SUBMITTED TO: Mr.MOHAMMAND AQIB AHSAN OFFICER-HR THOMSON PRESS ( I ) LTD. OKHLA

SUBMITTED BY: POOJA SHARMA MASTERS IN HUMAN RESOUCE INSTITUTE OF MARKETING AND MANAGEMENT

TABLE OF CONTENTS

S.NO. NO . 1. 2. 3. 4. 5. 6. 7. 8. 9.

DESCRIPTION

PAGE

ACKNOWLEDGEMENT BRIEF SUMMARY OF THOMSON PRESS UNITS IN THOMSON PRESS OBJECTIVES & METHODOLGY FINDING HR INVENTORY SYSTEM BENEFITS OF THE STUDY GRAPHS BIBLIOGRAPHY

ACKNOWLEDGEMENT

At the very outset I would to thank Mr. Md. Aqib Ahsan, the HR- Officer for giving me an opportunity to work under his valued guidance in Human Resources Department at Thomson Press. I am indebted to him for the keen interest he showed in my project and helping me out whenever I faced some difficulty. I am also grateful to Mr. S.S. Saini, Head of Okhla unit Thomson Press and Mr. Kapil Raina, Head of the Sales Department Okhla Unit for allowing me to undergo training for 8 weeks in your prestigious company. Last but not the least I am greatly indebted by the support extended to me by Mr. Sunil Kumar and Mr. Ashish Kumar Bera, without there valuable help it would have been impossible for me to complete this project. Their selfless contribution and suggestions are deeply appreciated by me. I would like to thank my placement coordinator Mr. Monisha Verma to be grateful towards me.

Date:

(POOJA SHARMA)

RESEARCH METHODOLOGYExploratory Research Exploratory research is often conducted because a problem has not been clearly defined as yet, or its real scope is as yet unclear. It allows the researcher to familiarize him/herself with the problem or concept to be studied, and perhaps generate hypotheses (definition of hypothesis) to be tested. It is the initial research, before more conclusive research (definition of conclusive research) is undertaken. Exploratory research helps determine the best research design, data collection method and selection of subjects, and sometimes it even concludes that the problem does not exist! Another common reason for conducting exploratory research is to test concepts before they are put in the marketplace, always a very costly endeavour. In concept testing, consumers are provided either with a written concept or a prototype for a new, revised or repositioned product, service or strategy. The results of exploratory research are not usually useful for decisionmaking by themselves, but they can provide significant insight into a given situation. Although the results of qualitative research can give some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how often" or "how many". In other words, the results can neither be generalized; they are not representative of the whole population being studied.

SECONDARY DATA COLLECTIONSecondary data are data that were collected by the persons or agencies for purposes other than solving the problem at hand. They are one of the cheapest and easiest mean of access to information. Hence, the first thing a researcher should do is search for secondary data available on the topic. The amount of secondary data available is overwhelming, and researchers have to locate and utilize the data that are relevant to their research. Almost all the information systems initially are based on routinely collected internal data, and expand through the inclusion of data from published and standardized sources. A companys internal records, accounting and control systems provide the most basic data on resulting outcomes. The principal virtues of these data are ready availability, reasonable accessibility on a continuing basis, and relevance to the organizations situation.

USES OF SECONDARY DATA Secondary data can be used in many ways:

1. Secondary data may actually provide enough information to resolve the problem being investigated. 2. Secondary data can be a valuable source of new ideas that can be explored later through primary research. 3. Secondary data is of use in the collection of primary data. Examining the methodology and techniques employed by other investigators may be useful in planning the present one. It may also suggest better methods. BENEFITS OF SECONDARY DATA The most significant benefits secondary data offer are savings in cost and time. Secondary data research involves just spending a few days in the library extracting the data and reporting them. This should involve very little time, efforts and money.

ABOUT THE COMPANYThomson Press - An Overview

Thomson Press (India) limited an ISO 9002 company was registered in 1964 with equity participation of the Thomson Group of Canada. It commenced its commercial operations in 1967. Dr. Zakir Husain inaugurated the parent plant located at Faridabad in 1967. Thomson Press (India) limited is one of the largest commercial printing houses in India. Ever since establishment, Thomson press has worked to exemplary high standard of printing technology with the use of latest state-of-the-art technology and an excellent pool of talent, trained and highly skilled work force lead by dynamic managers and management staff.. Thomson Press management has hereafter kept pace with latest and sophisticated printing technology being used by the development countries like Japan, UK, France, Canada and Italy etc. by close global liaison with other printing companies and equipment manufacturers on a regular basis. The company has a strong commitment to Human Resource Development and employs substantial expertise in its Graduate Engineer Trainee, Trade Trainee and Diploma Engineer Trainee Schemes. Thomson Press undertakes total execution of any printing job that involves Pre Press processing, Color and Digital Electronic Imaging, Printing on Sheetfed or Wed fed multicolored printing machines. Besides, all types of fabrication and finishing operations are also carried out in a totally integrated manner. The company is on contract for printing and supplying magazine like India today, Business Today, Computers Today, Readers Digest, First

City, Down To Earth, Travel Trends and many more periodicals which included most of the domestic and international airline in flight magazine. It also produces large number of Multicolored Posters, Brochures, Leaflets, Folders, Danglers, Visual Aids, Press Campaigns, Annual Reports, Company Reports, Company Manuals, Calendars, Diaries, Bibles, and Bound Books. Apart from day to day activities, Thomson Press is also engaged in Printing Cheques, Security Bonds, Major Airline Tickets, Bus Tickets and Lottery Tickets. The company has achieved national and international recognition for delivery of high quality printed material by stringent measures of on-line quality control, on purchasing, vendor and process controlled production facilities with an eye for quality where the service is customer driven.

THOMSON PRESS PRINTING DIVISIONIt was initially involved in the number distribution of of a of large publications

overseas

publishers, and printing of children's books for export. In 1974 the focus shifted to printing of the group's prestigious publication India Today. As of date apart from a number of prestigious magazines printed for various publishing houses, TP also prints high quality commercial POS items and books for the domestic and export markets. Each of our five units has developed its own unique strengths and areas of expertise, providing our customers with a strong support structure across an extensive range of printing services. Absolute commitment to quality, meticulous attention to detail and unparalleled level of service have made TP a leading specialist in Design, Prepress, Printing and distribution services. As a company we are committed to employing dedicated staff, investing in the very best technology available and maintaining a close involvement with the industry. Thomson Press Printing Division comprises of one Pre Press and two Printing units in Delhi, one printing unit in Chennai and one printing &

Book Bindery unit in Delhi exclusively for exports. TP has always been a frontrunner in introducing the latest printing technology in India1. 2. 3. 4.

High end drum and flatbed scanners. Multicolour sheetfed and web printing machines. Mechanized binderies. Copy dot scanner.

5. CTP. The product range covers virtually all-commercial print requirements on paper and board, from bank instruments, to calendars, diaries, books, corporate brochures, posters, folders, leaflets, and magazines. This range of services and products covers designing, copy editing, typesetting, high quality scanning and image manipulation, sheet fed offset printing, heat set and coldest web offset printing, automated binding, finishing, distribution and mailing services.

DIGITAL OPERATIONS AT THOMSON PRESSDigital Operations Department is equipped with the latest technology and it basically deals with prepress operations viz. scanning, manipulations and creations, page planning, colour corrections, digital proofing and taking the output on the film. The Digital Operations Department has two divisions one situated in Okhla and the other is in Connaught Circus. The Connaught Circus Office (K-13) deals with all the living media production viz. India today, business today, computers today, teens today, India today plus, readers digest, cosmopolitan and first city whereas in Okhla all commercials jobs are taken up which includes Posters, Brochures, Press Campaigns, Advertisement, Calendars, Books, Diaries, Leaflets, Annual Reports, Bibles, Bound Books etc. A total of 33 employees are working in supervisory cadre in digital operation department i.e. 16 in Okhla and 17 in K-13 (including new recruits). As the project deals with employees in Digital Operations Department so a bit of information as to how the department works would be useful in understanding things. (Refer figure 2) Sales and marketing employees procure the job from the client and give it to the customer support department. This department acts as a interface between the client and the Digital Operations Department. As soon as job

is received, it is studied. If the material is a photograph or a transparency then it is sent for scanning and after that directly to work station. It the job is in electronic media like floppies etc. then it is directly sent to the workstation. There are different workstations as Mac, Prism Ax, Blaze 98, Star PS and PC. After the job has been finished, its output is taken either on iris or directly on film. Since taking the output directly on film is costlier than on iris, so iris output is preferred. When the client gives his consent that the work is to his satisfaction, than its output is taken on the film and after that output departments. (Layout, Plate Making, Fag Proofing) role comes into play

COMPANY PROFILEThomson Press (India) Ltd., an ISO 9002 company was incorporated in 1967 with the technical & financial collaboration of Thomson International Corporation of Canada. As on date, Living Media and the Investment companies of the Promoter Group hold 85% of the Equity Share Capital of Thomson Press (I) Ltd. With the balance 15% being held by New York Life Insurance. The parent plant located at Faridabad was inaugurated on 9th March 1967, which is now celebrated as companys annual day.

