Hi Anjali,
You have actually opened the "Pandora's Box." That is exactly the job of our Labor Commissioner and labor officers: to ensure the Act is implemented by all companies doing business in the state.
It's ironic that only when you have a problem, you have to complain, and only then will action be taken. Unfortunately, this is what often does not happen. The legal hassles you would encounter are enough for the rest of the employees and society to never take those steps. However, someone has to be like Gandhi.
You will be surprised to know from a few employees about the funny service agreements some companies have made them sign. It's as if the employee is a "bonded Educated Intellectual Slave," and due to ignorance, the employees do not challenge it.
UKmitra