When the Employer engages a person to do the work in connection with the Establishment an employer-employee relationship is established. In order to give a legal sanction to this relationship, an appointment order is issued. This forms a integral part of the employees binding to the company and the parameters under which he has to conduct himself within the organisation.
By employing a person for work the status "employer" is given to the hand of the organisation. Hence, it is not necessary to have a large organisation, to get this status even a small scale unit on a trading concern would have this relationship.
When a relationship is established it is imperative that the terms are furnished in the interest of both the parties. Though there is no extraordinary law on this subject, the related problems could be in the absence of a letter being issued. The system requires the following basis categorisation :
- Name and Address
- Wage / Salary / Scale
- Period of appointment
- Job responsibility and conduct
- Procedure for termination
The following types of letters are in general use with specific letters made for certain special category of personnel :
- Specific Contract
The issuing of letters in a well understood system to build a healthy relationship, confidence and a demarcated way of human functions.
We shall elaborate on the above in our subsequent notes to you.