Thomson Press (I) Ltd. Is the largest commercial printer in South Asia. Ever since its incorporation, Thomson Press has worked to exemplary high standard of printing with use of latest state-of-the-art technology supported by an excellent pool of talent, trained and highly skilled work force headed by dynamic professional management staff. Thomson Press management has kept pace with the latest and sophisticated printing technology being used by developed countries like Japan, U.K., France, Germany, U.S.A, etc with commitment to Human Resource Development. Thomson Press undertakes total execution of any printing job that involves Pre Press, Color and Digital Electronic Imaging, Printing on Sheet fed or Web fed multicolor-printing machines. Besides, all types of fabrication and finishing operations are also carried out in an integrated manner. The company is commercial printer and supplier of magazines like India Today, Business Today, Computers Today. Cosmopolitan, Readers Digest, First City, Down to Earth and many more periodicals, which includes in-flight magazines. It also produces large number of multicolor Posters, Brochures, Leaflets, Folders, Danglers, Visual Aids, Press Campaigns, Annual Reports , Company Manuals, Calendars, Diaries, Bibles, Bound Books (Paper Back and library bound Deluxe Editions). Apart from day to day activities, Thomson Press is also engaged in printing Cheques, Security Bonds and Airline Tickets.

The company has achieved national and international recognition for delivering printed material by stringent measures of online Quality Control on purchasing, vendor evaluation and process controlled production facilities with an eye for quality where the service is customer driven.

ASSOCIATION OF THOMSON PRESS (I) LIMITED WITH INDIA TODAY GROUPThe group comprises of companies viz. COMPANY World Media Ltd. Ltd. BUSINESS Journalism Hosting/Online News

Living Media India Publishing/Music/Website Paper TV Today Network Electronic Media Ltd. Integrated India Ltd. Radio Database Publication of Industrial & Directories today Broadcasting Radio Commercial of FM

Broadcasting Ltd.

The group started with the incorporation of Thomson Press in 1967 with the technical & financial collaboration of Thomson International Corporation of Canada. The publishing business was started with the brand name INDIA TODAY in 1975, a news magazine, which is published weekly in English and four other regional languages. The group diversified its publishing magazines on business, computers etc. Living Media India Ltd. is one of the largest Magazine Publishing houses in the country. Its products India Today, Business Today, Computers Today, Cosmopolitan are the highest selling magazines in India. The continued growth and expansion of the companys publishing and business i.e. detailed as under: 1. India Today : English 3. India Today : Tamil 5. India Today : Telugu 7. Computers Today 9. Books Today 11. India Today : International Music Business: Music Today: Audio Cassettes & Compact Discs Electronic Media: The Company started diversifying into the business of Electronic Media in 1995. TV Today Network Ltd. Launched 24 Hours Hindi News 2. India Today : Hindi 4. India Today : Malayalam 6. India Today Plus 8. Business Today 10. Cosmopolitan

Current Affairs Channel viz. Aaj Tak. The channel went operational in December 2000 & is highly popular news channel.

Organisation structureMANAGING DIRECTOR

EXECUTIVE DIRECTOR

ACCOUNT & FINANCE

DOMESTIC PRINITING

INFORMATION SERVICES

MATERIALS 1-PURCHASE 2- STORES

FINANCE & ACCOUNTS

IMPORT & CUSTOMS

EDP EXPORT PRINITNG BUSINESS DEVELOPMENT TP LM ACCOUNTS & CIRCULATION

EXPORT TYPESETTING

TP - SCHOOL

ACCOUNTS

COSTING

TAXATION

INTERNAL AUDIT

FARIDABAD UNITThomson Press Strategically located at 18/35 mile stone, Delhi-Mathura road, the parent unit was inaugurated on 9th March 1967 by the then President of India, Dr. Zakir Hussain. The main job of a printing press is as its name suggests to press the inked form and the paper together. Presses perform many actions. They move the paper through the whole printing process, print on one or both sides in one or more colours, cut and fold the papers and perform binding operations. The function can be divided into three main processes viz. 1. Pre Press 2. Printing 3. Finishing operations The printing unit is also the head office of Thomson Press India Limited, which controls and regulates the functioning of all the other units of the company. Thomson press recognizes quality as the prerequisite for conducting business that is an inseparable element of all activities carried out in the press. This unit has earned the ISO 9002 certification in 1997.

Organization StructureThe work force of the Organization is broadly classified into: a. Managerial and Supervisory staff b. Workmen including Administrative/Clerical staff.

The work force is divided into different cadres/department, so as to ensure a smooth work flow and proper delegation of authority. The people at different cadres/department have well defined roles and freedom of action, which avoids overlapping of authority and ensures unity of command.

Cadres and GradesS. No. 1 2 3 4 5 Designation General Manager Chief / Senior Manager Deputy Senior Manager Manager Deputy Manager Grades A B C D E Cadre I II II(A) III III(A)

6 7 8 9 10 11 12

Assistant manager Sr. Foreman/ Sr. Officer Foreman / officer Asst. Foreman/ Asst. Officer Senior Supervisor Supervisor Asst. Supervisor

F G H I J K L

IV V VI VII VIII IX X

POLICIES AND PROCEDURESThe services of all the appointments can be transferred from one job to another in the plant or from one branch to another anywhere in India. JOINING FORMALITIES On joining the person is required to undergo the following formalities with the personnel department: Medical examination The joining report Declaration form EPF, ESI, PF, Nomination and Benevolent fund. A photocopy of all educational and experience certificates. Photocopy of birth certificates Relieving certificate from the previous employer Two passport size photographs Identity card cum attendance card will be issued and a token number will be given

GENERAL RULESWORKING HOURS: The company runs round the clock in three shifts, the shift timings are as under: 8:15 AM to 4:15 PM 4:15 PM to 12:15 AM 12:15 AM to 8:15 AM ATTENDANCE: All the employees are required to punch their attendance card in the computerized clocks, installed at various locations within the factory, at the time of entry and exit. SECURITY: To ensure security of companys property, guards at the time of entry and exit, carry out search test. The employees cannot bring or take any material in the press No visitor is allowed inside the factory premises without proper authorization. As per the companys policy, all the visitors should 1st Shift 2nd Shift 3rd Shift

enter the name, address, and time of entry and exit in the register available with the security personnel at the gate Gate pass will be issued to the official visitors along with visitors identity card, which are to be returned at the time of leaving the premises. Visitors are advised to display the visitors identity card. Your personal visitors are to be received at the reception only. For going out for an official/ personal work during working hours the employees from workers to junior management staff, have to fill a prescribed form, duly approved from the departmental head and managers have to make an entry in the register available with manager security. CORPORATE TRAINING SCHEMES: Training scheme covers professionally qualified persons who are taken as Management Trainees and Graduate Engineer Trainees undergo training with the company in a phased manner as detailed below: S. No. 1 Management trainee 2 Graduate Engineer Category Qualifications Duration Cadre/Designation completion of training V / Sr. Foreman

of Training after Ph.D. / CA / One year ICWA / MBA BE / B Tech / One /

year VI / Foreman

BE (Ptg.) / training & M one year of

Trainee/ Junior MSW

Management 3 Trainee Supervisor Trainee 4 Asst Supervisor Trainee

Stat Dip

probation Engg. Two year IX / Supervisor

(Mech) Elect. / Civil BA / B Com / Two year B Sc / Dip Ptg. 60% Above X / Asst

Supervisor

Training to concerned employees will be given as the need is identified based on: Review of annual performance appraisal Special requirements of HOD By circulating available information related to various training programmes received from training institutes etc. Level Manager Type of training Management Development Programs Junior management In-House External educational seminars Management Development Programs Specialized Training in-house Faculty IIMS, MDI

Workmen

technical discussions On the job training (at External / Internal least two in a month) Specialized room Training regular technical class-

