Thank You Letter After Completion Of 1 Year in Company
When you complete a year with a company, it is certainly a milestone that you have achieved and it calls for writing thank you letter to employees who are working with you. A thank you letter for completing one year company is a perfect way to celebrate this accomplishment by expressing gratitude towards all those who have helped you achieve this milestone.
In this post, we have come up with a sample 1 year completion in company thank you letter. You can use this employee thank you letter to thank your co-workers as well as team leads and other people who have been a part of this journey.
1 Year Completion in Company Thank You Letter Sample Format
Dear All,
I am elated to inform you all that I have completed one year with Zenith Technologies today and it is certainly an important day for me. On April 1st, 2021, I became a part of this big family and now I have grown a year old with the company. I would like to thank each and every one who has been a part of my journey and has made it so memorable.
A special thanks to my team lead, Mr. Anthony Gibbs, who was always there to guide me through. He has been a great support to me in all my challenging times. I would also like to thank all my team members who made each and every day at work a wonderful experience.
During this one year, I got to learn so many things and even got rewarded with the “Employee of the Month” two times which was certainly a great motivation for me.
I promise to keep continuing putting in the best of my heart and soul into my work and keep contributing towards the growth and success of our company.
A big thank you to everyone.
Regards,
Robin John
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Categories: Letters Tags: company, Completion, Format, Thank You, Thank You Letter
Sample Letter to Announce Annual Picnic or Outing of a Company
Picnics are always fun and when they are organized for your employees and staff, they are all the more fun. If you are planning for an annual picnic for your company employees then that has to be announced using a company picnic announcement letter. You can write a notice to announce a picnic to all the members of staff in order to inform them about the event along with all the essential details about the picnic.
We bring an employee picnic announcement letter sample for you. You can use this sample announcement letter of company annual picnic to make a formal announcement to the employees. You can also use this trip announcement letter sample to create a customized letter.
Announcing Annual Company Outing or Picnic Letter Format
Date: January 25, 2021
Dear Employees,
This is to inform you all the company will be organizing the annual picnic on November 1st, 2021 at New Vibes Beach Resort for all the employees.
Just like any other year, this year as well you all are invited to join us for the picnic along with your families. The picnic that was held the last year gave all the employees to interact with each other outside work and relax as they played games and enjoyed the meals. To add more fun to this event, we are also organizing a barbeque evening at the beach along with live music by a popular local band which will be the highlight of the event.
All the employees are requested to participate in the event with their families to make it a great success. You all are requested to confirm your attendance with Ms. Ana Smith, HR Executive and in case, you will not be able to make it, please inform the same to her. The last date to submit your confirmations is January 31st, 2022.
Looking forward to have some good times together.
Regards,
Anthony Gere
Manager
Zenith Technologies
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Categories: Letters Tags: Announcement, announcement letter format, company, Picnic
Sample Request Letter for Removing Penalty Imposed by Company
In case you have been punished with a penalty for some wrong action at work then you can always write a request letter for cancellation of penalty in case you feel that you have a strong case to put forward. There is no harm in putting across your side of the story by using penalty waiver request letter sample if you have a strong reason behind your actions.
In this post, we have come up with a sample letter waiver of penalty for reasonable cause. You can use this template for request to remove the penalty to create a customized one.
Format for Requesting to Remove Penalty Imposed On You
From:
Andy Jacob
54, Richmond Villas
London
Date: September 02, 2021
To,
Mr. Simon Smith
HR Manager
Zenith Technologies
London
Sub: Request Letter to Waive Penalty
Dear Sir,
I am writing this letter in response to your letter dated August 17th, 2021 bearing subject “Imposition of the penalty” because of my absence from work on August 14th, 2021.
I would like to put across that I had met with a small accident on that day while coming to office and that’s the reason I could report to work but I had informed my team leader, Mr. Jack Brown, as soon as I was in a condition to make a call.
By far, I have always been particular about informing about my absence from work and promise to keep doing the same without failure but this time, the condition was such that I was taken to the hospital and was under the effect of anesthesia for a couple of hours because of which I was unable to inform my team leader.
I, therefore, request you to please waive off the penalty that I have been imposed with considering my situation as well as my track record.
I am hopeful that you will consider my request.
