Is It Legal for My Company to Deny Leaves and Benefits? Seeking Advice on Next Steps

In our company, we are not provided with SL, CL, EL, and there are no leaves. When we request leave, they deduct the salary, and there are no PF or ESI benefits. We work on public holidays and Saturdays. Initially, we were told it was a 5-day working week, but now they are enforcing a 6-day workweek without any leave provisions. Working for 6 days does not result in overtime pay, and we are expected to work for 10 to 12 hours per day. Whenever we raise concerns, a lawyer intervenes. The probation period is set for 1 year. Is this the right way for the company to operate? What actions should we take against them?

The company is managed by a woman, and her husband, who is a lawyer in the high court, both cause trouble. As an HR professional, I am being pressured to side with the management, but I believe in supporting the employees who have invested a significant amount in their jobs. The management seems to be engaging in deceitful practices.

Please advise me on whom I should report these issues to.

Thanks & regards,
Ravi

Please contact your nearby PF Office and note down the telephone number for registering complaints. Then, make an anonymous call from any STD/PCO and inform them of the situation. They will conduct an inspection and require PF registration if the employee strength is more than 20, and ESI if the employee strength is more than 10. If your employee strength is less than 10, ESI and PF will not be applicable.

Current Member Count and Resignation Query

The member count is now less than 20, whereas initially, it was 60. All of them resigned under pressure. Regarding my resignation, what steps do I need to take?

Regards

Please let us know under which act your company operates: 1) Shop & Establishment Act 2) Factories Act 3) IT Act. Our advice will be based on that information.

Best Regards,
Arjun

I can understand your anguish over the happenings in your company. As an HR professional, the first thing you should do is explain to your management the legal implications of not following statutory laws. If it reaches a complaint stage, the company will have to pay a significant amount in penalties for PF and ESI, in addition to the legal cases they will face.

Therefore, try to convince and help the management realize and accept the legal implications of non-compliance with statutory provisions. As an HR professional, this is your first duty. If they do not listen, let them dig their own grave. You have fulfilled your responsibility by enlightening the management on these issues. Once a complaint reaches the labor department or PF/ESI authorities, it will be very challenging to resolve, even with any kind of political, legal, or other backup.

So, think and act wisely.

Cheers!
Pradeep

Role Conflict: Union Leader or HR Professional?

Being an HR professional, first decide whether you want to be a union leader or an HR professional. The first duty is to inform the management in writing about the legal consequences of non-compliance with statutory provisions. Every act has appointed inspectors to keep vigil on whether the provisions under the said acts are being followed or not. Unfortunately, the government is not serious about this issue. There is a shortage of manpower in every department, whether it is the office of the factory inspector, labor commissioner, PF, ESIC, and the area assigned to one inspector is not less than that of a city. Many inspectors avoid complaining about this because such situations are beneficial to them. It is the duty of these inspectors to compel the management to comply with the provisions of labor laws. That is why employers are always pressuring the government to end Inspector Raj.

As a social responsibility, you may urge these inspectors to inspect your factory. If they are not involved in any malpractice, they would certainly take action.

As a professional, it is better to quit instead of spoiling your health and career.

Regards