3.0 Brief Introduction:

Fixed term contract employee work in MDL for certain period as per contract and they are paid entitlement as per contract for that duration.

3.1 Background:

Based on input details of salary paid t fixed term contract employees from Finance payroll section. After scrutiny of records, following lapses were observed:

i. Full term experience certificate was issued based on past practices, without verifying the actual period served.

ii. Salary for Saturday & Sunday was paid to fixed term employee even when employee was present for just 3 days in a week.

iii. Unauthorized absenteeism of fixed term contract employee remains unreported by user department to HR section.

3.2 Implementation:

Based on the investigation, following systemic improvements have been suggested and requested for implementation:

i. There must be clear rules and regulations in upcoming Non-executive’s recruitment manual for issuance of experience certificate to Fixed Term employees.

ii. The past practice of making salary payment of Saturday and Sunday, if employee is present for just 3 days in a week shall be reviewed. There must be clear rules and regulations in upcoming Non-executive recruitment manual for payment of salary on holidays including Saturday & Sunday in order to avoid misuse of the rule and to avoid unnecessary salary payment.

iii. The User department must report any unauthorized absenteeism of more than 15 days to HR Non executive recruitment section. Accordingly, HR section shall take necessary action on such absenteeism. No absenteeism shall remain unreported.

iv. Presently, there could be some Fixed Term Employees who might be absent from duty without valid reason or permission. HR department shall identify such fixed term employees and shall take a necessary action on them to protect the interest of MDL.

3.3 Impact and Benefits:

Due to the implementation of the aforesaid systemic improvements,

i. It will bring more clarity in recruitment manual for Non-executives which is under preparation.

ii. It will mitigate Legal risk on account of issuance of full term experience certificate.

iii. It will avoid unnecessary financial burden on account of paying salary for Saturday & Sunday even if Fixed term employee is present for just 3 days in a week.

iv. Reporting unauthorized absences of more than 15 days to the HR department will prevent unnecessary leaves and subsequent production losses.

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