Maternity Benefit - Maternity Leave [Thread 277688]

Hi,

I am requesting a response. I have been working as a professional in an unregistered company for the past four years. The company only has PAN registration. Am I entitled to maternity leave as I am due in the next two months?

What do you mean by an unregistered company? When a company itself is unregistered, how can they proceed with PF, ESI, workman's compensation, maternity act, etc., registrations?

How many employees are there in this company?

Dear Yaasmin,

Thank you very much for your response. This company is a sister concern of a larger corporation. My company does not have a registration certificate, service tax registration, and none of the employees under this sister concern receive ESI, PF, bonus, or any other benefits or compensation. It only has a PAN number and employs approximately 10-15 people.

Dear Doris 18,

If your company is unregistered and does not have PF & ESI, forget about getting any medical assistance from the company or government.

Regards, SIDAMN

Dear Member,

The maternity benefit/leave is provided under either of the following applicable enactments: 1. The Maternity Benefit Act, 1961 2. The ESI Act, 1948 3. The State Shops & Establishment Act. Therefore, first examine the applicability of the Act to your establishment and go through the benefit/leave and eligibility provisions under that Act for receiving the benefit. Under which of the Acts your company is not registered? Give details to the members for a proper answer.

Regards,

R.N.Khola

Hi, Request response. I am working as a professional in an unregistered company for the past 4 years. The company has PAN registration only. Am I entitled to Maternity leave as I am due in the next 2 months?

How do you receive your payment? Is it by check, cash, or transfer to your account? If it is cash, do you need to sign the wages register? Have you received any offer or appointment letter stating your CTC?

Dear Doris,

Are the 10-15 people working on the payroll of the unregistered company? If yes, then you can claim the Maternity Benefit. If no, then it's tough to fetch the benefits.

Dear member,
If you getting salary through any salary/wage slip and if you are covered under ESIC 1952 act you will be eligible for Maternity benefit act.
Sec 3 (o) of Maternity Benefit act “woman” means a woman employed, whether directly or through any agency, for wages in any establishment.
Regards
DN

Hi, Seasons Greetings from Kumaar.

1. The first point is your company has PAN.
2. You are saying that it is a sister concern of one Big company.
3. Whether your Big company covers all mandatory Acts and other establishment Acts of your State?
4. Are the Big company employees getting all benefits?
5. My observation is that your company has 15 employees. I need to know, apart from employees, how many persons are involved in other works like Security, Office Boy, cleaning persons, etc., and your geographical location?

Please provide me with the information above, and then I will comment on it.

Thanks for all our friends' support,
Kumaar

Hi Kumaar,

Thank you for helping out.

1. Yes, the unregistered company has a PAN only.
2. This unregistered company is a sister concern and is being run from the same premises as the Bigger Company.
3. The Bigger Company follows all mandatory state acts. It has approximately 100-150 employees, and we are based in Bangalore.
4. Employees of the Bigger Company are being provided with all applicable benefits.
5. Our so-called unregistered company has a maximum of 15 people. However, not all 15 are given ESI, PF, or Bonus. They are either categorized as Casual or Professional.
I receive my salary through an account payee cheque, and each month they deduct TDS from my salary.

I hope these details are sufficient for you to provide suggestions.

Thank you in advance.

Regards,
Doris18

Dear Yaasmin,

I get my payment through a cheque, and they deduct TDS from my salary. I receive a salary slip, but the company reflecting on the slip is of the bigger company. I was given an offer letter stating my CTC, and I would be working as a Professional with no other elaborate details mentioned in it.

Thank you for your time and help.

Regards, Doris

Dear Doris,

I know some companies put their employees on contractor payroll to avoid compliance issues. In your case, if your offer letter/appointment letter and payslip are under the bigger company's payroll name, then you can claim all the benefits. However, your contract letter with them still matters. Please clarify what was mentioned in the CTC.

Thank you.

Thanks for the update.

But you are saying that 15 employees have not been allotted ESI, EPF, and Bonus, and also you are getting a salary with a deduction of TDS. Another piece of information you are providing is that 15 workers are casual and professional. My question is, at what rate % is TDS deducted from your salary under section 192 B or 194 J?

If 15 employees of a company's strength have not entered all acts initially for 3 years and 5 years with respect to services company or Manufacturing company, this could be the reason you may not be able to get any benefits from mandatory acts. But actually, any firm that has to be registered under the Shop and Establishment Act under their area can be eligible for claiming maternity benefits, whether it is a State act or Central Act. Please ask them to register under the Shop and Establishment Act in your state. You are definitely eligible for Maternity Benefits under the concerned state Act.

Thanks,
Kumaar

An organization determines the number of months for maternity leave for its staff. However, if you say your company is not fully registered, they may decide not to give you any benefits. And truly, if that happens, the law cannot fight for you.

My advice is to encourage them to register fully.

Dear Doris,

Is there a way to verify that the TDS is being duly credited to the IT department? Has any of your employees ever received a Form 16 certificate?

Perhaps you all are working/enrolled as "contract" employees or "consultants/advisors." All statutory benefits are available only to regular employees. Please consult the concerned HR.

Not only do you have legal remedies at your disposal, but you can also consider "whistleblowing."

Warm regards.

Dear all,

As far as my concern whether the company is registered or unregistered, paying PF or ESI does not matter. Kindly go through the Maternity Act 1961, Section 5 for further clarification. If I am wrong, please amend me.

Thanks & regards,
P. Mohan Gandhi