All identified training needs are examined as per organizational requirements and a training calendar is finally approved and documented Employee wise training records are maintained Training programmes are evaluated through feedback Induction Every new employee is given an intensive induction training, which ranges from 15 days to a month depending on the position and the requirements. This is designed in manner to put the new employee at ease in the company and make him / her know of who is who and what is what in the company. PERFORMANCE APPRAISAL SYSTEM TYPES OF APPRAISAL Executive Appraisal Trainee Appraisal Work Man / Staff Appraisal TIME OF APPRAISAL April and October Quarterly January and July

BENEFITS AND FACILITIES LEAVELEAVE Leave is categorized as under PL/EL = Privileged Leave/Earned Leave CL SL = Casual Leave = Sick Leave

However, there is yet another kind of leave, i.e. leave without pay (WP) which is an authorized leave with loss of pay. Every employee has to fill the prescribed leave from before proceeding on leave. Weekly off and holidays whether occurring during or at the end of the leave period shall not be counted as leave in case of leave. In a year the employee shall be entitled to the following type of leave: PRIVILEG S.N O. 1 2 3 CATEGORY E *E *A 240 75 75 SICK E 7 7 7 A 180 CASUAL E 7 7 A -

Asst Supervisor 28 GM Administrative staff 21 Workers 14

An Employee becomes entitled to a leave after completing 40 days of working. In addition to these 11 days, National / Festival Holidays are provided to the employees. Maternity Leave: As per the Maternity benefit Act

ASSOCIATES OF THOMSON PRESSTHE CUSTOMER BASE Thomson has over the years acquired association with large number of customers in India and overseas. We are servicing our overseas customers needs for Printing and Electronic Publishing including Scientific publication, which is its core strength. Living Media has its own publications like India Today, Business Today, Computers Today, Teens Today, Cosmopolitan printed at Thomson Press, which are leaders in the country in their respective areas. Following is a glimpse of our associates, definitely not at all exhaustive list: COMPANYS CUSTOMERS INCLUDE: INDIA Adidas Bates Clarion ITC LG Becton & Dickinson Lintas LIC of India Nestle Maruti Suzuki Samsung WORLD WIDE Addison Wesley Al Nisr Publications Book Builders, Hong Kong Cambridge University Press, U.K Dorling Kindersley, U.K Elsevier Group, U.K. Gordon & Breach, Singapore Gulf News, Dubai Harcourt Brace Publishers Inner Traditions, U.S.A

Otto Burlington Rediffusion Mercedes Benz Mudra R K Swamy Osho Commune Sahara Airlines State Bank of India UCO Bank Panjab & Sind Bank Modi Care Escorts Times of India

International Publisher & Distributors John Wiley McGraw- Hill Mission India, U.S.A Octopus Group Osho International (World wide) Oxford University Press Promotional Reprint Company, U.K Reed Customer Books, U.K Springer Verlag, Germany Studio Editions, U.K UNs International Childrens Education Fund UNICEF

OTHER PLAYERS IN THE FIELDMain competitors of Thomson Press are: NORTH Ajanta offset, Mehta offset, Dhriti Printer, Newtech, IPP (Delhi) EAST Art Printing, Naba Mudran, NK Grossain, LC Roy and Anderson Printing (Kolkatta) WEST Tata Press, Comvay, Vakil, Repro(Mumbai) SOUTH Mytech, Prasad, Pragati Printers (Hyderabad), Coronation. For Pre-press (Repro) business our competitors are: NORTH Ajanta Offset, IPP (Delhi) EAST Antartica and Repro Scan (Kolkatta) WEST Com Art, Jessra, Unique (Mumbai) SOUTH Mytech and Print system (Banglore).

Services at Thomson pressUndoubtedly Thomson Press is a leader in handling large volume multi colour work. The product range covers virtually all-commercial print requirements on paper and board, from bank instruments, to calendars, diaries, books, corporate brochures, posters, folders, leaflets, and magazines.

This range of services and products covers designing, editing, typesetting, high quality scanning and image manipulation, sheet fed offset printing, heatset and coldset web offset printing, automated binding, finishing, distribution and mailing services. TP provides a complete service for mailing and fulfillment, managing every aspect of the delivery service as required by our customers. A number of options are available from complex multiple personalised inserts to the largest campaign and launch mailings. We aim to offer the most comprehensive print management service

available. And that doesn't just mean we'll take the best possible care of you. For us, building close working relationships with customers goes much further. Whatever the project, listening to our customers' requirements and coming up with bright ideas and practical suggestions to achieve a better result more cost-effectively is all part of the service we provide.

QUALITY ASSURANCE

Quality Policy

QUALITY POLICY OF THOMSON PRESS, FARIDABAD We hereby pledge to achieve complete customer satisfaction through excellence in quality. We wish to achieve this by : Motivating workforce committed to continuous

improvement in working methods. Working as a well-knit team to ensure that quality objectives are met. Committing vendors to continuously work on improvement in quality standards.

ROLE OF QUALITY ASSURANCE IN THOMSON PRESS, FARIDABADDefect Prevention

By Setting Standard: Standard has been set as per the ISO 9002 international Quality System and has been certified from BSI India Pvt. Ltd. The standard is being revised from time to time whenever there is some improvement or modification in the system. Ensuring adherence of the Standard: Periodical audit of the system standard is being conducted to check the compliance of the standard. Corrective and Preventive Action: Every customer complaint is being thoroughly investigated by QA for its origin and reason. Necessary corrective & preventive action is being taken in consultation with the concerned departments. Defect Detection By gathering data constantly on occurrence of defect: Every job undergoes thorough inspection by QA before dispatch as per the inspection plan & defect checklist.

By

sending

information

about

defects

to

relevant

departments:

Daily, Weekly & Monthly reports are being sent to the relevant departments and the same are being reviewed periodically with the concerned departments.

UNITS - THOMSON PRESSExport Division (Phototypesetting), NEPZ, Noida (U.P.) This unit commenced its commercial production in the field of phototypesetting, with the objective of availing opportunities offered by the international market.

The clientele includes some of the leading publishers of USA and Europe. The electronic typesetting division has developed its resources around customer friendly contemporary technology to offer the services for complex scientific publishing projects. The in-house software development team develops conversion tools. Its copyediting resources are strategically located in Noida, New Delhi and Madras. The Chief Scientific Editor directs the team activities from Noida. C-35,Noida A 100% export oriented unit, where the output quality matches the international standards, utilizing imported raw material, leading to production, printing and binding of high quality hard case and paperback books. This unit produces two million each hard case and paperback books per year. The prepress resources included camera, layout and plate making. Noida Security Printers, Noida This unit of Thomson Press is responsible for printing of lottery and travel tickets. All the functions are decentralized, viz. Decentralized purchasing, independent accounts, set-up and a proper back up with debtors reports & Age analysis.

Okhla, Repro House This unit comprises of two separate departments namely, Repro and Sales house consist of Customer Support, Digital Operations, Layout, Plate Making, Fag Proofing and Manual Planning Departments. Repro undertakes all the preprocess activities including digital operations. State of the art technology is employed to produce the best possible quality with the expertise of specially trained manpower. A team of dedicated specialists further enhances the capabilities & competitiveness.

Inventory ManagementIn today's environment, capital for inventory can be hard to access and expensive when available. In addition, inventories are expensive to carry. Capital costs (cost to finance), service costs (insurance, inventory control and taxes), storage costs (warehouse rent, equipment, utilities and handling) and inventory costs (obsolescence, damage, shrinkage and excess) all contribute to inventory carrying costs of 2% of the value of the inventory, per month. These hidden costs can average 25% of the value of inventory, or 1% to 3% of revenue each year.

Source: REM Associates

Inventory is a poor investment alternative for cash, but imperative to achieve required service levels. Maintaining the appropriate levels and types of inventory is essential to providing quality, timely service and products to your customers. Preventing stock-outs without overstocking products requires a disciplined process and information system that can dynamically manage this balance. If your organization does not compute the true cost of inventory, your assets could be underutilized and costing you money.

Two of the keys to optimizing inventories are to improve reliability and reduce variability in the supply chain to meet your customer's demand while being cost effective. Our professionals can provide the knowledge and technology to assist your organization in better managing your inventory investment, so you can have the right inventory in the right place without over committing resources. Anixter helps you to achieve a balance of minimized inventory carrying costs in order to meet required service levels.