Thanking you.
Sincerely,
Andy Jacob
UX Developer
Employee ID: 12345
Related Other Letter Format
Sample Letter of Penalty Charge to Employee
Reprimanding Officer Letter for Being Angry On Not Promotion
Categories: Letters Tags: company, Format, Letter, Letter Format, penalty charge
Create Your Plan Now for COVID-19 Vaccine in Organization
Though there is a lot of ambiguity and debate surrounding the availability of COVID-19 vaccine for the common people but whenever, it happens, we must be prepared for it.
If you are an organization and if you are thinking about getting your employees vaccinated then you must develop a COVID-19 vaccination plan. It is extremely important that we have done all the ground work before the vaccine has finally become public.
In this post, come up few points that will help you create your plan for COVID-19 vaccine in your company.
Whether to make vaccination compulsory for employees?
This is the very first question that pops up that whether to mandate the COVID-19 vaccine for all the employees or not. It not only depends upon the kind of industry your company belongs to about also state laws and religious concerns that play an important part in taking this important decision.
Points to Keep in Mind While Planning COVID-19 Vaccine for a Company
Communicating with employees: It is important to communicate the reasons to your employees if you are planning to make the vaccinate mandatory for the staff. For instance, if your employees are involved in interaction with customers or travel then that should be presented as the reason.
Costs involved: In case the vaccine is not completely funded by insurance then you must work out how you should be bearing the cost of vaccines if you are making them mandatory.
Managing medical records: All the medical information of all the employees must be handled separately and must be kept confidential.
Maintaining safety: Having your employees vaccinated is not enough. It is important to make sure that the working environment is completely safe for your staff.
Place of vaccination: You must also take into consideration the location where the employees will get vaccinated.
Choice of vaccine: If there is more than one vaccine available in the market then you must know which one should be finalized for your staff.
Efficacy: It is important to know the effectiveness of the vaccine and make sure that all the guidelines are followed.
Priority of vaccination: In case there is limited supply or shortage of vaccine, you must have a list of priority employees made who must get vaccinated first based on valid and unbiased grounds.
Compensation to workers: In case of side effects from vaccine, can the staff be compensated also needs to be decided.
Consider religious and medical objections: You must clearly define cases where requests for accommodations can be accepted under religious and medical concerns.
In situation where employee refuses for vaccine
- Evaluate if the employee’s refusal for the vaccine is a threat to other employees or customers.
- Take into consideration the safety measures to control the spread of COVID-19
- Making the use of gloves, masks and PPE kits along with social distancing for employees who refuse to take the vaccination.
Planning encouraging vaccination
- Offering incentives to employees who take flu shots.
- Offering vaccines at subsidized rates is also a big motivation
- Encouraging vaccination over making it mandatory always receives fewer issues.
Categories: Others Tags: company, covid vaccine, COVID-19 Vaccine, COVID-19 Vaccine Plan, Organization
Incentive letter or Bonus for Top Performers
Promotions and bonuses are always a welcome note for the employees. It is the answer to their sheer hard work that has been put in the work procedures to add growth blocks to the company. The information of bonuses or incentives calculated for the employees is communicated to them through official company bonus letter that has the detailed information about reasons for incentive or bonuses and the amount. Certainly, giving bonus to the company from time to time will keep the employees motivated for enhanced performance in every sector. It is not about giving money to the employees; rather, the purpose of bonuses is to appreciate the work done by the employees and adding to the overall progress of the company. Under mentioned is the performance incentive letter format, which will allow you to draft a valuable message to employees.
To,
Head of Marketing and Finance Department,
Creative Info Solutions Pvt Ltd
Sector 63, Noida, Uttar Pradesh
Dated: November 30th, 2017
Subject: Informing about the incentives for team members
Dear Sir,
We would like to inform you that the Marketing as well as Finance departments of our company have performed exceedingly well in the last quarter of their work. Apart from completing targets well on time, all of the team members have exceeded the targets too. Of course, the credit goes to effectual team management skills of the Head of the Departments and sheer hard work of employees. It is their willingness to excel on the work front that has made it essential for the company to reward them with valuable incentives. The calculated incentives are on the flat 20 percent of the total monthly salary. The incentives decided for each team member of these two departments is as per Bonus or Incentive Plan Payment Letter template are:
Marketing Team:
Karan: Rs. 4000 (20000 PM)
Sheetal: Rs. 3200 (16000 PM)
Rajesh: Rs. 3200 (16000 PM)
Manisha: Rs. 3000 (15000 PM)
Finance Team:
Neha: Rs. 6000 (30000 PM)
Mehar: Rs. 5000 (25000 PM)
Mehul: Rs. 5000 (25000 PM)
In the end, I would like to congratulate all of them on behalf of the company authorities for excelling in their performance. We wish that they keep up with the progressive nature at work front and strive to excel always.
