Free Essay

Compensatio

In: Business and Management

Submitted By qaimmahar
Words 2948
Pages 12
nCOMPENSATION AND BENEFITS
OBJECTIVE
SNGPL has lots of expectations from its employees, so they provide them with lots of compensations and benefits, which make them more efficient.
LIST OF COMPENSATIONS AND BENEFITS PROVIDED BY SNGPL * Group Life insurance * Medical benefits * Profit bonus * Annual increment * Promotion in upper grades * Gratuity Provident fund facility * Pension Facility * Educational scholarships * Loans * Uniform for workers * Leaves
GROUP LIFE INSURANCE * INSURANCE POLICY a) The SNGPL provides group life cover to employees. Premium is paid by the organization. The HR department is responsible for coordinating settlement proceedings and providing assistance to an employee in lieu of any claim filed under the scheme. b) This benefit becomes effective from the date of becoming the member of the group insurance scheme. On confirmation, employee is required to nominate names of beneficiaries who would be entitled to receive payments in event of his/her death. c) Payment is made only in case of in-service death of an employee. Death after retirement would not entitle the surviving spouse or family members, as the case may be, to any benefits. One time lump sum payment is made equal to the sum assured. * INSURANCE PROCEDURE Head of HR function * Receive written consent from the employee for becoming member of the life insurance scheme. * Coordinate with the employee intending to avail group insurance facility to fill out and sign the insurance documents. * Receive the signed insurance application form stating the name of persons nominated by the applicant as beneficiaries. Head of HR function * Receive written consent from the employee for becoming member of the life insurance scheme. * Coordinate with the employee intending to avail group insurance facility to fill out and sign the insurance documents. * Receive the signed insurance application form stating the name of persons nominated by the applicant as beneficiaries. * In case of death on duty coordinate with the Insurance Company for the payment of claim to the beneficiaries nominated by the employee. * In case of disability arrange the payment of the insurance claim, as per the insurance coverage, to the concerned employee.

MEDICAL BENEFITS * SNGPL provides medical cover for all employees and their beneficiaries, which includes self, spouse, dependent children, parents, and sons with age limit 21 years under its medical/hospitalization insurance scheme. * The scheme provides comprehensive coverage for outpatient and inpatient medical requirements including maternity and critical diseases, and the reimbursement limits vary according to the management and non-management grade.

PROFIT BONUS
SNGPL awards profit bonus to executives on completing a task. The amount of bonus depends on the type of task assigned.

ANNUAL INCREMENT
Annual salary increment is effectively linked to the performance of the employee. A certain amount of salary increment is given across the board to all employees to enable them to cope with national inflationary trends. However, additional increments are awarded in recognition of an individual’s effectiveness; accomplishment, competence and superior performance in his/her job assignment and serve as an incentive for greater achievement.

PROMOTION IN UPPER GRADES
In addition to basic criteria of specific academic/professional qualification, an employee should also have superior ratings in the following areas in order to be considered as eligible for promotion: * job knowledge * communication skills * leadership qualities * interpersonal skills * adherence to policies and procedures * financial discipline GRATUITY PROVIDENT FUND A contributory Gratuity Provident Fund scheme is maintained where monthly contribution to the Provident Fund is made by deducting a specified amount from the employee’s salary and equal contribution is made by the employer as per the terms and conditions of the scheme. Accumulated balance (contribution and profit accrued thereon) in the Gratuity Provident Fund account of an outgoing/retiring employee is payable to the leaving employee or to beneficiaries nominated by the employee in case of his/her death. The employee would not be entitled to get the contribution from the corporation and profits accrued thereon in case his services are terminated due to misconduct. An Employee is entitled for provident fund from the date of joining. If any employee has been with SNGPL for 5 years he/she is given an additional amount in Gratuity Provident fund. PENSION FACILITY Pension facility is provided to all retired employees of SNGPL. Another condition for enjoying pension facility is that the person has been the employee of SNGPL for at least 10 years. There is a specific percentage for pension specified at SNGPL. EDUCATIONAL SCHOLARSHIPS
The children of employees (non-executives) are given educational scholarships up to Rs.1500 per month and Rs.30000 per year is the standardized maximum amount given to an employee’s child for getting admission in an institute.

