شنبه نوزدهم اردیبهشت 1388
Ø According to points 47, 48,49, 50 of labour law all companies located in Iran which have more than 50 employees, have to conduct job classification in their company.
Job classification involves below steps:
1- Checking the organization, clarification of duties and job titles, hierarchy and organizational relations are examined and ensure that those are aligned with Labour Office regulations
2- Clarifying Job ID which includes job definitions, Job requirements and skills & necessary abilities (which assists companies with easier identification of training courses and development requirements), which allows for permanent and periodic duty definition (Which is based on scientific job doing methodology)
Job Classification Committee is required which is consisting of 5 members:
Ø Two of them are representatives of employer
Ø Two of them are representatives of employees
Ø One of them is representative of supervisors
The committee’s duty is determined by ministry's regulations.
The committee assists with
- Recognition of training courses which a new employee has passed
- Recognition of relevance of experience for new employees
- Monitoring of movement of personnel to other departments
- They will also prepare changes in the system if required and make suggestions and represent those to management team.
Job classification consultant has to study all jobs and then allocates scores to all the jobs in ASPC
Scoring will be according to 4 main factors:
Ø 1- Skills (Qualification & Experience)
Ø 2- Responsibilities (Supervision, HSE responsibilities, Materials and products, Equipment, Relations, Financial & Forms)
Ø 3- Nature of work (Mental & Physical)
Ø 4- Working Situations (Unpleasant working environment and Dangers involved in positions)
You see a quick summary of the evaluation and scoring system in below:
Ø After clarifying the score of the job, the grade of the job will be determined.
Ø The scoring system is based on a Job evaluation system which is approved by the ministry of labour
Ø 1- Scores will be determined by Job Classification consultant team then grade of the jobs will fallow same procedure
Ø 2- Suggested scores will be approved by Job Classification committee
Ø 3- Designed system will be sent to ministry of labour for final approval and they may make some adjustments on designed classification.
Links, between scores and grades:
Ø Up to 70 => 1 71 – 85 => 2
Ø 86 – 100 => 3 101 – 115 => 4
Ø 116 – 130 => 5 131 – 150 => 6
Ø 151 – 170 => 7 171 – 190 => 8
Ø 191 – 215 => 9 216 – 240 => 10
Ø 241 – 270 => 11 271 – 300 => 12
Ø 301 – 330 => 13 331 – 370 => 14
Ø 371 – 410 => 15 411 – 450 => 16
Ø 451 – 500 => 17 501 – 550 => 18
Ø 551 – 610 => 19 611 – 670 => 20
Companies have to align their remuneration and payroll system in line with this design.
Main items for determining new salary (After job classification) are mentioned in below:
Ø There must be an agreement from management side for cost of the new system
Ø Agreement on scores and grades of the job
Ø Current salary of employees
All grades will be linked to the wage of the job as per below examples:
Example one for Grade 2
Ø The score of the Job is 85 for grade 2
Ø We deduct it by the minimum score which is for grade one (70):
Ø A= 85 – 70 = 15
Ø Then we should multiple the result to the rate of the company which calculated by job classification consultant and agreed by company manager (In below example we assume that agreed rate is 250):
Ø B= 250 * 15 = 3750
Ø Minimum base per day which was declared by ministry for the year of 1385 is 60,000 Rials (Ministry of labaour of Iran update this amount base on inflation rate every year)
Ø We then should add 60,000 to the result of above
Ø C= B + 60,000 = 3,750 + 60,000 = 63,750
Thus daily wage of the job for grade two will be 63,750 Iranian Rials.
Example 2 for Grade 11
Ø The score of the Job is 270 for grade 11
Ø We deduct it by the minimum score which is for grade one (70):
Ø A = 270 – 70 = 200
Ø Then we should multiple the result to the company's agreed rate:
Ø B = 250 * 200 = 50,000
Ø We then should add 60,000 to the result of above
Ø C = B + 60,000
Ø C = 50,000 + 60,000 = 110,000
Ø So daily wage for grade 11 job will be 110,000 Rials
Then we should add “years experience wage" to wage of the job
Ø There is a link between years of experience within the company which also should be added to salary.
Ø The amount which should be recognized for each year of experience would be declared annually according to ministry regulations and tables
Ø In job classification system, it is possible to adjust an employee's salary approx every four years, if they have more experience and qualification than required by the job. (these adjustments are also depend on employees performance)
Job Condition allowance
Ø There may be instances in ASPC, where certain positions are required to work in special conditions (either dangerous, in difficult environment, etc) and in these instances personnel doing this type of job, can receive a Job condition allowance.
The formula for job condition allowance calculation will be:
Ø Score of job condition * Rate (for example 250) = Amount for job condition
Ø Above amount will only be payable if an employee is appointed in certain declared positions. In any cases when moved to another position, this allowance will fall away.
Ø Sometimes suggested package for supervisors and managers may be far away in comparing with labour market. In such cases, the company can add a supervision allowance to the Job classification system as an option. Payment of this allowance is just after management decision and approval
In addition to salary package which explained in above, there is some legal required payments as well which we call those "Legal payments" those are fixed amount for every employees and ministry will update those when required.
Ø Coupon Allowance
Ø Food Allowance
Ø Housing allowance
Ø Child allowance
Minimum Annual increases:
Ø Ministry of labour also updates the minimum payable salary for private companies with Job Classification in each New Iranian Year (Nowruz).
