3 HR-Operations

CHRMP (CERTIFIED HUMAN RESOURCE
1 HR Operations
MANAGEMENT PROFESSIONAL)
Domain Excellence Business Acumen
Courseware Handbook
Human Resource Management, over the
chr mp
®
CERTIFIED HUMAN RESOURCE

years, has evolved as a strategic function in
organisations There is an expressed need for
MANAGEMENT PROFESSIONAL
trained HRM professionals having the required

competencies to deliver results that impact
®
Technology Efficacy Workplace Proficiency
business.
CHRMP (Certified Human Resource Management Professional) uses a
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proprietary competency framework to prepare HR professionals in four key
competency areas:
- Domain Excellence
- Business Acumen
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- Workplace Proficiency
- Technology Efficacy
CHRMP courseware from the series ‘Domain Excellence in HR’ follows a

practical and industry- oriented approach aimed at helping HR professionals
create greater success at their workplace. Within this certification handbook,
you will find:
- Practical templates and frameworks ready to execute
- Illustrative examples to help you understand the concepts better
- Pragmatic planning suggestions
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- Application based content to augment your learning
Visit www.chrmp.com
Launched in 2010, CHRMP certification has helped thousands of HR

professionals add tremendous value to organisations while also maximizing
their potential for career growth. CHRMP offers different certifications for
varied experience levels within HR as well as specializations for various HR
domains. Our certified professionals now hold distinguished positions in stellar
organisations across the globe in more than 40 countries.
1 HR Operations
HR Operations
HR Operations
®
Enabling HR Administrative Services For Employess
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Published By
chr mp
®
CERTIFIED HUMAN RESOURCE

MANAGEMENT PROFESSIONAL
5 HR Operations
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Copyright © 2021 by Ripples Learning Services
All rights reserved. This book or parts thereof may not be reproduced in any form, stored
in any retrieval system, or transmitted in any form by any means—electronic, mechanical,
photocopy, recording, or otherwise—without prior written permission of the copyright
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Edition 2021
ISBN
5 HR Operations Become a Certified Human Resource Management Professional

6 HR Operations
III HR Operations
®
About CHRMP
The Certified Human Resource Management Professional

(CHRMP) programme is a premiere certification programme
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available worldwide to professionals and aspirants alike in the
field of Human Resource Management.
It is a globally recognized, competency-based HR certification

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which ensures domain excellence and validation through its
practical, industry-oriented approach.
The CHRMP learning system comprises self-paced, instructor

led and blended options. The pedagogy focuses on real skills,
CERTIFICA
TE OF CHIEVEMENT
A
Recipient Name
has successfully completed the course
which are immediately transferrable to the workplace.
HRBP Advanced
June 5, 2020 Certific
ation Code:
00191CHRMPADV0520
Authorised Signatory
The credibility of the CHRMP certification is validated by best-
in-class testing standards and delivered in partnership with
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Mercer Mettl. The exams are computer-based, which you can

take either from the comfort of your home or from the nearest
Mercer Mettl test centre in more than 190 countries.
The CHRMP Continuing Professional Development(CPD)

Membership develops critical competencies of workplace
proficiency, technology efficaciousness and business acumen
having immediately applicability at your workplace.

IV HR Operations
Learning Objectives
As a student, you’ll get a few significant benefits from this courseware. You’ll learn to:
®
Prepare the different types of agreements and contracts
used by the HR department. 01
02
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Understand the critical and the general criteria for back-
ground verification.MBO.
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03
Assist new joinees with completion of forms and joining
formalities.and requirements.
Design HR processes and systems to improve effectiveness of

04 HR operations recommend corrective actions.
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Maintain data integrity through accuracy and attention to

detail appraisal process.
05
06
Review candidates’ application forms and initiate background
verification.
Become a Certified Human Resource Management Professional

V HR
HROperations
Operations
®
01.Introduction to HR Operations....................................................................................10-18
Offer Letter
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Letter of Intent
Contents of the Offer Letter
SAMPLE LETTER OF INTENT
SAMPLE OFFER LETTER
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02. APPOINTMENT LETTER.............................................................................................19-33
Contents of Appointment Letter
Difference between an Offer Letter and an Appointment Letter
Terms of Employment
Sample Appointment Letter
03. BONDS..........................................................................................................................34-41
Contents of the Employee Bond
04.CONTRACTS.................................................................................................................17-27
Sample Employee Contratc
05.VENDOR AGREEMENTS...............................................................................................28-52
Sample Vendor Agreement
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06.BACKGROUND VERIFICATION.....................................................................................53-67
BGV Form Templates
What is Background Verification?
Purpose & Relevance of BGV
BGV Criteria
Reports related to BGV
BGV Process
Document Checklist for BGV
Areas covered under BGV
BGV Form Templates
07.Onboarding.....................................................................................................................68-72
Joining Formality Process
Responsibilities/Duties of HR’s in Joining Formality
Documents for Joining Formality

9 HR Operations
08.Employment Database Management...........................................................................73-76

Importance of Employee Database Management
Module Checklist for Employee Database Management
Attendance Management
09. Full & Final Settlement( India Specific)........................................................................77-84
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Introduction to
1 HR Operations
Organisations are created with the intent of pursuing common goals. These
®
objectives are realised with the help of three prime resources, namely
infrastructure, finance, and people.
Each of these resources is administered by definite processes to optimise

their participation in achieving the business targets. HR Operations directs
the efforts of the Human Resource department in accomplishing the purpose
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of the business.
Understanding HR Operations
HR Operations refer to the systematic solutions provided by the human
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resource department to efficiently drive the functioning of the various
organisational units and departments.
These include the functional activities that manage the entire life cycle of an
employee from the time they join the organisation till the time of separation.
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11 HR Operations
Purpose of HR Operations
Despite different organisations adopting different structures and systems,
the purpose of HR Operations is to provide services to the management and
the employees to suit changing business needs.
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Let’s examine the scope of HR Operations more in detail.
Administrative Tasks:
The administrative tasks in HR Operations include several activities, of which
creating official documents is the primary one.
An organisation creates documents from when an employee joins until the
individual separates from them to track their journey there.
Let’s look at a few essential documents necessary for any organisation.

12 HR Operations
Offer Letter
An offer letter is an employer’s document to the candidate stating the
intention for hiring/selection. Usually, the candidate needs to sign and return
the letter to the employer as a formal employment acceptance.
®
As per industry practice, an offer letter can be given after the negotiation
round or after completing background verification.
Though an offer letter provides information about the essential criteria of
the job to a candidate, it is necessary to remember that such a letter does
not have legal standing.
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Despite this, the offer letter continues to be an essential document in the
employee’s joining formalities because of the following reasons:
• It creates the first impression about the organisation.
• It Outlines the significant areas of discussion in the interview
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• It becomes the base in case of further negotiation
• It guides the employee in the onboarding process
An offer letter can be either accepted, rejected, or negotiated.
Failure of background verification is one of the primary reasons an employer

rejects an offer already given to a candidate.
Types of Offer Letters

1. Letter of Intent
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2. Offer cum Appointment Letter
Letter of Intent
A letter of intent is given to the selected candidate by the employer. It merely
highlights the employer’s plan of hiring the candidate and does not provide
all the essential information about the job.
After completing and qualifying the selection process and criteria, the
candidate gets the final confirmation.
Such a form of the offer letter is given chiefly during campus recruitment.

13 HR Operations
Offer cum Appointment Letter
An offer cum appointment letter is a single document that serves two

purposes. It acts as the offer letter when the employer makes the offer for
employment. The candidate’s acceptance makes it the appointment letter or
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the employment contract between the two parties.
It means that along with the basic information regarding the job, an offer
cum appointment letter will also contain the complete terms of employment
that are legally binding for both the employer and the employee.
Hence many organisations prefer to use this format to safeguard their efforts
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and ensure that the candidate joins on the stipulated date.
Contents of Offer Letter:

• Name
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• Position hired for/Designation
• Department
• Location
• Compensation & Benefits along with the salary breakup
• Reporting manager
• Type of employment
• Date of joining
• Working hours
• Weekly offs
• Work shift
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• Pay period
• Dress code
• Probation period
• Conditions for withdrawing the offer
• Documents needed on day of joining
• Job description
• Acceptance timeframe

14 HR Operations
Sample Letter of Intent
Dear Mr. …,
®
LETTER OF INTENT
As jointly discussed and agreed, we are pleased to offer you an appointment

as per the details given below:
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1. You will be designated as _________ (Designation).
2. You will be located at “___________”.
3. You will be entitled to an all-inclusive compensation (the cost to the
company) of Rs. /- (Rupees ________only) per annum, as discussed and
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agreed.
You will get the appointment letter on joining after completing the joining
formalities.
This offer of appointment is subject to your completion of the company’s

medical examination and background verification.
Please sign and return the duplicate copy of this letter to indicate your
acceptance of the above offer.
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Yours faithfully,
For _________,

15 HR Operations
Sample Offer Letter

Date
Employee name:
Address 1:
®
Address 2:
City Pin code:
Dear (Employee Name),
Further to your application and subsequent discussion, we are pleased to
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offer you the position of (JOB TITLE) at (COMPANY’S NAME), subject to the
background verification policy of the company.
Please find the details of the offer below:

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1. Date of joining: date along with the time of reporting
2. Type of employment: Full time, Part-time, Contractual
3. Reporting Manager: Job title of reporting manager
4. Department:
5. Location:
6. Number of working days and weekly offs: 5 working days with two weekly
offs per week.
7. Working hours per week:
8. Annual salary: Your annual salary will be (MENTION AMOUNT IN
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NUMBERS FOLLOWED BY WORDS). You will also be entitled to (MENTION

INCENTIVE, BONUS- IF APPLICABLE) as per the company’s policy. Please
refer to Annexure 2 for the detailed structure.
9. Monthly salary/Hourly wage: If you have an hourly pay system, you can
only write: Your hourly wage will be (MENTION AMOUNT IN NUMBERS
FOLLOWED BY WORDS), which would be paid daily/weekly.
10. Payday: Paid by (DATE) every month through (MENTION MODE OF
PAYMENT - BANK TRANSFER, CHEQUE, CASH).
11. Probation period: (SPECIFY MONTHS) from the date of your joining. Your
services will be confirmed in writing after completing your probation
period. The probation period may be extended if your performance does
not meet expectations as per the company’s policy.
As an employee of (COMPANY’S NAME), you will also be eligible for

