Important Indian Labour Law for Private Company
Important Labour Laws Applicable to Private Companies
In India, lakhs of people work in private companies—offices,
shops, factories, startups, and more. But do you know that there are labour
laws made to protect your rights as an employee? And as an employer, there are
clear rules you need to follow to avoid legal trouble.
Let’s simplify this and understand the important Indian
labour laws that apply to private companies.
Here are some of the major laws every employee and employer
should know:
This law ensures that employees are paid on time and without illegal deductions. It sets rules on when and how salary should be paid.
2. The Minimum Wages Act, 1948
This law sets the minimum salary that must be paid to workers based on the type of work and location. Private companies must pay at least this amount.
3. The Employees’ Provident Fund (EPF) Act, 1952
All companies with 20 or more employees must register for EPF. A part of your salary is saved each month for your future retirement and emergencies.
4. The Employees’ State Insurance (ESI) Act, 1948
For companies with more than 10 employees (earning under a limit), this law offers medical care, sick leave, and insurance through ESI.
5. The Factories Act, 1948 (For manufacturing units)
It focuses on the safety, health, and welfare of workers in factories and sets rules for working hours and cleanliness.
6. The Shops and Establishments Act
Each state has its own version of this law. It regulates working hours, holidays, and employment conditions in shops, offices, and private companies.
7. The Payment of Bonus Act, 1965
If a company has more than 20 employees, eligible workers are entitled to receive a yearly bonus based on profits or productivity.
8. The Maternity Benefit Act, 1961
Female employees are entitled to paid maternity leave (currently 26 weeks), along with job security during this time.
9. The Industrial Disputes Act, 1947
This law protects employees against unfair dismissal,
and defines rules for retrenchment, layoffs, and dispute resolution.
For Employers
- Ensure
proper contracts and appointment letters are issued.
- Maintain
salary slips, attendance records, PF/ESI filings.
- Do
not fire employees without following legal procedure.
- Be
compliant with working hours, holidays, and minimum wages.
- Encourage a healthy and safe work environment.
For Employees
- Know
your basic rights – timely salary, PF, leave, and notice period.
- Always
ask for an appointment letter when joining.
- If
facing harassment or illegal termination, seek legal advice.
- You can approach Labour Commissioner or labour court if needed.
Labour laws are not just rules – they’re meant to create a balance
between the company’s needs and employee rights. Private companies must follow
these laws, and employees must be aware of what they’re entitled to.
Knowing the basics helps prevent exploitation, ensures fairness, and creates a positive work environment for all.