Thanks and Regards,
Mohini Aggarwal
Senior HR Manager
Click here to download Incentive letter or bonus for top performers in Word Format
Other Related Letter Format
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Tips to Earn Fame in Your Company
Tips to Earn Fame in Your Company
The road to success has never been easy. It is an uphill battle. However, in today’s competitive field the hardship has multiplied even more. Talking about business ventures, the work environment remains tough and quite influencing. They are filled with highly spirited minds and hence to top them becomes a highly daunting task.
However, it is not as difficult as it sounds. Today, I am up with a few tips to help you earn fame at your work place and be respected by all.
- The key to promotion is to keep yourself updated. Upgrade your skills by infusing latest information and technologies. Be open to new ideas and come up with your own innovations. Train yourself to be able to mould into any situation required.
- You cannot work all alone in a company. You need help and so do others. Since success of a company is a group work you will have to understand the meaning of collaboration. Help your coworkers whenever they approach you. This way you become favorite personnel in your company.
- Treat the company as your own. Understand its morals and value and work up to its expectations. If you haven’t been good at this, does not mean you cannot break the present stereotype. Give some extra time for background research of your company and work accordingly.
- You must not let your mistakes undermine you. Rather learn from them. People make mistakes and it is totally natural. Correct those and turn them into your strengths. And most importantly, never put blame on others. You can never create a good impression that way.
- At the end of the day, it is your boss that you seek recognition from. Maintain a good relationship with him. Let your work report speak on your behalf. Approach him with new ideas and innovations and make him aware of your hardship and contribution from time to time.
- You get deadlines for the work assigned to you. Work passionately and try to finish it before time. This is another best way to gain your boss’s attention. Focus on your responsibilities plus take initiative in others too, if you think you know the job well and good. Talk about productivity and think of ways how you can provide a helping hand.
- Be open to feed back and accept criticizes with a positive attitude. They are actually stepping stones to success and fame in your company. Resolve misunderstanding with a colleague directly and apologize if you go wrong. This way you can earn more respect at your work place.
Impact of Sexual Harassment on Company Work Culture
Impact of Sexual Harassment on Company Work Culture
Any kind of discrimination on the basis of sex is considered sexual harassment, no matter how minor or severe the intensity might be. In work places such attitude might break down the moral of the victim which directly affects office productivity. The offended, humiliated or intimidated act might escalate to violent behavior if not properly checked it time.
A few of such upsetting behavior includes requests for sexual favors, unwelcome sexual advances, unwelcomed sexual advances, verbal or physical harassment and so on.
Different nature of sexual harassment
Sexual harassment against people of the same or opposite sex is seen in a number of ways. Below are the top most common ones:
- Staring or leering with unnecessary insults and taunts sexually
- Unwelcoming touches or premeditated brushing up
- Intuitive comments or jokes of sexual manner
- Intrusion in personal life and passing judgment on the same
- Inappropriate sexually explicit emails or text messages
- Inappropriate displaying of matter with sexual motive on social networking sites
- Unwanted date requests for sex
- Physical attack, sexual assault, stalking, impolite exposure or obscene interactions
Impact of sexual harassment at workplaces
Sexual harassment directly affects the work environment. People need peace of mind for productivity and when that element disappears, the graph falls down in no time. It affects the company’s credibility too as none would like to be a part of such work environment.
Employees waste their time gossiping about the issue. It definitely has no positive impact on the employee’s moral and lead to loss in productivity.
