I am working in a US-based registered company. The company is not registered in India but has an office in Noida with more than 50 employees. Currently, they do not have any policy for maternity leave. Now, they have come up with a policy that has eligibility criteria similar to the laws in India. However, they are stating that they will withhold the salary for three months during this period and will release it once I return, in installments until the first birthday of the child. The amount they will pay during the leave will be significantly less than my current salary. I want to know how the law applies to companies not registered in India and whether a company can withhold salary in this manner. Please help.
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Applicability of Indian Labor Laws to Foreign Companies
It is not the place of registration but the location of the company that determines whether an Act is applicable to a company. If you are working in India, the company cannot claim that Indian laws are not applicable to it. All labor laws apply to your establishment, subject to the number of employees employed. Since you have more than ten employees in your establishment, you should be entitled to maternity benefits. Currently, the law provides for paid leave for 26 weeks and a medical bonus of Rs 3500 (a one-time payment if prenatal or postnatal care is not provided by the company). The company cannot deny these benefits.
From India, Kannur
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4526It is not the place of registration but the location of the company that determines whether an Act is applicable to a company. If you are working in India, the company cannot claim that Indian laws are not applicable to it. All labor laws apply to your establishment, subject to the number of employees employed. Since you have more than ten employees in your establishment, you should be entitled to maternity benefits. Currently, the law provides for paid leave for 26 weeks and a medical bonus of Rs 3500 (a one-time payment if prenatal or postnatal care is not provided by the company). The company cannot deny these benefits.
From India, Kannur
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Thank you for your response. Can you please also confirm how payment should be made during this period? My salary structure does not align with the structure in India, and I do not receive it divided into components like basic, HRA, and D.A. Additionally, I am not receiving PF contributions.
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Maternity Leave Policy - posting.doc