Are Maternity Benefits Mandatory for Private Companies Under the 1961 Act?

Dear All, I would like to know whether the Maternity Benefits are applicable to private organizations as per the Act 1961. Is it mandatory for a private organization to provide maternity benefits to female employees, as the Act talks only about the applicability to government organizations? Looking forward to your replies on the same.

Regards, Su

Kindly clarify what you mean by a private organization. Is it a school, commercial establishment, factory, or NGO? Based on the above, the correct reply will be given.

Kind regards,
Dayanand

Dear Dayanand, By "Private orgs" here, I mean commercial establishments, specifically referring to the Software IT company. However, the company is not registered under the Bombay Shops and Establishment Act as it falls under the Gram Panchayat but is located in the SEZ (Special Economic Zone) area.

Regards, Su

The law is clear in this matter. Irrespective of the jurisdiction, maternity benefit law is applicable even to the IT/ITES/BPO/KPO units at SEZ.

Kind regards,
Dayanand

Refer to sec. 2 of the Maternity Benefit Act, 1961, which will clarify your doubt.

Application of Act:

(1) It applies, in the first instance -

(a) to every establishment being a factory, mine, or plantation, including any such establishment belonging to the government and to every establishment wherein persons are employed for the exhibition of equestrian, acrobatic, and other performances;

(b) to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months:

PROVIDED that the State Government may, with the approval of the Central Government, after giving not less than two months' notice of its intention of so doing, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply also to any other establishment or class of establishments, industrial, commercial, agricultural, or otherwise.

Where is it written that this Act only applies to Government Organizations?

Regards,
R.N. Khola

Maternity Benefit

Provided that the State Government may, with the approval of the Central Government, after giving not less than two months' notice of its intention of so doing, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply also to any other establishment or class of establishments, industrial, commercial, agricultural, or otherwise.

Please provide me the official gazette.

Regards, SR

If an employee does not enroll in ESIC benefits, how should the maternity leave claim be settled for that particular employee? Please provide your views on whether to pay the claim or not, and if not, why?

Regards,
SN