joining Conduct
Division

Special remarks, if any, are to be mentioned in a certificate only with the approval of the
competent authority. In the case of dismissal/discharge for any serious act of misconduct,
the type of certificate to be issued will be decided on the merits of the case.

3. Competent authorities to issue service certificates :

The competent authorities to issue service certificates are the General Manager, the Sr.
Dy. General Managers, the Dy. General Managers, the Asst. General Managers and the
Divisional Managers, as per the delegation of powers. Heads of the Establishment,
Sections have, however, been authorized to issue such certificates on their behalf. Service
Certificates will not be issued by any other person on behalf of the Company.

25 | P a g e
COMMENDATORY LETTERS AND AWARDS FOR LONG SERVICE

1. Introduction :
Commendatory letters are issued to employees by the Company on the satisfactory
completion of 25 years of service.

2. Reckoning of service :
The period of apprenticeship, where an apprentice is absorbed immediately on the
completion of his training taken into account for reckoning the length of service. In
the case of ex-Railway employees of Singhbhum Workshops, their length of service
in Tata Motors for his purpose will reckon from 1-6-1945, irrespective of the dates of
their acceptance of Tata Motors terms.

3. Issue of wrist watch and silver coin :

Employees are also awarded wrist watches on the completion of twenty five years of
satisfactory service and gold plated silver coins on the completion of thirty five years
of satisfactory service.

26 | P a g e
 HOLIDAYS

1. Introduction :

Every worker will be given a weekly holiday, subject to the condition that he does not
work continuously for more than ten days without a holiday, except as otherwise
specifically permitted by the Factories Act and the Rules made there under. Besides
such weekly holidays (off days), there will be eight declared paid holidays in a year
(four National Holidays and four Festival Holidays) as under, when the Works will
remain closed :
Republic Day … 26th January
Holi …
May Day … 1st May
Independence Day … 15th August
Viswakarma Diwas …
Id-Ul-Fitr …
Dushera …
Gandhi Jayanti … 2nd October

2. Conditions :
(a) The conditions regarding payment and ‘off’ that will be applicable to each
category of employees, who is not on scheduled roster duty, when called upon to
work on a paid holiday or a weekly holiday (including inventory day) will be as
indicated in the annexure (page 28).
(b) An employee on scheduled roster duty on a paid or weekly holiday will be
eligible for only lieu off/leave or compensatory holiday, as may be applicable, and
not for extra payment for working on that day.

27 | P a g e
CONDITIONS RELATING TO PAYMENT AND ‘OFF’ TO EMPLOYEES CALLED TO
WORK ON A PAID HOLIDAY OR WEEKLY HOLIDAY

Category of holiday Employees in E Employees in L-6 Employees in L-3 to

and conditions grades and L-5 grades L-1 grades

A. PAID HOLIDAY

1. When a paid holiday fails on a weekday.

a) If not working on Holiday wages Holiday with salary Holiday with salary
that day
b) for working on that Paid holiday wages Besides paid holiday Paid holiday salary
day plus extra wages and salary, lieu leave only.
bonus for number of except where GM’s
hours worked. prior approval for
payment of extra
wages (instead of lieu
leave) has been
obtained.
(Note : Please see B. (2) next page)

2. When a paid holiday falls on a weekly holiday.

a) if not working on Extra wages towards Extra salary towards Besides normal
that day paid holiday paid holiday salary, lieu leave
b) for working on that Besides extra holiday Besides extra salary Besides normal
day wages, lieu off towards holiday, lieu salary, lieu leave
off to staff in grades
up to L-5 and lieu
leave to others

B. WEEKLY HOLIDAY :

1. When there is no change in regular weekly holiday

a) if not working on Normal wages. Normal salary Normal salary

that day
b) for working on that Besides normal wages Besides normal Normal salary only.
day and bonus, lieu off/ salary, lieu off/
compensatory holiday compensatory holiday

28 | P a g e
 as may be applicable. to staff in grades up to
L-5 and compensatory
holiday/lieu leave to
others.

2. When a paid holiday is substituted for regular weekly holiday and entire
dept./division or the Works as a whole works on the regular weekly holiday.

a) if not attending Normal wages. Normal salary. Normal salary.

duly on that day.
b) for working on that Extra wages and Extra salary and Besides normal salary
day. bonus. bonus where due. ,lieu leave

3.When a weekly holiday (or a substituted weekly holiday) is declared as Inventory Day.

a) if not working on Normal Wages. Normal Wages. Normal Wages.

that day.
b) for working on that Besides normal wages Besides normal wages Besides normal
day. and bonus, lieu and bonus, lieu salary, lieu leave.
off/compensatory off/compensatory
holiday as may be holiday to staff of
applicable. grades up to SR-5 and
compensatory
holiday/lieu leave to
others.

29 | P a g e
 LEAVE
General Conditions :
1. The different kinds of leave granted to employees are as under :
(a) Accident Leave
(b) Casual Leave
(c) Maternity Leave
(d) Privilege Leave
(e) Quarantine Leave
(f) Sick Leave
(g) Special Leave
(h) Study Leave
(i) Leave without pay

2. Leave is granted to an employee at the convenience of the Management without in any

way limiting their discretion to refuse, revoke or curtail leave, as the exigencies of the
Company’s work may require, subject, however, to any relevant statutory provisions in
force from time to time.
3. The authority competent to sanction all kinds of leave will be the General Manager or
such other officer as per delegation of powers given by him and in force from time to
time. In no case, however, will leave applications be routed through more than two
officers, though information regarding the sanctioning of leave will be passed on to the
higher authorities.
4. An employee desirous of taking leave will apply twenty-four hours in advance for leave
of three days or less and one week in advance for more than three days’ leave, in the
prescribed for the purpose.
5. A paid declared holiday or a weekly ‘off’ day falling at the beginning or at the end of the
leave period of an employee or both will not be counted as part of the leave. In all other
cases, a paid declared holiday or a weekly ‘off’ day will be counted as part of the leave
taken, except in the case of an ‘E’ grade employee governed by the Factories Act, in
whose case paid holidays and weekly ‘off’ days falling during the privilege leave will not
be counted as part of the leave.
6. Salary in lieu of leave is not payable except as otherwise provided for in the rules dealing
with Privilege Leave and Maternity Leave.
7. Privilege leave, casual leave and sick leave accounts are maintained on a calendar year
basis, while other kinds of leave are granted as and when it becomes necessary.
8. Leave advance – Advance of leave salary is given, if required, when an employee takes
privilege leave of four days or more. If an employee who has taken leave salary in
advance desired to cancel his leave and resume duty, he may do so, if approved by the