16 HR Operations
the employee benefits, which include (MENTION IN BRIEF WHAT YOUR

COMPANY OFFERS)
1. Number of leaves annually

2. Medical insurance
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3. Free travel
Your detailed compensation and benefits plan, and terms of employment

will be mentioned in the appointment letter, which will be given at joining.
Please refer to the job description in Annexure 1 to understand the role and
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responsibilities.
You will be required to submit the following documents on your joining

date. (PLEASE ADD RELEVANT DOCUMENTS AS REQUIRED BY YOUR
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ORGANISATION)
1. 3 months’ payslips (previous organisation)

2. Offer letter from the previous organisation
3. Relieving letters from the previous organisation
4. Education certificates- 10th, 12th, Postgraduate
5. Certification (if available)
6. Current and permanent address proof
7. Pan card
8. Aadhaar card
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9. UAN Card
10. ESI Card (if applicable)
11. Two passport-sized photographs
As part of the joining formalities, you must sign a Non-Disclosure Agreement

that aims to protect the company’s intellectual property rights and business
information and its clients.
Please indicate your acceptance of this offer by signing one copy of this
letter in the space provided below (MENTION DATE). Non-acceptance within
the given period will automatically render the offer null and void.
On the day of your joining, please reach out to (PERSON’S NAME AND OFFICIAL
EMAIL ADDRESS) to help you with the documentation and orientation.

17 HR Operations
We hope you will enjoy your role and contribute to the organisation’s growth.
We are looking forward to your successful association with (Company’s

Name)!
®
For (company name):
(Signature)
Name of concerned person:

Designation:
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Date:
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I accept this offer as outlined above and confirm that my start date is:
Signature:
Name:
Date:
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18 HR Operations
Annexure 2
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2 APPOINTMENT
LETTER
An appointment letter is a document that is given to new employees. It is
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drafted and handed by HR generally on joining day as part of the onboarding
process.
This letter contains the detailed terms of employment that are legally bind-
ing for both the employee and the employer. Hence, legal action may be ini-
tiated in case of breach of these terms.
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It is important to remember that an appointment letter is not a letter of con-
firmation of employment. It simply states that an individual has been ap-
pointed in a specific role in the organisation and makes the person eligible
to get a salary and other statutory and non-statutory benefits.
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Therefore, many organisations issue a confirmation letter after an employee
completes their probation period. It confirms the individual as an employee
of the organisation.
In a few organisations, the appointment letter is given after completing the
probation period. In this case, the appointment letter becomes the confirma-
tion letter.
Contents of Appointment Letter:
• Name
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• Designation
• Department
• Location
• Reporting structure
• Date of joining
• Terms of Employment
• Detailed breakup of salary (Annexure)
• Job Description (Annexure)

20 HR Operations
Difference between Offer Letter and Appointment Letter
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Terms of Employment
1. Probation Period Clause

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2. Notice Period Clause
3. Work Timing Clause
4. Parallel Employment Clause
5. Confidentiality Clause
6. Statutory Clause/Compensation Clause
7. Code of Conduct Clause
8. Performance Appraisal Clause
9. Retirement Clause
10. Benefits (Med Insurance Clause)
11. Loan Clause
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12. Company Property Clause

13. Non-Compete Clause
14. Transfer, Relocation, Lease Out Clause
15. Leave Clause
16. IT/TDS/Tax Clause
17. Formation of Council Clause
18. Absconding Clause
19. Termination Clause
• Found Guilty Clause
• Background Verification Fail Clause
• Fitness Clause
• Performance Clause
20. Legal Clause

21 HR Operations
21. Intellectual Property Clause

22. Change in address Clause
• Probation Period Clause –
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Probation refers to the time given to a new employee after joining in settling
down in the new role. This period is crucial as it helps the organisation assess
the new employee’s performance to confirm their employment at the end of
probation. After probation, an organisation may either
• Confirm the employment
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• Extend the probation period
• Terminate the employment
Generally, the probation period differs from organisation to organisation

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and varies between one to six months.
The probation period clause usually states the following:

• Applicability of probation
• Period of probation
• Action at the end of probation
• Notice Period Clause –

When an employee separates from an organisation, they must serve the
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notice period. It starts from the day of resignation and ends on the last
working day in the organisation.
This time frame allows the organisation to look for a replacement and the
separating employee to look for an alternate opportunity.
The notice period is applicable when the employee voluntarily resigns or is

asked by the organisation to leave as per its policies.
Like probation, the notice period also varies from organisation to organisation.
During probation, the notice period is generally 15 days that can be either
given by the employee or the organisation. In the case of a confirmed
employee, the notice period can range from 15 days to 3 months.

22 HR Operations
The notice period clause mentions the duration of the notice period during
probation and after confirmation.
• Statutory Clause –
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The statutory Clause will mention the mandatory compensation benefits that
the individual would be entitled to in their salary. These benefits will generally
stem from the labour laws and regulations applicable to the organisation.
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The statutory Clause in an appointment letter would differ from state to state
and country to country.
• Work Timing Clause –

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This Clause refers to the daily working hours of an individual in the
organisation. The appropriate shift timing will also be mentioned in the
appointment letter in the case of different shifts.
The appointment letter must mention the overtime details in a few

organisations, such as manufacturing and logistics, where it is permitted. It
should define overtime and include the wage paid for the same.
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• Parallel Employment Clause-

Parallel employment refers to being professionally engaged in different
organizations simultaneously. It hampers the employee’s productivity, and
organizations face the threat of breach of confidentiality.
In an appointment letter, the parallel employment clause prevents an

employee from being parallel employed. It states the action to be taken in
case of non-adherence.

23 HR Operations
• Confidentiality Clause -
This Clause defines what will be considered confidential in the organisation
and cannot be shared elsewhere.
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It generally includes documents, plans, drawings, prints, trade secrets,
technical information, reports, statements, correspondence and instructions,
whether written or unwritten.
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The Clause states how an employee must treat this confidential information
during and after employment.
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It also describes the action in case the employee violates the same.
• Code of Conduct clause -

This Clause informs the employee to prescribe the code of conduct defined
in the organisational policy. It also states the action that might be taken in
case of any violation.
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• Non-Compete clause -
This Clause prohibits the employees of an organisation from engaging with
its competitive entities post their separation from the former.
It will include
• the type of association and the timeframe for refraining from it.
• the action that will be taken in case of violation

24 HR Operations
• Performance Appraisal Clause -

This Clause lists the parameters and the method that will be considered for
future promotions and salary increments for the individual.
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• Benefit Clause -
This Clause highlights the various benefits that an employee will be eligible
to receive after joining the company.
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• Loan Clause -
This Clause describes the liability of an employee when they have borrowed
money from the organisation or have given a loan on behalf of the organisation.
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It further states the action that the organisation may undertake to recover
the amount if the employee cannot honour the same.
• Transfer, Relocation, and Lease out -

This Clause defines the organisation’s authority to transfer or assign the
services of the employee elsewhere, where it has any interest.
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It also describes what the employee is entitled to and not entitled to in such
a case.
• Leave Clause -
This Clause entitles the employee to avail leaves and holidays as per the
organisational policy.

25 HR Operations
• IT/TDS, Tax Clause -

This Clause describes the authority of the organisation to deduct applicable
taxes from the employee’s salary. It further states the action that the
®
organisation can take in case of non-compliance by the employee.
• Formation Clause -
This Clause regulates an employee’s association with a group or body. It also
states the action that an organisation can take in case of non-adherence.
• Termination Clause -
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This Clause describes the various scenarios that will lead to the termination
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of an employee from the organisation.
• Absconding Clause -
This Clause defines the circumstances and timeline when an employee
deems to have absconded from work.
• Legal Clause -
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This Clause specifies that the court will have the jurisdiction to resolve
disputes arising from this employment.
• Intellectual property clause -

This Clause assigns the ownership of all intellectual property created by an
employee during employment to the organisation. The right will be applicable
during the employee’s work and continue even after leaving the organisation.

26 HR Operations
• Company property clause -

This Clause informs an employee about handling the assets they may be
given during their employment with the company. It also highlights what the
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employee must do with the company property while separating from the
organisation.
It further elaborates on the action that the organisation can initiate in case of
misuse or misplacement of the same.
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• Retirement clause -
This Clause states the age of retirement of an employee from the company.
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• Change in address clause -
This Clause makes it necessary for an employee to inform the employer
about any change in the residential address during employment.
SAMPLE APPOINTMENT LETTER

(To be typed on the Co.’s Letter Head in Triplicate)
Date _________
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Mr. /Mrs. /Ms. _____________

Address
Dear Mr./Mrs./Ms.___________
Addition to our letter of offer/ interview dated __________, we are pleased

to inform you that you are hereby appointed as _____________ in the
___________________ Department of
our organisation to be based at ___________ HQ as per terms and conditions
discussed and agreed upon as under :-

27 HR Operations
• This appointment will stand effective from _____________ the date of your
joining our organisation.
• Your salary and additional allowances shall be as per the enclosed
statement. (As Annexure)
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• Your job duties and responsibilities as ___________________ will be as
defined elaborately in the enclosed Annexure.
(Or)
• Your job duties and responsibilities as ___________________ are under
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preparation and shall be issued in due course.
• You will be put on probation for six months. The said period can be
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increased by another three months. If you are not sanctioned in writing,
your services shall be automatically terminated on the expiry of the period
of probation or extended period of probation. However, unless you are
approved in writing, you shall not be deemed to be permanent.
• While on probation, the notice period for termination/resignation will be
24 hours from either side. After approval, the notice period required from
either side is one month.
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• After completing your probation, you will be approved (in writing)

as a permanent employee of the company. You will be qualified for
statutory and service benefits and be governed by discipline and other
rules subsisting or may come into existence from time to time, as and
when applicable, as per rules of the company and any other benefits as
appropriate to employees in force from time to time to the location/place
wherever you are working. Depending upon the need, the company shall
take the suitable cover of GPA to take care of liability under the Workmen
Compensation Act, provided you are not covered under the ESI Scheme.
• Your future increments or promotions or any other salary increment

