Maternity Leave Pay: Can Companies Recover Payments if Employees Don't Return?

In the case of an employee availing maternity leave, the company is liable to pay 3 months' leave with pay. Is this payment also done in anticipation that the employee shall join back after completion, and if the employee doesn't, does the company have the right to recover the paid amount?

Thank you.

As per the Maternity Act, it is the right of a female employee to take 3 months of maternity leave. In case, due to some unforeseen reasons, a female employee is not able to return to work, you cannot claim the amount back from her. If she is not willing to serve the notice period, then as per your company policy, you can deduct the notice pay from her Full and Final settlement.

But if the employee takes this 3-month leave with payment and joins another company, what are the options?

Abhishek,

Whatever the reasons may be, maternity leave payment made cannot be claimed back. The only option you have left is to recover the notice pay in case she does not serve the notice period.

Dear Abishek,

I support Prathima's views. It is the right of a female employee to avail maternity benefit. Your doubt is also valid, but please consider the following:

1) She has to produce a medical certificate confirming pregnancy and the expected date of delivery. There is no provision regarding whether the pregnancy is legal or not.
2) Based on this, she can plan her maternity leave six weeks before and after delivery.
3) She can extend this leave for post-maternity complications, for which a certificate is required (in case of miscarriage or complications, and if she faces a loss of pay after three months, ESI can cover her loss of pay, provided she is eligible for ESI coverage).
4) She has to produce a medical certificate confirming her fitness to resume duty.
5) After she rejoins duty, she may continue or resign within a month for better opportunities.
6) It is a privilege granted by Social Security law and monitored by the Labor Department. During this period, she continues to receive her usual salary along with PF/ESI benefits statutorily.
7) After three months, in the event of her resigning, you do not have the right to reclaim or deduct the maternity benefits.

Some companies use a strategy of paying one month's salary in advance and the remainder after the employee rejoins. If she resigns, the company aims to save two months' salary. However, even if she resigns, she can claim the remaining amount due and then leave.

Regards,
Chandru

Is there any provision for child adoption law that exists at present for private sector female employees?

If yes, please provide the relevant details.

Regards,
Harikumar

In case the employee would like to avail her annual/privileged leave after the 3 months of maternity leave, is joining mandatory before continuation of leave? Can medical leave be combined with maternity leave?

Thank you for your attention to these matters.

Dear Aanchal,

It is allowed. She can utilize the accumulated PL/EL along with the maternity leave. At the start or end, she can exhaust the EL. Then accordingly, she can avail of 3 months leave for adequate rest. Both can be clubbed together with no loss of pay.

EL is utilized at a stretch generally for long medical sickness, study, examination, marriage, vacation, etc. If she has no quota of EL on hand, then only ML is allowed.

Regards,
Chandru

The new provision of maternity leave may act as a factor for not recruiting female employees. Why should I hire a female employee and pay two years' salary without getting any output on performance in my business?

Hi Sarit,

For a growing small company, your views are okay, but when the same company goes for expansion, it needs to undergo due diligence. This includes examining the male-to-female ratio within the workforce. I recall an interview with Ms. Sudha Narayanamoorthy from Infosys. Around 35 years ago, the Tata Group did not hire females. Ms. Narayanamoorthy directly approached the late JRD Tata and questioned why she was not being recruited. After discussions, she eventually succeeded. The decision to not hire females at Tata was based on other reasons and not for the sake of cost-saving. Times have changed significantly since then.

It's concerning to see that current small-scale business owners and first-generation entrepreneurs aiming to become employers often prioritize their own gain, leading to a lack of fairness or minimal consideration for employees. How should we address this issue?

Regards,
Chandru

Dear,

This two-year leave or 6-month maternity leave is for the government sector, not for the private sector.

Thanks,
J. S. Malik

Yes. Though it's for the govt sector, it can be practiced by Pvt co also depending on the budget allocation. If not Gross, Basic wages alone can be paid. This is also a method to retain them. If an experienced senior lady employee goes on maternity leave, the company can look into it from this point of view. I have done this in my company by paying full salary with usual statutory deduction.

It all depends on the company's perspective and the respect that HR commands from the management.

Regards,
Chandru