Inventory Management Benefits

Reduce capital investment and carrying cost of inventory Postpone ownership Minimize risk of excess, obsolescence and duplicate inventories Reduce the cost of maintaining inventories by paying only for the material you use, as you use it Reduce the total cost of ownership Minimize the number of purchase orders, returns, stock-outs and time needed to the "invoice matching process" Eliminate traveling to distributor's will-call counters to pick up small orders, resulting in lost labor time

Services

Consigned inventory programs Guaranteed inventory availability programs Visual replenishment programs Just-in-time delivery and replenishment programs Inventory buy-back programs Vendor Managed Inventory Program (VMI)-Anixter and thirdparty manufacturers Web-based, real-time inventory visibility

Inventory Management deserves separate mention beyond other phases of accounting due to its importance to operations. With Inventory, you have two conflicting goals: minimize the amount of money tied up in product and never be out of product when you

receive an order. You need to know exactly what you have, where it is, what you're likely to need to fill orders, where you get it, how long it takes to get it, current costs and pricing, how many turns you get out of which items, how much it's all really worth and how much you can tell the IRS it's all worth. Information systems, properly applied, can be a big help in handling all these factors and making your inventory a lot more profitable by optimizing your use of the inventory itself. Tight control of inventory reduces the amount of idle money tied up in slow moving or obsolete product, and maximizes investment in items that pay a good return. It also can greatly reduce "shrinkage".

Various Definitions of inventory The process of ensuring the availability of products through inventory administration.

Systems and processes that identify inventory requirements, set targets, provide replenishment techniques and report actual and projected inventory status.

Handles all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and

the reconciling of the inventory balances. Also may include ABC analysis, lot tracking, cycle counting support etc.

The development and maintenance of adequate assortments of products to meet customers' needs

Management of the inventories, with the primary objective of determining: A subset of Configuration Management that focuses on the management (control and financial accounting) of the most expensive or attractive CIs in the IT infrastructure. See also Asset Management, Configuration Management.

The process of ensuring the availability of products through inventory administration activities such as planning, stock positioning, and monitoring the age of the product. The goal is to ensure product availability.

Activities involved in maintaining the appropriate level of stock in a warehouse.

BENEFITS OF HR INVENTORY

LEAVE POLICIES The State Auditor is responsible for providing uniform interpretation of certain leave provisions, and for reporting any exceptions made by individual agencies to the Governor and the Legislature. However, the Attorney General has ruled that the interpretations of the State Auditor are advisory only. Leave Records

For each employee, each state agency is required to keep a record, in addition to an official personnel file, of time and attendance; vacation and sick leave accrual; absences; and the reasons for absences, whether from sickness, vacation, other paid leave, or leave without pay. Paid Leave Bank For Institutions Of Higher Education The governing board of a university system may adopt a comprehensive leave policy that applies to employees working in a hospital or clinic of a medical and dental unit of the university system. This policy may combine vacation, sick, and holiday leave into a paid leave system that does not distinguish or separate the types of leave to be awarded and may award leave in an amount determined by the governing board to be appropriate and costeffective. This leave policy must include provisions for: 1. Payment for accrued leave to: A. The estates or heirs of deceased employees B. Employees separating from the employing entity C. Contributing members of state retirement systems who retire 2. Awards of accrued leave to employees separating from the employing entity who are to be employed by other state agencies or institutions of higher education.

On or after September 15, 2005, the governing board of an institution of higher education may adopt a leave policy as provided above for employees of the institution. Leave and 662 - Holidays and Recognition Days and Months of the Texas Government Code, do not apply to employees covered by a paid leave bank policy adopted by an institution of higher education.

Annual Leave Employees of the State are entitled to a paid vacation as determined by length of service. Exceptions include faculty members who have appointments of less than 12 months at institutions of higher education and instructional employees who hold contracts for periods of less than 12 months at the Texas School for the Blind and Visually Impaired and the Texas School for the Deaf. Employees of junior colleges are not considered state employees. Employees paid on an hourly or daily basis are entitled to a vacation with full pay accrued at the same rate as employees paid on a monthly basis. Part-time employees are also eligible for paid vacation, but they accrue vacation leave on a proportionate basis, and their maximum carryover is proportionate as well. For example, half-time employees may earn, and may carry over, vacation leave at one-half the rate authorized for full-time employees. When an employee's status changes from part-time to full-time status in the middle of the month,

the employee would accrue annual leave at the applicable rate on the first calendar day of the following month. The amount of annual time accrued is based upon the employee's employment status on the first day of the month (i.e., part-time, full-time). Because the employee's status is part-time on the first day of the month, the annual leave time accrued for the month would be accrued on a proportional basis. In computing vacation leave time taken, time that an employee is excused from work because of holidays is not charged against vacation time. In 1983, the Attorney General concluded that, for purposes of leave accrual, the definition of state "employee" includes any appointed officer who normally works 900 hours or more per year. The effect of this opinion is that certain appointed officers are allowed to accrue vacation and sick leave under the same rules and conditions as other state employees. For further information see the definitions of state employees in Texas Government Code Section 661.001. The following table provides the vacation leave accrual rates and maximum allowable carryover (from one fiscal year to the next) for full-time employees. All hours in excess of the maximum allowable carryover left at the end of a fiscal year shall be credited to the employee's sick leave balance as of the first day of the next fiscal year. An employee must complete the required years of employment to be entitled to receive the higher rate of vacation leave accrual (for

example, the employee must complete 15 years of employment to accrue 12 hours vacation leave per month). The length of employment is calculated from the employee's anniversary date. Credit for the higher rate of accrual, as shown in the table, will be given on the first calendar day of the month if the anniversary date falls on the first calendar day of the month. Otherwise, the increase in vacation accrual will occur on the first calendar day of the following month. Credit for one month's vacation leave accrual is given for each month or fraction of a month of state employment and is posted on the first day of employment and on the first day of each succeeding month thereafter. Vacation entitlement accrues from the first day of employment, and is terminated on the last day of duty. If the employee is on any type of paid leave which extends into a subsequent month, any vacation leave accrual for the month of paid leave will not be posted until the date of his or her return to duty. Specifically, an employee who is on leave the first day of the month must return to duty before being eligible to use leave accrued for that month. If an employee goes on paid leave following his or her last day of duty and does not return to duty, then subsequently separates from state employment, the employee is not entitled to leave accruals while on such paid leave for any calendar month(s) following the month in which the last day of duty occurs. State employees who are employed by multiple agencies and who work more than 40 hours per week may not accrue vacation leave at a rate that would exceed that for a full-time, 40 hour per week employee.

Schedule of Vacation Leave Accruals for Full-Time Employees Hours Length of State Service Accrued Per Month Less than 2 years 7 Days Accrued Per Year 10.5 12 Allowable Carry-Over (Hours) 168 232

At least 2 but less than 5 8 years At least 5 but less than 10 9 years At least 10 but less than 10 15 years At least 15 but less than 12 20 years At least 20 but less than 14 25 years At least 25 but less than 16 30 years At least 30 but less than 18 35 years At least 35 years or more 20

13.5

256

15

280

18

328

21

376

24

424

27

472

30

520

Vacation with pay may not be taken until the employee has been continuously employed with a state agency for six months. An employee who resigns, is dismissed, or otherwise separates from

state employment during that six-month period is not deemed to have had continuous employment for at least six months. Additionally, continuous employment means that no leave without pay (that is, for a full calendar month that does not count as state service credit) has been taken. The six-month eligibility requirement means that once an employee has completed six months or more of continuous state employment and then leaves state employment, that person is eligible to take vacation leave as it is earned upon reemployment, or be paid for it on termination following such reemployment. An employee who separates from one state agency will not be paid for his or her unused vacation time if he or she is reemployed by another state agency that grants vacation time within 30 days of leaving his or her previous job. An employee who resigns, is dismissed, or otherwise separates from state employment is entitled to be paid for accrued and unused vacation time, as long as the employee has had continuous employment for at least six months and provided that the employee has not been reemployed by another state agency within 30 days of such separation. Institutions of higher education are allowed to immediately pay for accrued vacation leave upon separation without having to wait 30 days after separation. Separation from state employment includes, but is not limited to, a state employee leaving one state agency to begin working at another state agency, provided at least one workday occurs between the employee's separation from the first state agency and the employee's first day at work at the second state agency. The Payment Entitlements Upon Separation

