What is new employee paperwork?
New employee paperwork refers to the documents, forms, and agreements employees must sign before they begin working for your company. These documents can be legally mandated by the government or be documents particular to the company.
Why do employees need to complete this paperwork?
New employee paperwork ensures that your company is hiring people who are legally eligible for work. It also ensures that employees pay their taxes. While this paperwork may differ from country to country, it is essentially a set of documents created by government officials that must be signed and agreed upon by both the employer and the employee. This documentation helps officially integrate the employee into the company so they can devote themselves to succeed at their new job.
The different steps to employee onboarding
Each company has its unique employee onboarding process requiring candidates to fill out forms and compliances. Here are a few essentials that will help you onboard new employees.
1. Appointment Letter
An appointment letter is an important document that confirms a new hire’s employment. After a successful interview, the candidate receives an offer letter which is then subjected to negotiations between the candidate and HR. The appointment letter is the final result of these negotiations. Here are a few fundamental pieces of information required in an appointment letter.
1. Job description
The job description section specifies the extent of the employee’s role alongside the expectations. The employee has to perform the tasks mentioned in the job description to honour his part of the hiring agreement.
2. Date of joining
The date of joining officially establishes the beginning of the employee’s tenure.
3. Working hours
The appointment letter includes the working hours to be followed by an employee daily. It also designates the number of working days and days off per week.
4. Time-off policy
Here, you have to list the number of leaves granted to the employee per year, alongside details of sick leave, casual leave, maternal/paternal leave, etc.
5. Compensation and benefits
This section mentions the employee’s salary and other benefits, such as allowances and health insurance.
6. Termination details
The appointment letter contains details regarding the termination of employment. Employees who wish to resign must serve a notice period specified in this section. The letter also includes the time that the company is required to give the employee if it seeks to lay them off.
Covering these details will help you craft an appointment letter. Next, your new employee has to sign confidentiality agreements.
2. Agreement of non-disclosure
A Non-disclosure Agreement (NDA) is a legal contract between your company and the employee that binds both parties to maintain the confidentiality of shared information. NDAs ensure that the information crucial to the company does not end up with competitors.
3. Non-compete agreements
Non-compete agreements legally bind the employee, preventing them from entering into competition with their employer for a specific period of time after their employment period is over.
After signing confidentiality agreements, it is time to focus on compliance forms.
4. Compliance forms
Compliance means adhering to government laws and security requirements. Companies must follow regulatory compliances mandated by governmental authorities in order to run safely and legally. Employees must sign these compliance forms during onboarding to legally become a part of the organisation.
1. EPF forms
Employees’ Provident Fund (EPF) is a social security scheme where members contribute a portion of their salary alongside the employers who contribute as well. The EPF helps employees to sustain themselves after retirement. Your employee needs to fill up some EPF forms before they start working.
1. Form 2 – Nomination and Declaration for Exempted/Unexempted
The new hire must file a nomination through EPF Form 2 to qualify the nominated person to get the fund accumulated in the EPF in the event of the employee’s death.
2. Form 6A – Consolidated Annual Contribution Statement
The employee has to fill out Form 6A, a consolidated annual contribution statement containing information about the yearly contributions of each member of the establishment.
After filling out these EPF forms, it’s time to move on to the next step.
2. ESI Forms
Employees’ State Insurance Scheme of India (ESI) is a social security scheme that provides socio-economic protection to employees against sickness, disablement, and death due to employment injury. ESI also offers medical care to insured employees and their families and compensation for the wages lost when the employee was incapacitated due to illness.
1. Form 2 – Addition/Deletion in Family Declaration
The new employee fills out this form to add family member details who will be eligible for insurance coverage under ESI. These include the employee’s spouse, children below the age of 21, and dependent parents.
2. Form 6 – Registration of Employee
Employers are required to maintain a Register of Employees under ESI regulations. So, a new employee must fill out Form 6 to register themselves and help the company follow ESI regulations.
After filling out the ESI Forms, employees have taken a step towards security as they can now avail insurance benefits.
3. Gratuity Forms
Gratuity is a lump sum payment made to an employee as a token of appreciation for their services by their employer under the Payment of Gratuity Act, 1972. An employee is eligible to receive this amount after completing five years or more with the organisation. These forms are important documentation that helps the employee to obtain gratuity when the time comes.
5. Letter for opening salary account
Most companies offer salary accounts to their employees. These accounts include benefits like no minimum balance requirement, higher interest rates on savings, etc. As a part of the onboarding process, an employee must write a letter to HR requesting for the opening of their salary account. This cover letter has to be addressed to the bank. It contains the details of the employee and proves that they are working for your company.
Now that the employee’s information is fed into the requisite systems, it’s time to initiate the employee into the company.
6. Welcome mail to the employee
A welcome letter to a new recruit is an important onboarding document. An employee’s first day at work can be instrumental in setting the tone for their long-term success at the company. A welcome letter does this precisely. Less formal than an appointment letter or offer letter, it makes the employee feel at home on their first day. While a welcome mail may seem insignificant at first glance, it is a pivotal building block of an inclusive work culture.
Documents required to onboard a new employee
Here are the essential documents a new recruit needs to submit to complete new employee paperwork.
1. Identity card and address proof
A recruit must officially confirm their address and identity to legally become the company’s employee. Here are a few documents that serve as identity cards and address proof:
- Aadhaar Card
- PAN Card
- UAN
- Driving License
- Passport
After legally establishing an employee’s identity, it’s time to confirm their educational qualifications.
2. Educational certificates
These documents help confirm the educational qualifications of the employee.
- Marksheet and Passing Certificate for classes 10 and 12
- Marksheet and Passing Certificate for Graduation/Post-Graduation
- Other certifications
Employees must also submit their passport-size photo in formal attire alongside these documents to complete the process of proving their educational qualifications.
3. Bank account details
The employee needs to submit their bank account details with the IFSC code alongside the UAN or PF ID allotted by their previous company.
4. Experience letter
These documents help confirm the details of the recruit’s previous employment. Employees can submit a relieving letter or salary slip to corroborate their previous work experience mentioned in their resume.
Onboarding a new employee can be pretty intimidating. The extensive paperwork required makes onboarding a protracted process. However, while the paperwork may seem tedious, it ensures that the new hire is inducted into your company’s system and helps your company’s processes run smoothly. This checklist will help you successfully file the new employee paperwork, allowing the employee to embark upon their professional journey with your company.
