Facing Issues with Leave and PF Benefits in Mumbai: What Are My Rights and Options?

I have been working for a Private Limited organization in Mumbai since 2011. Our employer has created two to three subsidiary companies in one office to avoid PF benefits. Secondly, he is deducting the salary for leave but not providing leave encashment benefits after each financial year.

Questions on Employee Benefits and Legal Compliance

My questions are:
(1) What is the Leave with Wages Act for a Private Limited company in Maharashtra, India?
(2) What are the rules and regulations for Provident Fund? Can an employer create multiple organizations to avoid benefits for their employees?
(3) What actions can an employee take against the employer regarding staff benefits?

I am expecting favorable answers to all my queries.

Regards,
Andy Pathak

The attached Bare Act of the Bombay Shops & Estt. Act would help you understand your status and the applicable regulations regarding leave, etc.

Opening Multiple Establishments

There is no prohibition on opening any number of independent establishments/offices under one roof. The big question is how you can prove the intention of opening more than one office solely to avoid/evade PF liabilities. If you can demonstrate that no business activities are taking place in those fictitious firms, then you will have a strong case.

Denial of Paid Holidays or Leave

The denial of paid holidays or leave is illegal, and the remedy is only available when you file an official complaint with the appropriate labor inspectors who have authority under this Act. Similarly, ESI, Gratuity, and other legal benefits can only be ensured when you file a written complaint with the relevant authorities under these acts/rules.

Regards,
Kumar S.