Packages Internship Report on i.r Dept,By a HRM ,By m.kashif Iqbal 03336866227

8/4/2019 Packages Internship Report on i.r Dept,By a HRM ,By m.kashif Iqbal 03336866227

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INTERNSHIP REPORT

I.R (INDUATRIAL RELATION) DEPARTMENTPACKAGES LTD.LAHORE, PAKISTAN

BUSINESS UNITS

SUBMITTED BY:

M.KASHIF IQBAL

M.B.A (H.R.M)03336866227

Repot on I.R department, prepared by M.KASHIF IQBAL 1
http://www.packages.com.pk/consumerproducts.htmhttp://www.packages.com.pk/flexible.htmhttp://www.packages.com.pk/corruwal.htmhttp://www.packages.com.pk/carton.htmhttp://www.packages.com.pk/paper&board.htm


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VIRTUAL UNIVERSITY OF PAKISTAN

HAJVERY UNIVERSITY, LAHOR

TABLE OF CONTENTS

1. ACKNOWLEDGEMENT

2. COMPANY PROFILE

3. GENERAL INFORMATION ABOUT I.R DEPARTMENT

4. SAP/ LIMTON APPLICATION IN I.R FUNCTIONS

5. HIERARCHY OF I.R DEPARTMENT

6. INTRODUCTION OF (I.R) INDUSTRIAL RELATIONS DEPARTMENT

7. ESTABLISHMENT AND COMPENSATION WING

7.1.1. ESTABLISHMENT

7.1.2. TIME OFFICE

7.1.3. INCENTIVES

7.1.4. PAYROLL SECTION

7.1.4.1.1. WAGES

7.1.4.1.2. SALARY

8. LABOR WALFARE

8.1.1. SOCIAL SECURITY;

8.1.2. EOBI: EMPLOYEES OLD-AGE BENEFITS INSTITUTION

8.1.3. WORKERS WELFARE FUND8.1.4. MEDICAL FACILITY

8.1.5. MEDICAL ALLOWANCE:

8.1.6. HAJJ SCHEME

8.1.7. MOTOR CYCLE SCHEME

8.1.8. RECRETION ALLOWANCE (Rest house)

8.1.9. ALI INSTITUTION OF EDUCATION (A.I.E)

8.1.10. APPRENTICESHIP

8.1.11. FAIR PRICE SHOP

8.1.12. UNIFORMS

8.1.13. TALENT SCHOLARSHIP

8.1.14. WELFARE FUND9. LEGAL CELL

10.MESS

11.ASSIGMENTS WHICH I DID



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12.LEARNING AS STUDENT INTERNEE

13.OBSERVATIONS

14.CONCLUSION AND RECOMMENDATIONS

ACKNOWLEDGEMENT

Package Limited is a learning organization where every person whomI interacted during my internship contributes to making this internshipreport. I would like to acknowledge the efforts of the following

persons.

First of all, I would like to mention the generosity and kind behavior ofIRManager, Mr. Muhammad Akram Chaudhry who gave me a Chanceto work in his outstanding organization under his kin control.

I can never forget the efforts of whole of the IR department which letme learn the internal working of departments with such an ease andfreedom



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Company Profile: Packages was established in 1956 as a joint venture between the Ali

Group of Pakistan and Akerlund and Rausing of Sweden,

Packages Limited provides premium packaging solutions forexceptional value to individuals and businesses.

They are the only packaging facility in Pakistan offering a completerange of packaging solutions including offset printed cartons, shippingcontainers and flexible packaging materials to individuals and

businesses world wide.

Packaging has always been at the forefront of new developments inpackaging research and has pioneered several innovations, includingthe use of wheat straw as a raw material for paper and boardmanufactured.

Listed on all three stock exchanges in Pakistan, Packages Limitedhas maintained a long-time credit rating of AA. Their joint venturesand business alliances with some of the world's biggest names reflecttheir forward-looking strategy of continuously improving customer

value through improvements in productivity

Their clientele includes illustrious names such as Unilever andPakistan Tobacco Company, who have been their customers for over50 years.



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BUSINESS UNITS:

1. Paper and Board Mill (PBD)2. Packaging Division3. Carton Line Business Unit4. Flexible Line5. Corruwal Business Unit6. Consumer products Division

I WAS APPOINTED in I.R DEPARRTMENT WHERE I LEARNT

THE FOLLOWING THINGS

My internship period was for 8 weeks from 23.05.2011 to 15.07.2011.

GENERAL INFORMATION ABOUT I.R DEPARTMENT.

Employees informationThere is almost (3000) three thousands employees of packages familywhich are located at different location of Pakistan.

