INTERNSHIP REPORT

I.R (INDUATRIAL RELATION) DEPARTMENT

PACKAGES LTD.LAHORE, PAKISTAN

BUSINESS UNITS

SUBMITTED BY:

M.KASHIF IQBAL M.B.A (H.R.M)

03336866227

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VIRTUAL UNIVERSITY OF PAKISTAN HAJVERY UNIVERSITY, LAHOR

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. ACKNOWLEDGEMENT COMPANY PROFILE GENERAL INFORMATION ABOUT I.R DEPARTMENT SAP/ LIMTON APPLICATION IN I.R FUNCTIONS HIERARCHY OF I.R DEPARTMENT INTRODUCTION OF (I.R) INDUSTRIAL RELATIONS DEPARTMENT 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 FUND 8.1.4. 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 FUND 9. 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 whom I interacted during my internship contributes to making this internship report. I would like to acknowledge the efforts of the following persons. First of all, I would like to mention the generosity and kind behavior of IR Manager, Mr. Muhammad Akram Chaudhry who gave me a Chance to work in his outstanding organization under his kin control. I can never forget the efforts of whole of the IR department which let me learn the internal working of departments with such an ease and freedom

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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 for exceptional value to individuals and businesses. They are the only packaging facility in Pakistan offering a complete range of packaging solutions including offset printed cartons, shipping containers and flexible packaging materials to individuals and businesses world wide. Packaging has always been at the forefront of new developments in packaging research and has pioneered several innovations, including the use of wheat straw as a raw material for paper and board manufactured. Listed on all three stock exchanges in Pakistan, Packages Limited has maintained a long-time credit rating of AA. Their joint ventures and business alliances with some of the world's biggest names reflect their forward-looking strategy of continuously improving customer value through improvements in productivity Their clientele includes illustrious names such as Unilever and Pakistan Tobacco Company, who have been their customers for over 50 years.

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BUSINESS UNITS: 1. 2. 3. 4. 5. 6. Paper and Board Mill (PBD) Packaging Division Carton Line Business Unit Flexible Line Corruwal Business Unit 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 information There is almost (3000) three thousands employees of packages family which are located at different location of Pakistan. Packages has two division 1Packaging division 2Paper board division Employees are classified into two major classes 1. 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 junior executive, executive, technical staff, officer Grading of X2: 1, 2, 3, 4, 5, JE, JE1, E3, E2, E1 T, T1, T2, T3, T4, T5, T6.T7 E and S1, S2, X3: confidential staff including manager Grading 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 15:00 2nd: 14:55 to 23:25 3rd: 23:20 to 06:35 General shift: 07:30 to 16:00 Office timing: 08:30 to 16:30 On Friday: 08:30to17:00 LATE TIME ASSUMPTION 5 Minutes is assumption for X1 employees. 10 minutes is assumption for X2 employees. OVER TIME ELIGIBLE EMPLOYEES Grade 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 complete module of personnel administration. Whole record of newly hired employees to 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 the system which increases the efficiency and effectiveness of the HR functions. The work is more error free, reliable data which at any time can be retrieved through its auto generation of information reports. Limton attendance system, which was introduced by the Limton Group of Companies, is made compatible with SAP system so that the attendance system acquires the necessary data from employment record. Thus, the whole integrated system has made the packages a centrally controlled automated system which has increased the working capacity, Coordination and ranked it a technologically adaptive learning organization Working is done from manual to I.T system. So there is two system which are using LIMTON and SAP (system application procedures) So, data is transformed from limton to sap and from sap to limton to complete the activities.

HIERARCHY OF I.R DEPARTMENT

IR MANAGER

ESTABLISHMENT AND COMPENSATION

TIME MANAGEMENT

INCENTIVE

ESTABLISHMENT

SALARY

WAGES

LABOR WELFARE

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MESS

INTRODUCTION OF (I.R) INDUSTRIAL RELATIONS DEPARTMENT:

IR and HR are the back bone of framework of any organization. The success of organization mainly depends upon personnel department, which not only provides best human asset for an organization but also add to the value of its performance. In Packages, IR & HRD work in collaboration with each other. IR MANAGER IR department is directly headed by IR manager who is autonomous in decision 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. 2. 3. 4.

Compensation &Establishment Labor Welfare Legal Cell Mess

ESTABLISHMENT AND COMPENSATION WING

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

ESTABLISHMENT:
Establishment is the main communication bridge between employee and management over and above all internal and external communication and data flow of correspondence.