30 | P a g e
 competent authority who had sanctioned his leave, provided he refunds to the Company
the leave salary, if any, he had taken in advance for the unavailed portion of the leave.
9. If the leave, or extension of the leave, applied for by an employee is not sanctioned and
the employee does not attend duty, or if an employee remains absent after expiry of the
leave originally sanctioned or subsequently extended, he will be treated as having
committed an act of misconduct and dealt with accordingly.
10. An employee granted leave of any kind will be paid, besides his basic salary, the norms
dearness allowance, fixed special/managerial allowance and personnel pay, if any, unless
otherwise specifically stated. He will also be paid where applicable, such allowances,
which are not based on attendance, as special allowance (shop allowance), diet
allowance, non-practising allowance house rent subsidy, turn-out allowance, zonal office
allowance, car allowance (up to a maximum period of three months) and personal
allowance given in lieu of car allowance. He will not, however, be entitled to payment of
overtime, bonus or any other allowance.
11. The salient features of the different kinds of leave have been given in the succeeding
pages, indicating the special conditions applicable to each of them.

ACCIDENT LEAVE (I.O.W. cases only)

Eligibility Quantum Remarks

(a) A permanent employee (a)
in E grade upto E-8
(including a probationer,
apprentice and trainee)
(b) A permanent employee (b)
in grade E-9.
From the date of the (i)
accident, to the date
declared fit for duty or to
the date of termination of
service due to medical
unfitness.
From the date of the (ii)
accident up to a
maximum of six months,
beyond which approval
of Head Office is
necessary.
Must report of the Shop
Supervisor immediately
after the accident and
obtain proper injured on
Works certificate,
otherwise absence will
be treated as due to
causes other tan the
accident and not paid
for.
A temporary employee
appointed for a specified
period or till the
completion of a job, an
employee serving notice
period, an employee on
the verge of
superannuation and an
apprentice/ trainee, if
injured on Works, will
be released from the
service of the Company
on his normal due date
of release, despite the

31 | P a g e
 accident. He will,
however, be given
medical treatment and
accident leave, with pay
up to a maximum period
of six months from the
date of the accident,
after which his case will
be reviewed and decided
on merits or as per law.
Provided the employee is (iii) Cannot normally be
incapacitated from work due combined with any other
to an accident arising out of leave except, in an
and in the course of exceptional case, with
employment with the privilege leave.
Company and due to causes
other than his negligence or
default.

CASUAL LEAVE (for employees irrespective of their grades)

(a) A permanent employee (a) Seven days during each (i) Cannot be accumulated.
and an apprentice year Will automatically lapse
absorbed as a regular if not availed of before
employee without the end of the calendar
probation. year. Leave due on any
date will not be more
than seven days.

(b) An employee on (b) (i) one day for every two (ii)
probation months and one day per
month for the eleventh
and twelfth month during
probation.
(ii) if confirmed before
twelve months, seven
days after confirmation
(minus leave already
taken), to be exhausted
before completion of
twelve months.
The leave account of a
probationer, on
completion of twelve
months’ service, will be
credited with
proportionate leave from
the start of the second
year to the end of that
calendar year to be
availed of by him before
the end of the year.
From subsequent years,
his leave account will be
on calendar-year basis.

(c) A temporary employee (c) Seven days per year after (iii) The leave account of a

32 | P a g e

(d) An apprentice or trainee
LEAVE ON DOUBLE PAY (to be adjusted against privilege leave due)
A staff in grade E-6 or above.
33 | P a g e
completion of one year.
(d) Seven days during each (iv) Cannot be combined
year of training.
Up to a maximum period of (i)
forty five days at a time,
without any minimum limit
(ii) Contribution
(iii) Can be combined with
temporary employee, on
completion of twelve
months, will be credited
with seven days’ casual
leave, after which it will
be reckoned on
calendar-year basis. The
proportionate leave due
for the period from the
start of the second year
to the end of that
calendar year will be
credited to his leave
account on 1st January
following by which date
he will not have more
than seven days’ casual
leave to his credit.
with any leave except
lieu leave and leave
without pay.
Leave account will be
debited with double the
number of days of leave
taken. Basic Pay, P.P.
and D.A. for the period
will be paid at double
the rate, while the other
allowances, due will be
paid at single rate.
to
provident fund for the
leave period will be at
single rate of Basic Pay,
P.P. and D.A.
any leave other than
casual leave.
 MATERNITY LEAVE

Irrespective of salary level, a (a)
woman employee before and
after confinement, premature
birth of a child, miscarriage
and illness during such
periods. (b)
Six weeks before and (i)
from the date of delivery
and six weeks after
delivery.
Six weeks immediately
following the day of
miscarriage of
pregnancy.
Due notice of the
expected date of delivery
should be given by the
woman employee, duly
supported by a certificate
from the medical officer
of the company
authorised to issue such
certificate.

Provided the employee has (c)
actually worked for no less
than 160 days in the twelve
months preceding the
expected date of delivery.
Additional one month in (ii) In the event of death of a
case of illness arising out woman employee
of pregnancy, delivery, entitled to maternity
miscarriage. benefit, the amount due
to her will be paid to her
nominee or, where there
is no nominee, to her
legal representative.

PREVILEGE LEAVE

(a) An E grade employee.
(a) Fifteen days for every (i) Accumulation up to
completed year’s sixty days in the case of
service. an employee in E grade
and up to ninety days in
other cases permitted
beyond which it will be
automatically lapsed.

(b) An employee in other
than E grade.
(c) Apprentice, trainee and
(b) Thirty days for each (ii) In reckoning a
year’s completed completed years’
service. service, absence on
account of sickness,
accident or authorised
leave up to ninety days
for all three, as also
absent due to a lock-out,
a legal strike or
involuntary
unemployment up to
thirty days in the
aggregate will be
condoned.
(c) Thirty days for each year (iii) For effective number of

34 | P a g e
 apprentice officer. of training (initially
adjusted as leave without
pay and re-adjusted as
P.L with pay on
completion of training
year).
days of service less than
275 days in a calendar
year including weekly
and paid holiday (i.e.
365 days minus the
permissible absence of
90 days as mentioned
above), proportionate
leave on the basis of 15
or 30 days’ leave for 275
days’ effective service
(including weekly and
paid holidays) will be
granted in the
subsequent year.