Prevention of sexual harassment at workplaces
You can prevent such moral damaging acts before it damages the company’s work culture and image. Come up with sexual harassment policies in your company. It should include topics like definition of sexual harassment, step wise procedure for filing sexual harassment complaints, consequences of sexual harassment and punishments, etc.
Adopt orientation program once every year for employees to explain their rights and how to proceed with complaints. Also conduct training sessions for supervisors and managers separately and explain them how to deal with complaints.
Be responsive to complaints instantly. Deal with it carefully by taking proactive steps without being biased.
Categories: HR Tags: company, Sexual Harassment
10 HR Tips to Improve Collaboration in a Company
10 HR Tips to Improve Collaboration in a Company
Collaboration is the key to success in every organization. This is important because businesses run on symbiotic relationships – one cannot function without the other. They are conventional. They openly depend on one another be it globally, regionally, in countries, between countries, in teams and in project works. Thus, the role of an HR in this aspect is very important. He has the responsible on his shoulder to make sure that the company’s collaboration is increasing tenfold.
We recently experimented with around 20 multinational companies to get an idea to this behavior where we came up with an interesting irony: The driving power that helps in running a company such as diversity and educated employees quite adversely make a tough work environment to survive too. This should not be happening. It is high time these big shots understand the value of collaboration as working together hand in hand is the key to every small big blow faced by an organization.
Today, I have come up with some of the best ideas to help you in the collaboration process. Have a look.
- You being an HR should be able to come up with new ideas to feed into the employee selection process. Try to be innovative and explore your thoughts.
- Another interesting and fruitful idea will be to search for a team rather than single individuals while hiring. It saves the initial awkward days of orientation and speed up the production process.
- You must keep your priorities straight. Look out for people with international network linked ins in the past.
- The market is full of collaboration tools like Yammer for effective helping hand in the hiring process. Make use of such tools to fasten up projects and programs.
- Make a diagram of all the relevant networks in your organization. Later detect your natural collaborators and talk it out with them to move to strategic nodes in the network. This way impact of your company enhances.
- Adopt the virtual teaming phenomenon as most companies go for today. In this phenomenon, participants are asked to collaborate in a virtual team that is given a certain strategic assignment before meeting in person. This way they understand the potentials of the participants while comes handy in the selection process later on.
- Use manipulation. Reward teams and individuals who could enhance collaboration and bring profit.
- Set up a Community Facilitator and invest in it. These facilitators normally stimulate communities and drive an urge to learn in the same.
- Never underestimate the young generations. Include them in your projects. Because their way of looking at a particular frame is totally different from the baby boomers which directly benefit the collaboration process.
- Try changing job title. May be from CHRO to CCO (Chief Collaboration Officer). This makes the position more dignified and brings out more potential.
Employee Company Car Sample Policy
I have attached Employee Company Car Sample Policy.
Company Car Policy
1. Objective
The new Company Car Policy has been formulated in order to introduce an employee friendly and easy to administer car scheme in the company with effect from April 1, 2006. With the introduction of this scheme all previous car schemes stand withdrawn.
- 2. Scope
Employees in Grade M1 and above are entitled to participate in this scheme. These employees have been assigned Management Allowance / Car Kitty as part of their remuneration package. Their Management Allowance / Annual Car Kitty amount is given in the table included herein below.
|
(A) Grade |
(B) Car Kitty Amt (p.a.)* Rs. |
(C) Mgmt. Allow. (p.m.) Rs. |
(D) Addnl. Car Kitty(p.a.)* Rs. |
(E) Max. Car Kitty Amt (p.a.)* Rs. |
|
M5 |
240,000 |
20,000 |
60,000 |
300,000 |
|
M4 |
195,000 |
16,250 |
45,000 |
240,000 |
|
M3 |
150,000 |
12,500 |
45,000 |
195,000 |
|
M2 |
105,000 |
8,750 |
45,000 |
150,000 |
|
M1 |
75,000 |
6,250 |
30,000 |
105,000 |
In the case of employees joining the Company Car Scheme post July 1, 2006, actual Car Kitty amount shall be net of Fringe Benefit Tax (FBT) as applicable.
- 3. General
3.1. Under this scheme eligible employee can avail of a leased car for both official duties as well as personal use. For this purpose, the company has entered into an agreement with a lease finance company. The details of the same have been provided in the Annexure I.