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The Establishment is Supervised by Mr. lmtiaz Ali, the section is being managed by three other individuals ; Mr.Imtaiz(personnel officer Establishment) supervising the salary section and 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) are diligently managing the easier said than done task of maintenance of personal file employees right from their hiring and throughout their careers. They are also responsible for issuing different letters including appointment letter. Letter of change in designation and letter of contract letter to name the few. Their other duties include issuing employee and internee cards and managing 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 recruitment process and other reports relation to it. The record is kept for 3 years and in some cases it is kept for 10 years as per directives of tax and audit department. A file of a new employee (personal file maintenance) after test and interview is prepared here. His / her appointment letter, personal bio data, copies of educational certificates, medical fitness report, appointment/ contact letter and joining report is filled up here and all related documents are also buckled up in the file.

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 Also (action on information: intimation letter) transfers, allowances, leavers: termination or resignations, increment are being processed in establishment 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 section issues this card. Managing and maintaining the personal data of all employees. Preparing permanent, contract, temporary, contract labor, visitor and also internee card also. Sending confidential reports to all departments Entering and updating employees information (amendment in employee status) in SAP Preparing all type of service certificates/ pay certificates. Preparing letters for retirement / extension. Preparing and distributing management staff pension fund scheme letters. Other responsibilities of X3 includes, entry of record of each newly hired employee into the system and amend and maintain the record of existing employees, keep a check on the end date of contractual employees etc. They also a give a unique employee number to that employee and also provide him with the computerized employee card. And every relevant information regarding to the employees personal data is also upgrade 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 as graphical presentations.

APPOINTMENT PROCEDURE:
1. 2. 3. Letter of appointment Acceptance and return a signed copy to IR Medical test pass

INDUCTION:

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1. 2.

Joining Report to HOD Time Office Employee Card No.

PROBATION:
1. 2. Three Months In writing confirm to employee

RETIREMENT:
At the age of 58 years or it found medically unfit the employee is retired from the factory.

RSIGNATION:
1. 2. Probability has to provide the 24 hours written notice Permanent has to provide the written notice.

TIME OFFICE
I was appointed in time office and I observe that Time office is the major section in IR department. The section is in charged by Mr. Races (Personnel officer 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 throughout Pakistan which is received through Electric attendance machines which are installed 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 the time clock. Data of these machines is collected in this division by running POLOING program After receiving all the attendance of the day, After sorting the data of attendance (on excel sheet e-mail) is sent through e-mail to the every departments heads for the confirmation and correction, on daily basis and after correction and confirmation the data is upgrade to the system and also integrate with the SAP leave management Software. Limton software is using for updating the record of attendance, timein, 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 in different 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 (Imran Elahi), Time office is the heart of human resource activities at packages. The area where everything from managing arrival and departure time of employees to execution of their payroll. From maintenance of personal data to calculation of incentives is being done 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 factory during working hours far any short leave, official work, O.T. . This gate pass is duly signed by the concerned supervisory authority and is shown to the gate office before leaving the premises. These gate passes are then sent to the time office on next day where personnel officers check them in their time wizard attendance system. This system gives workers flexible hour of duty and their performance improves. Moreover, the accuracy in payment is ensured because the pay of employee I directly proportional to the time worked.

Leave entitlement:
Annual leave (14 for workers up to J.E (with pay), 16 for Executive and managerial staff) can be availed for more than 3 days at a stretch only after confirmation. Casual leave (10 with pay) can be availed for more than 3 days at a stretch 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 on Eid and other Festivals @ double the rate of hourly wage, if someone in executive (X2) level do work continuously for 8 hours, then a compensatory leave also graned) Maternity leave (45 days pre confinement, 45 days post confinement)

Annual Leaves

14

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Casual Leaves Medical Leaves Social Security Leaves Compensatory Leaves

10 16 Half paid 08 Full paid Only for X1 employees Only for X2 employees

LEAVE RECORD MANAGEMENT:

In this wing of time office leave record of employees is managed. For this purpose Employees are divided into two categories. 1. 2. X1 X2 (hourly Staff) (Permanent or Monthly staff)

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

LEAVE PROCESSING:
The leave submission or grant of leaves id done through a leave application form, which is signed by the immediate supervisory authority and sent to the time Office. The personnel officers enter the leave to the system of personnel management. Thus the leaves deduction is also done when salary process is executed. All these activates are perfumed by junior personnel officers of payroll section X1 and X2