28 HR Operations
shall be based on merit considering your periodic and consistent overall

performance, business conditions, and other parameters fixed from time
to time at the management’s discretion. They shall not be considered
merely a matter of right.
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• During the service period with the company, you shall not indulge and
participate in any activity of formation of the council and association
or become a member of management staff, which is detrimental to
the company’s interest anyway. Such an action shall be deemed an
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infringement of the company’s service conditions and cause damage to
its interest and shall call for disciplinary action taken on you, as it may be
considered eligible and appropriate.
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• You shall retire from the organisation’s duties on completing 58 years
of age.Your date of birth for the company’s record will be entered as
_____________ as per xerox copy of ________________ certificate submitted
by you.
• During the tenure of your duties, you will wholly dedicate yourself to work
assigned to you. You will not undertake any other employment on a full
or part-time basis without the company’s prior permission in writing. Any
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infringement of this condition will entail the termination of your services

from the company.
• Your services are liable to be transferred or loaned or assigned with/
without transfer, wholly or partially, from one department to another
or office/ branch and vice-versa or office/ branch to another office/
branch of an associate organisation, existing or upcoming in prospect
or any of the organisation’s branch office or locations anyplace in India
or abroad or any other concern where this company has any interest.
In such a case, you will abide by responsibilities expressly vested or
implied or communicated and shall follow the rules and regulations of

29 HR Operations
the department/office, establishment, jointly or separately, without any

damages or extra remuneration or provision of accommodation. You
may be administered by service conditions and other terms of the said
concern as appropriate.
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• ii) The Clause described above (i) will not provide you with any power to
claim employment in any associate or/sister concern or ask for common
seniority with the employee of sister/associate concern.
• If you are absent from duty without information or permission to leave
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or overstay your sanctioned leave, the management will treat you as
voluntarily having abandoned the company’s services.
• Your services are liable to be discontinued at any time :
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• i) During probation or after acceptance, in case you are found to
be medically unqualified by the company’s commissioned medical
practitioner, on review;
• ii) As and when the company comes to identify of any conviction by the
Court of Law during the tenure of your service with us or sentence or
any unsatisfactory record in the history under the previous employer,
or because of your giving misleading information at the time of your
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appointment or covered any material information or provided any

incorrect details in the application form or otherwise as regard age,
education qualification, experience, salary, etc.
• iii) If you do not possess the desired qualification that does not conform
to custom authority and government regulation may be required from
time to time and necessary to continue business or its exigencies or
redundancy.
• You will keep the company notified of any change in your residential
address during the employment of your service with the company.
• All plans, drawings, prints, trade secrets, technical information, reports,

30 HR Operations
statements, correspondence, documents, etc., written or unwritten, and

information and instructions that pass through you or come to your
knowledge shall be treated as confidential. You shall not utilise them
for your use or disclose them to other persons during or after your
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employment.
• During employment with the company, you will acquire, gain, generate,
gather and develop knowledge of and be given access to business
information about product activities, know-how, methods or refinements,
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business plans and business secrets, and other data concerning the
products/business of the company after this called the “SECRETS.”
You will be accountable for prosecution for damages for divulgence,
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sharing, or parting of any of such information during employment and on
cessation for at least two years.
• You shall carry out the job of ______________________ and such separate
jobs related with, or incidental to, which is necessary for the business of
the company. You shall do any additional work assigned to you, which
you can do or work at any other post temporarily assigned to you.
• You shall loyally and perform the duties that the management may trust
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you from time to time to the best of your capability. You will abide by rules,
regulations, and orders promulgated by the administration concerning
conduct, discipline, and policy matters.
• You will not seek membership in any local or public bodies without
obtaining the management’s specific permission. Suppose you become a
member without following due process, as mentioned. It shall amount to
a contravention of employment condition provision, and the management
reserves the right to take appropriate action, including dispensing with
your services, as it may deem fit.
• You will not give out to anyone, by word of mouth or otherwise,

31 HR Operations
particulars of our business or administrative or organisational matters of

a confidential nature, which may be your privilege to know by you being
our employee.
• While you are in the company’s employment, you may be given or handed
®
over the company’s property or equipment for official use, and you shall
take care of them, including their upkeep. On cessation of employment
with the company, you shall return all documents, books, papers relating
to the company’s affairs, purchased with the company’s money, which
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may have come to you, and any company property in your possession.
• The Company will fully recover any advance or loan you might have taken
from your salary and any other legal dues, including gratuity, when you
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leave the company’s services.
• While working as an employee, if you intrude into any business transaction
with any party on behalf of the company within your permissible limits, it
shall be your responsibility to ensure remarkable recovery. Suppose any
exception remains at the time of leaving the company’s services; in that
case, it shall be your liability to recover for remittance to the company
before you move to settle your legal dues in full and ultimate settlement
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of your account.
• The Company is bound to deduct Income Tax at the source as per the
Income Tax Act / Rules provision. Accordingly, you must submit all
required proof of permitted savings/investments and other details from
time to time to enable the company to comply with law provisions. In the
event of non-compliance by you, as aforesaid, if the company is required
to pay any interest or payment under Income Tax Act, it shall deduct the
amount as may be paid or payable from your salary or other expenses.
You shall support the company in complying with these obligations
without objection.

32 HR Operations
• All disputes resulting from this letter will be subject to the Mumbai
Court’s jurisdiction. Only the courts, tribunals, or jurisdictions in Mumbai
shall be able to entertain, try, and decide such disputes or disagreements
arising out of or about this employment contract, irrespective of your
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HQ’s location.
You have to return the enclosed copy duly signed as a token of your
acceptance of your employment terms and conditions.
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Annexure to Appointment Letter dated _____________of_____________ (Name)
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33 HR Operations
Reimbursement of expenses for one telephone at residence and one mobile

for official use per the company’s policy existing or as amended.
• Payment of perquisites, allowances, and reimbursements shall be subject
®
to provisions of Income Tax, as applicable.
For the Company’s Name

Managing Director / Director
Accepted: ____________________ (
p )
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34
EMPLOYMENT
3 BONDS:
Employment bond is a prevalent practice followed by organisations to check
unplanned attrition of their employees. Companies adopt this to protect the
interests it has in their employees after spending time and resources training
®
them.
DEFINITION OF EMPLOYMENT BOND:
An employment bond can be defined as a form of a legally binding service

agreement between the employer and the employee.
p
Organisations invest money and time in enabling individuals to perform the
desired tasks. The untimely departure of such a trained employee causes
financial loss. Again, the organisation spends time finding a replacement.
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This arrangement helps protect the efforts of an organisation to select, train
and skill an employee for the job.
The clauses in a bond are similar to that of an appointment letter, except

that a bond will contain provisions for a minimum term of employment in the
organisation(bond clause) and the financial liability of an employee in case
of breach of the same(security deposit clause).
The additional clauses present in an employment bond are:

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1.Bond Clause: This indicates the validity period of the bond signed between
the employer and the employee. The employee has to serve the organisation
compulsorily during this period and cannot seek employment elsewhere.
2.Security Deposit Clause: This Clause specifies the amount that an

employee will be liable to pay an organisation if they breach the terms of this
Agreement.
The validity of the bond and the compensation payable by the employee are
calculated after considering the amount of time and money the organisation
• has spent on training the employee, and
• will pay for hiring and training a new employee.

35 HR Operations
3.Return the Security Deposit Clause: This Clause further secures the
organisation’s interest by having a Guarantor. This person will ensure that
the employee abides by the terms and conditions of the bond. In case of any
breach, the guarantor will be liable to pay the security deposit if the employee
cannot do so.
®
It is important to remember that bonds must be used diligently; otherwise,
they can be challenged in a court of law by the employee.
Therefore, organisations must keep the bond clause and security deposit
clause rational.
p
Organisations should resort to bonds only if they have calculated the financial
investment they will make for upskilling an employee, and the subsequent
loss they will face if the employee leaves midway will be huge.
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The bond may also contain confidentiality and non-competition clauses.
Remember, the bond’s legality depends on whether there was a consideration

in training or otherwise.
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36 HR Operations
4 CONTRACTS
Contracts, better known as employment contracts, are service agreements
between employers and employees. Such agreements regulate the working
relationship between the two.
®
Contracts contain the terms of employment that are legally binding for both
the employee and the employer.
These terms of employment define the rights and responsibilities of the

employee and the employer.
p
The terms of employment, also known as terms of the contract, generally
contain the following details :
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• The full name of the employer and employee
• The address of the employer
• The place of work
• The title of job or nature of work
• The date the employment started
• Duration of the contract both in case of temporary and fixed term
• Details of rest periods and breaks as required by law
• The rate of pay or method of calculation of pay
• Pay intervals
• Hours of work
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• Sick pay and pension (if any)

• Period of notice to be given by employer or employee
• Details of any collective agreements that may affect the employee’s
terms of employment.

37 HR Operations
Sample Appointment Clause
This contract entered into on the (Date) __________________________________

_____, between
®
M/s ______Name of the Company_____, a company consolidated under the
Companies Act, 1956 with its registered office at Hyderabad represented
by its Director / Managing Director, Mr. _________, (Hereinafter referred to as
‘the company,’ which expression shall mean and include his heirs, executors,
administrators, and assignees), and
p
Mr. _________ (Name of the Manager) ___, S/o ______ (Father’s Name) ____,
aged about ___ (age) ___, resident of ______ (address) _____. (Hereinafter
referred to as the ‘Manager’ unless context otherwise requires)
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RECITALS:
WHEREAS, the organisation is engaged in the business of Dealing in

____________(Give the Nature of Business)___________, and such other items
at various places like ______(Give the Places of operations)_____, etc.
WHEREAS the company desires to employ the Manager to protect the

customer lists, vendor lists, trade secrets, and other company’s proprietary
intangible assets.
Therefore, in the reflection of the mutual promises, terms, covenants, and
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conditions set forth herein and the performance of each, it is hereby agreed
as follows:
AGREEMENT
1. Employment:
• The Company hereby employs the Manager as “Showroom Manager” of

_________ showroom. The Manager shall have responsibilities, duties, and
authority commensurate with such a position and report to the Company’s
Board of Directors. The Manager hereby accepts this employment upon
the terms and conditions herein and agrees to devote the Manager’s
time, attention, and best efforts to promote and further the company’s
business.

