Dear fellow colleagues,

I would like to know if there are any legal issues involved in case of the following benefits:

1. PF
2. ESI
3. Gratuity
4. Pension
5. Leave Structure: Is it legally defined?
6. Leave encashment

Is it legally mandatory for every company having more than 20 employees to provide the aforementioned benefits to the employees, or is it at the company's discretion?

Regards,
Meenakshi

From India, Ludhiana
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Hi Meenakshi,

I would like to know whether your company is a manufacturing unit or registered under the Factories Act. As far as PF, ESI, and gratuity are concerned, if you go through the respective acts, it is clearly stated. If there are any other issues, please let us know.

All the best,
Gopi

From India, Chandigarh
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Dear Gopi, My company is a service provider. We prepare students for entrance examinations. Regards, Meenakshi
From India, Ludhiana
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Dear Meenakshi,

All the things you have mentioned, i.e.:

1. PF
2. ESI
3. Gratuity
4. Pension
5. Leave Structure: Is it legally defined?
6. Leave encashment

are covered under concerned labor laws. Whether you are registered under the Factories Act or Shop & Establishment Act, once you touch or cross the limit of employees as mentioned, at the same time you come under the Act, and it becomes mandatory to comply with the provisions applied to you.

As far as the leave structure of the organization's Act is concerned, these are governed under the National Holidays Act and Negotiable Instrument Act. The leave encashment can be referred from the Factories Act.

To clarify the related concepts, I am attaching a PPT on various Acts.

Regards,

Ashok Kumar
09818646314
hr_ggn@lumaxmail.com

From India, Gurgaon
Attached Files (Download Requires Membership)
File Type: ppt regulatory_mechanisms_100.ppt (282.0 KB, 2846 views)

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Thanks Ashok, I think the ppt should help. But, I am still confused. All the acts mentioned refer to industrial workers. Now, we being in the service sector - are teh applibale to us as well?
From India, Ludhiana
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Dear Meenakshi,

All the things you have mentioned, i.e.,
1. PF
2. ESI
3. Gratuity
4. Pension
5. Leave Structure: Is it legally defined?
6. Leave encashment
are covered under concerned labour laws. Whether you are registered under the Factories Act or Shop & Establishment Act, once you touch or cross the limit of employees as mentioned, at the same time you come under the Act, and it becomes mandatory to comply with the provisions applied to you.

As far as the leave structure of the organization's Act is concerned, these are governed under the National Holidays Act and the Negotiable Instrument Act. The leave encashment can be referred to from the Factories Act.

To clarify the related concepts, I am attaching a PPT on various Acts.

Regards,
Ashok Kumar
09818646314
hr_ggn@lumaxmail.com

Hi Ashok,

Can you help me in making an Employee Manual? I am not able to find Leave Structure and Leave Encashment in your presentation. I think I missed something. Please highlight it.

Thanks a ton!!
Gunjan

From India, New Delhi
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Dear Ashok,

What a wonderful handbook of LL! It's really worth it to have it and to know. As far as the service sector is concerned, there is no separate act. However, it depends on whether you are registered under the Shops & Establishments Act or the Factories Act.

Once again, thanks.

From India, Mumbai
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Hi Meenakshi,

No need to be confused. All our labor acts concern factories and other manufacturing sectors, but yours is a service sector. So, when you reach 50+ employees, you need to be worried about this. As far as I am concerned, if it is an LTD company, they have to implement these statutory requirements. So, don't worry. Try to practice the best HR measures until then.

All the best,
Gopi

From India, Chandigarh
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Dear Gopi, Thanks a ton for the advise. Just one more question. Do we have any legal implications on leave structure and holidays. Or is it as per the company’s wish.
From India, Ludhiana
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Hi Meenakshi,

Regarding leave and holidays, all business entities are supposed to provide one day off per week, which can be any day of the week. This information should be recorded in an employee register or master roll.

When it comes to holidays, employees must be granted leave on government-recognized holidays. If they work on these holidays, they should be compensated with an alternative day off.

All the best,

Gopi
09443659045
Pondicherry

From India, Chandigarh
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