Navigating Maternity Leave Pay: How Should We Handle Leave Salary for a Resigned Employee?

Hello Seniors and Friends,

One issue arises in our organization, i.e., one of our staff members has been on maternity leave since July 10. She took leave from her seventh month of pregnancy due to health problems. In January 2011, she informed us that she would not be able to return to work, and in February 2011, she officially resigned from her position.

We pay leave salary based on the calendar year, which we disburse in the first month of each year. Now, if she resigned in February 2011, is she eligible for leave salary for January 2010 to December 2010 and also for January 2011 to February 2011, during which she was on the company's roster?

OR do we only need to pay her leave salary from January 2010 to July 2010 since she has not been working with us after that?

I urgently need your guidance as I have to provide an answer to the management.

Regards,
Swati Saad

She is eligible for salary/wages, six weeks before the delivery and six weeks after the delivery.

Read the relevant section of the MB Act 1961, Section 5: Right to payment of maternity benefit.

Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence immediately preceding and including the day of her delivery and for the six weeks immediately following that day.

I'm asking about the leave salary, which we are providing yearly for 30 days, including everything (PL, CL). Do we need to pay her that leave salary?

Regards,
Swati

Swati,

Whether the employee was covered under ESIC or the Maternity Benefit Act, or under which provision she availed the leave for 7 months. Whether the leave availed beyond the 12 weeks as prescribed under the MB Act is permissible, or in case of complications, maternity leave may be extended for more than one month.

So, beyond this 12-week period and one month, was she without pay? You can adjust her paid leave during this period.

Swati,

Whether the employee was covered under ESIC or the Maternity Benefit Act, or under which provision she availed the leave for 7 months. Whether the leave availed extends beyond the 12 weeks as prescribed under the MB Act or in the case of complications, maternity leave may be extended for more than one month.

So, beyond this 12 weeks and one month, was she without pay? You can adjust her paid leave in this period. No need to pay leave pay.

But that means she is not eligible for a leave salary of 30 days, which is our policy to pay every staff.

Regards,
Swati

I failed to understand which 30 days' salary you are talking about—whether you are referring to earned leave/paid leave or the period during which she was on maternity leave.

Regards,
Swati

I had mentioned in my previous posting that I'm not talking about Maternity Leave, but rather about paid leave which we are giving to every staff member. Was she eligible to receive that paid leave for the period of maternity leave when she was not present?

Regards,
Swati

Yes, she will be entitled to paid leave/earned leave for the period of maternity leave, as she is deemed to be present because we are giving salary for this period. No action can be taken during the maternity period. So, as per me, she will be entitled.

Nope. We have not paid Sal for this period of maternity benefit. She is taking her benefit from ESIC. We are just carrying forward her name on the muster till she joins back.

Regards,
Swati

Hi Swati,

Can you please clarify two things....

First, she has been on leave since July 2010. Is she receiving maternity benefits from ESIC? If so, why are you now granting her paid leave in February?

These earned leaves, if she was eligible for them, should have been paid in the August or September 2010 salary. The 30 days of paid leave should have been provided to her last year itself, as the maternity benefit she will receive from ESIC is only for 3 months.

Please do what is right according to the rules, which is to compensate her for those 30 days in 2010.

Regards,

Archna