3.2. Eligible employees would be entitled to a car with a per annum cap on lease rent equivalent to their annual car kitty entitlement included in their remuneration package.
3.3. Employees can select any car of their choice within their lease rent entitlement limit.
3.4. Full finance is available without any margin money requirement. The amount that can be rentalized includes the following:
3.4.1. Ex-Showroom Cost of the car
3.4.2. Registration Fees
3.4.3. Insurance
3.4.4. Cost of Accessories
3.4.5. Octroi and other taxes.
However, the minimum amount that would need to be rentalized is the Ex-Showroom cost of the vehicle.
3.5. In case accessories are bought from some other dealer, the VAT Invoice from that dealer will be required.
3.6. At the end of the Lease Term, the car will be returned to the leasing company.
- 4. Standard Operating Procedure:
4.1. The process starts with the employee getting an “In principle” approval of his/her respective HOD vide e-mail on a model that falls within his/her car kitty entitlement limit.
4.2. Employee negotiates with the dealer to get the best deal possible and gets a formal quotation in the form of Proforma Invoice.
4.3. Employee then submits to the Admin Department. an application for joining the company car scheme in the prescribed format as per Annexure II enclosing the Proforma Invoice and the e-mail approval from HOD.
4.4. Employee also executes an Undertaking on Rs. 20 Stamp Paper (refer Annexure III) and submits the same to Admin Department.
4.5. Admin gets the approvals from Finance on the Application Letter and retains the original Application Letter and Proforma Invoice for their records.
4.6. Admin intimates the Lease Finance Company vide Authorization Letter as per Annexure IV enclosing a copy of Proforma Invoice.
4.7. The Lease Finance Company then sends the following to the Admin Department.:
4.7.1. Cheque in the name of the Dealer
4.7.2. Covering Letter to the Dealer
4.7.3. Letter for Endorsement to the RTO
4.7.4. Form 20 for signature of Authorized Signatory
4.8. Commencement date for the lease period under the scheme shall be the date on which cheque is drawn in favor of the dealer by the Lease Finance Company.
4.9. Admin gets the required signature on Form 20. Admin hand over the following to the employee to take the delivery of the car:
4.9.1. Cheque in the name of the Dealer
4.9.2. Covering Letter to the Dealer
4.9.3. Letter for Endorsement to the RTO
4.9.4. Form 20 with approval from Authorized Signatory (CFO)
4.9.5. Copy of ABC’s PAN Card
4.9.6. Company’s Address Proof
4.9.7. Letter of Authority to take the delivery of the car (Refer Annexure V).
Admin retains a copy of all the above documents.
4.10. Based on these documents employee can take delivery of the car.
4.11. On receiving the delivery of the car, the employee needs to forward the following docs to the Admin Department.
4.11.1. Original Invoice
4.11.2. Copy of Insurance Cover Note
4.11.3. Copy of R C Book
4.11.4. Copy of Insurance Policy
4.12. Admin Department retains a copy of all the above documents and sends the Original Invoice and copy of the other three docs to the Lease Finance Company.
4.13. The Lease Finance Company then sends the following to the Admin Department:
4.13.1. Lease Agreement drawn in triplicate (One Original and two copies).
4.13.2. First Debit note
4.14. Admin takes required signatures on the Lease Agreements, sends original to Lease Finance Company, handover one copy to employee and retains the other copy for their records.
4.15. Admin then intimates the payment schedule included in the Agreement to the HR Department and forwards the First Debit Note to the Accounts Department. for making payment to the Lease Finance Company
4.16. On receiving the Payment Schedule, the HR Department provides the necessary inputs to the Payrolls Department vide the monthly salary input.
4.17. Second year onwards, the employee gets the insurance done himself, retains the original insurance policy and submits two copies of it to Admin Department. Admin Department retains a copy and sends a copy to Lease Finance Company
4.18. The Lease Finance Company will raise a single rental bill by 20th of every month reflecting all the on-going agreements and sends it to the Admin Department who will forward the same to Accounts Department for payments.
- 5. Maintenance / Repairs / Normal Running / Insurance
The employee will be required to maintain the Car in good condition & incur all running costs including costs of fuel, spares, tubes, tyres, repairs, maintenance, servicing etc., as required from time to time.
