Minimum Salary, Employee Rights, and Leave Policies in Mumbai’s Small Private Companies

If you are working in a digital marketing agency, graphic design studio, development firm, or any small private company in Mumbai, it is important to understand your salary entitlements, leave policies, and labor rights. The Indian Constitution and Maharashtra state labor laws provide clear regulations regarding minimum wages, work hours, overtime, leave benefits, and dispute resolution.

This article provides official references from Indian labor laws, constitutional rights, and key legal facts to help employees and employers comply with workplace regulations.

1. Minimum Salary (Wages) in Mumbai (As per Law)

The Minimum Wages Act, 1948, mandates that every employer must pay at least the government-declared minimum wages. The Maharashtra Government revises these wages twice a year.

Current Minimum Wages in Mumbai (2024-25) (As per Maharashtra Govt.)

📌 Fact: Under Article 43 of the Indian Constitution, the state is responsible for ensuring workers receive a fair living wage.

📌 Legal Reference: Section 12 of the Minimum Wages Act, 1948, makes it mandatory for employers to pay the prescribed minimum wages.

📌 Penalty for Violation: Employers failing to pay the minimum wage can be fined up to ₹50,000 and face imprisonment up to 3 months under the Code on Wages, 2019.

2. Employee Leave Policy (As per Indian Labor Laws)

Private companies must follow the Shops and Establishments Act, 1948, which defines employee leave entitlements.

Minimum Leave Entitlement in Private Companies

1. Casual Leave (CL) / Sick Leave (SL):
   • 8-12 days per year, as per company policy.
   • Can be availed for urgent personal matters or health issues.
2. Earned Leave (EL) / Privilege Leave (PL):
   • 18 days per year, if the employee has worked 240+ days in a year.
   • Unused EL can be carried forward.
3. Public Holidays:
   • 10-12 government-declared public holidays (Diwali, Independence Day, Republic Day, etc.).
4. Maternity Leave:
   • 26 weeks (6.5 months) for first two children, as per Maternity Benefit Act, 1961.
   • 12 weeks for the third child onwards.
5. Paternity Leave:
   • Not mandatory in private companies but some companies offer 5-15 days.
6. Weekly Off:
   • 1 weekly off is mandatory under the Factories Act, 1948.

📌 Fact: India’s maternity leave is among the longest in the world. Countries like the USA do not have a federally mandated paid maternity leave.

📌 Legal Reference: Article 42 of the Constitution directs the state to make provisions for maternity relief.

📌 Penalty for Violation: Non-compliance with maternity leave laws can result in imprisonment up to 1 year or a fine up to ₹50,000, under the Maternity Benefit Act, 1961.

3. Employee Rights & Responsibilities (As per Constitution & Labor Laws)

A. Employer (Boss) Rights & Responsibilities

✅ Right to set company policies, work hours, and salary structures.
✅ Can take disciplinary action for violations of company rules.
✅ Must ensure a safe, harassment-free, and legally compliant work environment.
✅ Must provide statutory benefits like PF, ESI, and gratuity.

B. Employee Rights & Responsibilities

✅ Right to receive minimum wages & fair treatment.
✅ Right to weekly offs and leave benefits.
✅ Right to a dispute resolution process in case of termination or salary delay.
✅ Employees must adhere to company policies and maintain confidentiality.

📌 Legal Reference: Under Article 21 (Right to Life), employees have the right to work in safe, fair, and healthy conditions.

📌 Fact: Indian labor laws do not allow employers to force employees to work beyond 9 hours per day or 48 hours per week without overtime pay.

4. Termination & Resignation Laws (As per Industrial Disputes Act, 1947)

• Notice Period:
  • 1 month for junior employees
  • 2-3 months for senior employees
• Full & Final Settlement:
  • Must be done within 45 days of resignation.
• Wrongful Termination:
  • Employees can file a legal case under the Industrial Disputes Act, 1947.

📌 Fact: In India, “termination without valid reason” is illegal. Employees can challenge dismissals in Labor Courts.

📌 Penalty for Employers: If wrongful termination is proven, the employer may have to reinstate the employee with back wages or pay heavy compensation.

5. Dispute Resolution for Workplace Issues

If employees face salary delays, wrongful termination, or harassment, they can:
1️⃣ File a complaint with the Maharashtra Labour Commissioner’s Office.
2️⃣ Approach the Industrial Tribunal or Labour Court.
3️⃣ Contact a trade union or workers’ association.

📌 Legal Reference: Under Article 19(1)(c) of the Indian Constitution, employees have the right to form unions.

📌 Fact: In 2023, over 50,000 labor disputes were resolved through labor courts in India.

Conclusion

Working in a private company in Mumbai comes with specific rights and responsibilities. Employees should be aware of their minimum wage, leave policies, work hours, overtime compensation, termination rights, and dispute resolution mechanisms to protect themselves legally.

If your employer is violating labor laws, you can take legal action and seek justice.

🚀 Stay informed, know your rights, and work in a fair and legally compliant environment!