LOANS
UNIFORM FOR WORKERS
Free uniform is provided to subordinates like peon, attendants, guards, etc.

LEAVES
The following types of leaves can be availed by employees of SNGPL. 1. Sick Leave 2. Casual Leave 3. Maternity Leave 4. Special Leaves 5. Hajj leave 6. Study leave 7. IDDAT leave 8. Privilege leave 9. Minorities leave

1. SICK LEAVE
Sick leave is granted for 30 days per year, in which 2 days leave is without medical certificate and of that rest of the days is with medical certificate.

2. CASUAL LEAVE
Casual leave is for 18 days per year (maximum 6 days leave) no accumulation is allowed.

3. MATERNITY LEAVE
Any female employee is granted maternity leave for 3 months for which a medical certificate is required (maximum for six maternities a year).

4. SPECIAL LEAVE
It is the expansion of sick leave. If the subordinate is not physically fit after normal 30 days leave, his leaves of 3 years will be accumulated to 90 days leave. If an employee doesn’t recover his health then special 90 days leave is granted to him. Even then if he is unable to work, a medical board of company grants him a further 90 days leave (three hundred leaves in accumulation).

5. HAJJ LEAVE
Employees get this opportunity only once the tenure of service. 55 employees are sent to Hajj each year.

6. STUDY LEAVE
Employees can get a leave for 3 months so that they can study abroad.

7. IDDAT LEAVE
Female employees get 2 months leave on the death of their husbands (God forbade).

8. PRIVILEGE LEAVE
Employees get 30 days per year (minimum 5 days leave is allowed)

9. MINORITIES LEAVE
Minorities are allowed to enjoy a 2 days leave on Christmas and Easter every year.

Pay plans, allowances and service benefits

In sui northern gas pipeline limited (SNGPL) there are two statutory notifications under which according to which pay plans and service benefits are offered 1. The gazette of Pakistan, Islamabad, Monday, November 1, 1976 2. SNGPL settlement on October 5, 2009 (this settlement is revised regularly)
Classification of workers
Workers are classified as:- * Permanent * Probationers * Badlis * Temporary * Apprentices
Permanent
A permanent worker is a workman who has been engaged on work of permanent nature likely to last more than nine months and has completed a period of three months probation.
Probationers
It is a worker who is provisionally employed to fill a permanent vacancy ina post and has not completed three months service therein. If a permanent employee is employed as a probationer in a higher post he may, at any time during the probationary period of three months be revised to his old post
Badlis
A worker who is appointed in the post of a permanent/ temporary workman or probationer, who is temporarily absent.
Temporary
A worker who ha been engaged for work which is of an essentially temporary nature likely to be finished within a period not exceeding nine months.
Apprentices
An apprentice means a person undergoing training through the system of apprenticeship.
Payment of wages * All wages due to an employee shall be paid on a pay day to be notified through information posted at the notice board * In case of termination of service the wages earned by the employees shall be paid within 2 working days of the termination.

Unclaimed wages Any wages due but not paid will be notified under rule 7 sub rule (e), shall be paid on an application to account officer.
Advances against wages This is no allowed usually except in following circumstances * Up to a maximum one month’s wages on religious or festival holidays * For each completed calendar month of leave period to persons proceeding on privilege leave.
Deduction of income tax Under clause (f and g) there is deduction of certain percentage of salary for * Provident fund * Relief funds * Income tax payable
Increase in basic pay
It is agreed in principle settlement (from July 1, 2007 to june30, 2009) that basic pay will increase in the following manners * By 8% from 1.7.2007 * By another 20% from 1.7.2008
Increase in wages
It is promised that the wage will increase with the certain percentage annually. Pay scale and rate of increase for each grade is given in following table Revised pay scale Grades | Existing pay scale | Revised pay scale | 1 | 1387*106-19178108-3645 | 1491*126-2121*128-4169 | 2 | 14968110-20468112-3950 | 1632*130-2282*132-4526 | 3 | 1612*12-2172*115-40 12-G*115-4932 | 1737*132-2397*135-4557-G*135-5637 | 4 | 1749*120-2349*125-3849-G*125-4849 | 1849*145-2574*150-4374-G*150-5574 | 5 | 2215*160-3175*165-5155-G*165-6640 | 2435*185-3545*190-6015-3.25%-7523 | 6 | 3320*165-4145*170-5845-G*170-7545 | 35308190-4480*195-6040-3.25%-7801 | 7 | 4117*180-5557*185-6482-G*185-9257 | 4407*205-6457-3.25%-8892 |