Packages has two division1- Packaging division2- Paper board division

Employees are classified into two major classes1. Workers (deals by labor law)

2. Executives (deals with company policies)

Employees are classified in further categories and their grading:X1: hourly basis workers :( temporary and shift workers)



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Grading of X1: A, B, C, D, and P, P2, P3

X2: monthly basis workers: (permanent and contractual) ncluding juniorexecutive, executive, technical staff, officerGrading of X2: 1, 2, 3, 4, 5,

JE, JE1, E3, E2, E1T, T1, T2, T3, T4, T5, T6.T7E and S1, S2,

X3: confidential staff including managerGrading of X3: M, M1, M2

X4: also confidential staff including senior managers, general manager,managing directors, etc.Grading of X4: M3, M4, SM, GM, MD,Its also include chairman and shareholder

SHIFTS TIMING FOR EMPLOYEES

1st: 06:30 to 15:002nd: 14:55 to 23:253rd: 23:20 to 06:35General shift: 07:30 to 16:00

Office timing: 08:30 to 16:30On Friday: 08:30to17:00

LATE TIME ASSUMPTION5 Minutes is assumption for X1 employees.

10 minutes is assumption for X2 employees.

OVER TIME ELIGIBLE EMPLOYEESGrade 1to 5 to JE, JE1 AND X1 are eligible.

SAP/ LIMTON APPLICATION IN I.R FUNCTIONS:

IR department is partially automated with SAP system. It has a completemodule of personnel administration. Whole record of newly hired employeesto packages family and existing employees is kept maintained and updated



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in the system. Salary or payroll process is maintained and entered in thesystem which increases the efficiency and effectiveness of the HR functions.The work is more error free, reliable data which at any time can be retrievedthrough its auto generation of information reports.

Limton attendance system, which was introduced by the Limton Group ofCompanies, is made compatible with SAP system so that the attendancesystem acquires the necessary data from employment record. Thus, thewhole integrated system has made the packages a centrally controlledautomated system which has increased the working capacity, Coordinationand ranked it a technologically adaptive learning organization

Working is done from manual to I.T system. So there is two system whichare usingLIMTONand

SAP (system application procedures)So, data is transformed from limton to sap and from sap to limton tocomplete the activities.

HIERARCHY OF I.R DEPARTMENT


IR MANAGER

ESTABLISHMENT

AND

COMPENSATION

LABOR

WELFARE

LEGAL

ADVISIORY

MESS

TIMEMANAGEMENT INCENTIVE ESTABLISHMENT SALARY WAGES


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INTRODUCTION OF (I.R) INDUSTRIAL RELATIONSDEPARTMENT:

IR and HR are the back bone of framework of any organization. The successof organization mainly depends upon personnel department, which not onlyprovides best human asset for an organization but also add to the value ofits performance.In Packages, IR & HRD work in collaboration with each other.

IR MANAGER

IR department is directly headed by IR manager who is autonomous indecision making regarding

factory workers, Union negotiation, recruitment of workers up to grade I to V.

The IR department consists of four sections.



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1. Compensation &Establishment2. Labor Welfare3. Legal Cell

4. Mess

ESTABLISHMENT AND COMPENSATION WING

This is wing where assistance I.R manager ( E& C manager) sir, Imran illahiwho is responsible for this wing and also responsible salary, wages, timemanagement, incentive and establishment, supervision and handlingreports.Senior personnel officer who is in charge of whole wing heads all theseactivities of time office, Sr. personnel officer directly reports to IR Manager.

ESTABLISHMENT:

Establishment is the main communication bridge between employee andmanagement over and above all internal and external communication anddata flow of correspondence.



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The Establishment is Supervised by Mr. lmtiaz Ali, the section is beingmanaged by three other individuals ;

Mr.Imtaiz(personnel officer Establishment) supervising the salary sectionand checking all confidential documents

.Mr.Illyas Chaudhary (Ass. Personnel officer)Responsible for reporting.

Mr. Wasif Ishfaq (Ass. Personnel officer)Mr. Abdul Guffar (Ass. Personnel officer)Mr. Was if and Mr. Abdul Guffar (Maintenance of Personal Data) arediligently managing the easier said than done task of maintenance ofpersonal file employees right from their hiring and throughout their careers.They are also responsible for issuing different letters including appointmentletter.

Letter of change in designation and letter of contract letter to name the few.

Their other duties include issuing employee and internee cards andmanaging probation reports..

Work activities which I observe in this section are:

Establishment section is performing function like:

It is concerned with the documentation of whole of the recruitmentprocess and other reports relation to it.

The record is kept for 3 years and in some cases it is kept for 10years as per directives of tax and audit department.

A file of a new employee (personal file maintenance) after test andinterview is prepared here.

His / her appointment letter, personal bio data, copies of educationalcertificates, medical fitness report, appointment/ contact letter and

joining report is filled up here and all related documents are alsobuckled up in the file.



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Also (action on information: intimation letter) transfers, allowances,leavers: termination or resignations, increment are being processed inestablishment department.

This very file is used for further record keeping of job changes.

Furthermore, a personal identity card is issued to the employee who

is to swipe in the swipe card system. The establishment sectionissues this card.

Managing and maintaining the personal data of all employees.

Preparing permanent, contract, temporary, contract labor, visitor andalso internee card also.

Sending confidential reports to all departments

Entering and updating employees information (amendment inemployee status) in SAP

Preparing all type of service certificates/ pay certificates.

Preparing letters for retirement / extension.

Preparing and distributing management staff pension fund schemeletters.

Other responsibilities of X3 includes, entry of record of each newlyhired employee into the system and amend and maintain the recordof existing employees, keep a check on the end date of contractualemployees etc.