(iv) A new employee as well

as an apprentice
absorbed during the
course of the year will
be eligible for leave on
completion of twelve
months from the date of
appointment/absorption.
Leave due from
subsequent years will be
reckoned on a calendar
year basis.
(v) The leave due to an
employee in E grade
coming into L grade, or
vice-versa, will be
calculated on pro-rata
basis for the service ut in
by him in the respective
grades.
(vi) In an exceptional case of
hard-ship, such as
sickness, a permanent
employee, who has
exhausted all other
leave, maybe granted
leave in anticipation of
leave to accrue,
normally up to the
extent of leave already

35 | P a g e
 earned by him during
the calendar year but not
exceeding fifteen days
(in the case of an E
grade employee) and 30
days (in other cases).
(vii) In the case of an E grade
employee, the weekly
and paid holiday falling
within the period of
leave will not be treated
as part of the leave; in
other cases, they will be
counted as part of the
leave.
(viii) Salary for leave of four
days or more will be
paid in advance, if
required.
(ix) Privilege leave cannot
be en-cashed. The leave
due at the time of
separation will,
however be paid for.
(x) Can be combined with
all other leave, except,
casual leave.

QUARANTINE LEAVE

An employee coming in Twelve days at a time,

direct contact of small- irrespective of the
pox case in his family or number of times.
while away from head
quarters
Provided:
(a) The medical authorities (i) Not eligible if the
have been informed as employee himself is
soon as possible after suffering from an attack
the signs of the disease of small-pox.
were first detected.
(b) All members of the (ii) Not eligible if the
family and others quarantine period falls
receding in the house during the period of leave
have been vaccinated of an employee. If,

36 | P a g e
 during the preceding
three years in the case of
those above 14 years of
age and 7 years in the
case of those below 14
years.
(c) A certificate from a
competent authority
preventing the employee
from moving out is
produced when directly
contacting a small-pox
case outside the head
quarters.
SICK LEAVE (FOR ‘E’ GRADE EMPLOYEES)
An employee in E grade,
stationed at Jamshedpur, or
attached to Service
Department and stationed
outside, with a continuous
service of not less than
twelve months.
37 | P a g e
Thirty days on half pay per
calendar year, for service put
in during previous year.
however, if the
quarantine period
exceeds the leave period,
will be eligible for the
quarantine leave for the
days in excess of the
leave already sanctioned,
subject to a maximum of
twelve days from the date
of directly contacting a
small-pox case.
(iii) Can be combined with
any other leave except
casual leave.
(i) Can be accumulated up to
sixty days.
(ii) The first two days of
sickness will be treated as
waiting period and
adjusted against privilege
leave if due (not against
casual leave) or treated as
leave without pay if no
leave is due. If fallen ill
again within fifteen days
from the previous
sickness, no waiting
period is necessary.
(iii) Sick leave will be granted
to an employee:
(a) If stationed at
Jamshedpur, on
production of a
 certificate from
company’s
Medical Dept. on
official
format/prescriptio
n.
(b) If stationed
outside
Jamshedpur, on
production of a
certificate from a
Registered
Medical
Practitioner
approved by the
company; and
(c) While away from
head-quarters, on
production of
certificate from a
Registered
Medical
Practitioner and
counter-
signed/approved
by the company’s
Medical Officer.
(iv) The time limit for
submission of medical
certificate for sickness
and extension of leave is:
(a) Forty-eight hours
if stationed at
Jamshedpur; and
(b) Seven days if
away from head-
quarters.
If however, there is likely
to be a delay for reason
beyond the employee’s
control, the departmental
head should first be
advised within the
stipulated period and he
medical certificate
submitted there after

38 | P a g e
 within one week if at
head-quarters and
fourteen days if away
from head-quarters.
(v) When an employee is on
company’s medical unfit
list, the absence will
automatically be adjusted
as sick leave if due. It
may be permitted to be
re-adjusted as Privilege
leave. If so desired
employee be an OR grade
employee (not coming
within the Good
Attendance Scheme, if
any, in force), depending
upon the merits and
circumstances of he case.
(vi) An employee appointed
on or after 2nd of July of a
year is not eligible for
sick leave for that
calendar year. An
employee appointed
before 2nd of July of a
calendar year will,
however, be granted
proportionate sick leave
for the year, to be availed
of by him after
completion of twelve
month’s service.
(vii) If an employee has
absented himself and/or
has taken leave for more
than ninety days during a
calendar year, he will be
granted proportionate
sick leave for the
effective number of days
of service put in by him
(including weekly and
paid holidays) on the
basis of 30 days’ sick
leave for 275 days’

39 | P a g e
 effective service.
(viii) When an employee in E
grade is
promoted/converted to
any other grade, the sick
leave on half-pay at his
credit on the date of
promotion/conversion
will be converted to sick
leave on full-pay on the
basis of thirty days’ sick
leave on half-pay being
equivalent to ten days’
sick leave on full-pay.
His leave account will be
credited with ten days’
sick 1st January occurring
thereafter.
(ix) Can be combined with
any leave other than
casual leave and accident
leave.

SPECIAL LEAVE

Purpose Quantum Condition Remarks

(a) Attending court as Three full days or six Production of
a State witness. half days in a year. certificate of
attendance from the
court.
(b) Donating blood. One day, on the day Production of If an employee
of donation of blood certificate from the called for donating
.If donated on the day Jamshedpur Blood blood returned
prior to a weekly Bank authorities. without donating
holiday, one day blood for any
succeeding the reason, attendance
weekly holiday. for that day or for
the number of hours
considered fit may
be certified by the
Departmental Head
on the basis of
certificate from the
Blood Bank
Authorities.

40 | P a g e
(c) Attending Military, As required by the Recommendation of
Naval, Air Force, training authority Administration
Territorial Army, concerned. Department based on
Home-guard or certificate of
Civil Defence attendance from the
Training concerned training
authority.
(d) Participating in As approved by the Certificate by the in-
sports, games and management from charge of sports
other functions. time to time. activities or the
official concerned
with the function, as
the case may be.
(e) Acting as an Four days in a year, Prior approval of GM. Temporary
examiner for a excluding travel time. employee not
University or entitled.
Professional body,
or attending any
meeting connected
thereto, in private
capacity.
(f) Attending or Seven days in a year, Prior approval of GM. Temporary
participating in a excluding travel time. employee not
professional entitled
meeting, seminar,
or conference as a
delegate, in private
capacity.

STUDY LEAVE

A permanent On half-pay, or 1. General conditions:

employee with three without pay, up to two
years’ service in the years, beyond which (a) Leave may be granted:
Company (Paid approval of Head
apprenticeship where Office is necessary. (i) if the study/training proposed
absorbed immediately will be appropriate to
on completion of employee’s work and
training may, in an position in the company;
exceptional case, be (ii) if he s able to absorb and
included in service). benefit by the study/training
outside;
(iii) if his services can be
conveniently spared without
detriment to company’s
work; and

41 | P a g e
 (iv) if, on return after
study/training, he is likely to
be more useful and effective
in his work and also train
others, if necessary.