Employee’s categorization according to grades
There are seven grades. The pay scale varies as grade changed, there is following distribution of employees according to each grade
Grade 1 Asstt. Printer Cook Peon Mali Tea boy Sweeper

Grade 2
Bearer
Driver
Patwari
Helper
Grade 3 Denter Electrician Mason Pipe fitter Painter Plumber Plant operator Tracer
Grade 4 Auto electrician Engine fitter Draftsman Gas control computist Imam Masjid Record keeper Typist Station operator
Telecom technician
Grade 5 Boiler attendant Meter reader Compressor operator
Welder
Grade 6 Chart reader Row supervisor Stenographer Punch card operator Sales representative
Grade 7 Radio controller Supervisor Bridge Head draftsman Supervisor Sales Inspector
Supervisor Instruments
Senior stenographers Supervisor distribution
Supervisor engine/plant
Boiler attendant
Instrument mechanic
Meter mechanic
Overseer

Allowances and service benefits
Uniforms
In view of company’s resolve for strict compliance of health, safety and environment requirements and also to ensure proper image of the company through employees having a direct interface with the public/consumers, the pattern, design and the type of uniform/protective clothing will be strictly in accordance with the requirement/ recommendations formulated by higher consultants/ specialists as adopted by the management.
Leave/holidays
Leave is not a right but a privilege and requests are considered and met with due regards for service requirements. But there are two basic requirements * Combination of two kinds of leave is not allowed except sick leave. * Permission for leave must be obtained in writing in advance.
Female leaves A female Muslim worker in case of becoming widow shall be allowed 60 days leave with pay during her Iddat period. Any leave in excess of this period is without pay.
Leave fare assistance In full and final settlement of this demand, it is agreed that the present rate of leave fare assistance (L.F.A) will be as follow Revised Leave fare assistance schedule Grades | Existing (Rs) | Revised (Rs) | 1 to 3 | 4200 | 4940 | 4 | 4300 | 5240 | 5 to 6 | 4800 | 5940 | 7 | 4900 | 6340 |

Medical The company provides medical treatment to its employees and his family members through the services of registered medical practitioners appointed as company doctors.
When the medical officer considers a person to be fit for duty though he may have prescribed medicines for him he must continue to attend the work.
Insurance scheme Life of every employee is insured against death and injury for the duration of his employment with the company. The premium for insurance is paid by company which is deducted from their salary.

Workmen’s compensation An employee receiving injury from an accident arising out of and in the course of his employment is entitled to compensate in accordance with the provisions of Workmen’s compensation act (1923). The disability caused by injury will be assessed by the company doctor or the civil surgeon. The amount of compensation varies for permanent, partial and temporary disablements. Amount of compensation increase with the increase in severity of injury.
Furniture
Following basic furniture must be provided by the company to every employee * Ceiling fan * Center table * Two easy chairs * Stationary items
Housing allowance
House rent allowance is 87%, which shall be computed and paid on basic salary, if that person in not availing the opportunity of house allotted by company. PERFORMA FOR HOUSE ALLOTMENT Allotment of HouseI-------------------------------------registration no---------------------------------------------------------------------Token no-----------------------------------------------------------have been given permission to occupy quarter no-------------------------- room no----------------------------------free of rent, hereby, undertaken--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Witness signature of Allottee1------------------------ -----------------------------2---------------------- Registration no------------- Dated---------------------- |