They also a give a unique employee number to that employee andalso provide him with the computerized employee card. And everyrelevant information regarding to the employees personal data is alsoupgrade in the employees personal file periodically.

Mr. Illyas is responsible for providing reports. As and when needed.

These reports take the form of textual spreadsheets as well asgraphical presentations.

APPOINTMENT PROCEDURE:

1. Letter of appointment2. Acceptance and return a signed copy to IR3. Medical test pass

INDUCTION:



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1. Joining Report to HOD2. Time Office Employee Card No.

PROBATION:

1. Three Months2. In writing confirm to employee

RETIREMENT:

At the age of 58 years or it found medically unfit the employee isretired from the factory.

RSIGNATION:

1. Probability has to provide the 24 hours written notice2. Permanent has to provide the written notice.

TIME OFFICE

I was appointed in time office and I observe that Time office is the majorsection in IR department. The section is in charged by Mr. Races (Personnelofficer Establishment) and assisted by Mr.Khalid, (Asst. Personnel officer)Here the basic objective is to handle the attendance



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Work acitivies which I observe in this section are:

Checking the daily attendance of all the employees of packages throughoutPakistan which is received through Electric attendance machines which areinstalled on different places in the factory (Lahore, Karachi, Kausr offices.

(Limton (Software of electronic attendance) is managed.)

Receive attendance of employees when they swipe their cards in thetime clock.

Data of these machines is collected in this division by runningPOLOING program

After receiving all the attendance of the day, After sorting the data ofattendance (on excel sheet e-mail) is sent through e-mail to the everydepartments heads for the confirmation and correction, on daily basisand after correction and confirmation the data is upgrade to thesystem and also integrate with the SAP leave management Software.

Limton software is using for updating the record of attendance, time-in, time-out of workers.

Centralized control on attendance.

LIMTON softwares is parallel working with SAP.

Making the master and individual roaster for rotation of employees indifferent shifts(schedule)

Handling the short leave and entry them

Rest changes of employees

Handling Record of Gates In and Gate Out passes

Sending the birthday to employees: calculate wages and salaries and

marks the attendance of the employees. It keeps the record of the employees

Under amply vigilant supervision of Sr. Personnel Officer (ImranElahi), Time office is the heart of human resource activities atpackages. The area where everything from managing arrival anddeparture time of employees to execution of their payroll. Frommaintenance of personal data to calculation of incentives is beingdone

Working is done on previous date data

Gate passes:



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A gate pass is issued to the employees if they go out of the factoryduring working hours far any short leave, official work, O.T.

.

This gate pass is duly signed by the concerned supervisory authorityand is shown to the gate office before leaving the premises.

These gate passes are then sent to the time office on next day wherepersonnel officers check them in their time wizard attendance system.

This system gives workers flexible hour of duty and their performanceimproves. Moreover, the accuracy in payment is ensured because thepay of employee I directly proportional to the time worked.

Leave entitlement:

Annual leave (14 for workers up to J.E (with pay), 16 for Executiveand managerialstaff) can be availed for more than 3 days at a stretch only afterconfirmation.

Casual leave (10 with pay) can be availed for more than 3 days at astretch only after confirmation.

Medical leave (8 with full pay, 16 with half pay)

Hajj leaves (30 days)

Compensatory leave (1 for working on rest day, 2 on doing work onEid and other Festivals @ double the rate of hourly wage, if someonein executive (X2) level do work continuously for 8 hours, then acompensatory leave also graned)

Maternity leave (45 days pre confinement, 45 days post confinement)

Annual Leaves 14



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Casual Leaves 10Medical Leaves 16 Half paid

08 Full paidSocial Security Leaves Only for X1 employeesCompensatory Leaves Only for X2 employees

LEAVE RECORD MANAGEMENT:

In this wing of time office leave record of employees is managed. For thispurposeEmployees are divided into two categories.

1. X1 (hourly Staff)2. X2 (Permanent or Monthly staff)

In this wing leave record is updated on the SAP software with the help ofwritten Application of Leaves, Late Coming, Early Leaving, over time. Thisdata is updated on the SAP software. For this purpose written applicationwith approval of supervisor / Incharge is mandatory.

LEAVE PROCESSING:The leave submission or grant of leaves id done through a leave applicationform, which is signed by the immediate supervisory authority and sent to thetime

Office. The personnel officers enter the leave to the system of personnelmanagement. Thus the leaves deduction is also done when salary processisexecuted. All these activates are perfumed by junior personnel officers ofpayroll section X1 and X2



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INCENTIVES

In this section incentives are calculated by Mr. Tariq saeed (personnelOfficer) and Mr. Shafqat Ali ( Establishment Assistant) under thesupervision of Mr. Raees.This department deals with:

Incentive is calculated If production exceeds form the given target,incentive is add to the account with a specific percentage anddistributed among workers of that shift

There is different type cards on which different portion is madeo Production cardo Production incentive card

o Production batch card

o And one type of form: Die stereo 1-b data pick up

Production Card has three portiono Employee code

o Production/ setting

o Shift timing

Incentives are given to the workers for the extra production.

Every machine has separate production card comprising of 3 differentshifts.

Incentives are given to the workers upto J.E level.