(b) Where an employee will receive

payment at the place where he will be
going for training/experience or were
studying/training proposed will not be of
immediate utility to the company but
may be of advantage at a future date, the
study leave will be without pay.

(c) Study leave period will commerce

only after expiry of the privilege leave
due, including proportionate privilege
leave till the date of expiry of the
privilege leave originally due and
availed of.

(d) An employee granted study leave

will rejoin duty within fifteen days of his
arrival in India from abroad or
completion of study/training in India as
the case may be. On rejoining:

(i) he will be fixed on a salary not less

than what he would have drawn had he
not availed himself of the study leave;
(i)
(ii) the leave account will be credited
with proportionate leave for the period
from e date of joining to the end of the
calendar year as under;

Privilege Leave- From 1st Jan following.

Casual Leave- From the date of rejoining

duty.

Sick Leave- from 1st Jan following (only

if re-joined before 2nd July of the year).

42 | P a g e
 (ii) The question of
treating the whole
or any part of the
study leave period
as approved
service for
Provident fund
and Gratuity
benefits
(eligibility as well
as payment) will
be decided on
merit of individual
cases as may be
found necessary
from time to time.

(e)The period of study leave will not

count for P.F and Gratuity benefits
where an employee does not re-join duty
on expiry of such leave.

(f)Can be combined with lieu leave,

privilege leave and leave without pay.

43 | P a g e
 2. Applicable to study leave on half-pay:

(a) The employee will be paid during the

study leave period half of is basic pay,
P.P and D.A., contribution to P.F being
on a proportionate basis.

(b) He will execute a contract to serve

the company for a period as under, from
the date of resuming duty after
completion of study leave:

Period of study Duration of

leave contract
Less than one month - No contract

One month and above - 2 years

but up to six months

Six months and above - 3 years

but less than 2 years

(c) He will submit a report on

study/training within three months of
resuming duty.
3. Applicable to study leave without pay.

There will be no contract. The employee

need not also submit any report of his
study/training.

LEAVE WITHOUT PAY

An employee who may Up to one year (for study (i) Leave without pay is normally
have exhausted all other leave up to 2 years), beyond granted only for exceptional
kinds of leave to him. which approval of Head reasons, such as the sickness of
Office is necessary. an employee who has
exhausted all other kinds of
leave due to him, on the merits
of the case as approved by the
Management and on such
conditions as may be
prescribed. It cannot be

44 | P a g e
 claimed as a matter of right.
(ii) The question of treating the
whole or any part of the
authorised leave without pay as
approved service for provident
fund and gratuity benefits
(eligibility as well as payment)
well be decided on the merits
of individual cases as may e
found necessary.
(iii) Can be combined with any
other leave, including casual
leave.

45 | P a g e
 SALARY PAYMENT, LOAN AND L.T.A

1. Payment of salary :

Salary will be paid to employees from the 1st to the 5th of each month, as per payment
programme fixed for the purpose. An employee may receive his salary either in cash or
through bank. An employee desirous of having his wage paid through bank should apply
to the Senior Accounts Officer.

2. Authorisation :

An employee may authorise another permanent employee to receive the salary/wages on

his behalf. In such a case :
(a) An authorisation letter in favour of the permanent employee who will be drawing the
salary, together with the form prescribed for the purpose duly approved by the
Departmental Head, should be submitted ; and
(b) Both the documents should be attached to the counterfoil of the payslip and handed
over to the cash office for payment.

3. Deductions :

Recoveries from wages and salary will be made subject to statutory restrictions, the order
of priorities being indicated:
(a) Statutory deductions like provident fund, family pension fund, income-tax etc.
(b) Court attachment;
(c) Dues of other agencies like the Co-operative Society, Insurance, Recreation Club,
Telco Club, etc.

4. Salary Advances :

(a) Advance against salary, if required, is given when an employee proceeds on privilege
leave for a minimum period of four days. The amount of advance will be calculated
with reference to the period of leave taken and the normal net pay of the preceding
month.
(b) If the payment date falls during the leave period, the salary due, after usual
deductions, may be taken in advance before proceeding on leave.

5. House rent subsidy :

(a) An employee to whom Company’s quarters have been allotted will be paid the house rent
subsidy due on vacation of the quarters. In such a case, an application is to be made to the
Senior Accounts Officer (Wages) in plain paper, duly certified by the Town
Administration to the effect to the quarters have been vacated.

46 | P a g e
 (b) An outstation employee should submit rent receipt for the first month and a declaration in
the prescribed form to the Wages section, so that the house rent subsidy may be paid to
him as per rules.

6. Attendance :

(a) Leave applications – An employee proceeding on leave should submit his leave
application well in advance before he proceeds on leave, as per rules. Leave applications,
duly sanctioned, should be forwarded by the Departmental Head to the Time Office
concerned in respect of OR grade employees and the Wages section in respect of other
categories on a day to day basis, without holding them back to be sent in a bunch, for
facilitating the recording of leave and making proper payments in time.
(b) Deputation of official work – When an employee is sent outside on official work, due
intimation should be sent by the Head of Department to the Accounts Department of the
likely duration of the tour before the employee actually proceeds on such official work,
so that the employee’s attendance may be properly booked and payment made
accordingly. Similar advice should be sent to the Accounts Department whenever tere ia
an extension of the period.

7. Company Loans :

Company loan is granted to a permanent employee subject to the following norms,

seniority, available budget and the rules in force from time to time :

Type of loan Eligibility 6 months’ Rate of interest Rate of

basic pay Principal interest interest
subject to a
max. amount
of (Rs.)
(a) House loan E-6 & above 200000 32 4 6.5% on
deducting
balance.
(b) Four E-6 & above 150000 32 4 ‘’
Wheeler
loan
(c) Two E-5 & above 45000 20 2 ‘’
Wheeler
loan

47 | P a g e
 8. Leave Travel Assistance (L.T.A) :

(a) A permanent employee who has completed one year of service is eligible for Leave
Travel Allowance Assistance (L.T.A) once in a block of two years, or once in a
financial year, as may be applicable to his grade, at the rate indicated below :