Conveyance allowance Now it is increased from 34% to 35% of the basic salary
Free gas facility A permanent worker will be allowed free gas facility at his home town provided their gas network exist in the area where free gas facility is required. Such an employee will however, not be entitled to any other compensation in case of non availability of piped gas facility.
Electricity allowance It is increased from 13% to 15% of the basic salary.
Entertainment allowance This allowance is Rs 200 per month since 01.01.2009.
Education allowance Each year total 50 scholarships are given to the eligible children’s of employees. It is only allowed if they are studying in an institution which is duly recognized by the higher education (H.E.C).
Haj
It is agreed that 50 workers shall be allowed to perform Haj annually on expense of company.
Loans
* Annually 350 loans for house building are issued to employees * Motorcycle loans issued are approximately 250 per year.
These loans are returned in installments as per balance months of service left in case of each employee concerned.
Blood relations quota Union agreement 1985-87 clause 3d provide the guide lines about the quota that a person can appoint one person (son, brother, daughter etc) but they should be from blood relations. In case of death of that person his wife can also be appointed on his behalf.
Pension/gratuity
It is mutually agreed that * 2.5%authorizeddeduction is allowed on monthly salary to add into this fund * 33 years of service shall be counted for calculating it
Early retirement Employees having 20 years service with 55 years age will be eligible to apply for early retirement. Pension/ gratuity are as per rules for actual number of years served by him in the company.
Retirement increment Employees who retire from service upon superannuation after completing six months in a calendar year i.e. between July1to December 31 will be given one increment as retirement increment. But those who retire between January 1 to June 30 will not be entitled to it.
Benazir stock options Recently employees has been given stock options in accordance to Benazir program. These stock options are given on the basis of seniority and time spent in the company.

COMPENSATION SYSTEM
Compensation systems are basically developed to reward employees behavior so that they are lead to accomplish organizations overall goals and objectives. As we went through the companies compensation system and found the company uses the following systems for compensation of their employees: * Performance based rewarding * Extrinsic rewards. * Union based (CBA).

Performance Based
As already discussed that the organization tracks and recognizes the well performers, they are rewarded in the same way according to their performance in there department and are highlighted amongst the others in the department so that they can also strive to become a well performer. The employees are awarded. Company used performance based compensation system in which it provides monetary rewards to its employees.
Extrinsic rewards:
Company rewards its employees through extrinsic rewarding system which include: * Pay roll increments * Bonuses * Provident fund * Bonds * Stock owner ship
This compensation system is for officers and subordinates.

Rewarding for labor class:
Company provides compensations to the labor class through: * Over time payment * Commissions
Mostly company compensate the blue collars through union based system or Collective Barraging Agent.
As we went through with the compensation system, we found that another system prevailing in the organization was through the union which is working, managing and participating in many affairs of the organization. Certain employees were availing the compensation benefits through the influence of the Union of the organization. The person who had a close type of relationship with the union can easily avail the opportunity of the compensation.
This caused a big problem though as the well performers when found the medium or low performers to be getting the same benefits, incentives & rewards similar to them they get demotivated. The person who is recommended by the union becomes entitled to compensations and benefits.
PROMOTIONS
In SNGPL employees are promoted on the basis of their overall performance in the required fields. The officers of grade 1-3 are promoted on the basis of their yearly performance and till grade-3 officers are promoted in the same manner. But after grade-3 it is mandatory for the officers to clear gas control test to get promotion in grade-4.
At executive level not only the yearly performance is considered but also further trainings are put into consideration of other fields.
At labor level promotions are given on the learned skill level. And after necessary training they are promoted to the positions of pipe line supervisor, patrol team head on site, head technician etc.…...

Similar Documents

Premium Essay

Hr Practices

...subordinates develop close relationships, making a formal appraisal process difficult. Supervisors frequently inflate the work performance of subordinates because personal friendships between supervisors and subordinates blur objective evaluations. The Indian work culture also emphasizes organizational loyalty over performance and efficiency. Further, promotions are usually based on seniority, making organizational tenure an important performance criteria. Organizations usually have annual performance reviews with the supervisor providing comments on employees performance. However, leading Indian companies are adopting a very progressive approach to performance management by adopting a 360-degree approach or management by objectives (MBO). 4.COMPENSATIO N AND BENEFITS A base salary is provided with several other allowances that are typical to Indian employers. The base salary usually accounts for 40 to 50 percent of an employee’s salary. The remaining salary is comprised of several allowances. Housing is expensive in India, and employers often reimburse a portion of the housing expenses through a House Rent Allowance, or HRA. Medical allowances come in a variety of forms. Organizations may reimburse expenditures incurred by the employee or his or her family formedical treatment; pay a fixed allowance for routine check-ups; or participate in a group medical insurance policy. The dearness allowance (known as cost-of-living in the United States.) is calculated as a......