Incentive is given only on TIME CODE 02: RUNNING, remaining timecode is not for incentive

Production Cards containing the information of employees who areworking on different machines.

Cards contain the information related to (date, shift number, machinenumber, job number, and the number of employees) and total workinghours with the detail of work done.

These cards are filled on daily basis by the respective departments

Cards are forwarded to incentive section (time office).



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after collection, these cards are sorted in accordance to the machinenumber, than cards of one department are sorted by the shift timing,

then cards are arrange in ascending order,

so after collecting production cards,

sorting is done of cardso Date wise,

o Department wise

o And shift wise.

So after doing Batching Then

Entering data of production into computer of three portion abouto Employees

o Production

o Timing of shift Then

3-Calculating the total

and the data is entered in SAP software :The data is entered to theSAP software and which is automatically added to the account ofworkers

so incentive is posted to payroll: to INFO 15.

Sending statements of production worker after every 15 days to theirconcerning departments for verification.

Data is entered in two divisiono Fist part 1 to 15 dateso Second part 16 to end date of month

So it is a sub section of payroll process i.e. incentive allocationsection

Formula isAmount = percentage basic rate timeWhereas percentage = production/ base rate/ time



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PAYROLL SECTION;

The tasks performed in salary and wages section are essentiallysame with the exception of dispatching of absence report thrice a

month in salary section. Tasks which are same is coming at the end of payroll section.

Payroll process is a electronically controlled program which take thedata from different places such as INFO 15, INFO14 and RT:salary breakup and reads the data like basic pay, cola, conveyanceallowance, attendance allowance, leaves deduction, incentiveaddition, bonuses, gate pass leave balance, overtime additionalpayments, Union fund, welfare fund, mess/ canteen, EOBI, tax, loan,provident fund, leaves in short all deductions and earning ofemployees is added to each employees account and salary/wages

slip is prepared, enveloped them by department after sorting out, andthese are taken and sent to relative places.

WAGES;

Mr.Younis Mehmood handles the wages of temporary employees(payroll calculation) and their related issues.Workers are categorized as X1 (HOURLY EMPLOYEES) at

packages l imited,Sir, younis also handle the matters of TEMPORARY EMPLOYEES



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Handling gate passes which come from GATE OFFICE and gatepasses are separated and set them into THREE CLASSES andaccording to grades

Edit the list of gate passes on daily basis.

Also handling the LEAVE APPLICATIONS : leave is given according

to quota (balance) among C.L( Casual leave), A.L (Annual leave),M.L( medical leave) etc. and entering them in SAP.

Handling the social security leave cases on own end.

Gate pass Leave deductions and posting of workers are alsoperformed in this section.

Attendance of employees in coming and out doing also handle.

Final settlement of workers are also performed in this section and infinal settlement company give

o 3 mothhs ex-gratia

o Leave balance

o

Gratuityo And provident fund.

And learnt about these, how and when it apply.

How the contribution of GRATUITY is calculated.( depend on basicpay and service period and gratuity rate)

calculation of service of an employee

Calculation of employees production cards (punching cards) whereascalculation is done about the following things,

o normal work time

o over time

o number of mess

a punching card is for specific periodo 1 to 15

o 16 to end date of the month

Calcuations Of wage are being performed in two phases i.e.o 1 to15 and

o 16 to end date of month,

However payment is made just the once at the start of proceedingmonth.

Wages/ salary is paid according to schedule of every month in a year.



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Record of temporary employees with required details are kept instrength register

Temporary employees is hired for 85 days in a contract shape

A form employee information has a complete detail about employee

such as his bio data and his working schedule, shifts, productionincentive, education background etc.

Festival holidays detail of the year.

LEAVES AND CODE OF LEAVES WHICH ARE USED IN X2 AREFOLLOWING:

AL (annul leave) 0100

CL (casual leave) 0200

M.L.H (medical half leave) 1001

M.L.F (medical full leave) 1000

S.S.L (social security leave) 0800

SALARY;

Tasks which are same, is coming at the end of payroll section.

(The tasks performed in salary and wages section are essentially same withthe exception of dispatching of absence report thrice a month.)

This department deals with:

Mr.Riaz with assistance of Mr. Haroon Khan handles salary section ofexecutive, (permanent), contractor and monthly staff (X2, X3, X4).

Except Salary of X3 AND X4 is not run by this department, but theirremaining work activities is deal here. their salary is run by account

department. Checking of gate pass on daily basis

Personal file maintenance and all the issues related to salaries.

Before running salary absences, leaves and annual leaves arechecked and adjusting settlement every month.



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Final settlement is done in this section when the employee isterminated or resigned

Preparing and sending absent reports after every 10 days to theemployees to inform about their absentees.

The tasks performed here and in wages section are essentially same

with the exception of dispatching of absence report thrice a month. Calculations of salary for each month are performed by the 20 of

each month with payment in the following month.

Leaves which are given in salary section are following:

o Annul leave 0100

o Casual leave 0200

o Medical leave 0300 (for executive)

o Special leave 0400

o

Rest 0500o Tour 0600

o Leave w/o pay 0700

o Social security leaves 0800

o Absence 0900

o Medical leave full 1000 (for non executive)

o Medical leave half 1001 (for non executive)

o Special leave 25% gross 2000



o Compensatory leave 5000

TASKS WHICH ARE SAME I N BOTH SECTIONS: WAGES &SALARY ARE FOLLOWING:

Working in salary section X2 packages limited.