38 HR Operations
• The Manager shall faithfully adhere to, execute, and fulfil all policies and
duties established by the company as described in paragraph 3 hereof.
• While the term of Manager’s employment hereunder, the Manager shall not
be engaged in any other business activity pursued gain, profit, or additional
®
financial advantage if such exercise interferes with the Manager’s duties
and responsibilities. Yet, preceding limitations shall not be construed as
prohibiting Managers from making personal investments in such form or
manner. Neither will Manager’s services be required in the companies or
enterprises’ operation or affairs in which such investments are not made
nor violate the terms of paragraph 4 hereof.
p
• The Manager’s appointment is liable for relocation/transfer to anywhere
in India under the same company or its branches on record of business
work exigencies.
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2.Compensation:
For all services administered by the Manager, the company shall compensate
the Manager as follows:
• Basic Salary: Starting on the date of the execution hereof, the Manager
shall be paid the base salary of _________ per month, regularly per
the company’s standard payroll procedures. On an annual basis, the
Manager’s performance will be reviewed, and increases to such basic
salary may be recommended if any such increase is warranted at the
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discretion of the Company’s Board of Directors.

• House Rent Allowance: The Manager shall be paid a House Rent
Allowance at 40% of the basic salary.
• Conveyance Allowance: The Manager shall be paid a Conveyance
Allowance of Rs. 800/- per month
• Bonus: The Manager shall be paid a bonus at the rate of ____.
• Commission: The Manager shall be paid commission at the rate of
______% on sales/purchases.
3. Perquisites, Benefits, and Other Compensation:
Manager shall be entitled to receive further benefits and compensation in

such form and to such extent as defined below:

39 HR Operations
• Involvement in health, hospitaliszation, disability, dental, and other

insurance plans the organisation may have.
• Compensation for all business travel and other out-of-pocket expenses

reasonably incurred by the Manager in performing the Manager’s
®
services according to this Agreement. All reimbursable expenses shall
be documented correctly in reasonable detail by the Manager upon
submission of any reimbursement request, in a format and manner
consistent with the company’s expense reporting policy.
• Two weeks of paid vacation per year.
• Taxes: The above amounts payable to the Manager are subject to the Tax
p
Deduction at Source (TDS) provisions under the Income-tax Act, 1981, as
applicable from time to time.
4. Terms and conditions:

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• The Manager shall be in charge of the showroom, and all other employees/
staff shall report to him.
• The Manager shall be responsible for all the stock coming into, stored
at, and going out of the showroom and shall maintain proper records per
the company’s standard policies. The Manager will also produce the said
records as demanded by the company’s board of directors/auditors.
• He shall take care of and follow its standard safety methods to prevent
any damage to its stocks.
• The Manager shall make sure apart from the company’s stocks, only
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stock of franchisees approved by the board of directors by way of a

board resolution shall enter the showroom and be permitted to be traded
at the showroom. Suppose it is found that the Manager has admitted any
stocks to be sold in the showroom without a proper board resolution; in
that case, he shall be responsible for accounting for the sales and paying
to the company the profits earned on the said stocks. However, the
organisation is not liable for any losses incurred in such a sale. Further,
the organisation reserves the right to confiscate any unsold inventories
intended to be traded without a proper board resolution.
• The Manager shall periodically verify the stocks put on display / stored
in the showroom by the franchisees and ensure that only the goods
described in the board resolution are traded. If the manager notices
any discrepancy, he shall immediately inform the board of directors and

40 HR Operations
implement their instructions.
5.General Duties:
• Administering the day-to-day operations of the company and performing
®
administrative functions necessary in the management of the showroom,
including the collection of revenues, the payment of the company’s
expenses, debts, and obligations, and the maintenance of appropriate
computer services to perform such administrative functions
• Enforce discipline among the staff and ensure that the day to day
operations are smoothly conducted.
p
• Furnish reports and data as may be required by the board of directors
from time to time.
• The Manager shall ensure no illegal activities are carried out at the
showroom and notify the board of directors of any such activities noticed.
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• The Manager shall advise the company about changes that might bring
economy/efficiency/improved margins.
5. Non-Competition Agreement:
• The Manager will not, during the period of their employment by or with
the company, and for six (6) months from the date of their resignation/
termination for any cause whatsoever, directly or on behalf of or in
connection with any other person, persons, company, partnership,
corporation or business of whatever nature:
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(i) Engage, as an administrator, director, shareholder, owner, partner, joint

venturer, or in a managerial capacity, whether as an employee, independent
contractor, consultant or advisor, or as a sales representative, in any business
selling any products or services in direct competition with the company or
any of the company’s subsidiaries or divisions, in 100 miles of the company’s
principal place of business or the central location of business of any of the
company’s subsidiaries or divisions.
(ii) Call upon any somebody who is, at that time, within the Territory, an
employee of the company (including its subsidiaries) in a managerial capacity
for the purpose or with the intent of enticing such employee away from or
out of the employ of the company (including its subsidiaries), provided that,

41 HR Operations
after the employee has ceased employment hereunder; the employee shall
be permitted to call upon and hire any member or employee’s immediate
family;
• The Manager shall make up for the company’s losses due to breach of
®
any condition in paragraph 4.
6. Termination of Contract / Resignation of Employee.
• The company has the freedom to terminate this contract by giving a

notice of 1 month to the Manager or paying the Manager an amount
p
equal to a 1-month gross salary instead of the notice period.
• Suppose there is any breach of conditions in any part of this Agreement.
In that case, The company can terminate the contract without giving any
notice period or salary instead of the notice period, i.e., with immediate
rm
effect.
• The Manager can resign from his employment by giving one month’s
notice or paying an equal 1-month gross salary. The Manager’s resignation
is only accepted after the company provides the Manager with a relieving
letter. He has to provide the services required by the board of directors
irrespective of whether he has paid/agreed to pay the amount instead of
the notice period.
7. Return of Company Property.

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• All documents, designs, patents, business plans, financial statements,

manuals, memoranda, lists, and other property delivered to or compiled
by the employee by or on behalf of the company or the representatives,
vendors, or customers thereof which concern the business of the
organisation shall be and remain the property of the organisation and be
subject at all times to the discretion and control thereof.
• Furthermore, all correspondence, reports, records, charts, advertising
materials, and other similar data about the company’s business, activities,
or plans collected by the employee shall be delivered promptly to the
company without request by it upon the termination of the employee’s
employment.

42 HR Operations
8. Arbitration:
In the case of any conflict, difference, or question arising out of or in respect

of this Agreement or the commission of any breach of any terms thereof or
of compensation payable thereof or in any manner whatsoever in connection
®
with it, the same shall be referred to _____________ or such other person
mutually acceptable to both the parties, for arbitration and the decision or
award so given shall be binding on the parties hereto.
9. Jurisdiction:
p
Any conflict emerging from or in conjunction with this Agreement shall be
referred to the Courts in the State of _______.
Witness: - Signatures
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_____________________ 1. ____________________________
_____________________ 2. ____________________________
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43 VENDOR
HR Operations
5 AGREEMENTS
These are legal agreements signed between:
Entities that require certain services or products. They can be either an
®
individual, a company or even the government.
Entities that provide these needed services or products(vendors)
Depending upon the entity with whom the vendor deals, these agreements
can be classified as:
• Business to Customers
p
• Business to Business
• Business to Government
There are different types of vendors catering to various products and

services, such as:
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• Transport
• Food & Beverages
• Software
• Equipment
• Human resources/Staffing, to name a few
An organisation engages with a desired vendor to outsource one of its

existing requirements. Hence it becomes imperative that the terms of this
association are correctly documented in the vendor agreement.
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A vendor agreement must contain the following clauses:

• Details of the parties
• Details of goods/services to be provided
• Date of agreement
• Date of delivering the goods & services
• Location of this delivery
• Statement of Work(SoW)
• Compensation to be paid & method of payment
• Period till when the agreement will remain in force
• Applicable law
• Dispute resolution process
• Intellectual property rights
• Indemnity

44 HR Operations
Let us now understand a sample vendor agreement executed with a

recruitment agency firm to provide workforce supply services to the
companies as per the job requirements.
The selection of the recruitment agency should be based on several driving
®
criteria:
• Previous Experience in the Industry

• Recruitment Consultants Profiles
• Size of the Database
• Personal Experience
p
• Recruitment Fees and Payment Conditions
Sample Vendor Agreement

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This Agreement is made on a date between Your Company Name and
Address (hereinafter, Your Company Name or the “Vendor”) and Client
Company Name and Address (hereinafter, the “Client”).
PART I:
Permenant Placment
1. Parties and Services.

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• Your Company Name will recruit, screen, and present candidates for
positions following the specifications provided.
• Your Company Name will show only those candidates believed to be
qualified for the job.
2. Fees.
• If the Client chooses to hire one of these candidates, the Client will pay
twenty-five per cent (25%) of the candidate’s gross annual salary.
• The payment must be made within 30 days of the new employee’s start
date.
• An additional fee linked with delinquent invoices is described in Part III
Section 7.

45 HR Operations
3. Warranties.
• Suppose the candidate cannot complete 90 calendar days of employment

due to a client-documented lack of performance or voluntary separation,
in that case, the Vendor will have a 30-day exclusive right to replace the
®
employee.
• Your Company Name will be the sole entity responsible for searching for
the replacement (no other firms, including the Client, are to conduct a
similar search). If your Company Name has not displaced the employee
after thirty days, Your Company Name will refund the fee on a proratable
basis.
p
• If the candidate cannot complete 90 calendar days of employment
through no fault of their own (i.e., company layoff), 100% of the fee will
be due and considered non-refundable.
• The vendor makes reference and background checks for its purposes but
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does not verify any candidates’ claims.
• The Client agrees to individually check any personal, professional, or
educational representations made by the candidate.
4. Confidentiality.
• The client must adhere to Your Company Name strict policy on candidate
confidentiality.
• The Client will not attempt to contact any party (including current
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employer and former employers) regarding any candidate until a joint

agreement with Your Company Name is reached (in writing) concerning
the specifics of when and how these contacts will be made.
5. Term.
• This agreement concerns all candidates hired within 12 months of the

client’s submission.