E -1 to E -2 Rs. 120/- Once in a block of 2 years

E -3 to E -5 Rs. 120/-
E-6 to E -8 Rs. 240/-
E -9 Rs. 400/-

(b) An employee should avail himself of a minimum of three days’ privilege leave (not
any other type of leave) to get the L.T.A.
(c) An employee who does not claim the L.T.A due within the block of two calendar
years or the financial year, as the case may be, by availing himself of at least three
days’ privilege leave within that period, will not be eligible for the same
subsequently; in other words, the L.T.A due for a particular period cannot be carried
forward. For example, an employee entitled to L.T.A on financial year basis should
start availing himself of the privilege leave latest by 29th March of a year to become
eligible for L.T.A for that financial year.
(d) Where an employee is promoted to a higher grade during a financial year (or block of
two calendar years) resulting in higher entitlement of L.T.A in the new grade, the
total amount of L.T.A payable for the period will be proportionate to the number of
completed months in the two grades.
(e) Where an employee is promoted to a higher grade after his availing of the L.T.A in
the lower grade, he can claim the additional amount due as mentioned in para (d)
above. Such a claim should, however, be made, as far as possible, within one month
from the date of Establishment Order of promotion.
(f) The amount of L.T.A received by an employee for himself and his family for
proceeding to his ‘home district’ or for the first journey to any other place in India
during a block of four calendar years (e.g. 1978-1981) is exempt from Income tax ,
provided the actual expenditure incurred on such journey is equivalent to or more
than the amount received by him as L.T.A. If the expenditure is less than the L.T.A,
the difference amount is taxable.
(g) The criteria laid down for declaration of ‘home district’ by an employee are as under:
(i) The place declared by the employee is one which requires his physical presence at
intervals for discharging various domestic or social obligations and, is so, after his
entry into service, he had been visiting that place frequently; or

48 | P a g e
 (ii) The employee owns residential property in the place or is a member of the joint
family having such a property there; or

(iii)The employee’s near relations are resident in that place; or

(iv)Prior to his entry into service, the employee had been living there for some years.

Once an employee has exercised his option in respect of his ‘home district’, he will
not ordinarily be allowed to change the same.

(h) A declaration indicating the expenditure likely to be incurred by an employee and his
‘family’ for proceeding to his ‘home district’ or to any place in India, as the case may
be, should be made strong with the claim for L.T.A to access income tax liability.

49 | P a g e
 SENIORITY
1. Scope :
The scope of the rules on seniority covers all employees in E grades up to E-9.

2. Reckoning of seniority :
The date of appointment or promotion to a grade will, in the first instance, determine the
seniority of an employee among other employees in the same grade appointment
category. In the event of the date of appointment and promotion to apprentice grade
remaining the same in the case of two or more employees, seniority will be determined
on the basis of appointment or promotion to the grade or grades immediately below, in
turn.

3. Where seniority is identical :

In the event of the dates of appointment and all subsequent promotions in higher grades
remaining the same between two or more employees, i.e. where the employees concerned
hold identical seniority, the post will be filled up as per the recommendation of the
Departmental Head, duly approved by the competent authority above him, as per
delegation of powers.

4. Seniority of ex-trade apprentices absorbed on the same date :

(a) In the case of two or more ex-trade apprentices belonging to the same batch
and holding identical seniority (i.e. dates of absorption and subsequent
promotions remaining the same), the seniority will be decided on the basis of
the ranking during the apprenticeship.
(b) If apprentices belonging to different batches are absorbed on the same date
without any break or if they had been released on the completion of their
apprenticeship and subsequently taken as special apprentices on different
dates but absorbed as regular employees with effect from the same date, the
seniority will be determined on the basis of apprenticeship batches to which
they belonged and within such batches according to rank.

5. Seniority of people selected in the same interview :

Seniority of employees from different departments selected at the same interview against
posts required to be filled up simultaneously will be reckoned from the date from which
any of them first assumes charge of the post, irrespective of the date of release of others.
If an outsider is also selected along with the departmental candidates at the same
interview and he joins duty on a date earlier than the Company’s employees, then the date
from which the outsider joins duty shall be the date from which the seniority of the

50 | P a g e
 Company’s employees selected for the post shall be reckoned. Seniority of employees
kept on the panel for selection against future vacancies will, however, be reckoned only
from the dates from which they are actually appointed against the higher posts.

6. Seniority of an employee acting a higher post :

In the case of an employee acting against a higher sanctioned post and being
subsequently confirmed in, or promoted to, that higher post, his seniority will be
reckoned only from the date of his confirmation/promotion to the higher post and not
from the date of acting.

7. Seniority on transfer :
An employee transferred from one department to another in the Company’s interests will
maintain his seniority in the grade, whereas the seniority of an employee transferred at
his own request, or for having been found surplus to requirement or for having been
found unsuitable or unfit to carry on his normal duties and given alternative employment
will be reckoned only from the date of his joining the new department.

8. Supersession of seniority :
If the senior most employee is found by the Departmental Head to be ineffective or
incapable of performing the work of the next higher post, he will be superseded, in
writing, for acting in, or promotion to, the higher post, with the approval of the Divisional
Head, as per normal procedure. An employee so superseded will have no subsequent
claim for either acting in, or promotion to, such higher post till the supersession is
rescinded.

51 | P a g e
 SETTLEMENT OF ACCOUNTS
1. Introduction :
On the separation of an employee from the service of the Company, for any reason, the
final settlement of his accounts will be made in accordance with the provisions contained
in the Certified Works Standing Orders of the Company, the Provident Fund Rules and
the Gratuity Rules, as well as the statutory regulations in force from time to time, on his
giving clearance of what is due from him to the Company on different accounts.

2. Liability of an employee :
At the time of separation from the service of the Company, an employee is required to
clear all outstanding dues from him on different accounts and also to account properly for
money, materials, tools, instruments, equipments, books or other properties of the
Company that maybe issued to him while in service, or be in his possession, custody or
charge, and obtain clearance from the departments concerned as per the clearance
certificate procedure in vogue from time to time, before his accounts are finally settled.
He will, in particular:
i) Give vacant position of the Company’s quarters, if any, allotted to him;
ii) Surrender the permanent gate pass and the medical identity card;
iii) Return the application for gratuity sent for signature;
iv) Submit the application form for transfer of Provident Fund in case he is taking up
employment elsewhere and the Provident Fund of that organisation is covered by the
Employees’ Provident Fund Act, or that organization maintains a Provident Fund
which provides for the acceptance of transfer of provident fund balance of a ‘worker-
member’ covered by the Employees’ Provident Funds Act.
Or
Submit a non-employment certificate, after the lapse of six months from the date of
separation, if unemployed, with advance receipt for the amount.