Words: 1681 - Pages: 7

Premium Essay

Employer's Duty of Care and Issues of Compensatio

...Employer's Duty of Care and Issues of Compensation 1. Explain whether Jake’s actions are in or out of “his scope of employment Jakes actions are within the scope of his employment as manager servicing. Being a manager, Jake is responsible for the end to end and orderly running of his department, including meeting the outputs expected and he cannot take shelter under ‘being overworked’. He has to plan his departmental functioning in a manner to cause minimum disruptions for meeting the business objectives of Herman. It is possible he has been working overtime which might have resulted in fatigue, lower level of alertness and possibly leading to his injury. Holding a managerial position, his age cannot be an excuse for not being able to discharge his responsibilities, though it might have contributed to his injury from impediments to free movement due to arthritis. The ensuing constrained movement would have contributed to his injury. Jake cannot blame Herman for his predicament arising possibly out of his own lack of care. This is all the more so as he is in a managerial cadre and expected to mentor, manage and guide those under his control. His reaction to Herman’s call will only send out a wrong signal to Herman, and his own colleagues and juniors. Jake cannot ask for overtime being a manager and has to carry out his responsibilities coming under the purview of servicing (oil change) that is within his scope of responsibility. Jake can possibly engage with......

Words: 1158 - Pages: 5

Premium Essay

Oblico

...pay damages. 2. Mora Accipiendi – default on part of creditor when he unjustifiably refuses to accept the performance of the obligation. • REQUISITES: a. Offer of performance by the debtor b. Offer must be to comply with the prestation as it should be performed c. Creditor refuses the performance without just cause • EFFECTS: a. Responsibility of debtor is limited to fraud and gross negligence b. Debtor is exempted from risk of loss of thing; creditor bears risk of loss c. Expenses by debtor for preservation of thing after delay is chargeable to creditor d. If obligation bears interest, debtor does not have to pay from time of delay e. Creditor liable for damages f. Debtor may relieve himself of obligation by consigning the thing 3. Compensatio morae – both parties are in default (in reciprocal obligations); there is no actionable default on the part of both parties • • Rule in Reciprocal Obligations: In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. Performance must be simultaneous unless different dates for the performance of the obligation were fixed by the parties CESSATION OF THE EFFECTS OF MORA: • renunciation (express or implied) • prescription • NOTE: There is no delay in negative obligations and natural obligations. FORTUITOUS EVENT – An event which could not......

Words: 14828 - Pages: 60

Free Essay

Law ( Obligations)

...D's expense b. recover damages 2. If obli is poorly done or in contravention of the term a. be undone if possible b. recover the damages ------------------------------------------------- ------------------------------------------------- Art. 1168 (Negative personal obli) * D cannot be guilty of delay * remedy --only recovery of damages done due to performance of prohibited obli ------------------------------------------------- Art. 1169 (Delay) Delay 1. Ordinary delay - failure to perform an obli on time 2. Legal delay / fault / mora -failure to perform an obli on time which failure constitutes a breach in obli Kinds of delay/ default 1. Mora solvendi - part of debtor 2. Mora accipiendi - part of creditor 3. Compensatio Morae - delay of obligors in reciprocal obli Requisites of Mora Solvendi 1. failure to perform of positive obli on the date agreed upon 2. demand (judicial or extrajudicial) to comply with his obli 3. failure to comply with demand Effects of delay 1. Mora Solvendi a. guilty of breach or violation of obli b. liable for interest or damages c. liable even for fortuitous event 2. Mora Accipiendi a. guilty of breach of obli b. liable for damages c. bears the risk of loss of thing due d. D is not liable for interest ( obli to pay money) e. D may release himself from obli by consignation or deposit ( 1256) When demand is not necessary to put debtor in delay 1. When obli so provides 2. When law so provides 3. When......