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INCENTIVES
In this section incentives are calculated by Mr. Tariq saeed (personnel Officer) and Mr. Shafqat Ali ( Establishment Assistant) under the supervision 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 and distributed among workers of that shift There is different type cards on which different portion is made o Production card o Production incentive card o Production batch card o And one type of form: Die stereo 1-b data pick up Production Card has three portion o 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 different shifts. Incentives are given to the workers upto J.E level. Incentive is given only on TIME CODE 02: RUNNING, remaining time code is not for incentive Production Cards containing the information of employees who are working on different machines. Cards contain the information related to (date, shift number, machine number, job number, and the number of employees) and total working hours 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 machine number, 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 cards o Date wise, o Department wise o And shift wise. So after doing Batching Then Entering data of production into computer of three portion about o 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 the SAP software and which is automatically added to the account of workers so incentive is posted to payroll: to INFO 15. Sending statements of production worker after every 15 days to their concerning departments for verification. Data is entered in two division o Fist part 1 to 15 dates o Second part 16 to end date of month So it is a sub section of payroll process i.e. incentive allocation section Formula is Amount = percentage basic rate time Whereas percentage = production/ base rate/ time

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PAYROLL SECTION;
The tasks performed in salary and wages section are essentially same 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 the data from different places such as INFO 15, INFO14 and RT: salary breakup and reads the data like basic pay, cola, conveyance allowance, attendance allowance, leaves deduction, incentive addition, bonuses, gate pass leave balance, overtime additional payments, Union fund, welfare fund, mess/ canteen, EOBI, tax, loan, provident fund, leaves in short all deductions and earning of employees is added to each employees account and salary/wages slip is prepared, enveloped them by department after sorting out, and these 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 gate passes are separated and set them into THREE CLASSES and according 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 also performed in this section. Attendance of employees in coming and out doing also handle. Final settlement of workers are also performed in this section and in final settlement company give o 3 mothhs ex-gratia o Leave balance o Gratuity o And provident fund. And learnt about these, how and when it apply. How the contribution of GRATUITY is calculated.( depend on basic pay and service period and gratuity rate) calculation of service of an employee Calculation of employees production cards (punching cards) whereas calculation is done about the following things, o normal work time o over time o number of mess a punching card is for specific period o 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 proceeding month. 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 in strength 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, production incentive, education background etc. Festival holidays detail of the year. LEAVES AND CODE OF LEAVES WHICH ARE USED IN X2 ARE FOLLOWING: AL (annul leave) CL (casual leave) M.L.H (medical half leave) M.L.F (medical full leave) S.S.L (social security leave) 0100 0200 1001 1000 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 with the exception of dispatching of absence report thrice a month.) This department deals with: Mr.Riaz with assistance of Mr. Haroon Khan handles salary section of executive, (permanent), contractor and monthly staff (X2, X3, X4). Except Salary of X3 AND X4 is not run by this department, but their remaining 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 are checked and adjusting settlement every month.

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 Final settlement is done in this section when the employee is terminated or resigned Preparing and sending absent reports after every 10 days to the employees 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 o o o o o o o o o o o o o o Annul leave Casual leave Medical leave Special leave Rest Tour Leave w/o pay Social security leaves Absence Medical leave full Medical leave half Special leave 25% gross Special leave 50% gross Special leave 100% gross Compensatory leave 0100 0200 0300 (for executive) 0400 0500 0600 0700 0800 0900 1000 (for non executive) 1001 (for non executive) 2000 2001 2002 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 BASIS ARE:

Gate passes checking and entering its information in SAP software program.

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Leave posting Short leave Compensatory leave record posting Attendance correction Paper filing Arrears adjustment, back dated leaves, short leaves, absent, over time, 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 BASIS ARE:

Absent report Amendment checking (leave adjustment) Absent continue Personal file maintain Shift adjustments

WORKING ACTIVITIES WHICH IS DONE ON MONTHLY BASIS 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 Welfare section. Under his supervision Mr. Khalid Anwar (Labor Welfare Officer) and Saeed Sohail (Labor Welfare Officer) are doing all tasks related to labor welfare.

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 This wing is very much active in maintaining relationship of employees and management and to do and initiate a lot of activities for the welfare of workers and employees The primary objective is to ensure WELFARE ACTIVITIES. These activities come from TWO sources: 1. labor law 2. 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 social security 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 POLICY Executive 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.( 10 to 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 facilities and financial benefits and some other additional benefits through social security. Provides medical coverage to employees and their direct dependants: (wife, children and parents) through procedure (to enroll the dependence 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 is entitled to the social security.