Working ACTIVITIES of salary is done on DAILY, WEEKLY, MONTHLY,and YEARLY BASIS.

WORKING ACTIVITIES WHICH IS DONE ON DAILY BASISARE:

Gate passes checking and entering its information in SAP softwareprogram.



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Leave posting

Short leave

Compensatory leave record posting

Attendance correction

Paper filing

Arrears adjustment, back dated leaves, short leaves, absent, overtime, night shifts

Final settlements

Clearance certificate

Employees informations

Edit checking of leave posted

B2 SS leave form

E mail checking

New appointment attendance

Employees goes to SYRIA and come to PACKAGES

WORKING ACTIVITIES WHICH IS DONE ON WEEKLY BASISARE:

Absent report

Amendment checking (leave adjustment)

Absent continue

Personal file maintain

Shift adjustments

WORKING ACTIVITIES WHICH IS DONE ON MONTHLYBASIS ARE:

Absent report

Rest and tours

Over time

Night shift

Mess days + annual leave up to JE

Salary advance+ other deduction Edit check (additional payment)

Interval over time

Fair price shop



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Salary running

Income tax

Pay slip filing

Outstation persons attendance

Leaves up load

Pay slip printing, bank transfer

Pay slip printing, cash payment

Pay slips checking, new comers

Leave absent checking, INFO type 15 as 30-31 days

Payroll release

Exit payroll

Locked person for absence

WORKING ACTIVITIES WHICH IS DONE ON YEARLY BASIS

ARE: Leave absence closing

Leave balance opening

Consolidated leaves balance

Leave over time payment G V

Leave quota

Increment slips filing

Eid advance

LABOR WALFARE

Mr. Waseem (Assistance manager welfare) is the head of Labor Welfaresection.Under his supervision Mr. Khalid Anwar (Labor Welfare Officer) and SaeedSohail (Labor Welfare Officer) are doing all tasks related to labor welfare.



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This wing is very much active in maintaining relationship ofemployees and management and to do and initiate a lot of activitiesfor the welfare of workers and employees

The primary objective is to ensure WELFARE ACTIVITIES.

These activities come from TWO sources:1. labor law2. company policy

In this wing of IR department labor welfare work is done, Mainly,EOBI, PESSI, pension fund for Manager & Executives, Gratuity &provident Fund, workmen Compensation Act, Group Insurance,Apprentice ship Ordinance.

There responsibility is to perform the above mention activities under

the company policy and labor law and with accordance to

Which law is implementing:

factory Act 1934 + IRA 2008

Standing Order 1968

SSO 1965 (Social security ordinance), PSSHMC: Punjab socialsecurity health management company

EOBI 1976 (Employees Old Age Benefit Institute)

Workmen Compensation Act 1923

GAPO 1962 (Government Apprenticeship Program Ordinance)

Minimum Wages Ordinance 1961 Payment of Wages Act 1934

Fair price shop

And some things come from I.R act 2010.

COMPANY POLICYExecutive employees are deal According to company policy, no law for

executive employees.

BENEFITS FOR EXECUTIVE

Hajj facility



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Medical facility

MUREE facility

Guest house facility

Welfare funds

Motor cycle facility

Events are managed for employees of long service appreciation.( 10to 35 service award)

Farewell parties

Dinner (annual)

AFTAR dinner for staff

Sports event

Fair for worker family:

Sport event

Swings

Singing program

Quizzes Stalls

ROSE festival

Group insurance

Sporting role of welfare as a part of HR:

Employees training activities

Outsourcing manpower

SOCIAL SECURITY;

The most important function of company is to give medical facilitiesand financial benefits and some other additional benefits throughsocial security.

Provides medical coverage to employees and their direct dependants:(wife, children and parents) through procedure (to enroll thedependence a form such as a form for ENROLL THE DEPENDANCE

with required documents is requird)

Every worker with pay scale 7000 Rs. With minimum Wages isentitled to the social security.



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A set of from is issued which after various counter signs results intoissuing social security registration card ( R-5) to the worker afterregistration and he./she gets benefit of free medical facility. Companypay 6% (5 % company +1 % employee contribution) of their wages /

salary as contribution to the social security institution, which providesmedical coverage to employees and their direct dependants,

In case if total / partial temporary / permanent disablement employeeis given invalidity pension which he become entitled in medicalground (on loss of 67% of functional capability) and also provide thefinancial benefits in other illness, injured, death cases/ condition tothe employees or their dependants. : (wife, children, parents, brother,and sister)

So, Under social security employees get

Free medical facility Paid leaves

Pension

Grants

Employees up to Grade J.E are entitled to social security.

EOBI: EMPLOYEES OLD-AGE BENEFITSINSTITUTION

Welfare office deals with and follows the employees old age benefitsInstitution Act 1976. Following are the benefits that are being offered to theemployees in packages in accordance with the Act.

The core objective is to give financial protection in old age or disablementcondition.

