I am working in a manufacturing company as an HR executive. Could you please guide me if the company mentions in the appointment letter that after the probation period, the employee is entitled to all benefits like PF, ESIC, leave, and many other benefits, but if the employer fails to provide such benefits, what legal proceedings can the employee take against the employer? Is there any legal code in the law?
Your suggestion would be very useful to me. Please guide.
Regards,
Hardik Shah
From India, Mumbai
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1Your suggestion would be very useful to me. Please guide.
Regards,
Hardik Shah
From India, Mumbai
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1. Completion of the probation period of an employee has no relevance to his/her eligibility for benefits under the provisions of the EPF & MP Act, 1952, and under the ESI Act, 1948. What is required is that the said employee must be covered or coverable under the provisions of the above Acts.
2. Currently, there is no qualifying period or length of service required to become an "employee" under the above Acts. However, under the ESI Act, 1948, entitlement to some benefits is based on the payment of contributions for a minimum selected period.
3. Furthermore, the employee who joins the employment is also entitled to leaves of any kind as provided in The Factories Act or under the Shop & Commercial Establishment Act (of the concerned State where the unit is located). I hope you will study the provisions of the above Acts, and if there is any non-compliance by the employer, you can represent it to the authorities as established under the above Acts and the rules/regulations framed thereunder.
From India, Noida
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2. Currently, there is no qualifying period or length of service required to become an "employee" under the above Acts. However, under the ESI Act, 1948, entitlement to some benefits is based on the payment of contributions for a minimum selected period.
3. Furthermore, the employee who joins the employment is also entitled to leaves of any kind as provided in The Factories Act or under the Shop & Commercial Establishment Act (of the concerned State where the unit is located). I hope you will study the provisions of the above Acts, and if there is any non-compliance by the employer, you can represent it to the authorities as established under the above Acts and the rules/regulations framed thereunder.
From India, Noida
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What Harsh said is correct. Let me add a few points:
- Provident fund is to be paid for every employee from the date they join the company as an employee, even if it is for a single day. The only exception is if he is an apprentice under the Apprentice Act, under NEEM, or under the standing orders. This exemption does not apply to any other trainee, by whatever name called.
- ESIC applies to all employees except those who are apprentices under the Apprentice Act or NEEM. However, if not covered under ESIC, they are covered under the Employee Compensation Act. So, you better have an insurance cover for it.
- Leave under the Factory Act comes into effect only from the next calendar year. So, if a person's probation gets completed after the next calendar year starts, then he will be entitled to take leave accrued to him even under probation. For those whose probation is over during the calendar year, you have to include the period of work as probationary in computing his days of leave (1 for every 20 days worked).
What the Employee Can Do?
- File a complaint under the PF Act with the commissioner.
- File a complaint to the Joint Director, ESIC.
- File a complaint to the factory inspector or labor commissioner under the Factory Act and under the Payment of Wages Act.
From India, Mumbai
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- Provident fund is to be paid for every employee from the date they join the company as an employee, even if it is for a single day. The only exception is if he is an apprentice under the Apprentice Act, under NEEM, or under the standing orders. This exemption does not apply to any other trainee, by whatever name called.
- ESIC applies to all employees except those who are apprentices under the Apprentice Act or NEEM. However, if not covered under ESIC, they are covered under the Employee Compensation Act. So, you better have an insurance cover for it.
- Leave under the Factory Act comes into effect only from the next calendar year. So, if a person's probation gets completed after the next calendar year starts, then he will be entitled to take leave accrued to him even under probation. For those whose probation is over during the calendar year, you have to include the period of work as probationary in computing his days of leave (1 for every 20 days worked).
What the Employee Can Do?
- File a complaint under the PF Act with the commissioner.
- File a complaint to the Joint Director, ESIC.
- File a complaint to the factory inspector or labor commissioner under the Factory Act and under the Payment of Wages Act.
From India, Mumbai
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Understanding NEEM and PF Waiver Provisions
Neem is the National Employment Enhancement Mission. The notification was passed in April 2013 but is now being implemented seriously by the Modi government. It's an alternative to the apprentice scheme, with fewer regulations and is applicable to all types of work, not just engineering students.
Please let me know under which provision the PF office will allow a waiver of deduction rules.
From India, Mumbai
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Neem is the National Employment Enhancement Mission. The notification was passed in April 2013 but is now being implemented seriously by the Modi government. It's an alternative to the apprentice scheme, with fewer regulations and is applicable to all types of work, not just engineering students.
Please let me know under which provision the PF office will allow a waiver of deduction rules.
From India, Mumbai
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