3. Clearance Certificate;

(a) Types of clearance certificates :

There are three different types of clearance certificates as under:

i) Mainly for temporary and substitute employee, in yellow colour;

ii) Mainly for permanent employees, employees on probation and graduate
apprentices/trainees coming under the Sr. Manager (M.D), in blue colour; and
iii) Only for full-term and other types of apprentices coming under the Manager
(Training), in pink colour.

52 | P a g e
 (b) Department concerned with clearance :

i) Temporary and substitute employees(yellow colour) – In the case of

temporary and substitute employees, clearance is to be given only by the
Departmental Head (after satisfying himself fully that there is nothing
outstanding against the employee) and the Medical Department;

ii) Permanent employees, probationers and G.Ts.(Blue colour) – In the case of

permanent employees, employees on probation and graduate
apprentices/trainees coming under the Sr. Manager (M.D.), clearance is to be
given by a number of departments s under :

a) Departmental Head/Tool Crib: For permanent gate pass, medical identity

card, tools, materials, etc.
b) Town Department: For vacation of quarters, if any allotted, including of
repair of damages to quarters and fittings, payment of rental charges and
electricity charges.
c) Medical Department: For outstanding medical bills.
d) Telco recreational club: For outstanding dues, books or any other articles.
e) Telco club (only in the case of RMG staff): For outstanding bills and
books.
f) Telco co-operative credit society: For outstanding loans, if any, and for
releasing suretyship.
g) Central Library: For returning of books.
h) Accounts Department: For outstanding loans, advances and payments due
on any other account.

iii) Full-term and other apprentices except G.T.s (Pink colour) –In the case of
full-term and other types of apprentices coming under the Manager (Training),
clearance is to be given by the different sections under the Manager (Training)
(after satisfying themselves that there is nothing outstanding against the
employee) and the Medical Department.

4. Payment of dues to an employee :

(a) After getting clearance from the departments concerned as per the clearance
certificate procedure, the amount due to an employee on different accounts will be
paid to him as per rules governing such payments and briefly indicated therein.

53 | P a g e
 (b) Wages –In the case of and employee governed by the Payment of Wages Act (i.e. an
employee on total emoluments not exceeding Rs. 1000/- per month), whose services
have been terminated by the Company, the wages due to him will be paid to him
before the expiry of the second working day from the date of termination of his
service. In other cases, the payment will be made before the seventh working day
from such termination provided the employees concerned have complied with the
requisite formalities.
(c) Provident Fund and Gratuity –Payment on account of provident fund and gratuity will
be made in accordance with the statutory regulations and the Company’s rules in
force from time to time as soon as possible after receipt of the clearance certificates
but not later than seven days from the date of separation in a case of superannuation
and fifteen days in other cases, when the other dues, if any, such as ex-gratia amount,
will also be paid.

5. Payments due to a deceased employee :

(a) Where valid nominations exist :
In the event of the death of an employee who had made valid nominations to receive
the provident fund and gratuity amounts due to him, the payment will be made, as per
the Provident Fund and Gratuity rules, to the nominee, on his or her being identified
to the Company’s satisfaction by two respective people known to the Company. The
same procedure will apply if there are more than one nominee, after getting clearance
certificates from the departments concerned. They will, in particular:
 Vacant the Company’s quarters, if any, allotted to the deceased employee;
 Surrender the permanent gate pass and medical identity card issued to the
deceased employee;
 Obtain an estate duty clearance certificate from the Controller of Estate Duty in
case the settlement amount exceeds Rs. 25000/-, or execute an agreement with
two sureties (preferably permanent employees of the Company), undertaking to
indemnify the trustees of the Provident Fund from the liability for payment of
Estate Duty in case it is found to be leviable on the amount paid to the nominee
where the settlement amount does not exceed Rs. 25000/-
 Submit an identification form, signed by two permanent employees of the
Company, in the prescribed form, with “acceptable proof of death” of the
employee.
 Submit an application form for gratuity where due in the prescribed form; and
 Submit advance receipt for the provident fund amount.

(b) Where there is no nomination :

 In the event of the death of an employee who had not made any nomination in
respect of provident fund or gratuity, the amount due to him on those accounts,
along with wages and other dues, will be paid to the person who produces a

54 | P a g e
 Succession Certificate (in the case of a Hindu or a Muslim) or Letters of
Administration (in the case of a Parsee or a Christian) from the appropriate court,
in support of his/her claim to receive the amount.
 Where the amount due to an ex-employee on other than provident fund and
gratuity accounts is less than Rs. 1000/- and insistence on the production of
Succession Certificate/ Letter of Administration may operate as undue hardship to
the claimant, payment may be made to the claimant, if he/she is the rightful next-
of-kin, on his/her executing an agreement with two sureties (preferably permanent
employees of the Company), indemnifying the Company from any loss arising out
of such payment and agreeing to refund the amount paid to him/her if it became
necessary, in the form prescribed for the purpose.

6. Life Cover Scheme :

In the event of the death of an employee (permanent or temporary) for any reason, while
in service, if he had been a member of the Provident Fund at the time of his death, his
nominee to the Provident Fund, or the person who produces a Succession Letter/ Letter of
Administration where there is no nomination, will be paid a sum equivalent to twenty
months’ wages/salary (basic pay, P.P. and D.A), subject to a minimum of Rs. 11000/-.
This will be in addition to the payment of gratuity and the benefits due, if any, under the
Group Insurance Scheme. This benefit due, if any, under the Group Insurance Scheme.
This benefit will also be extended to an employee who suffers permanent total
disablement.

7. Importance of nomination :
With a view of facilitating the settlement of accounts without delay and to avoid
unnecessary hardship and inconvenience to the dependants of a deceased employee in
getting Succession Certificate/letter of Administration, it is absolutely necessary that
every employee should make proper nomination both in respect of provident fund and
gratuity. In the interests of employees concerned, the supervisory and managerial stuff
should ensure that all the people working under them have made proper nominations by
getting in touch with the Establishment Sections concerned.

8. Family pension fund and Superannuation Scheme :

Where an employee is a member of the Family Pension Fund, he will apply directly to
the Regional Provident Fund Commissioner, Bihar, Patna and where he is governed by
the Employees’ Superannuation Scheme, he will apply directly to Telco, Mumbai, in the
form prescribed for the purpose in each case, for the settlement amount due. The same
procedure is to be followed also in the case of a deceased employee.

55 | P a g e
 SEVA NIDHI YOJANA
1. Introduction :
Seva Nidhi Yojana scheme has been worked out in consultation with the Union, in
pursuance of the provisions of the Memorandum of Settlement dated 30-03-1978
between the Management of Telco and their workmen, represented by the Telco
Workers’ Union, Jamshedpur, arrived at in the course of conciliation proceedings held by
the Deputy Labour Commissioner and the Conciliation officer, Jamshedpur.