From State Employment table on page provides a description of various payment entitlements upon separation from state employment. An employee terminating state employment may, with the agreement of the employing agency, be allowed to remain on the payroll after the last day worked to use vacation leave in lieu of being paid in a lump sum. Such an employee will not accrue any additional vacation leave while remaining on the payroll to use such vacation leave. Lump-sum payments for accrued but unused vacation time are computed as though the employee actually worked that time for the agency. A state employee who, on the date of separation is normally scheduled to work at least 40 hours a week, will have eight hours added to his or her accrued vacation time for each state or national holiday that falls within the period after the date of separation and the last date of the period in which the employee could have used the time had the employee remained on the payroll. State employees who are normally scheduled to work less than 40 hours a week on the date of separation are also entitled to have hours added to vacation time hours for national and state holidays using the same calculation. However, their additional hours are to be proportionate to the number of normally scheduled work hours. Employees moving to a position in a state agency that does not accrue vacation time are not entitled to add vacation time for holidays that fall within an employee's accrued vacation time period. According to Texas Government Code Section 661.063(b) employees compensated for unused vacation time in one lump-sum

payment are not entitled to receive longevity and/or hazardous duty pay for the period equal to the amount of accrued vacation time. However, an employee who is permitted to remain on the agency payroll while exhausting accrued vacation time will continue to receive all compensation and benefits that the employee was receiving on the last day of duty including paid holidays, longevity, and/or hazardous duty pay while remaining on the payroll. The State Auditor's Office has further clarified that an employee allowed to remain on an agency's payroll is entitled to continue to receive all compensation and benefits that the employee was receiving on the employee's last day of duty. However, as an exception, the employee may not use sick leave, or accrue sick or vacation time, while exhausting annual leave. Employees transferring from one state agency to another will have their accrued but unused vacation leave balance transferred as long as the employment is not interrupted by a separation. If an individual is separated from state employment and is reemployed within 30 calendar days by a state agency to a position that accrues vacation time, the individual's previously accrued but unused vacation leave will be restored. The State Auditor is directed to provide a uniform interpretation of the subchapters of the Texas Government Code relating to vacation leave, sick leave, and miscellaneous leave provisions and "shall report to the governor and the legislature any state agency or institution of higher education that practices exceptions to those laws." An Attorney General Opinion held this provision to mean:

the State Auditor may provide a uniform interpretation of the provisions on employee vacations and leaves, but such interpretation would be advisory in nature only and not a final determination, because the Legislature has specifically delegated to the Attorney General the responsibility of interpreting legislative intent as it relates to the General Appropriations Bill. Sick Leave State employees are, without deduction in salary, entitled to sick leave subject to the following:

An employee will begin earning entitlement to paid sick Credit for one month's accrual will be given and posted for

leave on the first day of employment.

each month or each fraction of a month to that employee's leave record on the first day of employment and the first day of each succeeding month of employment thereafter.

An employee who is on leave the first day of the month

may not use the sick leave that the employee accrues for that month until after a return to duty.

The employee will accrue sick leave at the rate of eight

hours per month or fraction of a month for a full-time employee and will accumulate it with any unused sick leave.

Part-time employees will accrue sick leave on a proportional basis.

Sick leave with pay may be taken when an employee is

prevented from performing duties because of sickness, injury, or pregnancy and confinement. Sick leave may also be taken if an employee needs to care for a member of his or her immediate family who is actually ill. Texas Government Code 661.202(d) defines "immediate family" as those individuals related by kinship, adoption, or marriage who live in the same household; foster children certified by the Texas Department of Protective and Regulatory Services who reside in the same household as the employee; and minor children of the employee regardless of whether the children live in the same household.

Sick leave may be taken to care for members of an

employee's family who do not reside in the same household only if the time taken is necessary to provide care to a spouse, child, or parent of the employee who needs such care as a direct result of a documented medical condition. This provision for taking sick leave does not extend to an employee's parent-in-law if they do not live in the same household, as per a leave interpretation by the State Auditor's Office.

An employee who will be absent from work due to an To be eligible for accumulated sick leave with pay for a

illness must notify his or her supervisor as soon as possible.

continuous period of more than three working days, an

employee must send the administrative head of his or her agency a doctor's certification, or an acceptable written statement of facts, showing the nature of the illness. If an illness results in the absence of three working days or less, the administrative head has the discretion to require documentation of the illness.

When an employee returns to work after taking sick leave,

he or she is required to complete a sick leave application which is submitted to the appropriate approving authority for consideration.

If an employee is on vacation and would otherwise be

entitled to sick leave, then the fact that such sick leave is requested while on vacation leave does not affect the employee's entitlement to sick leave.

State employees who are employed by multiple agencies

and who work more than 40 hours per week may not accrue sick leave at a rate that would exceed that for a full-time, 40 hour per week employee.

State employees who are legal guardians by court

appointment may take sick leave to care for a child in accordance with the leave provisions in Texas Government Code 661.202 Responding to a request for interpretation of rules for sick leave for Texas School for the Blind and Visually Impaired employees, the State Auditor's Office has advised that contract employees may use

sick leave for qualifying events only during instructional days for which they are under contract. As provided by Texas Government Code Section 661.206, an employee may use up to eight hours of sick leave each calendar year to attend parent-teacher conference sessions for the employee's children who are in pre-kindergarten through 12th grade. Employees separated from employment with the State under a formal reduction-in-force policy are entitled to have their sick leave balance restored if reemployed by the State within 12 months after the end of the month following their termination. Employees are entitled to have their sick leave balance restored if they are separated from their employment for other reasons and are reemployed by the State within 12 months after the end of the month following their termination. Employees who are who are separated for reasons other than a formal reduction in force and who are employed by the same agency or institution may only have their sick leave balance restored if they have had a break in service of at least 30 calendar days since their date of termination. An employee who is restored to state employment following military service under veterans' employment restoration provisions is generally considered to have been on furlough or leave of absence and, as such, is entitled to crediting (restoring) of sick leave accrued, but unused, prior to such military service.

An employee's accrued sick leave balance will be transferred when an employee moves from employment in one state agency to another, provided the employment is uninterrupted. Employees who have retired from a state agency under ERS and are reemployed by the state will not have their sick leave balance restored. Reemployed retirees consumed their sick leave balances when they received additional state service credit for sick leave during the application for retirement process with ERS. Retirees receive an increase in annuity benefits because of the sick leave balances that were added to service credit. A terminating employee may, with the agreement of the employing agency, remain on the payroll after the last day worked to use vacation leave in lieu of being paid in a lump sum, provided that such employee will not be eligible to use paid sick leave prior to final separation from employment. The estate of a deceased employee is entitled to payment for one-half of accumulated sick leave, or for 336 hours of sick leave, whichever is less, provided that the employee had continuous employment with the State for at least six months at the time of death. Furthermore, the amount paid to the estate will be based on the state employee's compensation rate at the time of his or her death. An emolument in lieu of base pay must be included in the compensation rate if the employee was eligible for the emolument on the last day of employment. Neither longevity pay nor hazardous duty pay may be included in the compensation rate.

Extended Sick Leave: Exceptions to the amount of sick leave an employee may take can be authorized by the administrative head or heads of any state agency only after a review of the merits of each individual case is completed. All agencies are required to have a written statement filed with the State Auditor covering the policies and procedures used for the extension of sick leave in this manner, and the agencies must make this statement available to all employees. Agencies should ensure their policies and procedures for extended sick leave do not have provisions that require employees to pay back extended sick leave; to do so would suggest that the agency had been advancing salary to the employee in contravention of the Texas Constitution. Sick Leave Pool: The governing body of each state agency is required to establish a program within the agency to allow an employee to voluntarily transfer earned sick leave time to a sick leave pool administered by a person appointed by the governing body of the agency for that purpose. Contributions of sick leave must be in increments of eight hours with the exception of a retiring state employee who may contribute accrued sick leave in increments of less than eight hours. The sick leave pool is intended to help employees and their families if a catastrophic illness or injury forces an employee to exhaust all leave time earned by that employee and to lose compensation from the State for the employee.

The determination of which injuries or illnesses are classified as catastrophic is made by the trustee of the State Employee Uniform Group Insurance Benefits Program established under the Texas Employees Uniform Group Insurance Benefits Act. The Employees Retirement System of Texas has defined "catastrophic" in the following way:

"A severe condition or combination of conditions

affecting the mental or physical health of the employee or the employee's immediate family that requires the services of a licensed practitioner for a prolonged period of time and that forces the employee to exhaust all leave time earned by that employee and to lose compensation from the State for the employee."

Licensed practitioner means practitioner, as defined in the

Texas Insurance Code, who is practicing within the scope of his or her license. Texas Government Code 661.202 defines immediate family as 1. An individual who resides in the same household as the employee and is related to the employee by kinship, adoption, or marriage 2. A foster child of the employee who resides in the same household as the employee and who is under the conservatorship of the Department of Protective and Regulatory Services

3. A minor child of the employee, regardless of whether the child lives in the same household. An employee's use of sick leave to care for and assist members of the employee's family who are not described above is "strictly limited to the time necessary to provide care and assistance to a spouse, child, or parent of the employee who needs the care and assistance as a direct result of a documented medical condition."

