Important rights of a private company employee

Important rights of a private company employee

The following are the four Labor laws in India for private companies.

Employment agreement:

These days many private companies have an employment agreement that has the details in terms of employment like the place of work, compensation, work hours, designation, etc. The rights and the obligations of both the employee and employer are mentioned clearly like non-disclosure of confidential information and timely payment, trade secrets, provident fund, etc. In case of any dispute, the agreement also holds the information of effective dispute resolution. 

Maternity benefit:

The Maternity Benefit Act of labor laws in India provides prenatal and postnatal benefits for a woman employee that is the woman who is pregnant can claim to leave during their pre-pregnancy or post-pregnancy period. During the earlier days, they were allowed paid leave for 3 months only but recently the duration has been increased from 3 months to 6 months which means, the pregnant working women can take up to six months' leave for which they will get paid. You can also claim the medical expenses from the company once after joining the company again after the maternity leave. Like maternity leave, a few reputed companies have paternity leave where the men can take up to two weeks paid leave during their wife’s pre- or post-pregnancy period.  

Provident fund:

According to Indian Labor laws, EPFO (Employee Provident Fund Organization) is the national organization that manages the retirement benefits scheme for all salaried employees. Any organization with more than 20 employees must legally register with the EPFO. The PF amount can be withdrawn subject to a waiting period of a maximum of two months for emergent needs and necessary expenses. 


This law provides a statutory right to an employee in service for more than five years to gratuity. It is one of the benefits given to the employee during retirement. It is a huge sum payment made in a gesture of gratitude for their service as an active employee. The amount of gratuity increases with increment and the number of years of service.

Thus, the above-mentioned five laws are the Labor laws in India which every private company employee must get. 

What does the law say for termination?

According to Indian Labor law termination of Employment, if you are fired or terminated from the private company, the company must provide the salary for 3 months along with the PF amount. Also, the employee has all the right to seek employee rights when the company closed down in India. 

Last updated:12/7/2019 4:33:46 AM
Ajay Jadhav

Ajay Jadhav

a simple guy with good articles and positive attitude


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