As stated above, the employee will also bear the insurance cost 2nd year onwards.
All these expenditures can be claimed against reimbursement entitlement included as part of the compensation package.
- 6. Foreclosure:
6.1. Premature exiting from the car scheme by returning the car at any point of time has been provided for under the scheme. However, where premature exit from the scheme is not at the behest of the company, the foreclosure charges / expenses shall be borne by the employee in totality. Instances of premature exit not at the behest of the company are foreseen as, but not limited to the following:
6.1.1. Resignations
6.1.2. Retirements (including Voluntary Early Retirement)
6.1.3. Personal Reasons
6.1.4. Dismissals from service will be treated on the same footing as cases, which are not at the behest of the Company.
6.2. The working of the foreclosure charges would be as agreed with the Lease Finance Company. The details of the same are in Annexure I.
6.3. In case the employee is joining a new organization, there is a possibility of assigning the car to the new organization by the Lease Finance Company. This will need to be mutually decided by the Lease Finance Company and the concerned employee’s new organization.
- 7. Promotions
If the employee’s car kitty entitlement changes due to promotion, the difference between the new monthly car kitty entitlement and monthly car lease rent would be added to his/her Personal allowance and paid out with salary on monthly basis. This would be treated as income and taxed accordingly.
- 8. Transfers
In case of inter-location transfers, within the company, the leasing company will organize all the necessary formalities. The concerned employee will be required to contact the Administration Department at HO to initiate necessary processes.
In case of transfers to a subsidiary / affiliate / sister company, the car can be assigned to the new company wherever the new company also has an agreement with the said Lease Finance Company.
The transfer charges will be borne by the company if the transfer is company initiated and by the employee if the transfer is employee initiated.
- 9. Rejoining the Car Scheme
On completion of the tenure and on returning of the car to the Leasing Company, the employee will be entitled to rejoin the car scheme immediately thereafter.
10. Overall Co-ordination/Clarification/Suggestions
10.1. Car Scheme will be co-ordinated on an all India bases by the Administration Department in Head Office. The department shall maintain an MIS pertaining to the scheme.
10.2. All clarifications with regard to the scheme can be obtained from Administration Department.
10.3. All suggestions for improvement of the scheme should be addressed to the Administration Department.
ANNEXURE I
- The company has entered into an agreement with M/s Sundaram Finance Ltd., a Lease Finance Company to make available a leased car to the eligible employees of the company.
- Employee has an option to choose tenure ranging from 3 yrs to 5 yrs. Current Lease rentals for the same are indicated in the table below:
|
Tenure |
Resale Value |
Rental per lac per month (plpm)* |
|
3 Yrs |
25 % |
Rs 2705 |
|
4 Yrs |
20 % |
Rs 2230 |
|
5 Yrs |
15 % |
Rs 1930 |
* Please contact the Admin Department. for the latest Lease Rentals applicable.
- The above rentals are based on the current SBI PLR. There could be a variation in the rentals due to variation in any of the following:
- SBI PLR ( In this regard please note that, there has been no increase in this benchmark interest rate in the past 5 Yrs)
- Change in the Corporate Taxes / Depreciation Rates as prescribed in the Union Budget
Kindly refer to the variation tables included herein below:
3.1. Given below is the variation table for the 3 year option:
Tenure : 3 years
Rent (per month per lac) : Rs.2,705/-
Pattern of payment : Monthly in advance
Change taking place at the Quantum of change in rent per month
end of the month per lac for 0.5% p.a. change in cost of funds
Rs.
0 27
6 25
12 23
18 21
24 19
3.2. Given below is the variation table for the 4 year option:
Tenure : 4 years
Rent (per month per lac) : Rs.2,230/-
Pattern of payment : Monthly in advance
Change taking place at the Quantum of change in rent per month
end of the month per lac for 0.5% p.a. change in cost of funds
Rs.
0 26
6 23
12 21
18 19
24 17
30 15
36 13
3.3. Given below is the variation table for the 5 year option:
Tenure : 5 years
Rent (per month per lac) : Rs.1,930/-
Pattern of payment : Monthly in advance
Change taking place at the Quantum of change in rent per month
end of the month per lac for 0.5% p.a. change in cost of funds
Rs.