An employee is eligible to use the time contributed to the sick leave pool if, because of a catastrophic injury or illness, the employee has exhausted all the sick leave time to which that employee is otherwise entitled. Holidays that occur during the use of sick leave pool are counted just like regular sick leave; if a person is sick on a holiday, the person receives "holiday pay" for that particular day, not "sick leave pay." The employee may transfer to the pool one or more days of accrued sick leave time. A retiring employee may designate the number of accrued sick leave hours, in increments of 20 days, or 160 hours for one month of service credit, to be used for retirement credit and the number of hours to be donated on retirement to the sick leave pool. An eligible employee may withdraw from the pool only with the approval of the pool administrator. If the employee is seeking to withdraw time because of a catastrophic illness or injury, the employee must provide the pool administrator with a written

statement from a licensed practitioner who is treating the employee or the employee's immediate family member. The statement must provide sufficient information regarding the illness or injury to enable the pool administrator to evaluate the employee's eligibility. An eligible employee may not draw time from the agency sick leave pool in an amount that exceeds one-third of the total amount of time in the pool or 90 days, whichever is less. The pool administrator will determine the exact amount of time that an eligible employee may draw from the pool. Agencies should ensure that their sick pool policy is not in conflict with their extended sick leave policy required under the Texas Government Code, Section 661.202(i). Education Service Centers and Leave

Personal Leave: A regional education service center is

required to accept the transfer of personal leave by an employee who was formerly employed by the State (Education Code Section 8.007). The personal leave will be converted to sick leave in the education service center. Education Code Section 22.003 awards personal leave to certain state employees. These employees are teachers at the School for the Deaf (Education Code Section 30.024) and teachers at the School for the Blind and Visually Impaired (Education Code Section 30.055). Although employees in the schools in the Texas Department of Criminal Justice accrue personal leave,

this leave is not transferable since those employees are not considered state employees.

Vacation Leave: Vacation leave may not be transferred to

education service centers since they are not considered state agencies. Accordingly, state employees who are transferring to education service centers should be paid for any accumulated vacation leave that has not been exhausted.

Sick Leave: Sick leave may not be transferred to

education service centers since they are not considered state agencies. Any sick leave balances remaining to the employee would be forfeited. However, some education service centers have policies that allow them to give credit for sick leave as a hiring incentive for employees who were formerly employed by the State.

Sick leave may be transferred from education service

centers to state employment [according to Education Code Section 8.007(b)] at a rate not to exceed five days per year for each year of employment. Family and Medical Leave The Family and Medical Leave Act provisions, first added to the Appropriations Act during the 73rd Legislature, were modified slightly during the 74th Legislature. These provisions were established to ensure that the State of Texas, as an employer, would be in full compliance with the entitlement established by the Family and Medical Leave Act (FMLA). This law took effect on August 5, 1993, and is enforced by the U.S. Department of Labor, Wage and

Hour Division (DOL-WHD) which issued FMLA final regulations that became effective April 6, 1995. For purposes of Family and Medical Leave, an eligible employee is one who has been employed by the State for at least 12 months and who has worked for at least 1,250 hours during the 12 months immediately preceding the start of leave. According to Title 29 Code of Federal Regulations 825.108, a state or a political subdivision of a state constitutes a single employer for purposes of determining employee eligibility for FMLA. If agencies have to determine eligibility for an employee who transfers from another agency, they should collect that information from the former agency. Therefore, employment with a previous agency and the current agency must be combined to determine if an employee met the eligibility criteria of 12 months or 1,250 hours of service during a 12 month period preceding the commencement of the leave. Agencies should also check to determine if the employee might have already taken any FMLA leave while previously employed. Eligible employees are entitled to FMLA leave provided they use all of their paid vacation and sick leave while taking the FMLA leave In a revised interpretation, the State Auditor's Office has stated that sick leave may be used for the adoption of a child under three years of age. Sick leave may be used in conjunction with FMLA leave when a child under the age of three is adopted regardless of whether the child is actually sick at the time of adoption. Additionally, a state employee who is the father of a child, may use his sick leave in

conjunction with the child's birth only if the child is actually ill or to care for his spouse while she is recovering from labor and delivery. Employees who apply for FMLA leave and are receiving temporary disability benefit payments or workers' compensation benefits cannot be required to use their paid vacation or sick leave prior to taking FMLA leave. Employees who are presently on FMLA leave and are receiving temporary disability payments or workers' compensation benefits may elect to use their paid vacation or sick leave while on FMLA leave. FMLA provides that all eligible employees are entitled to a total of 12 weeks of leave during any 12 month period for one or more of the following reasons: 1. For the birth of a son or daughter and to care for the newborn child 2. For the placement with the employee of a son or daughter for adoption or foster care 3. To care for the employee's spouse, child, or parent with a serious health condition 4. Because of a serious health condition that makes the employee unable to perform the functions of his or her job Other FMLA provisions are as follows: 1. An employee who takes leave under the law must be returned to the same job or a job with equivalent status and pay.

2. The employer must continue the employee's health benefits during the leave period at the same level and conditions as if the employee had continued work. 3. The employer can require an employee to provide a doctor's certification of the serious health condition. 4. FMLA leave does not have to be used consecutively; it may be used intermittently. 5. The DOL has provided the following guidance concerning holidays occurring while an employee is on FMLA.

If an employee takes FML in one continuous block and a

holiday or closing occurs during the employee's time off, the holiday or closing will count as part of the employee's FML entitlement. That is, just because the business/agency is closed for MLK Day, San Jacinto Day, or a freak ice storm in Harlingen does not buy them one more day. According to the Code of Federal Regulations (29 CFR 825.200) the only exception is when the entire business ceases operation for at least a week, such as Spring Break for schools or an agencywide shutdown. Note that the regulation says the closure must last at least one week.

Holidays, ice days, shutdowns, etc. do not count against

employees who are on an intermittent or reduced leave schedule. FMLA contains more specific provisions, including those for intermittent leave and leave on a reduced schedule, and definitions including spouse, parent, son, daughter, and serious health condition.

An employee does not have the option of choosing whether or not to designate leave as FMLA leave for a qualifying event, as interpreted by the State Auditor's Office. In all circumstances, it is the employer's responsibility to determine whether leave qualifies as FMLA leave. Title 29 of the Code of Federal Regulations, Section 825.207(i), does not permit FLSA compensatory time to be used towards FMLA leave. If an employee elects to use FLSA compensatory time while out on FMLA leave, that time is not counted toward the FMLA 12week entitlement. In accordance with FMLA regulations issued by the DOL-WHD, Section 825.200 (b), state agencies and institutions of higher education are permitted to choose any one of the following four methods for determining the "12 month period" in which the 12 weeks of leave entitlement occurs: 1. A calendar year 2. Any fixed 12-month "FML year" (for example, a fiscal year or an employee's "anniversary" date) 3. A 12-month period measured forward from the date an employee's first FML begins 4. A rolling 12-month period measured backward from the date an employee uses any FML After paid leave is used, the State will continue to pay for its portion of an employee's coverage under the group health plan during any

full calendar months of leave without pay which may be taken during FMLA leave. An employee on FML is not entitled to accrue state service credit for any full calendar months of leave without pay taken while on FML and does not accrue vacation or sick leave for such months of leave without pay. Further, any full calendar months of leave without pay are not included in the calculation of the minimum number of continuous months of employment under the merit increase provisions set forth in Texas Government Code, Section 659.255, and under the employee vacations and leave provisions in Texas Government Code, Section 661.152. Parental Leave Employees with less than 12 months of state service or less than 1,250 hours of work in the 12 months immediately preceding the start of leave are entitled to a parental leave of absence, not to exceed 12 weeks (480 hours), if the employee uses all available and appropriate paid vacation and sick leave while taking the parental leave. Such parental leave may only be taken for the birth of a natural child or the adoption or foster care placement with the employee of a child under three years of age. The leave period begins with the date of birth or the adoption or foster care placement. Sick leave may be used when a child under the age of three is adopted regardless of whether the child is actually sick at the time of adoption.

The Federal Pregnancy Discrimination Act of 1978 provides that discrimination on the basis of pregnancy, childbirth, or related medical conditions constitutes unlawful sex discrimination under Title VII of the Civil Rights Act of 1964 as amended. The Act states women affected by pregnancy or related conditions must be treated in the same manner as other applicants or employees with similar abilities or limitations.