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 A set of from is issued which after various counter signs results into issuing social security registration card ( R-5) to the worker after registration and he./she gets benefit of free medical facility. Company pay 6% (5 % company +1 % employee contribution) of their wages / salary as contribution to the social security institution, which provides medical coverage to employees and their direct dependants, In case if total / partial temporary / permanent disablement employee is given invalidity pension which he become entitled in medical ground (on loss of 67% of functional capability) and also provide the financial benefits in other illness, injured, death cases/ condition to the 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 BENEFITS INSTITUTION

Welfare office deals with and follows the employees old age benefits Institution Act 1976. Following are the benefits that are being offered to the employees in packages in accordance with the Act. The core objective is to give financial protection in old age or disablement condition.

EOBI:
All the employees shall become members of EOBI: Employees Oldage Pension scheme that is set up by the Government and shall be entitled to pension after attaining the age of 58. EOBI provide financial help to the member after the age of 58 for men whereas 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 which is set up through several steps and set of forms/ documents. At the end a registration card is issued on which a employees registration number is written down. The company contributes 5% of an employees minimum wages/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 of last year /50 BENEFITS OF EOBI ARE FOLLOWING: EOB Act 1976 was enforced with effect from April 01, 1976, to achieve the objective of Article 38 (C) of the Constitution, by providing for compulsory social insurance. It extends following benefits to insured persons or their survivors:-, 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, but does 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 PENSION these benefits and requires the payment of monthly old age pension to an employee if; He is 6o years of age (in case of woman, 55 years of age; age limit is also 55 years for male miners engaged in mining for at least 10 years of employment) Contributions in respect of him/her were paid for at least 15 years

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REDUCED OLD AGE PENSION If an insured employee has retired two years before reaching the retirement age, he/she shall be entitled to an early but reduced old-age pension. In that eventuality, the pension will be reduced by half a percent (0.5%) on monthly basis 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 to 54.

INVALIDITY OR DISABILITY PENSION The Act provides for invalidity or disability pension if an employee sustains an employment injury, as defined in the act, and suffers an earning 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 in insurable 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 reaches retirement age while receiving invalidity pension, his invalidity pension automatically converts into old-age pension. SURVIVORS PENSION The Act also provides for Survivors Pension (which is equal to minimum pension) after the death of an insured person in insurable employment for a period of at least 3 years. If the deceased had become eligible for old age or invalidity pension, the spouse will receive that pension of deceased for lifetime. In case of death of spouse who was receiving the insured persons pension, this pension will be divided among children in equal share, until they attain the age of 18 years (or in the case of girls, before she marries or attains the age of 18 years; whichever comes earlier, however, Since July 2010, daughters can receive this pension until their marriage). In case an insured person has not left a spouse or children behind, his parents would be 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 that since July 2010, minimum pension (Old-age, invalidity and survivors pension) is PKR 3,000. Further, Old Age, Disability and Survivors pensions are calculated according to a formula explained as under: Formula for Calculation= 2% of the average monthly earnings in last year X total number of years of insurable employment In 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 this amount, he will be paid that higher amount. It is pertinent to mention here that this law does not allow duplication of benefits i.e., if an employee is eligible for more than one benefits, he can receive only one benefit; whichever is higher. OLD-AGE GRANT Old-Age Grant is paid to those employees who are not eligible for old-age pension, as they dont meet the requirement of 15 years of contributions. However, if these employees have at least completed 2 years of insurable employment, they are entitled to a lump sum payment of one month of earnings, for each year of insured employment.

WORKERS WELFARE FUND;

The main objective of worker welfare fund is to provide benefits to workers such 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 handed over to workers/labourers and those which are under construction by the government

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These schemes include free education of children up to matriculation, launch of matriculation technical programme in schools, annual scholarships for students up to the postgraduation level 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 for families of deceased workers t appears that the above schemes are managed from the huge funds generated by the federal government under the Workers Welfare Fund Ordinance, 1971.

MEDICAL FACILITY
Medical facility only avail those employees who are executives whereas their S.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 Gulberg dispensary of Packages Limited can apply for medical allowance. Once he adopts 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 form management staff are chosen through balloting hajj on companys expenses and one month paid leave granted when they go.

MOTOR CYCLE SCHEME

18 motorcycles allocated to the non executive employees on annually basis by balloting through the union on no loss no profit basis. The amount is recovered within 5 years/ 60 months and this amount is deducted from the salary

RECRETION ALLOWANCE (Rest house)

Packages always care for their employees and they provide them opportunity to enjoy their holidays. By providing them rest house in muree. Every year information is circulated to all the departments to submit the details 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 is informed 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 Hall Road. 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 and register them in tevta. Industry beer the fees of apprentices and govt. make the own apprenticeship college. The apprentices minimum education must be matriculation. The main purpose of offering this is to provide help in study and work and 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: Third year:

6 months education (TVETA) 6 months INTERNSHIP (Packages) 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, after that 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 to supervisory level can purchase commodities of day-today use. It is operated on 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 salary from next month. Only employees can take and buy products.Contractor employees cannot take 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 foot wears.