0 26
6 24
12 22
18 20
24 18
30 16
36 15
42 14
48 13
3.4. The quantum of change in rentals indicated above is for every half percentage point change in the cost of funds to the lessor keeping the other parameters of the lease at the present level.
3.5. In the 3 year option, the variation in rental for any 0.5% p.a. change taking place after the 24th month shall remain Rs.19/- per month per lac till the end of the lease period.
3.6. In the 4 year option, the variation in rental for any 0.5% p.a. change taking place after the 36th month shall remain Rs.13/- per month per lac till the end of the lease period.
3.7. In the 5 year option, the variation in rental for any 0.5% p.a. change taking place after the 48th month shall remain Rs.13/- per month per lac till the end of the lease period.
3.8. Any change in cost of funds to the lessor taking place between two periods indicated in the table above will entail change in rentals to the extent of change in rentals indicated at the beginning or at the end of the said periods or any magnitude falling in between depending on the exact point in time the change takes place.
3.9. The magnitude of change in rentals indicated above shall be applicable from the immediate rental next falling due and shall be applicable on all the future instalments of the rentals.
- Stamp Duty
4.1. Stamp Duty cost is also applicable on the Lease Rent Agreement. This amount varies as per the rates applicable from state to state.
4.2. The current Stamp Duty rates in various states are listed below:
| Orissa | Rs.10/- |
| Tamilnadu | Rs.20/- |
| Kerala | Rs.50/- |
| Karnataka | 1% of average annual rentals |
| Andhra Pradesh | Rs.100/- |
| Maharashtra | 1% of average annual rentals |
| Gujarat | 2% of average annual rentals |
| Delhi | Rs.50/- |
| Madhya Pradesh | Rs.50/- |
| Uttar Pradesh | Rs.50/- |
| West Bengal | Rs.20/- |
| Haryana | Rs.20/- |
| Goa | Rs.20/- |
| Pondicherry | Rs.20/- |
4.3. The same will be recovered from the employee’s salary on receiving delivery of the car.
- Once lease rentals exceed the car cost, 12.5% VAT will be applicable on the lease rentals and EMI would be enhanced to that effect
5.1. Second year onwards, Insurance will be done by the employee. In case the employee opts for insurance cover by Royal Sundaram or Oriental, the Sundaram Finance can take care of renewals, but the cost has to be borne by the employee.
- 6. Foreclosure
6.1. In case of foreclosure, value would be arrived at by discounting the balance rentals and the resale value considered in the package. The discount factor would be the prevailing SBI-PLR (Current PLR is 10.25% p.a.)
6.2. However, if the leasing company obtains the sale proceeds of the vehicle, the employee will be liable to pay only to the extent the net sale proceeds are less than the foreclosure charges.
ANNEXURE II
Application to join Company Car Scheme
Name: _____________________ Department: _________________
Designation: ________________ E-Mail Id: ___________________ _
Mobile No: __________________ Date: ________________________
To,
The Administration Department.
Kind Attn: Mr. R K Attal
Sub: Request for a car under Company Car Lease Scheme
Dear Sir,
I request you to provide me a car as per the following details. I have read the rules governing the scheme and agree to abide by the same and amendments, if any, to the same.
Yours faithfully,
Name and Signature of the employee
| DETAILS OF CAR | |||
| Car Make/ Model | |||
| Car Kitty Eligibility per annum | |||
| Desired Date of Delivery | |||
| Option | ¨ Option 1 | ¨ Option 2 | ¨ Option 3 |
| Tenure /Resale Value | 3 Yrs / 25% | 4 Yrs / 20% | 5 Yrs / 15% |
| Current Lease Rental plpm (A) | |||
| Heads | Cost | To be Rentalized (Y/N) | Cost to be Rentalized |
| Ex-Showroom Cost of Car | |||
| Insurance | |||
| Registration | |||
| Octroi / Other Taxes | |||
| Cost of Accessories | |||
| Total Cost to be Rentalized (B) | |||
| Monthly Lease Rental [(A*B)/100,000] | |||
|
|
Copy of e-mail having HOD’s approval attached herewith
Manager-Admin CFO
ANNEXURE III
(To Be Executed on Rs. 20/- Stamp Paper)
UNDERTAKING
Name of the Employee : __________________ _____
Residential Address : _______________________
_______________________
_______________________
_______________________
ABC India Ltd.
