Most lenders have employees to aid with the debt collection process and the many administrative tasks that financial institutions need to complete. However, as well as following laws that have been specially created for the finance industry, it is also important that you care for your team members by incorporating the many employee laws that are active in India and beyond. Here is a short guide to get you started.

Working Hours

Although you might have a lot of debt to collect and clients to communicate with, this dos not mean that you are allowed to keep your staff at work 24/7. Instead, there are laws limiting the number of working hours that team members can work per week. In India, adults in employment cannot work for more than 48 hours a week. Not only this, but they should not work for over 9 hours in a single day. However, you are allowed to pay them for overtime. It is also important that you know all there is to know about child labor laws, which are frequently updated. Laws change all the time, and so it is not enough to follow the legislation at the time. Instead, it is paramount that you keep an eye on the law and change the policies of your business accordingly, or else you might find yourself on the wrong side of the government.

Sick Leave

Even the healthiest person has days where they are so sick that they are unable to come into work. This could be due to a short-term illness, such as a cold or flu, or a chronic issue. As an employer, rather than force them to come into work and spread their illness to others, it is vital that you give your team up to 12 days of paid sick leave a year. This can even benefit your finance business as it will give your employees a chance to refresh themselves, return to full health, and see a doctor. If they need to take longer off, this will be unpaid. Your employees cannot suddenly scarper, though. They will need to show you a doctor’s note after a few days of illness.

Minimum Wage

You also cannot pay your employees next to nothing to do all of your debt collection for you. Instead, you must offer them a minimum wage and increase this in line with government advice. At the moment, the minimum wage is IND 178 for each day of work. You should check that your team is paid promptly, though, and, if you are struggling to do this, you might decide to invest in payroll apps. You might also look into HR companies that can help you. For instance, there are many HR companies that serve certain areas in India, the UK, and beyond. If you operate out of the UK, you might be able to find a HR company that serves Oxford Science Park, among other places. They will help you to straighten out your payroll procedures and ensure that all of your staff are paid fairly and accurately.

Paid Leave

Sickness is not the only reason people should have time off within your business. You should also give your staff the chance for rest and relaxation through offering them a number of paid leave days a year. The law states that you must offer them around 15 days off a year, as well as additional days for public holidays. This depends on where you are situated in India, though. This paid leave can prevent employee burnout and can allow your staff members to return ready and raring to go, with plenty of new ideas and energy. You might need to consider when your employees take this leave, though, as you do not want all your team members to take leave at once and find that you are severely understaffed and unable to carry on leading your business while they are gone.

Keeping up with the law as a debt collection and lending business can be difficult, especially if you are focused on the finances of your company. However, doing so can keep your employees happy and safe and can give your business the good reputation that it deserves. This guide gives you a great starting point that you can use to seek more information and start to put the relevant policies in place. However, if you are uncertain of the law, you should always seek the help and advice of a legal professional to check that you are on the right path.