2. Aims and Objectives :

The aims and objectives of the scheme are to give financial help to the nominee(s) of
permanent employees/probationers (workmen, supervisory and managerial staff), who are
members of the scheme and who have paid their contribution in full, in the event of their
death, natural or otherwise, while in the service of the Company.

3. Membership :
Membership of the scheme is open to all permanent employees of the company, including
probationers, who will join the membership by filling in and signing the form prescribed
for the purpose.

4. Membership fees :
Each permanent employee/probationer who is a member of the scheme will contribute
Rs. 5/- to the ‘Seva Nidhi’ in each case of death, while in service, of a permanent
employee/probationer who is a member of this scheme, The amount will be deducted
from the wages/salary of the member of the scheme and will remain in the safe custody
of the Seva Nidhi Committee, constituted for the purpose, for disbursement as per the
decision of the Committee.

5. Termination of membership :
Any member who ceases to be in the services of the Company will automatically cease to
be a member of the Scheme. The membership of the Scheme will also be cancelled on
voluntary resignation from the Scheme or expulsion for acts detrimental to the interest of
the aims and objects of the Scheme.

6. Claim and procedure for payment :

The nominee(s) of the deceased member will apply in writing to the Chairman/Secretary,
Seva Nidhi Committee, through the Head of the Establishment Section of the Division
concerned ordinarily within thirty days after the death of the employee, with acceptance
proof of death, as mentioned below. The amount of payment will be equal to the
contributions made by other members on account of the death of the deceased employee.

56 | P a g e
 7. Acceptance proof of death :
The following will be considered as acceptable proof of death :
(a) In the case, where a member who was under treatment at the Telco Hospital or Tata
Main Hospital when the death occurred, the certificate issued by the hospital
authorities of Telco or Tata Main Hospital, as the case may be, and
(b) In other cases, certificate from any one of the authorities mentioned below, giving full
particulars of the deceased member, nature of disease, date, time and place of death,
after proper scrutiny and verification :
 Government or municipal or local hospital authorities where the member died
while under treatment;
 Local authorities entrusted with the responsibility of issue of birth and death
certificates, such as Corporation, Municipality, Notified Area Committee, etc;
 The registered medical practitioner who may have attended on the member;
 Competent police authorities in the case of death due to an accident or any
crime or riot (together with a copy of the post-mortem report, if any);
 Mukhia of the gram Panchayat duly countersigned by the B.D.O/Circle
Officer, Tashsilder or any other gazetted officer; or
 Any other valid proof acceptance to the Seva Nidhi Committee.

8. Administration of the Scheme :

The Scheme will be administered by a joint committee consisting of thirteen people
(office-bearers and members) nominated by the General Manager and the Telco Workers’
Union, as provided for in the Scheme. The company will have no liability whatsoever
under the Seva Nidhi except providing the necessary assistance for its operation.

57 | P a g e
 SUPERANNUATION
1. Every employee will be automatically retire from the service of the company on his
attaining the age of 60 years on the basis of the date of birth as entered in the Company’s
records.
2. An employee to be superannuated will be paid salary/wages (Basic Pay, Personal Pay and
Dearness Allowance only) in lieu of the quantum of privilege leave at his credit
immediately before his separation, including leave proportionate to the period from 1st
January to the date of superannuation, even if the total period exceeds the permissible
limit of accumulation due to the reckoning of proportionate leave for the last calendar
year of service.
3. Advance notices are given to employees regarding their actual dates of separation just to
help him make the necessary arrangements for their retired lives.
4. An employee governed by the Superannuation Scheme (i.e. whose basic salary is Rs.
1500/- p.m. or more) will get the benefits due as per the Scheme, details of which maybe
had from the separate printed rules on the subject.

58 | P a g e
 RESEARCH METHODOLOGY
1. Research Design :
Research design is a process of deliberate anticipation directed towards bringing an unexpected
situation under control. A research model therefore enables a researcher to see the whole study
structure and also realize the place and importance of the successive steps that he will be
required to take in the total scheme. The type of research design used in the project was
Descriptive research because; it helps to describe a particular situation prevailing within a
company. Careful design of the descriptive studies was necessary to ensure the complete
interpretation of the situation and to ensure minimum bias in the collection of data.

2. Sampling Technique :
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern, especially for the
purposes of statistical theory are employed to guide practice. The sampling process includes the
five steps:
o Specification of the sampling method for selecting items or events from the
frame.
o Determine the sample size.
o Implement the sampling plan.
o Sampling and data collecting.
o Review of the sampling process.

The process of selecting a sample from a population is called sampling technique. The
sampling technique adopted for this study is Convenience Sampling.
3. Sample Size:
A sample is a definite plan for obtaining for a given population. It refers to the technique or

59 | P a g e
 the procedure the researcher would adopt in selecting items for the sample. Sample design
may as well lay down the number of items to be included in the sample (i.e.) the size of the
sample.

The procedure by which a few subjects are chosen from the universe to be studied in such as
way that the sample can be used to estimate the same characteristics in the total is referred to
as sampling. The advantages of using samples rather than surveying the population are that it
is much less costly, quicker, and if selected properly, gives results with known accuracy that
can be calculated mathematically. Even for relatively small samples, accuracy does not suffer
even though precision or the amount of detailed information obtained might. These are
important considerations, since most research projects have both budget and time constraints

The sample size of a statistical sample is the number of repeated measurements that
constitute it. It is typically denoted n, and is a non- negative integer.

The sample size taken for this study is 30 to study the Labor welfare measures

4. Methods of Data Collection :

There are two main sources of data available to us. They are:

Primary data:
The primary data includes the various aspects surrounding the employee in the workplace
such as organizational culture, personal satisfaction, organizational environment provided by
the employer.

Secondary data:
The secondary data has been obtained from books, journals, company web sites and from
internet websites.

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 RESULT AND INTERPRETATION

1. Data Analysis and Interpretation :

Analysis and interpretation plays the most important role in any research process. It helps to
extract pertinent findings from the collected data by applying the statistical techniques in
discovering additional findings. It converts raw data into meaningful data by bridging the
gap between primary and secondary data. Analysis is done with an attempt to organize and
summaries data in order to enhance the effect of results in such a way that enables to relate
critical points with study’s objectives.

Percentage analysis and chi-square were used for data analysis and interpretation. Analysis
and interpretation was based on questionnaire and interview schedule, which gives the data
that is required for the study. The analysis and interpretation is based on the options chosen
by the respondents.