46 HR Operations
PART II:
Consulting Services
®
1. Parties and Services.
• The Vendor agrees to provide its regular consulting and placement

services (the “work”) to the Client to the extent requested.
• The Client will provide all materials needed for performance and
completion of the work, except unless specified in writing.
p
• Any merchandise of the Vendor’s work for the Client shall become the
Client’s sole and exclusive property.
• The work may be done by an employee of the Vendor or an independent
contractor retained by the Vendor.
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2. Fees.
• The Client consents to pay fees and expenses to the Vendor within ten
(10) days of receiving the Vendor’s invoice as outlined in the Addenda
covering the engagement.
• An additional fee is linked with delinquent invoices, as defined in Part III
Section 7.
• Work is deemed to be accepted by signing the biweekly or semi-monthly
timesheet.
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3. Term.
• This Agreement will commence as of the date first written above. Either
party may cancel this Agreement with or without reason-giving two (2)
weeks’ written notice to the other party.

47 HR Operations
4. Warranties.
• The Vendor makes no express or implied warranties under this Agreement,

including, but not restricted to, warranties of merchantability and fitness
of the Vendor’s work for a particular purpose.
®
• The Vendor or the Vendor’s employees will be liable for consequential
damages in no circumstance.
• If the Vendor agrees, at its option, to refund any amount for goodwill
purposes, it may never exceed the number of the individual consultant’s
billings.
5. Confidentiality.
p
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• Both parties further agree that for the duration of this Agreement and
a period of one (1) year after the termination of this Agreement for
any reason, including expiration of this Agreement, neither party will
disclose or use, whether for personal benefit or the service of others any
Confidential Information obtained during business between Vendor and
Client.
• Confidential information is defined to include, but not be limited to,
intimate knowledge of customer requirements, trade secrets, business
procedures, price lists, financial data, customer lists, prospective
customer lists, etc.
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• In connection with the limited protection afforded to both parties by

the covenants contained herein, the parties acknowledge that they
have attempted to limit each other’s right to compete only to the extent
necessary to protect their interests from unfair competition.

48 HR Operations
6. Arbitration.
Weak Avg. Strong
• Suppose any dispute arises from Vendor’s services according to this
Agreement, which the parties to this Agreement cannot resolve, in that
case, such dispute shall be submitted to final and binding arbitration.
®
• The arbitration shall be conducted following the rules of the American
Arbitration Association (“AAA”).
• Suppose the parties cannot agree on an arbitrator,in that case, a list of
seven (7) arbitrators will be requested from AAA, and the arbitrator will
be selected using alternate strikes with the Client striking first.
• The Client and Vendor will share the cost of the arbitration equally.
p
Arbitration of such disputes is mandatory and in place of any civil causes
of action and lawsuits either party may have against the other arising out
of the services provided by Vendor according to this Agreement.
• However, any claim that the Vendor has for breach of the covenants
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contained in Paragraph 5 (Part II) of this Agreement and any claim by the
Vendor for unpaid fees for services rendered which Client has approved
according to signed timesheets shall not be subject to mandatory
arbitration, and may be pursued in a court of law or equity.
Weak Avg. Strong

PART III:
GENERAL TERMS FOR PERMANENT PLACEMENT AND CONSULTING

SERVICES
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1. Entire Agreement.
• The terms and provisions contained herein shall constitute the entire
agreement between the parties concerning the services provided by
Vendor for Client during the period covered by this Agreement and
supersedes all other agreements, whether written or oral.
• Any changes to this Agreement must be in writing and signed by both
parties.
• Any addenda to this Agreement for individual consultants under this
Agreement is considered part of this Agreement.

49 HR Operations
2. Agreement Not to Hire.

Weak Avg. Strong
• Unless otherwise agreed by Addendum to this Agreement, each party
consents not to engage as an employee, an independent consultant or
in any other capacity whatsoever, either full or part-time, whether directly
®
or indirectly, any individual providing any services for the other during
the term of this Agreement or for twelve (12) months following the
termination of this Agreement except as expressly agreed in writing.
• The client further agrees not to hire, attempt to engage, or facilitate in
any way the hiring of any Consultant, Candidate, or Employee presented
to Client by way of resume, interview, project assignment, or any other
p
method for consideration by Vendor without Vendor’s direct knowledge
and consent.
• Suppose either party violates any requirement in this paragraph,in that
case, that party shall pay a fee to the other party of 25% of the employee’s
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annual salary, payable within ten days of receipt of the invoice.
3. Right to Enter Agreement.
• The Client represents and covenants to the Vendor that it has full power
and authority to enter this Agreement and that the execution of this
Agreement will not breach or constitute a default of any other agreement
or contract to which it is a party or by which it is bound.
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4. Notices.
• All notices according to this Agreement shall be in writing and sent via
certified mail, return receipt requested.
5. Governing Law.
• This Agreement shall be governed by and construed by the laws of Your

State.

50 HR Operations
6. Waiver.
Weak Avg. Strong
• No waiver by either party to this Agreement or any right to enforce any
term or condition of this Agreement or any breach hereof shall be deemed
a waiver of such right in the future or any other right or remedy available
®
under this Agreement.
7. Severability.
• If any provision of this Agreement is invalid or unenforceable, the

Agreement’s remaining provisions will remain unaffected and in force.
8. Non-Payment.
p
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• Delinquent invoices are subject to interest of 1.5% per month on any
outstanding balance, or the maximum permitted by law, whichever is
less, plus all collection expenses, including reasonable attorneys’ fees
and court costs.
IN WITNESS, WHEREOF, the parties have executed this Agreement as of the

date first written above.
Signatures:
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Client Name Your Company Name
By: By:
Signatures Signatures
Print: Print:
Name Name
Print: Print:
Title Title
Date: Date:
Addendum to Contract Agreement
This document is an addendum to the Consulting Services section (Part II) of
the Contract Agreement Your Company Name and Client Name, dated Date of
Agreement.

51 HR Operations
Right to Hire Agreement:

The client may offer full-time consultant employment in accordance with the
following fee schedule.
®
Contract Period Fee
0 to 3 months XX% of employee’s annual salary
p
After six months, XX% (or zero….)
This supersedes Paragraph 2 of Part III of the Contract Agreement.
Signatures:
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Client Name Your Company Name
By: By:
Signatures Signatures
Print: Print:
Name Name
Print: Print:
Title Title
Date: Date:
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52 HR Operations
Compliance and Risk Management:

Compliance and risk management in HR Operations focuses on recognising
the inconsistencies in operational practices and adhering to industry
standards to mitigate the threats that may arise due to non-compliance.
®
One such action consists of conducting the background verification of
employees in an organisation.
This exercise ensures that the organisation’s goodwill is not compromised
p
by recruiting dishonest individuals.
Let’s thoroughly understand background verification in an organisation in

the following section.
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53 BACKGROUND
HR Operations
6 VERIFICATION
Compliance and Risk Management:
®
Background verification, also known as a background check, is the process
that organisations use to validate the details provided by employees. This
validation is as per the parameters that the organisation decides.
Generally, the following documents are used for this purpose
p
• The resume or job application that is submitted by the candidate while
applying for the job
• The application blank that the candidate in the selection stage fills in
It is important to remember that an organisation can conduct background

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verification for prospective and existing employees.
In the first case, the final hiring decision for a candidate after they have cleared
the selection process depends on the results of the background verification.
Here the process can start before onboarding or after the candidate joins.
In the second instance, the hygiene of the organisation is maintained by the
background verification of the existing employees. The process can be done
annually or once in a block as the organisation decides.
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As an industry practice, candidates and employees are informed about

their background verification by the organisation before initiating it. Many
organisations even seek written consent before conducting this verification.
Organisations may either designate their HRs to handle this exercise for
their employees or deploy the services of a third-party vendor to complete
the same.
Relevance of Background Verification:
Background Verification assumes relevance because :

54 HR Operations
• It determines the suitability of the applicants for the role

• it ensures safety in the organisation
• it prevents financial losses in the organisation
Background verification criteria:
®
Background verification criteria refer to a predefined set of parameters or
factors used by an organisation to execute the verification process. These
criteria are divided into two groups:
p
Critical Criterion: These include
• Educational qualification
• Additional qualification
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• Medical fitness
• Employment records - experience,designation,salary
• Legal records - criminal records, court cases
• Financial records
• Motor vehicle records
A candidate is appointed to an organisation only if their information under

these criteria is accurate.
General Criterion: These include

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• Conduct
• Achievements
• Age
• Family background
• Relationship status
• Rehirable status
A candidate’s employment status is not affected if the information furnished

herewith is incorrect.

55 HR Operations
p ®
The parameters for screening the credentials of the candidates or employees
would depend on the role and position. Organisations generally have a
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stringent verification procedure when dealing with senior or critical functions
Background Verification Reports:

Report When is it given What does it lead to
Both critical and general The candidate is not hired or the ex-
Red isting employee may be terminated.
criteria fail to be verified.
The hiring decision for the candidates

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is put on hold. It depends on the

Yellow Critical criteria are verified, organisation’s discretion (HR) and the
but general criteria fail to number of backup candidates for the
be confirmed. same position.
Similarly, the employment status of

the existing employees is put on hold
till further decision.
When all the information under both

the criteria is not entirely available and The candidate is not hired and put
validated and requires more time to do so. on hold. The same holds in the case
Amber of an existing employee whose
The amber status remains till the time the employment status will remain
validation is completed. Once the details uncertain.
are validated, the status changes to green.
The candidate is hired.

Green Both the critical and general
criteria are correctly verified Similarly, an existing employee will
continue to work in the organisation.