EOBI: All the employees shall become members of EOBI: Employees Old-

age Pension scheme that is set up by the Government and shall beentitled to pension after attaining the age of 58.

EOBI provide financial help to the member after the age of 58 for menwhereas the women criteria are different than men.



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At the age of 60, he can get the pension even he gets resign/ retire/before maturity.

Employees become member of EOBI after registration process whichis set up through several steps and set of forms/ documents. At the

end a registration card is issued on which a employees registrationnumber is written down.

The company contributes 5% of an employees minimumwages/salary (7000 Rs), 1% from the employees toward this scheme.

An employer has to pay (5% of PKR 7,000= PKR 350)

An employee has to pay (1% of PKR 7,000= PKR 70)

Formula for calculating the pension is as follows:

Pension = total years of insured employment x age. Wage/ salary oflast year /50

BENEFITS OF EOBI ARE FOLLOWING:

EOB Act 1976 was enforced with effect from April 01, 1976, to achieve theobjective of Article 38 (C) of the Constitution, by providing for compulsorysocial insurance. It extends following benefits to insured persons or theirsurvivors:-,Under EOB Scheme, Insured Persons are entitled to avail benefit like,

Old-Age Pension (on the event of retirement),

Invalidity Pension (In case of permanent disability),

Old-Age Grant (an Insured Person attained superannuation age, butdoes not posses the minimum threshold for pension)

Survivor's Pension (in case an Insured Person is expired)

Its benefit is transferable to its dependants of the member.

EOBI also provide the medical compensation

OLD AGE PENSIONthese benefits and requires the payment of monthly old age pension to anemployee if;

He is 6o years of age (in case of woman, 55 years of age; age limit isalso 55 years for male miners engaged in mining for at least 10 yearsof employment)

Contributions in respect of him/her were paid for at least 15 years



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REDUCED OLD AGE PENSIONIf an insured employee has retired two years before reaching the retirementage, he/she shall be entitled to an early but reduced old-age pension. In thateventuality, the pension will be reduced by half a percent (0.5%) on monthlybasis or 6% on yearly basis. So, a reduced pension can be paid to early

male retirees from the age of 58 and female retirees from the age of 50 to54.

INVALIDITY OR DISABILITY PENSION

The Act provides for invalidity or disability pension if an employeesustains an employment injury, as defined in the act, and suffers anearning capacity loss of at least 67%. In this case, he is entitled to

invalidity pension provided that he must have:

At least 15 years of contributions or

At least 5 years of contributions of which at least 3 years must be ininsurable employment

The invalidity pension has to be paid as long as invalidity persists; however,if an employee has been in receipt of disability pension for at least 5 years,he becomes entitled to invalidity pension for life. And if a person reachesretirement age while receiving invalidity pension, his invalidity pensionautomatically converts into old-age pension.

SURVIVORS PENSIONThe Act also provides for Survivors Pension (which is equal to minimumpension) after the death of an insured person in insurable employment for aperiod of at least 3 years. If the deceased had become eligible for old age orinvalidity pension, the spouse will receive that pension of deceased forlifetime. In case of death of spouse who was receiving the insured personspension, this pension will be divided among children in equal share, untilthey attain the age of 18 years (or in the case of girls, before she marries orattains the age of 18 years; whichever comes earlier, however, Since July

2010, daughters can receive this pension until their marriage). In case aninsured person has not left a spouse or children behind, his parents wouldbe entitled for the survivors pension for a period of 5 years.Minimum Pension



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Before we talk about old age grant, it seems worth mentioning here thatsince July 2010, minimum pension (Old-age, invalidity and survivorspension) is PKR 3,000. Further, Old Age, Disability and Survivors pensionsare calculated according to a formula explained as under:

Formula for Calculation= 2% of the average monthly earnings in last yearX total number of years of insurable employmentIn case an employees old age or invalidity pension is less than PKR 3,000,he is to be paid the minimum pension and if his pension is higher than thisamount, he will be paid that higher amount. It is pertinent to mention herethat this law does not allow duplication of benefits i.e., if an employee iseligible for more than one benefits, he can receive only one benefit;whichever is higher.

OLD-AGE GRANTOld-Age Grant is paid to those employees who are not eligible for old-agepension, as they dont meet the requirement of 15 years of contributions.However, if these employees have at least completed 2 years of insurableemployment, they are entitled to a lump sum payment of one month ofearnings, for each year of insured employment.

WORKERS WELFARE FUND;

The main objective of worker welfare fund is to provide benefits to workerssuch as housing schemes and other welfare schemes for the workers.

Benefits available under workers welfare fund are;

provides a number of houses, flats and plots

Free schooling for workers children

Scholarships for workers

Marriage grant.

Death grant

outstanding performance award

It also provides a number of houses, flats and plots handedover to workers/labourers and those which are under constructionby the government



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These schemes include free education of children up tomatriculation, launch of matriculation technical programme inschools, annual scholarships for students up to the postgraduationlevel and health schemes for workers and their families.

Rs70,000 as grant for marriage of workers` daughters

Besides, the schemes provide Rs300,000 as death grant forfamilies of deceased workers

t appears that the above schemes are managed from the hugefunds generated by the federal government under the WorkersWelfare Fund Ordinance, 1971.