Combining Family Medical and Parental Leave Parental leave was designed with less stringent time requirements than the Family Medical Leave Act. It is only available to employees with less than 12 months of state service or who worked fewer than 1,250 hours during the 12 month period preceding the beginning of parental leave. The statute states parental leave "begins with the date of the birth of a natural child or the adoption or foster care placement of a child under three years of age." Further, parental leave must be taken during the 12 weeks beginning on the date of birth of a natural child by the employee or the adoption or foster care placement with the employee. Family medical leave is only available to employees with more than 12 months of state service and may be used (among other reasons) "for the birth or placement of a child for adoption or foster care." Since eligibility time requirements for the two types of leave are different, an employee would meet the requirements for either

parental leave or family medical leave, not both, so the two types of leave could not be taken back-to-back for the same event. There are certainly circumstances where an employee could take parental leave, return to duty, and subsequently be eligible for FMLA leave. The employee could then take FMLA leave for the birth, adoption, or foster placement of a child or for a reason not related to the birth, adoption, or foster placement of a child. Foster Parent Leave A state employee who is a foster parent to a child under the conservatorship of the Department of Protective and Regulatory Services (DPRS) is entitled to a leave of absence with full pay for the purpose of attending staffing meetings held by the DPRS regarding the employee's foster child. In addition, the employee may attend, with a paid leave of absence, the Admission, Review, and Dismissal (ARD) meeting held by a school district regarding his or her foster child. Parent-Teacher Conference Leave An employee may use up to eight hours of sick leave each calendar year to attend parent-teacher conference sessions for the employee's children who are in pre-kindergarten through 12th grade. Employees must give reasonable notice of intention to use sick leave to attend such conferences. Part-time employees receive Parent-Teacher Conference Leave on a proportional basis.

Emergency Leave An employee shall be granted emergency leave by an agency's administrative head for a death in the employee's family. An employee's family is defined as the employee's spouse, the employee's and the spouse's parents, children, brothers, sisters, grandparents, and grandchildren. An agency head may grant emergency leave for other reasons determined to be for good cause. Administrative Leave for Outstanding Performance Administrative leave with pay may be granted by the head of an agency as a reward for outstanding performance as documented by employee performance appraisals. The total amount of such administrative leave granted may not exceed 32 hours during any fiscal year. The State Auditor's Classification Office has opined that executive directors of state agency are not eligible for administrative leave for outstanding performance Military Leave State employees are eligible for the following types of leave for military service: (1) authorized training or duty for members of the state military forces and members of any of the reserve components of the United States Armed Forces, (2) call to National Guard active duty by the Governor, and (3) national emergency active duty for a member of a reserve branch of the U.S. armed forces.

Adjusted Work Schedule: To facilitate participation in military duties by state employees, each state agency shall adjust the work schedule of any employee who is a member of the Texas National Guard or the United States Armed Forces Reserve so that two of the employee's days off work each month coincide with two days of military duty to be performed by the employee. Authorized Training for Duty: A state employee who is called to active duty or authorized training as a member of the state military forces or any of the reserve components of the United States Armed Forces is entitled to a leave of absence from his or her respective duties for not more than 15 days in each federal fiscal year without loss of time, efficiency rating, vacation time, or salary. The Attorney General has held that the 15 days need not be consecutive and "members of the state military forces or members of reserve components of the U.S. Armed Forces who are ordered to duty by proper authority on nonconsecutive days are entitled to 15 days total." This same opinion also holds that 15 days refers to working days and not calendar days. In 1979, the State Auditor wrote,"after exhausting the 15 days of military leave, the employee may use accrued vacation leave to the extent available or be placed in a leave without pay status (or a combination of the two) for the remainder of the active duty period." A 1979 Attorney General Opinion stated, "a state employee who is engaged in 'authorized training duty' in the state military forces is

entitled to receive compensation for up to 15 working days per year during which he is absent from his regular employment." Call to National Guard Active Duty by the Governor: A state employee who is called to active duty as a member of the National Guard by the Governor because of a state emergency is entitled to receive emergency leave without loss of military or annual leave. Such leave will be provided with full pay. The State Auditor's Office has interpreted that this time is not limited and does not count against military leave or annual leave. Call to National Duty, U.S. Armed Forces Reserve Branch: An employee called to active duty during a national emergency by a reserve branch of the U.S. Armed Forces is entitled to an unpaid leave of absence. However, the employee retains any accrued sick or vacation leave and will be credited with those leave balances upon return. Restoration of Employment: Any employee who is restored to a position upon returning from military service is considered to have been on furlough or leave of absence during his or her time of federal or state military service. The employee is entitled to participate in or other benefits to which a public employee is or may be entitled. To be eligible for restoration to his or her previous employment upon returning from military service, the employee must have been honorably discharged no later than the fifth anniversary of the date of induction, enlistment, or call to active military service, and be

physically and mentally qualified to perform the duties of that position. The Attorney General has ruled that state employees returning to work following military service under restoration provisions are entitled to include time spent on active duty with longevity of employment (state service credit) for purposes of vacation and sick leave entitlement. Returning employees do not accrue vacation or sick leave while on active military duty and are not considered employed by the State. Volunteer Firefighter and Emergency Medical Services Training Leave Volunteer firefighters and emergency medical services volunteers will be granted a paid leave of absence not to exceed five working days each fiscal year for attending training schools conducted by state agencies. This leave of absence may also be granted to volunteer firefighters or emergency medical services volunteers for the purpose of responding to emergency fire or medical situations if the agency or institution has an established policy for granting the leave time. Certified American Red Cross Activities Leave Any state employee who is a certified disaster service volunteer of the American Red Cross, or who is in training to become such a volunteer, may be granted a leave of absence not to exceed ten days each year to participate in specialized disaster relief services. The

employee must have supervisory authorization in addition to a request from the American Red Cross and the approval of the Governor's Office. If the above conditions are met, the employee will not lose pay, vacation time, sick leave, earned overtime, and/or compensatory time during such leave. The pool of certified disaster volunteers must not exceed 350 participants at any one time. Leave for Employees with a Disability A state employee who is a person with a disability as defined by Human Resources Code, Section 121.002, will be granted a paid leave of absence not to exceed ten days each fiscal year for the purpose of attending a training program to acquaint the employee with an assistance dog to be used by the employee. Payment of Accrued Leave of Deceased Employees The estate of an employee who dies while employed by the State is entitled to payment for all of the employee's accumulated vacation leave and to one-half of the employee's accumulated sick leave, or 336 hours of sick leave, whichever is less. The payment is calculated at the salary rate paid to the employee at the time of death. The estates of appointed officers or employees of a state agency who normally work at least 900 hours per year, including hourly and temporary state employees, are eligible for this benefit. For this purpose, the term "state employee" includes a person employed by the Teacher Retirement System, the Texas Education Agency, the Texas Higher Education Coordinating Board, the Texas National

Research Laboratory Commission, the Texas School for the Blind and Visually Impaired, the Texas School for the Deaf, the Texas Youth Commission, the Windham School District of the Texas Department of Criminal Justice, or the Texas Rehabilitation Commission. The term "state employee" also includes a classified, administrative, faculty, or professional employee of a state agency or institution of higher education who has accumulated vacation leave, sick leave, or both, during the employment. The term "state employee" does not include:

A person who holds an office normally filled by vote of A person employed on a piecework basis An operator of equipment or a driver of a team whose

the people

wages are included in the rental paid by a state agency to the owner of the equipment or team

A person covered by the Judicial Retirement System (Plan A person covered by the Teacher Retirement System An independent contractor or the employee of an

One or Plan Two)

(except for state employees noted in the paragraph above)

independent contractor In 1929, the Attorney General ruled "a day begun is a day done." Thus, the Comptroller pays a full day's wages to an employee who begins, but does not finish, a work day. If an employee dies during a work day, his survivors are entitled to receive compensation for the

last day of service, even though the employee had not worked every hour during that day. Similarly, the survivors of an annuitant who dies on the last day of a quarter are entitled to receive an annuity for the entire quarter. A deceased state employee's estate is entitled to receive payment for earned but unused (banked) Fair Labor Standards Act overtime. The Attorney General ruled in 1976 that the estate of a deceased employee is not entitled to receive payment for earned but unused state compensatory time. However, subsequent to the issuance of this opinion (H-899), the Legislature made exceptions to allow for payment of state compensatory time on a straight time basis to employees of certain agencies and institutions of higher education who are subject to FLSA overtime revisions. A deceased employee's estate shall receive payment for accrued but unused vacation leave and entitled sick leave. This payment is computed as though the employee had actually used these leave hours while on the agency's payroll. Any state holiday that falls within this period should not be charged against the accrued leave hours (i.e., holidays which fall on a recognized work day have the effect of extending these leave hours). Leave Without Pay Agencies may grant a leave of absence without pay subject to the following provisions

All such leave without pay may not exceed 12 months.