56 HR Operations
Ways of doing background verification:
Organisations can conduct background verification in either of these three

ways to collect information about a candidate or an employee:
®
• Through email
• Over telephone
• In-person
Various companies that usually conduct background verification for other
organisations generally adopt any of the following methods.
p
One way method: Here, the verifying agency validates the work experience
from one organisation and the educational background. Generally, the details
are gathered from the previous/current organisation where the individual
had worked or is working.
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Two-way method: Here, the verifying agency validates the work experience
from two organisations and the educational background. The details are
gathered from the last organisation and last to last organisation where the
individual had worked.
Three-way method: Here, the verifying agency validates the work experience
from three organisations and the educational background. The details are
gathered from:
• the last organisation
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• the last to last organisation

• the last to last to last organisation

57 HR Operations
Documents Checklist for Background Verification:

01 Education Qualification: 10th, 12th, Graduation/PG Certificates, Marks
®
Cards, Course Completion Certificates, Provisional Degree, Consolidat-
ed Marks Cards.
02 Additional Qualification: Various Certifications like CA, CPA, CCNA, Six

Sigma, CHRMP
p
03 Work Experience: Previous Employment Offer Letter/Appointment
Letter/Relieving Letter/Experience Certificates.
04 Relevant Experience: Experience Letter/Certificate, Promotion Letter.

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05 Salary/CTC: 3 Months Pay Slips, Bank Statement
06 Fitness: Medical Fitness Certificate
07 Age: Birth Certificate, 10th marks card, Driving License, PAN, Voter ID,
Aadhaar Card, Passport
08 Address: Electricity Bill, Telephone Bill, Rent Agreement, Aadhaar Card,

Passport
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Special Criteria: Relevant Government Certificate

Last
09
10 Org
Tax: PAN, Form 16, Investment Details
11
Credit worthiness: CIBIL Score,Loan repayment status
12 Motor vehicle records: Driving license
1 2

58 HR Operations
Background Verification Form
®
Instructions:
• You must complete the form in all respects.
• The information you provide must be complete & correct & the same shall be treated in strict confidence.
• The details on this form will be used for all official requirements and for conducting BGV checks if you get
hired in the organisation.
Applicant No./Employee ID:

Location:
DOJ/Interview:
p
Personal Information:
Personal Information:
Name: (First, Middle, Last)

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PHOTOGRAPH
Former Name/Maiden Name (If Applicable):
Father’s Name:
Mother’s Name:
Mobile: Home Phone:
E-Mail ID:
Date Of Birth: Gender:
Marital Status: Country/Nationality:

ch
Social Security No./Aadhar Card No.: PAN Card No.:
Driving License No.: Passport No.:
Voter Id Card No.:

Current Address:
Period of Stay: From…..To…..
Residence Number:
Mobile Number:
Prominent Landmark:
Permanent Address
Residence Number:
Mobile Number:
Prominent Landmark:

59 HR Operations
Address History: (List most recent first) -Please provide addresses for the last ten years
Address:
State:
Country:
Zip Code:
®
Contact Number:

Address:
State:
Country:
Zip Code:
Contact Number:
p
Address:
State:
Country:
Zip Code:
Contact Number:
rm
Address:
State:
Country:
Zip Code:
Contact Number:

Address:
State:
Country:
Zip Code:
Contact Number:
Employment History -Current Employer

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Name of the Organisation:

Employee Code No.:
Designation:
Department:
Major Tasks, Duties & Responsibilities:
Was this position permanent/temporary/contractual?
The first salary is drawn:
The last salary is drawn:
Employment Period: From……………..To…………….
Address:
Reporting Manager's Name:
Reporting Manager's Designation:
Reporting Manager's Contact No./Email id:
Can a reference be taken now? Yes…… No……..
Reason for leaving:
Documents submitted for this employment,please specify
Note: Please attach separate sheets providing detailed information wherever necessary.

HR Operations
60
Previous Employment Information (last three organisations)

Please attach a copy of your relieving letter/Experience certificate
Employee Code No.:
Designation:
®
Department:
Address:
Reporting Manager’s Name:
Reporting Manager’s Designation:
p
Reporting Manager’s Contact No./Email id:
Reason for leaving:
Documents submitted for this employment, please specify

rm
Employee Code No.:
Designation:
Department:
Address:
Reason for leaving:
ch

Employee Code No.:
Designation:
Department:
Address:
Reason for leaving:

61 HR Operations
Previous Employment Information (last three organisations)

Please attach a copy of your relieving letter/Experience certificate
Employee Code No.:
Designation:
®
Department:
Address:
p
Reason for leaving:

rm
Employee Code No.:
Designation:
Department:
Address:
Reason for leaving:
ch

Employee Code No.:
Designation:
Department:
Address:
Reason for leaving:

62 HR Opeartions
Please explain any gaps in employment for more than three months:
(Attach separate sheets wherever necessary)
Educational Information
®
Degree University/Institute From To Percentage/Grade Specialisation
p
Note: Please submit the supportive documents for the educational details
mentioned above. (marks cards/degree certificates)
Additional Qualification Information

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Degree/Qualification Organisation Year
Note: Please submit the supportive documents for the additional

qualification details mentioned above. (relevant certificate)
Professional References Information

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S.No. Name Organisation Designation Contact Number/Email-Id
Criminal Background Information
Have you ever been condemned for a criminal offense? (If “Yes,” please
give details)
(Attach separate sheets wherever necessary)

63 HR Operations
Documents Required for Criminal Verification:

Three passport size photographs
Passport Copy, Election Id, Driving license, or a copy of the attested photo
passbook is mandatory, irrespective of the address.
®
Address verification:
If the current address corresponds to one in these documents, no other
documents are required.
If not corresponding to the current address, then submit any of these:
• Utility Bills/Electricity Bills/Telephone Bills stating the current address.
• A copy of the lease/rent agreement
p
• If staying at company accommodation, then a letter from the company/
organisation.
• - If living with a relative/friend, then agree to a copy of the residence and
letter stating the relationship with the concerned relative/friend.
rm
Note: For criminal verification, it is possible that police authorities may contact you or visit
your stated residence, or even ask you to present yourself at the concerned police station.
It is part of the standard background verification process. Please cooperate with the
authorities, and in the event of an incident, please get in touch with the company officials.
Declaration
I, ……………………………. hereby declare that the above statements made in

my application form are accurate, complete, and correct to the best
ch
of my knowledge and belief. Suppose any information is found false

or incorrect at any stage,in that case, my offer of employment will be
immediately withdrawn & would render me liable to dismissal without
notice in the event of my obtaining employment, or could result in action
based on company policy.
Date: ……………………… Name: ………………………..

Place: …………………….. Signature: ..………………………

64 HR Operations
Employment Verification -Template
Dear Sir/Madam,
We would like to acquaint ourselves as an authorised agency appointed by
®
IT / ITES Companies to conduct background checks for the employees /
prospective employees being recruited by the company.
In this regard, we seek the following information relating to Mr. /Ms.
……………………, who was employed with you.
Note: - Please find the scanned copy of the document enclosed.
p
Details Provided by Details Verified
S.No Details the Candidate by HR
rm
Ripples Learning Services, Please fill in your
1. Name & Address of Employer
Koramangala, Bangalore comments here
Please fill in your

2. Employee Code of the Subject
comments here
10-January-2007 to Please fill in your
3. Period of Employment
12-August-2010 comments here
4. Designation Senior Consultant- Training Please fill in your

comments here
ch
Last Salary Drawn Please fill in your

5. Data Not Available with us
comments here
Job Type (Permanent / Please fill in your
6. Data Not Available with us
Temporary / Contract) comments here
7. Reason for leaving Please fill in your

Data Not Available with us
comments here
Professional Abilities of the Data Not Available with us Please fill in your
8. applicant comments here
Whether eligible for rehire Data Not Available with us Please fill in your
9. comments here

65 HR Operations
Verifier Name Please fill in your details here
Designation Please fill in your details here
®
Contact No. Please fill in your details here
Please let us know if any further elucidation is required.
p
rm
ch

66 HR Operations
Employment Verification Template

Dear HR,
Ripples Learning Services.
®
……….Name of Employment Verification Agency………..is acting on behalf
of ………Company Name……...in respect of the provision of Employment
Screening Services. Kindly verify the following information provided by a
prospective employee who claims past employment with your esteemed
organisation.
p
Please authenticate the details below.
Name: Satish Pai Sreeniwasan

Period of Employment: 7/11/2005 to 12/29/2006 (Please specify exact
rm
dates)
Designation: Sales Executive (please specify)
Salary Details: (please specify whether Gross, Net, or CTC)
Supervisor: Mr. Animesh Rai, Director (Please specify designation)
Reason for leaving the organisation: (Please specify)
Exit formalities completed: (Please specify)
Full time / Part-time: (Please specify)
Permanent / Contractual: (Please specify)
Any issues about the employment: (Yes or No)
ch
(Please specify)
Eligible for Rehire: (Please specify Yes or No)
Verified by: (Please specify Name and Designation)
I would be extremely obliged if you could verify the above details and
revert at the earliest. Your kind assistance is requested to facilitate the
recruitment process of this prospective employee. Your input is greatly
valued and will be treated with strict confidence.
Regards,
Asha Mehta
Head HR – ABC Company

67 HR Operations
7 ONBOARDING
Onboarding is a crucial administrative task that is managed by HR Opera-
tions. It can be defined as the process of helping new employees acquaint
themselves with the organisation.
®
This is the first step in an employee’s journey in an organisation. Hence it is
vital to ensure that the employee’s experience begins well.
Primarily onboarding helps the new employees to:
• adapt to the new work culture.
• Acquire the relevant skill, knowledge and attitude required for the role.
p
The process of onboarding in an organisation can be categorised into four
major stages :
rm
• Pre-onboarding
• Day of joining
• On the job training
• Initiation into the role
The onboarding process generally begins with the issue of the offer letter
to the candidate and continues beyond that. Typically this may span for
over a week to a few months depending on the organisation’s onboarding
policy.
ch
Joining Formality Process:
Joining formalities refer to a set of activities that are carried out during the
pre-onboarding stage and on the day of joining. These involve a lot of docu-
mentation and coordination, mainly taken care of by HR Operations.
Joining formalities largely include

• collecting specific documents from the candidate, such as previous
employment records
• providing relevant documents to the candidate, such as an appointment
letter

68 HR Operations
What is the need for joining formalities in an organisation?

• Helps in the documentation of employee information
• Assists in complying with an organisation’s audit requirements
• Helps in finding employees in cases of fraud, absconding,legal issues,
etc
®
Responsibilities/Duties of HRs in Joining Formality:
Once any prospective employee accepts a given offer, the HR team needs
to:
p
• Inform the concerned HOD regarding the probable date of joining of the
employee.
• Coordinate with the concerned department regarding the following:
rm
1. Workplace/Cabin,
2. Creating email Id/company Id card,
3. Reception arrangement in case of senior management roles,
4. Allotment of laptop/computer,
5. Grant of landline/mobile phone no.,
6. Creating an employee file of the new employee,
7. Organising an induction program for all new entrants,
8. Assist the new entrants in completing other formalities as per
company rules.
ch
Documents for Joining Formality
1. Documents for Submission – it refers to the documents that all new

employees must submit on their date of joining.