MEDICAL FACILITYMedical facility only avail those employees who are executives whereas theirS.S application is not applicable.This M.F is avail through medical facility application.

MEDICAL ALLOWANCE:The employees who don't want to avail medical facility from Gulbergdispensary of Packages Limited can apply for medical allowance. Once headopts the allowance he / she can change it after the date of 1 year

HAJJ SCHEME/ Hajj Facility;Every year (TOTAL 10) 7 form non management staff and 3 formmanagement staff are chosen through balloting hajj on companys expensesand one month paid leave granted when they go.

MOTOR CYCLE SCHEME18 motorcycles allocated to the non executive employees on annually basisby balloting through the union on no loss no profit basis.

The amount is recovered within 5 years/ 60 months and this amount isdeducted from the salary

RECRETION ALLOWANCE (Rest house)Packages always care for their employees and they provide themopportunity to enjoy their holidays. By providing them rest house in muree.

Every year information is circulated to all the departments to submit thedetails of the employees who want to avail the rest house during the



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summer season. Balloting is done and date and duration of the stay isinformed to the lucky winners. Stay is for ONE WEEK, one time in a yea.Nothing is charged from the employees.

This facility is for the J.E. Executive and the managerial staff.

Maximum 12 people can go in a month.Employees can go with family till 6 members.Employees have option to go on specific week by giving application.

The rest houses are:

Rest house for managerial staff: Senior Rest House Muree 49 HallRoad.

Rest house for executives: Kuldana rest house Muree.

Rest house for J.E: Junior rest house Muree 48 Bank road Muree.

ALI INSTITUTION OF EDUCATION (A.I.E) It is a teacher training centre.

Training is provided for 1 year to 2 year.

Diploma if teaching is also provided for 1 year.

Training of 3 month language courses

APPRENTICESHIP By govt. law, any industry fixes 2% quota for apprenticeship so

In packages 2% of the total employees have to work as apprentice.To maintain a minimum level of performance in the organization.

Company hires apprentices through several steps of procedure andregister them in tevta.

Industry beer the fees of apprentices and govt. make the ownapprenticeship college.

The apprentices minimum education must be matriculation.

The main purpose of offering this is to provide help in study and workand also is to develop skills in workers.

This is usually offered to the workers offsprings. This is for a period of

3 years.First year: 6 months education (TVETA)

6 months internship (Packages)



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Second year: 6 months education (TVETA)6 months INTERNSHIP (Packages)

Third year: 12 months internship.

The apprentices are given stipends details of which is as follows:First year: 50% of gross for the grade, (4184 Rs. /Month)Second year: 60% of the gross, (4600 Rs. / Month)Third year: 70% of the gross, (5300 Rs. / Month)

Company also provide them with following facilities. Medical, Books,uniform and instrument with 5% from the bonus at the end of year.

The govt. And company, from the both sides give certification, afterthat they are free.

Company can give offer to join them according to procedures.

FAIR PRICE SHOP:The company is maintaining fair price shop wherefrom employees up tosupervisory level can purchase commodities of day-today use. It is operatedon no profit no loss basis and subsidies rate.This facility is for workers.Subsidies are on two item and employees can take/ buy/ loan these things.Products which are taken on loan, their payment are deducted from salaryfrom next month.Only employees can take and buy products.Contractor employees cannottake F.P.S facility but mess is available on control price for them.

UNIFORMS:All workers except those working in office are given uniforms along with footwears.

SHOE ALLOWANCEEmployees and workers of technical division are provided safety shoes.

TALENT SCHOLARSHIPAbove 45% marks in previously passed examination are required for talent

scholarshipF.A 1200 per monthB.A 1800 per monthM.A 2400 per month



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WELFARE FUND:To help the needy/ sickness people, companys employees made a welfarefund on its shakes.

Employees must be members of this fund and they contribute according toits own capacity e.g.10, 15, 20, 30, 50 etc.Welfare fund has its own committee.Employees contribute 7% of last basic pay till five(5) years.

LEGAL CELL

Legal Cell is managed by Mr. Imran (Sr. Personnel Officer law)And assisted by Ms. Ayesha Shabir (Ass. Personnel Officer Law)

Under the supervision of legal section is responsible for handling all thelegal affairs of the company however those related to human resourcesinclude;

Legal cell basically performing following activities:

To supervise the litigation for and against the company.

Coordination with lawyers outside the company.

To minimize the flaws and minimize defects.



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Handling all the disciplinary cases

Preparing agreement of contractors working with Packages Limitedand Bulleh Shah Paper Mill

Preparing absent reports and legal document like charge, warningand inquiry notices

Handling lawsuits filed against Packages by ex-employees.

Managing disciplinary cases.

Negotiation with union

Dealing with all the court cases and court files on regular basis.

Cases are filed on the basis of labor laws

Laws which are mostly apply in Packages Ltd. Are

IR ordinance 2008,

standing order ordinance 1968,

Factory act 1934,

Employee social security Act 1965,

EOBI Act 1976 and payment of wages Act 1936 Different punishment is assigned on misconduct within the

organization like, fine with holding increment, dismissal withoutpayment, suspension.

Process of Grievances Handling

Following can be cases when an employee has to be handled as per law.