Attn: Mr. R.K.Attal
Plot No. 5, Off BKC Road,
Off CST Road,
Santacruz (E), Mumbai – 98
Date:
Dear Sir,
Car Scheme
In consideration of your having admitted me to the company’s car scheme and provided me with car ( No.,________________ Make __________________ ) hereinafter called “the car” with effect from ______________ on the terms and conditions of the said scheme, I undertake to the Company as follows :-
1) I have read all terms and conditions of the scheme and I agree to, accept and abide by all the terms and conditions laid down by the Company in the Car Scheme and amendment if any, thereof.
2) The car is registered in the name of the Company, but shall remain the property of the Leasing Company.
3) In case of any dispute, which may arise between the Company and me, the Leasing Company will have the right to re-posses the car any time during the leasing period.
4) I shall use the car only for my personal and official use. I shall not put the car to use on hire or reward and shall not use the car for any unlawful purpose.
5) In case of my separation from the Company for any reason whatsoever including resignation, retirement, VRS, dismissal, etc., I hereby agree to bear the foreclosure charges and hereby authorize the company to adjust the said charges from my terminal dues and in case of shortfall if any I shall forthwith make good the same to the Company.
6) Not withstanding the aforesaid, I / my legal heirs shall be personally liable to pay to the Company all amounts due from me under this scheme and to pay the same to you on demand and without demur and notwithstanding any dispute/ difference that may be subsisting between me/ my legal heirs and the Company.
7) The agreement shall bind in all respect heirs executors legal representatives and myself. I further agree that the Company shall have the same rights against my heirs, executors and legal representatives, as it has against me under this agreement.
8) I understand that on execution of this Undertaking, monthly pay out to me out of my annual car kitty entitlement will stop.
9) I had been given two salary structures viz. “With Car” and “Without Car” in my initial offer letter / at the time of my salary review. I understand that once I join this scheme, the “With Car” structure will come into effect from the month in which the car lease period starts and same shall be applicable during the period that I am part of the scheme.
10) However, in case the monthly lease rent is less than the one twelfth of the annual car kitty entitlement, the differential amount would be added to the Personal Allowance and paid out to the employee through salary on a monthly basis. The said amount would be taxable.
11) The scheme would be governed by the tax regime as applicable from time to time, and any implications thereof would be to my account.
Yours faithfully,
Signature of the Employee
Name: ___________________________
Place: ___________________________
Date: ___________________________
Witness: _________________________
Signature________________________
Name: ___________________________
Address: ________________________
__________________________
ANNEXURE IV
Authorization Letter to Lease Finance Company to make the payment to the dealer
Date:
Sundaram Finance Limited
95, 9th Floor,
Maker Chambers III,
Nariman Point,
Mumbai – 400 021
Subject: Car for <Employee Name>
Dear Sir,
With reference to our leasing arrangement for cars, please find enclosed the proforma invoice dated ___________ raised by <Dealer’s Name>, amounting to ______________. The terms of the transactions are as follows:
Nature of Asset :
Cost of Asset :
Lease Tenure :
Lease Rentals :
Lease Management Fee :
You are requested to arrange for the insurance, which may also be capitalized.
You are requested to issue a cheque favoring <Name of Dealer> payable at <Location> for Rs ___________ and also forward the necessary documents for registration of the vehicle.
Thanking you,
For ABC (India) Ltd.
Authorized Signatory
ANNEXURE V
Letter of Authority to take the delivery of Car
Date: ____________
To,
Dealer’s Name
Address
Reg: Supply of one _______ Car leased to us by M/s Sundaram Finance Limited
Ref: Your proforma invoice dated ___________
Dear Sir/ Madam,
We hereby authorize <Employee’s Name & Designation> of M/s ABC (India) Limited, whose signature is attested below, to collect the ______________ Model which is leased out to us by < Name of Lease Finance Co.>.
All documents signed by <Employee’s Name & Designation> in this regard shall be binding on the Company.
…………………………………..(Signature of authorized representative)
For ABC (INDIA) LTD.,
CFO
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