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 TABLE 1.

GENDER OF THE RESPONDENTS

Gender No. of respondents Percentage (%)

Female 10 33
Male 20 67
Total 30 100

Inference:
From the above table it is inferred that, 33% are female respondents and 67% are male
respondents.

CHART 1.

GENDER OF THE RESPONDENTS

Respondents

20

15

10 20
Respondents
5 10

0
Female
Male

Source: Primary Data

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 TABLE 2.

AGE OF THE RESPONDENTS

Age No. of respondents Percentage (%)

Below 25 11 36
25-30 8 27
31-35 6 20
36-50 5 17
Total 30 100

Inference
The above table discloses that 36% of respondents are age below 25.
27% of respondents are aged between 25-30.
20% of respondents are aged between 31-35 and 17% of respondents are age between 36-50.

CHART 2.

AGE OF THE RESPONDENTS

Respondents
12
10 11
8
8
6
6 Respondents
4 5
2
0
Below 25 26-30 31-35 36-50

Source: primary data

TABLE 3.
EXPERIENCE OF THE RESPONDENTS
Experience No. of respondents Percentage
Below 1 year 6 20
1-5 years 15 50
6-10 years 5 17

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11 & above 4 13
Total 30 100

Inference
The above table discloses that 20% of respondents are below 1 year of experience.
50% are having experience between 1-5 years.
17% are having experience between 6-10 years and 13% of respondents are having 11 years and
above experience.
CHART 3.

EXPERIENCE OF THE RESPONDENTS

Respondents
13%
17% 20%
Below 1 year

50% 1-5 years

6-10 years
11 & above

Source: primary data

TABLE 4.

The liability of paying fringe benefits tax in your organization

Options Percentage (%)

A) The employer(entirely) 2%

B) The employee 90%

C) The employer but recover from 3%

employee

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 D) Partially the employer and partially the 5%
employee

CHART 4.

RESPONSE

100%
80%
60%
40%
RESPONSE
20%
0%
A RESPONSE
B
C
D

Source: secondary data

Note: - As here major no. of respondent is saying that “The liability of paying benefits
tax in your organization” which tends to “Tax liability decrease and Net Take-Home-pay
increase “.
TABLE 5.

How do you segregate and apportion the various benefits between different grades and
designations of employees.

Options Percentage
(%)
A. Same benefits for all grades and designations of 30%
employees
B. Different benefits for different grades and designations 50%
of employees
C. Increase the benefits according to increase in grade pay 20%
and designations of employees

Inference
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The above table discloses that50% respondent says that benefits are different according to grades
& designations of employee.
30% of respondents are saying that benefits are same for all grades &designation of employees.
20% of respondents saying increase the benefits according to increase in grade pay &
designation of employees.

CHART 5.

Percentage

A
B
C

Source: secondary data

TABLE 6.

Which of the following Benefits (taxable in the hands of employee) are given in your
organization?

Options Percentage (%)

A. Facility of interest-free or concessional housing loan 32%

B. Facility of interest-free or concessional car loan 28%

C. Facility of interest-free or concessional education loan 5%

D. Facility of interest-free or concessional personal loan 8%

E. Use of movable assets(motor car, other assets 12%

F. Any other (specify) 15%

Inference
The above table discloses that respondent says that Benefits (taxable in the hands of
employee) are given in Tata Motors ltd.

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 CHART 6.

%
F
E
D
C %

B
A

0% 5% 10% 15% 20% 25% 30% 35%

Source: secondary data

TABLE 7.

Options Percentage
A) Monetary 70%

B) Non-Monetary 30%

Inference
The above table discloses that 70% respondent says that benefits are provided in the form of
Monetary.
30% of respondents are saying that benefits are provided in the form of Non- Monetary

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 CHART 7.

form of benefits provided

Monetary
Non- Monetary

Source: secondary data

TABLE 8.

Abolition of Benefit Tax with effect from assessment year 2012-13 will benefit.

Options Percentage
A) The Company 63%
B) The Employees
37%

Inference

The above table discloses that 63% respondent says that Abolition of Benefit Tax with effect from
assessment year 2012-13 will benefit the company most.

37% of respondents are saying that Abolition of Benefit Tax with effect from assessment year 2012-13 will
benefit the employee.

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 CHART 8.

Abolition of benefit tax

The Company
The Employee

Source: secondary data

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 FINDINGS

The following are the findings based on the questions asked to the employees.
 According to the analysis it is found that fringe benefits taxes are paid by employees
only.

 The various fringe benefits differ according to their grades & designation.

 Usually fringe benefits like loan are provided non- taxable & they are sanctioned
according to the salary structure of the employees for their growth & welfare.

 Employees are provided with non-monetary benefits frequently. (to motivate them, by
giving specific target)

 Mostly employee’s thinks that abolition of fringe benefits taxes in upcoming assessment
year will benefit company most.

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 SUGGESTIONS

 Funeral expenses charge of minimum Rs 1000 to Rs 2000 could be paid if the labour’s
mother/father or married husband/wife is dead.
 Employer should provide the facility such as Employee assistance programs & wellness
programs
 Employees undervalue their benefits for many reasons including: employers communicate
the value of the benefits poorly, the employees have little or no choice in benefits
packages or options, and the employees misunderstand the market value of benefits. So
help them regarding this & make the fair treatment between all.

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 CONCLUSION

The study concludes that, the benefits at “Tata Motors Ltd.” are highly effective. This study
highlighted so many factors which will help to create the motivation & job satisfaction among
the labor force.

The company is having good welfare activities and the labours are satisfied with their benefit
schemes provided by the management. It is helpful for the growth of the company to improve its
productivity.

Labor welfare awareness meetings and presentation must carry out periodically, this in turn helps
to improve the labor satisfaction and the will show in the improvements of productivity. Benefits
are an essential part of labor welfare hence is very important to run the company successfully so
the company should follow the welfare activities regularly to improve the labor satisfaction in
their working environment.

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 BIBLIOGRAPHY

1. ARTICLES-

 A study of employee services, its causes and the management of it, July 2005 by Declan
Naughton
 Master thesis on key to blue-collar retention, May 2011, by Wouter Langenhoff
 International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-
9563 Vol. 3, No.2, April 2013

2. BOOKS-

 Colette A Frayne(1994) – The Basics of Employee Benefits

 Nina Gupta and G. Douglas Jenkins( 1980) – HR Council

3. WEBSITES-

 http://www.tatamotors.com
 http://en.m.wikipedia.org
 http://www.tmf.co.in
 http://www.themarlincompany.com

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