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Ritesh Srivastava (Manager)     17 April 2013

Injustice by employer - lic

This is to bring to your kind concern that, the Senior Marketing Executive Scheme (SME) 2009 was introduced in Life Insurance Corporation of India (LICI) in 2009 and the only batch of 100 odd SME’s were recruited through all India level written test followed by group discussion, interview and medical in March 2010. The SME have been recruited to boost the four Alternate Marketing Channels, vizChief Life Insurance Advisor (CLIA), Bancassurance & Alternate Channel (B&AC), P&GS, Direct Marketing. They have been recruited for a term of three years with the option to get an extension of two similar terms of 3 years each (i.e. for 9 years).

The SME’s have come from different industrial experiences and LICI started the concept with the good intention of recruiting the human resources available in the market so as to be able to provide competitive service comparable to that provided by the Private Insurance Players. But since inception there has been a lot of politics over their recruitment. These SME’s were recruited as equivalent to Branch Manager Cadre of LICI.

We are having grievances ----

             No increment of Salary as mentioned in Clause 8 of the Engagement Letter since joining. Two annual increments due. We have applied for increment but no decision has been taken. LICI is not honouring the very “SME Scheme 2009”. Same Work Same Pay’ principle is not followed - Permanent employees doing the same work in the different alternate channels get 74 p.c. DA as on date. We don’t get any DA. This DA component should be brought in for SME’s.

 

  1. Basic pay cannot remain fixed at Rs.20,000/-. It has to increase every year at a specified rate, otherwise how can we apply for other PSU jobs..? Permanent employees basic increase every year.

 

  1. We are talked of as 6 Lacs employees, but our salary in effect is Rs. 35,000/- p.m. or Rs. 4.20 Lacs p.a. The balance Rs. 1.80 Lacs is Variable Pay, which we have to earn by way of fulfilling certain sales criteria. All of us do not earn this whole amount also. Most of the  SMEs have never earned any variable pay. We are thus underpaid.

 

  1. LIC deducts Rs.4,000/- p.m. from this 35,000/- & shows Rs.2,000/- as employers contribution. LIC deducts Gratuity of Rs. 965/- from our salary which is again not as per Law. Gratuity is payable only after 5 years. What if an SME quits after 3/4 years. SMEs who have left or terminated have only been paid 2000/- out of this deduction of Rs. 4965/-. How can a company which is a largest ‘Social Security Provider’ in this country to crores of citizens, do this discrimination to a section of its own employees-the SMEs?

Now kindly help us that what could we do ? Will send all the relevent documents.  



Learning

 3 Replies

Kumar Doab (FIN)     17 April 2013

 

You have posted that:

----“ They have been recruited for a term of three years with the option to get an extension of two similar terms of 3 years each (i.e. for 9 years).’

 

The offer is not for permanent employment.

Apparently the appointment is FTC (Fixed Term Contract).

 

-----“ This is to bring to your kind concern that, the Senior Marketing Executive Scheme (SME) 2009 was introduced in Life Insurance Corporation of India (LICI) in 2009”

You may relate the offer with provisions of Scheme (SME) 2009 and point the variances.

 

-----“ No increment of Salary as mentioned in Clause 8 of the Engagement Letter since joining.’

You have accepted this clause.

 

----“ We don’t get any DA. This DA component should be brought in for SME’s.’

It is felt that only the board of the company which has formulated the scheme and is empowered to take such a decision can decide.

If there is no provision to grant DA to you then you are not eligible.

 

-----“ The balance Rs. 1.80 Lacs is Variable Pay, which we have to earn by way of fulfilling certain sales criteria.

It must have been described in engagement letter issued to you and accepted by you.

Variable pay not be treated as guaranteed/fixed wages.

 

-----“ LIC deducts Rs.4,000/- p.m. from this 35,000/- & shows Rs.2,000/- as employers contribution.”

Employer’s contribution for what, Is it for PF? If yes did you submit PF forms for PF a/c and has the company issued PF number?

You can ask in writing to supply the PF number in writing and PF a/c slip/pass book of whole tenure of service.

It is felt that LIC has its own trust to manage the PF. You may acquire PF rules applicabl;e to your designation.

SMEs who have left or terminated have only been paid 2000/- out of this deduction of Rs. 4965/-. “

The contribution of employee’s + employer’s + interest accrued is to be paid if it PF.

First of all confirm what this contribution is and what are the rules?

LIC is covered under RTI Act.

-----“ LIC deducts Gratuity of Rs. 965/- from our salary which is again not as per Law. Gratuity is payable only after 5 years. What if an SME quits after 3/4 years. “

Since it is mentioned in CTC it is contractual obligation on part of company to disburse the amount. Employee does not have to contribute a penny to Gratuity. It is statutory obligation of employer to bear the total cost.

There are many threads at LCI on Gratuity being deducted/ reflected in CTC at:

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.UW6E_6KAqWM

You may go thru these.

 

 

-----“ How can a company which is a largest ‘Social Security Provider’ in this country to crores of citizens, do this discrimination to a section of its own employees-the SMEs?’

“LICI started the concept with the good intention of recruiting the human resources available in the market so as to be able to provide competitive service comparable to that provided by the Private Insurance Players.”

 It is heartfelt opinion without any offence that you are mistaken.

The private sector initially hired top executives from Insurance background and middle/second line/first line managers from diverse background.

There were selfish/single minded/self centered/ruthless reasons for it.

The people from diverse background of various industries brought with them their social/personal/professional circle contacts that were recruited as agents/managers.

They were exposed to only one language: Money, R&R, Targets and achievements.

Without understanding the real game these ill informed guys sold ULIP to their near and dear ones and made false statements of sky high returns without understanding that they are exposing their own near and dear ones to loot by these companies.

You may look closely and find how many people are working with the same company as on date, and how many offices have been closed by these companies, and what the return ROI/IRR to the customers is.

 

LIC has acquired a filed force which is not entitled to and does not have any lien on permanent employment and is highly cost effective as compared to permanent staff.

So who has gained you or LIC?

You won’t be made even member of union of employees in LIC!!!!!!!!!!!

Isn’t it?

If you want to join a private life insurance company now it shall look at number of employees/team size handled by you, volume of business generated by you, contacts you have and can bring with you and convert to business which shall be primarily

Let us assume a person joins under this scheme at the age of 28 years and is able to work for 9 years. After 9 years he/she shall be overage for employment in majority of the companies.

 

Before you start an agitation it shall be appropriate to join hands and meet competent and experienced labor consultant/service lawyers, show the details of the scheme, service rules, engagement letter, CTC sheet and understand the merits and proceed under expert advice of your lawyer.

 

Valuable advice of learned experts/members is sought.

 

 

 

Ritesh Srivastava (Manager)     19 April 2013

Thanks for your valuable advice. It would be realy appreciable if you can suggest the name and contact details of some Lawerys for Labour Law.

Kumar Doab (FIN)     19 April 2013

 

 

If you wish to avail the services of LCI lawyer you can conduct search at:

https://www.lawyersclubindia.com/lawyers_search/#.UXEHt6KAqWM

Related lawyers list is available on the bottom of web page of the thread initiated by you.

Your near and dear ones can also guide you to a competent and experienced lawyer/law firm.

In each city there are few lawyers who practice in labor law service matters, and they specialize in it. The lawyer who is on panel of LIC may not accept to be your lawyer due to professional ethics.


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