Except

for

disciplinary

suspensions,

workers'

compensation, and military situations, all accumulated paid leave entitlements must be exhausted before granting such leaves, with the additional provision that sick leave must be exhausted only in those cases where the employee is eligible to take sick leave as provided in the sick leave provisions.

Subject to fiscal constraints, approval of such leave

constitutes a guarantee of employment for a specified period of time.

An administrative head of an agency may provide

exceptions to these limitations for such reasons as interagency agreements or educational purposes. The Attorney General said in 1985 that the reasons stated in the leave provisions for granting exceptions to the requirement to exhaust paid leave prior to leave without pay "exemplify purposes for which the agency head may allow exemptions; they do not list the purposes exhaustively."

Any full calendar month in which an employee is on leave

without pay will not be counted in the calculation of total state service credit for the purposes of vacation or longevity pay entitlement, except in the case of an employee returning to state employment from military leave without pay. No employee will accrue vacation or sick leave for such month. Any such full calendar month of leave without pay does not constitute a break in the continuity of state employment, but will not be included in the calculation of the minimum number of continuous months of service required under merit salary

and employee vacation and leave provisions. Employees on leave without pay for an entire month do not accrue retirement service credit for that month. A full-time employee or regular part-time employee who is subject to FLSA and is on leave without pay will have his or her compensation reduced for that particular pay period at the equivalent hourly rate of pay times the number of work hours lost by leave without pay. FLSA exempt employees may also be subject to salary reduction in the same manner, in accordance with provisions set forth in the overtime provisions of Title 29 of the Code of Federal Regulations, Section 541.188. FLSA exempt employees who are absent from work for less than one day for personal reasons or sickness or disability under certain conditions may be subject to a salary reduction. Negative Leave and Compensatory Time Balances Prohibited The State Auditor's Office has advised that a state agency must not allow an employee to carry a negative sick leave, vacation leave, or compensatory time balance. In 1974, the Attorney General stated that it would be unconstitutional for a state agency to advance salary to an employee. However, in inclement weather or other circumstances beyond the control of the Department, the Texas Department of Transportation is authorized to grant construction or maintenance employees time off with pay with the hours charged to the Compensatory Time Taken Account, provided that such advanced time must be repaid by the employee within the following 12 months or at termination, whichever is sooner.

Sick and Vacation Leave for Retirees Resuming State Service The State Auditor's Office has opined that retired state employees who return to state employment are eligible for vacation and sick leave accruals at the same rate of accrual prior to his or her retirement.

Payment Entitlements Upon Separation From State Employment Lump-Sum Payment For Type Of Separation Accrued Vacation Leave Any separation where employee permitted payroll expend accrued vacation Any separation the is to to NO may expend accrued vacation prior to separation) (but Accrued Sick Leave Balance NO (also, not eligible to use leave while remaining on payroll to extend vacation) NO N/A N/A NO YES NO sick NO NO NO (AGO H883 dated 9-26-76) 2 YES (29 CFR, YES 3 Part 553) Leave Further Accrual Of Lump-Sum Payment For FLSA Comp Time Payment For Or Hazardous Duty

Accrued Accrued Longevity H Vacation Sick State Leave Comp Time 6

P

remain on the

Y

YES

Y

(AGO H- (29 CFR,

where employee does payroll expend accrued vacation Any separation where employee permitted payroll expend

the not 883 dated 9-29-76) 2 to Part 553)

remain on the

NO (may the is to to YES not while (at remaining NO the time of on payroll NO separation) to expend state FLSA comp. Time) 7 YES the not to NO N/A N/A or use sick leave

NO (but may expend accrued state comp. Time prior to separation - AGO H883 dated YES (to extent such time has been exhausted - 29 CFR, Part 553) not YES 3 the

remain on the

Y

accrued state or time Any separation where employee does payroll remain on the FLSA compensatory

9-26-76) 2 NO YES (AGO H- (29 CFR, 883 dated Part 553) 9-26-76) 2

NO

N

expend accrued state or time YES - for 1/2 of NO (AGO H- YES N/A N/A 899 dated (29 CFR, NO 11-18-76) Part 553)2

FLSA

compensatory

sick leave Death (payment estate) to YES hours not to exceed 336 hours (lumpsum payment)5

Y

General References: Texas Government Code Ann., Sections 662.003, 661.032, 6 661.152, 659.015, 659.041.

Neither an employee nor an employee's estate may receive payment for vacation balanc

has not completed six months of continuous (unbroken) employment with the State (T

Code Ann., Sections 661.032, 661.152 and 661.062). According to AGO JC-0302, start amendment of section 661.063 of the Government Code.2

no vested right in the method of calculating compensation for vacation benefits t

Subsequent to the issuance of AGO H-883 and H-899, the Legislature has made excep

payment of state compensatory time to employees of certain agencies and institutions of

under certain circumstances (General Appropriations Act, Article VII, Section 1, TXDO

Rider 11; Article II, Section 1, MHMR appropriations, Rider 20; Texas Government Co

659.015 This entitlement is applicable to the period covered by the expended accrued vacation or FLSA comp. time as though the employee actually worked that time.4

This entitlement is applicable to the period beginning on the day following the last da

and ending on the last working day through which the accrued leave (both vacation a have extended.5

An employee's estate may not receive payment for sick leave if the employee has n

months of continuous (unbroken) employment with the State at time of death (Texas G Ann., Sections 661.033; 661.1526

This includes both state and holiday compensatory time.

7

Texas Government Code Ann., Section 661.067 Source: State Classification Office

Payment Entitlements For Employees Of Higher Education Institutions Upon Separation from State Employment Employment Status Vacation Accrual Sick Leave State Longevity Holidays

Service Pay

Accrual Credit Positions requiring student status No No Yes No No

as a condition of employment Faculty (Full- No, time or part- those or more) except Yes with Yes No Yes

time, 20 hours appointments of 12 months or more. Non-faculty (Full-time) Non-faculty (Part-time, 20 hours more) Other Faculty than No & No Yes No No or Yes Yes Yes No Yes Yes Yes Yes Yes Yes

Non-Faculty HOLIDAYS Section 662.003 of the Texas Government Code identifies three types of holidays for state employees: national, state, and optional. Eligible employees are entitled to a paid day off from work on national and state holidays as specified by the Legislature. The table entitled, State Holiday Schedule lists the holidays and their dates for the 2002-2003 biennium.

A state employee is entitled to a paid day off from work for each national and state holiday if:

The holiday does not fall on a Saturday or Sunday; and The employee is not on unpaid leave.

A state employee who is a peace officer commissioned by the Department of Public Safety and who is required to work on a national or state holiday that falls on a Saturday or Sunday is entitled to compensatory time off at the rate of one hour for each hour worked on the holiday. Holidays for State Agencies A state agency must have enough state employees on duty during a state holiday to conduct the public business of the agency except for those state holidays that fall on a Saturday or Sunday, the Friday after Thanksgiving Day, December 24th, or December 26th Employees who actually work on a national holiday or a state holiday will be allowed compensatory time off during the 12-month period following the date of the holiday worked. Employees are required to give reasonable advance notice when taking this compensatory time; however, employees do not have to specify the reason for the request. An employee who normally works 40 hours per week on a schedule other than Monday through Friday, 8 A.M. to 5 P.M., is entitled to paid holiday time off that is equivalent to the holiday time that employees who work normal schedules receive.

The holiday pay for part-time employees shall be determined on a basis proportionate to their hours worked. According to Texas Government Code 662.005, "An individual who is a state employee on the last workday [and not on leave without pay] before or the first workday after a national or state holiday, or on both workdays, is entitled, except as provided by Section 662.010, to a paid day off from working for a state agency on the holiday if: (1) the holiday does not fall on a Saturday or Sunday; and (2) the General Appropriations Act does not prohibit state agencies from observing the holiday." See the discussion in the following sections for clarification. Holiday Occurring Immediately Before a New Employee Starts Work According to Texas Government Code 662.010 "An individual who is not a state employee on the last workday before a state or national holiday but who is an employee on the first workday after the holiday may not be paid for the holiday if it occurs during the same month as the last workday before the holiday." Example: In this particular case a new employee starts work on January 2, 2002. Should he or she be paid for the January 1, 2002 holiday?

The individual was not an employee on December 31st (last workday before a state or national holiday) but was an employee on January 2nd (first workday after the holiday). The statute says the employee "may not be paid for the holiday if it occurs during the same month as the last workday before the holiday." The last workday before the holiday is in December; the first workday after the holiday is in January, different months. Accordingly, the