Implications of introduction of Job Classification remuneration system:
Ø Companies have to have some increases in current payroll costs.
Ø The amount of the cost increase is based on management team decision
Ø In some cases (When employee's current salary is high in comparing with similar jobs) an employee's salary according to job classification may need to be deducted, in these cases, companies must pay their current salary up to the certain time when their salary is the same as declared salary (i.e. they will not qualify for annual increases, their salary will be frozen or annual increase allocated will be lower)
By Morad Ahmadipour
Master in business management
چهارشنبه ششم دی 1385
The first one is labour law which shows relation between employee and employer
The second one is Social security Organization rules (SSO) which define relation between employee, employer and SSO. SSO rule protects and supports employee and his payment after retirement. The main one is labour law so we can start with labour law. There are two kinds of working contracts:
1- Fixed period working contract
2- Permanent working contract
Working contract must include bio data of employee and employer and below items:
1- Kind of work and duty of employee
2- Wage (including salary and fixed allowances)
3- Working hours, holidays and leaves
4- Work place
5- Date of making contract
6- Period of the contract if it is fixed period working contract
7- Other related matters according to working culture in the work place
Both two sides (Employee and employer) can make an agreement for experimental period which have easier rules for finishing the contract.
Working contract will be finished in one of below cases:
1- Dead of employee
3- Being disable and disease
4- Finishing of working period if the contract is fixed period
Employer can’t pay less than minimum of the salary to employees.
This amount will be calculated annually, by the governmental committee.
Employers must implement job classification in their work place. (If their employees are more than 50 people) This job classification should be done by job classification consultant who is registered by ministry. Employee’s, employer’s and supervisor’s representative should participate in this project.
Working hours is 44 hours per week and if employee worked more than 44 hours, employer has to pay overtime. Method of calculation must be according to labour law.
Employer should pay mission allowance, according to labour law If employee works in shift roster, employer must pay shift allowance. Shift roster and method of calculation must be according to labour law and if employee works in nights, employer must pay night allowance as well.
Employees can use 30 days as vacation leave annually. Weekend holidays and local holidays are they rights also. Employee and employer should be agreeing for leave dates.
They can use Haj leave which is one month just one time in all of their services up to retirement.
Employees can use 3 days emergency leave in below cases:
2- Dead of spouse, father and mother and children
3- Maternity leave for married female employees (SSO will pay their salary in this period)
Employees must follow regulations which come from ministry of health and technical dangers protection committee to protect employees from occupational diseases and provide occupational, labour and working environment health care
Technical dangers protection committee has provided necessary regulations.
Main office of the ministry has inspectors who audit workshops to be sure the fallow protecting regulations.
Foreigners, who want to work in
1- Have entry working visa
2- Have work permit according to related rules
There is a special office in the ministry for foreigners working related decision. All employees should advise with ministry before appointing foreigners.
All conflicts between employer, employee and trainee should fallow this procedure:
Step 1 – Between them selves by a direct agreement in the Islamic association (if there is in the workplace and if there isn’t in the employee’s federation or their legal representatives.
Step 2 – recognition and judgment board including representative of ministry of labour, employee’s representative and industrial manager’s representative.
یکشنبه شانزدهم مهر 1385
All new investors should be aware that job classification is a legal duty for employees.
It should be according to Iranian labour law method and should be implement by a consultant who is registered from ministry of labour
Here you can find a summery about that project.
A summery about job classification
Methods of job classification:
1- Grading system
2- Comparing the parts system
3- Scoring system
Our method will be scoring method.
Sum of them is 1000 and nobody couldn’t get more then 670 which may be is MD’s score.
There are some items which we must consider in scoring. They have max score:
1-1 Supervising (direct and in direct)
1-2 Others safety
1-3 Material and products
1-4 Assets and equipments and machines
1-6 Reporting and forms
1-7 Financial (cash and financial process)
4- Work situation
4-1 Dangers because of work
4-2 unfavorable work situation
4-2-1 Steam, smoke, gas
4-2-3 unpleasant smell
4-2-4 not enough light
4-2-6 dirty environment
4-2-8 cold or warm working situation
4-2-9 other facts
5- Dangers because of work:
5-1-1 superficial injury
5-1-2 deep injury
5-1-3 injury which the part of body can’t act well
5-1-4 Injury which the part of body can’t act at all
5-1-5 person can’t work
Then we will make a link between scores and grades.
Other responsibilities of job classification committee:
If the person has educated less than required for the job this committee should decide how many years of experience should be reduced because of education. (According to rules)
Realizing relevant or not relevant training course which a new employee has passed
Realizing relevant or not relevant experience which a new employee has
Movement of the personnel
For determining personnel new salary,
1- should have an agreement with management a bout how much they can spend
2- Considering scores and grades of the job
3- Considering current salary of employees
4- No body will have less salary but if new calculation is less than the old, we should give him/her the old salary.
Other details are available if you want more information.
یکشنبه بیست و یکم خرداد 1385
According to stanza 4 of the point 43 and stanza 6 point 2 and points 19, 20, 28 of Islamic republic fundamental law, forcing people to have fixed work is forbidden. And Iranian people from every tribe and family have equal rights and color, race, language, and like this couldn’t be cause of distinction. and all people who can be male or female are equal under protection and every body has rights to choose his/her favorite job which isn’t against of Islamic matters and public interests.