Words: 8014 - Pages: 33

Free Essay

Oblicon Reviewer

...to fulfill his obligation either to give (Ex re) or to do (Ex persona), (Asked in ’83, ’84, ’85, and ’86); No Mora Solvendi in:  Negative Obligations because delay is impossible (De Leon, 2003);  Natural Obligations (Tolentino, 1987).   Mora Solvendi Requisites 1. Obligation must be liquidated, due and demandable 2. Non-performance by the debtor on period agreed upon 3. Demand, judicial or extra-judicial, by the creditor Effects 1. The debtor is liable for damages 2. The debtor is liable even if the loss is due to fortuitous events 3. For determinate objects, the debtor shall bear the risk of loss Mora Accipiendi: delay on the part of the creditor to accept the performance of the obligation Compensatio Morae: delay of the parties in reciprocal obligations; effect: as if there is no default. Mora Accipiendi Requisites 1. Debtor offers of performance 2. Offer must be in compliance with the prestation 3. Creditor refuses the performance without just cause Effects 1. The responsibility of the debtor is reduced to fraud and gross negligence 2. The debtor is exempted from risk of loss of the thing which is borne by the creditor 3. The expenses incurred by the debtor for the preservation of the thing after the mora shall be chargeable to the creditor 4. If the obligation bears interest, the debtor does not have to pay from the time of delay 5. The creditor is liable for damages 6. The debtor......

Words: 19824 - Pages: 80

Premium Essay

Rn Oblicon

...Judicial demand – is when a complaint is filed in court. Extrajudicial demand – when oral or written demand was conveyed or sent to the debtor. What is the meaning of Mora? Default or mora signifies the idea of delay in the fulfillment of an obligation. In other words, it is the non-fulfillment of an obligation with respect to time. The different kinds of default or mora: A. Mora solvendi – or delay of the obligator or debtor to perform his obligation. This delay is called mora solvendi ex re when the obligation is an obligation to give or mora solvendi ex persons when the obligation is an obligation to do. B. Mora Accipiendi – or delay of the obligee or creditor to accept the delivery of the thing, which is the object of the obligation. C. Compensatio Morae, or delay of the parties or obligors or debtor incur in delay. In obligations to give or to do, when does the obligor or debtor incur in delay? The debtor incurs in delay from the time the creditor judicially or extra judicially demands from him the fulfillment of the obligation. And in spite of demand, he is unable to observe the obligation. (Art. 1189 par. 1, CC) When is demand by the creditor not necessary in order that delay may exist? a. When the obligation or the law expressly so declares; b. When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing to be delivered or the service is to be rendered was a controlling motive for the establishment of the......

Words: 18656 - Pages: 75

Premium Essay

Obligations and Contracts

...(judicial/extrajudicial) by the creditor; failure to comply with such demand EFFECTS: page 6 [dioryRabajante] OBLIGATIONS AND CONTRACTS REVIEWER 1) 2) debtor – liable for damages and interests debtor – liable for the loss of a thing due to a fortuitous event 1) 2) mora solvendi ex re – default in real obligations (to give) mora solvendi ex persona – default in personal obligations (to do) KINDS: b) MORA ACCIPIENDI – delay on the part of the creditor to accept the performance of the obligation; Effects: 1. creditor – liable for damages 2. creditor – bears the risk of loss of the thing 3. debtor – not liable for interest from the time of creditor’s delay 4. debtor – release himself from the obligation c) COMPENSATIO MORAE – delay of the obligors in reciprocal obligation. Effect: the default of one compensates the default of the other; their respective liabilities shall be offset equitable.  Default / Delay in negative obligation is not possible. (In negative obligation, only fulfillment and violation are possible) 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. FRAUD (dolo) – deliberate intentional evasion of the faithful fulfillment of an obligation; NEGLIGENCE (culpa or fault) – voluntary act or omission of diligence, there being no malice, which prevents the normal fulfillment of an......

Words: 33069 - Pages: 133