69 HR Operations
Checklist of Documents to Be Submitted

Company-Specific Documents
®
1. Company Application Form
2. Bank Account Opening Form
3. PF/ESI/Gratuity Form (with Nomination)
4. Medical Insurance Form (with Nomination)
5. Life Insurance Form (with Nomination)
6. Company Id/E-Mail Id Application Form
p
7. Passport Size Photographs
8. Resume, Interview Evaluation Form, Offer Letter/Appointment Letter/
Confirmation Letter
rm
Checklist of Documents to Be Submitted
Criteria Specific Documents
1. Education Qualification: 10th, 12th, Graduation/PG Certificates, Marks Cards,

Course Completion Certificates, Provisional Degree, Consolidated Marks Cards.
2. Additional Qualification: Various Certifications like CA, CPA, CCNA, Six

ch
Sigma, CHRMP.
3. Work Experience: Previous Employment Offer Letter/Appointment Letter/

Relieving Letter/Experience Certificates
4. Relevant Experience: Experience Letter/Certificate, Promotion Letter
5. Salary/CTC: 3 Months Pay Slips, Bank Statement
6. Fitness: Medical Fitness Certificate
7. Age: Birth Certificate, 10th marks card, Driving License, PAN card,
Voter ID, Aadhaar Card, Passport

70 HR Operations
8. Address: Electricity Bill, Telephone Bill, Rent Agreement, Aadhaar Card,

Passport
9. Special Criteria: Relevant Government Certificate
®
10.Tax: PAN, Form 16, Investment Details
2. Documents to Receive – it refers to the Documents that all new em-

ployees are supposed to receive on or after their joining date.
p
Checklist of Documents to be Received
1. Appointment Letter
rm
2. Confirmation Letter
3. Employee Handbook/Policy Manual
4. Company Id & Access Card

ch

71 EMPLOYEE
HR Operations
8 DATABASE
MANAGEMENT
Employee Database Management refers to maintaining/managing crucial
®
work-related and vital personal information about an organisation’s human
resources.
Generally,organisations maintain it in two ways;

• Online through HRIS software, or
• As manual recordkeeping
p
Importance of Employee Database Management:
1. Easy Data Availability:

rm
• It serves as a readily accessible source of information between the
organisation and its employees.
• The database is available throughout an employee’s stay in a company.
2. Increases Efficiency of Organisation:

• EDM done through HRIS is highly efficient.
• HRs can retrieve information on various aspects quickly, whenever re-
quired.
3. Information Available is Accurate:

ch
• The information available in HRIS (EDM) is most accurate as the

employees themselves mainly feed it. (through Employee Self Service).
So, one can be very sure of its authenticity/accuracy.
• Since data is easily accessible by employees anytime, they can easily
update any additional information and correct mistakes.
4. EDM Provides Data Confidentiality:

• Employee Database Management (through HRIS) provides data
confidentiality. It helps in keeping any specific information about a
particular employee confidential. (by setting it as private).
• Only the admin of the software or the head of the organisation can
access any such specific information.

72 HR Operations
Module Checklist for Employee Database Management:

The following modules are available in EDM system:
1. Personal Information Module:
®
• Personal Data
• Profile Picture
• Contact Details
• Emergency Contact
• Dependents
• Salary Information
p
• Jobs Information
• Qualifications
• Employee Reporting Structure/Hierarchy
• Immigration Details
rm
• Training Courses
• Leave Summary
• Leave List (Applied/Approved/Rejected/Cancelled)
2. Admin Module:
• Define Company Information (General Information, Company Structure,
Location)
• Define Job Information (Job Title, Job Description, Payscale/Pay grade,
Employment status, Job Categories)
• Define Qualification (Education, Licenses, Certification)
ch
• Define Skills & Competencies

• Define Nationalities
• Define HR Policies
3. Time & Attendance Module:

• Daily Attendance Track (Punch In/Out)
• Attendance Summary
• Time Sheet
• For weekly activities

73 HR Operations
4. Recruitment Module:
• Job Application or Resume
• Application Blank
• Interview & Selection Test Score
• Company & Criteria Specific Documents
®
• Offer Letter & Appointment Letter
• Contracts & Bonds
5. Performance Module:
• KRA List
p
• KPA & KPI List
• MBO
• Bar Score
• 360 degree/720-degree feedback
• 180 degree/270-degree feedback
rm
6. Training & Development Module:
• L1 form, review, reports
• List of training attended, assigned, recommended, missed
Attendence Managment
ch
In every organisation, tracking employees’ working hours has been an es-

sential element of HR Operations. There are multiple issues that an organi-
sation can face in the absence of a reliable employee attendance manage-
ment system, like payroll and compliance issues, tampering with manual
attendance tracker timesheets, etc. Also, it becomes imperative while
availing services of daily wage/hourly based employees or workers.

74 HR Operations
“Attendance Management” is the process of managing employees’

attendance by tracking their working hours, login/logoff time, breaks, and
leaves/time off to ensure high productivity.
Different organisations use several methods, from traditionally punching
cards to spread-sheets and other automated attendance management
®
systems like HRIS, Mobile submissions, and biometric devices. Using
these advanced techniques instead of manually operated timesheets
helps organisations reduce administrative costs, save time, and minimise
process errors and bottlenecks.
Leave Management - A Brief
p
Every organisation decides the leaves depending upon the country it
operates in and its laws and legislations. Companies usually follow a
weekly or quarterly leave management policy which works like a credit
rm
system of leaves.
When the employee exhausts all his entitled leaves and still takes
additional leaves, loss of pay happens.
Though the loss of pay varies from country to country, one of the most
popular ways of calculating the loss of pay is:
LOP = (Total salary / (No.of days in a month) * No. of leaves taken
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75 FULL & FINAL
HR Operations
9 SETTLEMENT
(India Specific)
Full and Final Settlement, also commonly known as the (FnF process) is
®
the procedure required by the organisation/employer after an employee
has separated (resigned, relieved, or terminated) from their services. The
process is relatively simple and conducted as per the appointment letter,
or contract guidelines.
Components of FnF
p
• Unpaid salary
• Leave encashment
• Statutory obligations for payments
• Deductions
rm
Unpaid salary includes:
• Salary from the resignation date till the employee’s last working day.
• In case of notice period being served,the salary from the employee’s
resignation date till the last working date will be considered and paid.
• In case of termination or immediate relieving of an employee,the
salary to be paid will be till the date of termination or the date of
relieving
ch
• Annual benefits like LTA.

• Any Arrears
• For example, any salary hikes (if applicable)
Methods of calculating:
• Per day basic (or Basic + DA or other components)
• Fixed amount defined by the company

76 HR Operations
Full and Final Settlement, also commonly known as the (FnF process) is
the procedure required by the organisation/employer after an employee
has separated (resigned, relieved, or terminated) from their services. The
process is relatively simple and conducted as per the appointment letter,
or contract guidelines.
®
Components of FnF
• Unpaid salary
• Leave encashment
• Statutory obligations for payments
p
• Deductions
Unpaid salary includes:

rm
• Salary from the resignation date till the employee’s last working day.
• In case of notice period being served,the salary from the employee’s
resignation date till the last working date will be considered and paid.
• In case of termination or immediate relieving of an employee,the
salary to be paid will be till the date of termination or the date of
relieving
• Annual benefits like LTA.
• Any Arrears
• For example, any salary hikes (if applicable)
ch
Methods of calculating:
• Per day basic (or Basic + DA or other components)
• Fixed amount defined by the company

77 HR Operations
As per Factories Act,1948 an employee gets one earned leave for 20

days of work.
Companies can also have their internal policy regarding how many leaves
to be settled in a year and how many leaves to be carried forward to the
®
next.
For example – If a company gives 20 earned leaves,it may permit the

employees to encash 7 leaves in a year to be settled in a year and carry
forward the remaining to the next year.
p
Some companies might encash all the earned leaves of one year in that
year,whereas some miay permit 50% of them.
Calculation of Per Day Basic:

rm
Formula = (Number of days of earned leaves x Basic salary) / 26
(26 represent average paid days in a month)
For example –
If earned leaves = 20
Basic or Basic+ DA = 10000
Unpaid leave amount = (20 x 10000) / 26 = INR 7,692
ch
Statutory Obligations for Payments

Statutory obligations mainly apply to the following three components:
• Bonus,
• Gratuity, and
• Pension.