Willful insubordination & disobedience to legal and reasonable orderof

supervisor. Theft, frame, dishonesty.

Willful damage to or loss of employer's goods or property.

Bribing

Absence without leaves for ten or more days.

Habitual late coming.

Habitual breach of any law applicable

Improper Behavior during work Hours.

Habitual negligence.

Frequent repetition of any act on omission refereed to in clause 1

Striking work or inciting others to strike in contravention of theprovision of any law or rules.

Go/work slowly.



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MESS



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Mess is managed by I.R.The food is served at subsidized rates and employees have to pay a verynominal price

There is 5 type of mess.1. Worker mess for workers2. Junior mess3. Supervisory mess for executive and management staff4. Senior mess5. V.I.P mess for guest

There are four types of mess and charges against them are ;

This different type of mess is due to deduction point of view.

1. Worker mess 65 paisa/meal2. Junior mess Rs1 / meal3. Supervisory mess Rs2 / meal4. Senior mess Rs220/ month5. V.I.P mess for guest

FACILITY POINT OF VIEWOne menu for all employees from top to all with same crockery and sittingarea.

WEAKS MENU3 day mutton1 day chicken1 day beef1 day vegetable1 day rice



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MAIN COURCEIn which disc is same

BREAKFASTBreakfast is served to those employees who do work in night but menu is

different in winter and summer season.IN WINTER: egg, bread, bun, button, teaIN SUMMER: bread, bun, button, tea

COUPONSCoupons are given to that worker who comes formorning shift but couponsare given on cost 20 paisa for total breakfast.IN 2nd SHIFTThe workers whose comes at 2nd shift, tea is served at 6 paisa/cup

MILKMilk is served to 1 to 5 grades.Milk is served to those workers who work in chemical area at free of costand 10 paisa/ quarter pack to other workers whose work in other areas.

In case of leave/outstation duty or change in shifts the memberconcerned is allowed proportionate reduction in bill.

Mess dues are deducted from the salary and Menu is decided by thehead of canteen for every 15 days

ASSIGMENTS WHICH I DID



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1. Checking and editing the employees files in compensationsection

2. Took the interview of employees satisfaction level under C&Emanager

3. Checking and editing the Social security leave record ofemployees of six month from Jan 2011 to June 2011.

LEARNING AS STUDENT INTERNEE:

I learnt

a) The calculation of the incentives on each excess unit of production.b) How these incentives are posted on the software SAP.c) He formats of all the letters & contracts generally issued or used by

the IR Department.d) How attendance is retrieved from the attendance machines, & thenposted in the software Limton.

e) I noted how manual attendance is marked & posted in the softwareLimton.

f) How the shifts of the workers are changes, i-e temporary &permanent.g) About different types of leaves & on which condition each leave isgiven.h) I noted the internal & external welfare sources of the organization.i) I reviewed the forms of the Social Security & workers welfare Board

& how they are facilitating the employees.j) That how & under which conditions the role of the Legal Departmentstarts & how legal Cases are being handled in Packages.

k) Which workers are entitled for overtime & how overtime is posted inthe software SAP

OBSERVATIONS;

Based on following Packages came across to me as the great facilitator toits employees;

Competent, experienced and fair dealing by management with theworkers.

Job Security

Timely Payment of wage and salaries.



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Provision of subsidized food.

CONCLUSION AND RECOMMENDATIONS:

During my internship in your reputed organization I observed that followingchanges may be lead your department to the better internal environmentHaving analyzed the policies and procedures and through interviews withlower management and higher management level and also workers grade 1-V, I inferred some recommendations which are as following:

1) First of all, the human resource management has not assumed itsmature shape in true sense of the word. The activities are limited onlyto payroll and record keeping.

2) While HRD department has limited roles and responsibilities whichshould be enhanced.

3) Secondly, on employees level, there is a dissatisfaction regardingpay and benefits, thats why employees motivation level is low. HRDshould seriously work on that apart from training and developmentactivities.

4) Employees should have a lot of autonomy in planning their tasks ofdaily routine. Every employee must set their objectives bythemselves.

5) Career ladder for each employee should be well defined.

6) Steps should be taken to improve the network system which gets tooslow due to uneven networking. Server gets more strikes at one timewhich create hindrances in the smooth work flow of organization.

7) Training need assessment methods should be applied for theaccuracy and precision of such a large workforce.

8) Provision of computer to each person working in incentive andestablishment sections.

9) Proper filing and storing cabinets for incentive section.10) Detention of payment for one week in case leaves are not sent intime.11) Department names should be written on the entrances of every

department12) More benefits should be given to the Executives to the increase their

morale and job satisfaction



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13) As the era of IT; it is being suggested that paper work should bereduce and maximum work should be done online, which leads tointegrity and efficiency.

14) Record room should be maintained through the support of papersoftware, different software are available in market or can be design

on order.15) For maintaining and evaluating the progress a monthly meeting of I.R

staff should be held with in charge of department.

Packages Internship Report on i.r Dept,By a HRM ,By m.kashif Iqbal 03336866227

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Transcript of Packages Internship Report on i.r Dept,By a HRM ,By m.kashif Iqbal 03336866227