SHOE ALLOWANCE
Employees and workers of technical division are provided safety shoes.

TALENT SCHOLARSHIP
Above 45% marks in previously passed examination are required for talent scholarship F.A 1200 per month B.A 1800 per month M.A 2400 per month

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WELFARE FUND:
To help the needy/ sickness people, companys employees made a welfare fund on its shakes. Employees must be members of this fund and they contribute according to its 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 the legal affairs of the company however those related to human resources include; 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 Limited and Bulleh Shah Paper Mill Preparing absent reports and legal document like charge, warning and 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 without payment, 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 order of 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 the provision 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 very nominal price There is 5 type of mess. 1. Worker mess for workers 2. Junior mess 3. Supervisory mess for executive and management staff 4. Senior mess 5. 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. 2. 3. 4. 5. Worker mess Junior mess Supervisory mess Senior mess V.I.P mess 65 paisa/meal Rs1 / meal Rs2 / meal Rs220/ month for guest

FACILITY POINT OF VIEW One menu for all employees from top to all with same crockery and sitting area. WEAKS MENU 3 day mutton 1 day chicken 1 day beef 1 day vegetable 1 day rice

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MAIN COURCE In which disc is same BREAKFAST Breakfast 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, tea IN SUMMER: bread, bun, button, tea COUPONS Coupons are given to that worker who comes for morning shift but coupons are given on cost 20 paisa for total breakfast. IN 2nd SHIFT The workers whose comes at 2nd shift, tea is served at 6 paisa/cup MILK Milk is served to 1 to 5 grades. Milk is served to those workers who work in chemical area at free of cost and 10 paisa/ quarter pack to other workers whose work in other areas. In case of leave/outstation duty or change in shifts the member concerned is allowed proportionate reduction in bill. Mess dues are deducted from the salary and Menu is decided by the head of canteen for every 15 days

ASSIGMENTS WHICH I DID

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1. Checking and editing the employees files in compensation section 2. Took the interview of employees satisfaction level under C&E manager 3. Checking and editing the Social security leave record of employees of six month from Jan 2011 to June 2011.

LEARNING AS STUDENT INTERNEE:

I learnt a) b) c) The calculation of the incentives on each excess unit of production. How these incentives are posted on the software SAP. He formats of all the letters & contracts generally issued or used by the IR Department. d) How attendance is retrieved from the attendance machines, & then posted in the software Limton. e) I noted how manual attendance is marked & posted in the software Limton. f) How the shifts of the workers are changes, i-e temporary & permanent. g) About different types of leaves & on which condition each leave is given. 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 Department starts & how legal Cases are being handled in Packages. k) Which workers are entitled for overtime & how overtime is posted in the software SAP

OBSERVATIONS;
Based on following Packages came across to me as the great facilitator to its employees; Competent, experienced and fair dealing by management with the workers. 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 following changes may be lead your department to the better internal environment Having analyzed the policies and procedures and through interviews with lower management and higher management level and also workers grade 1V, I inferred some recommendations which are as following: 1) 2) 3) First of all, the human resource management has not assumed its mature shape in true sense of the word. The activities are limited only to payroll and record keeping. While HRD department has limited roles and responsibilities which should be enhanced. Secondly, on employees level, there is a dissatisfaction regarding pay and benefits, thats why employees motivation level is low. HRD should seriously work on that apart from training and development activities. Employees should have a lot of autonomy in planning their tasks of daily routine. Every employee must set their objectives by themselves. Career ladder for each employee should be well defined. Steps should be taken to improve the network system which gets too slow due to uneven networking. Server gets more strikes at one time which create hindrances in the smooth work flow of organization. Training need assessment methods should be applied for the accuracy and precision of such a large workforce. Provision of computer to each person working in incentive and establishment sections. Proper filing and storing cabinets for incentive section. Detention of payment for one week in case leaves are not sent in

4) 5) 6) 7) 8)

9) 10) time. 11) Department names should be written on the entrances of every department 12) More benefits should be given to the Executives to the increase their morale and job satisfaction

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13) 14) 15)

As the era of IT; it is being suggested that paper work should be reduce and maximum work should be done online, which leads to integrity and efficiency. Record room should be maintained through the support of paper software, different software are available in market or can be design on order. For maintaining and evaluating the progress a monthly meeting of I.R staff should be held with in charge of department.

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