78 HR Operations
1) BONUS :
1. A bonus is one of the statutory compliances that needs to be paid by

the law.
2. It is an employee’s share in the profit of the company that one must get
®
irrespective of the company making profit or losses.
3. It is paid as a percentage of basic salary.
4. It is applicable to companies employing 20 or more employees
5. Anybody who completes 30 days in a company becomes eligible for
getting a bonus.
6. It must be paid within 8 months of the end of the financial year.For
p
example,the bonus for 2020 must be paid by November 2021(within
eight months of closure of financial year 2019-2020).
Calculation of Bonus:
rm
• Formula - 8.33% to 20% of basic salary per annum
• For the last financial year, statutory bonus is mostly paid in the
first eight months of the next financial year. However, suppose
a person resigns, and the bonus is due to be paid,in that case,
it is crucial to settle the previous year’s bonus and the current
year’s bonus as anybody who completes 30 days in a company
becomes eligible for getting a bonus.
ch
• Also, it is essential to understand that a statutory bonus is not a

performance bonus or incentive. A performance bonus or incen-
tive is separate.
• Statutory bonus is compulsory to be paid for all employees earn-

ing a gross or total salary or wages up to Rs. 21,000
• For employees earning a gross or total salary or wages above

Rs. 21,000, giving the statutory bonus becomes optional. In this
case, it becomes a company’s discretion whether to give it or not.

79 HR Operations
2)GRATUITY:
This is a loyalty bonus that is given to an employee who has remained &
completed a certain amount of time in a company.
®
As per the Gratuity Act,1972,an employee who has worked for five years(4
years 240 days) in an organisation is entitled to get gratuity.
An organisation has to pay gratuity if it employs at least ten persons on a

single day in the preceding 12 months.
p
Formula for Gratuity calculation:
1. Years of service is between 5-10 years = last basic drawn per month x
number of years of service x 15/26
rm
2. Years of service is between 10-20 years = last basic drawn per month x
number of years of service x 22/26
3. Years of service is above 20 years = last basic drawn per month x
number of years of service
These formulas can be used for gratuity calculation, but the most used
formula (FnF) is the first formula.
Also, any period above six months is considered as a year for calculation
purposes. (Example- 6 years seven months will be considered seven years;
ch
whereas six years four months will be considered six years only).
The maximum amount of tax free gratuity that can be paid to an individual
is Rs 20 lacs.
It is important to remember that gratuity must be paid within 30 days after

leaving the company.

80 HR Operations
3)Pension:
There are three important conditions to be eligible for pension:
1. The employee should have completed at least six months of service
®
with the existing employer.
2. The employee must have completed 58 years of service.
3. The employee must have completed ten years of ‘pensionable
service’(There should be ten years or 120 months of PF deposits or
pension deposits in the PF account.)
p
It is important to note that there is a minimum and a maximum pension
amount that can be paid - the minimum being INR1000, and the maximum
being INR 7500. (Pension is capped at INR 7500)
rm
The formula for calculating pension:
EPS = (pensionable salary x service period) / 70
Organisations have a choice to calculate PF contribution on a cutoff limit

of INR15,000 (Assumed Basic) if the Basic or Basic+D.A is INR15,000
or more. If the Basic or Basic + DA is less than INR15,000, then the
calculation happens on the actual amount.
Example:
ch
Pensionable salary (maximum allowed for calculation) = INR15000

Years in Service = 30
Pension = (15000 X 30) / 70 = Rs. 6429

81 HR Operations
While understanding Deductions under FnF, the following are considered:

• PF and ESI (if applicable)
• Taxes like Professional Tax and Income Ttax.
• Loss of Company Property
• Loans & Advances
®
01 PF & ESI: PF applies to any company with 20 employees or more.
ESI again has a limit of 21,000 rupees. So, if your gross salary or total
salary is more than 21,000, ESI may not be applicable.
PF for the corresponding period is calculated.So, from the time an em-
ployee has resigned to the employee’s last working day, whatever the
p
PF amount would be,it must be deducted from the full and final settle-
ment. PF is mostly calculated as 12% of the basic amount.
ESI for the corresponding period : In ESI, the employer contribution is
3.25% of the total salary, and employee contribution is 0.75% of the full
rm
salary, and the salary being a maximum of 21,000. So, in either case,
the last cycle is considered PF & ESI for the corresponding period.
02
Taxes like Professional Tax and Income tax:There are two taxes : Pro-
fessional tax and Income tax.Professional Tax is a specified state tax
(India).
Professional Tax will be calculated as per the state government slabs
on the notice period, and that amount would be deducted in FnF.
The second is the Income-tax. Income tax calculation will happen on
the total remuneration paid for the corresponding month.
ch
Gratuity and leave encashment is exempted from the income-tax de-

duction.
Gratuity is exempted up to INR 20 lakhs per individual.
If the total gratuity exceeds INR 20 lakhs, then that amount becomes
taxable and is deducted under Income tax.
03 Loss of Company Property:The following can be considered as compa-

ny property : ID cards, laptops, internet devices, houses and serviced
apartments, vehicles, etc.
Any loss or damage may be deducted from a full and final settlement
based on company policy.
While taking the handover, any damage done to the company property
is assessed, and a value is assigned. That amount is deducted from the
full and final settlement based on the company policy.

82 HR Operations
04 Loans and Advances: This Is done based on the company policy.

Some companies give loans and advances to their employees.
An employee should settle loans given by the company.
A company may say that it will start an employee’s full and final
settlement process only after the employee settles the loan. In such a
®
scenario,loan settlement & FnF remain separate processes & the FnF
settlement process begins only after the loan settlement.
They can also go about settling it as a part of the FnF settlement.
For example- If the company says that we will do the full and final
settlement and take a post-dated cheque and a bank guarantee for
your loan for the next six months, it might be a company policy. Still,
p
in the majority of cases, either the employee has to return it, or it
gets settled in FnF settlement. In Loans cases, mostly, there is some
percentage calculation that goes in terms of the interest, etc.
Advances are mostly small amounts(salary advances) (1 month,
rm
two months, and three months) that are given without any interest
calculation. Advances given are primarily settled in the FnF unless the
amount exceeds the FnF.
05
Company Policy on FnF: How do companies do it or when do they
consider doing it?
There are two ways companies go about creating their policies on FnF.
ch
In one approach, they first relieve the employee and then initiate FnF.In
this case, the relieving letter is issued then the FNF is done.
In another approach,they first finish FNF settlement and then relieve

the employee.
Disclaimer – The above described FnF settlement process/components

are specific to the Indian context and vary from country to country.
Kindly refer to the applicable laws & practices pertaining to your
geographies.

83 HR Operations
What CHRMP Alumni say about us

“If you want to ace it in HR, both as an entrant to the role or as a seasoned professional who is looking
at enhancing their competence, then CHRMP is for you.
I highly recommend it because it helps provide clarity for the role that HR and HR personnel play in a
®
VUCA world. It gives you access to a rich alumni network of HR professionals who now hold critical
and leading HR roles in Comp & Ben, L&D, Talent Management, and HR Business
Partnering roles.
It is designed for the modern HR professional who is now a key go-to strategy enabler for the CEO of
the business. The content too is customized and allows you the experience of either gain competence
in all areas of HR or specific areas that matter most to you based on your role and tenure.
So, it’s a highly customer- as well as business-centric Certification that truly sets you apart when you’re
p
in the job market!”
— Mukund Ganapathy
Sr. L&D Business Partner, Amazon India
rm
“I wanted to get international certification that will be an added value for my HR career.While
going through the certification process, I found the learning process to be smooth and easy. The
videos are clear, the topics are well chosen.I liked the clarity of the modules, the examples given
by the trainers. The training course was easy because I felt same as in the classroom, so this is
an added value. I specially liked the L&D module. I would surely recommend CHRMP to others
looking for a certification in HR. I would like to thank CHRMP team for the support and for being
efficient in answering any query.”
— Joanna Elias
HR Assistant, United Nations
ch
“I have 5+yrs of experience in HR domain !! CHRMP has an wonderful learning sessions with self
development career!!! It’s useful for HRs for ugrade of Knowledge and implementation!!! For Non
HRs it will be new and easy to Know about the HR field and they can easily implement the process
in their new career!!!! So I will b giving 200% Go+ for Chrmp classes and get full benefits of HR
domain!!! Tk u ripples for opportunity!!!”
— Zunaith K
Sr. HR Admin, Titanium Motors, Mercedes Benz, India

84 HR Operations
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CHRMP (CERTIFIED HUMAN RESOURCE

CERTIFIED HUMAN RESOURCE

trained HRM professionals having the required

CHRMP (Certified Human Resource Management Professional) uses a

CHRMP courseware from the series ‘Domain Excellence in HR’ follows a

- Application based content to augment your learning

Launched in 2010, CHRMP certification has helped thousands of HR

CERTIFIED HUMAN RESOURCE

Ripples Learning Services

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5 HR Operations Become a Certified Human Resource Management Professional

The Certified Human Resource Management Professional

It is a globally recognized, competency-based HR certification

The CHRMP learning system comprises self-paced, instructor

Mercer Mettl. The exams are computer-based, which you can

The CHRMP Continuing Professional Development(CPD)

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Design HR processes and systems to improve effectiveness of

Maintain data integrity through accuracy and attention to

Become a Certified Human Resource Management Professional

Become a Certified Human Resource Management Professional

08.Employment Database Management...........................................................................73-76

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Each of these resources is administered by definite processes to optimise

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Let’s examine the scope of HR Operations more in detail.

Become a Certified Human Resource Management Professional

An offer letter can be either accepted, rejected, or negotiated.

Failure of background verification is one of the primary reasons an employer

Types of Offer Letters

2. Offer cum Appointment Letter

Become a Certified Human Resource Management Professional

Offer cum Appointment Letter

An offer cum appointment letter is a single document that serves two

Contents of Offer Letter:

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Sample Letter of Intent

As jointly discussed and agreed, we are pleased to offer you an appointment

This offer of appointment is subject to your completion of the company’s

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Sample Offer Letter

Dear (Employee Name),

Further to your application and subsequent discussion, we are pleased to

Please find the details of the offer below:

NUMBERS FOLLOWED BY WORDS). You will also be entitled to (MENTION

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the employee benefits, which include (MENTION IN BRIEF WHAT YOUR

1. Number of leaves annually

Your detailed compensation and benefits plan, and terms of employment

You will be required to submit the following documents on your joining

1. 3 months’ payslips (previous organisation)

As part of the joining formalities, you must sign a Non-Disclosure Agreement

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We are looking forward to your successful association with (Company’s

Name of concerned person:

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Contents of Appointment Letter:

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