Maternity Leave Impact on Annual Appraisal and Increment Arrears: Understanding Employee Benefits

Dear All,

There is a typical case under study now. A lady went on Maternity Leave for 3 months. During this time, her annual appraisal fell due. Once she was back in the office, she asked for her appraisal to be done. She was asked to serve 3 months to complete her 12-month period, and only then could a formal annual appraisal be conducted.

Here are the different scenarios:

1. She has to complete 12 months before the appraisal can be done.
2. She should be appraised for 9 months right after she joins.
3. The increment arrears due to her should include the 3 months she was on Maternity Leave, as Maternity Leave is her entitlement.
4. Now that she will complete the 3 months back in the office, she should be paid arrears for 12 months or include the 3 months of Maternity Leave.

Please respond and let's share our views.

Thanks!
Kanishka

Hey Kanishk,

Thanks for this wonderful case study.

Yes, ML is one's entitlement, and that period is very much and should be counted in the period as she is on an official and paid leave. So she is very much entitled to the arrears for the three months, including the duration when she was on leave.

Now, this can be analogous to the weekly offs. We pay an individual for working for 30/31 days of the month, whereas effectively it is 22 (5 days a week) and 26 (6 days a week).

So that should be fine.

Monika

Thank you, Monika, for your response. I am looking at some more responses to form a generalized comment and a logical conclusion. Guys, please help me!

Thanks!
Kanishka

Lovely scene indeed!
The poor lady goes through all the pains of motherhood and then back in the office, she's been treated this way! What is the company's policy on appraisal? I can share our practice:

Our cycle is April-March. Suppose some staff works for only 9 months during that cycle, we will assess the performance for those 9 months. If it happens to be "excellent," a rating of "5" (the highest possible) is given. This is what we call "absolute rating."

However, considering that the person could not contribute for a considerable period, there is always a "relative rating" done. In which case, subject to comparison with other group members, the staff's contribution has been affected due to his/her absence, the rating gets revised to "4" or "3". Accordingly, the Variable Pay is sanctioned.

But we make it a point to give positive feedback to the staff about his/her performance, including sharing the absolute rating and the relative rating.

Hi Kanishka,

In my opinion:

1. If the appraisal is an annual appraisal, then she has to render a complete 12 months of service to the organization. In this case, performance is to be adjudged based on the output given by an employee during the 12-month period against the assigned tasks/work. Therefore, if this is the case, she has to complete 12 months of service to become entitled to the annual appraisal.

On compassionate grounds, one can consider the performance during the last nine months, but if certain parameters are in place, then she has to complete the period for the appraisal.

2. She can be given incremental benefits based on her performance during the last nine months of service, effective from the date of rejoining the duties.

There is no second thought legally that this maternity leave period is to be considered as a part of regular service, but at the same time, the employer is not obligated to provide an increment for the period during which she has not performed her duties.

3. Once again, certain organizations take into account the employee's position when granting such benefits. This is also a major factor that plays a significant role. The sense of responsibility the employee demonstrates towards the company/organization makes them eligible for discretionary benefits.

4. Finally, if the management's perspective is on annual appraisal, and the employee has completed the 12 months of service excluding the maternity leave period, and has performed in accordance with the management's expectations, an increment can be granted with retrospective effect. This is done to maintain the morale of the employee and to have a positive impact on others.

Do you agree with this?

Anil Anand

Hi all, this is a very nice case study. I would say as per the governing law body for females working in the organization, rules have been made as extraordinary rules, like MTL, etc.

In my case, her annual appraisal must not be stopped only just because she has been under MTL; hence, her appraisal must be done keeping in view her 9 months of work performance. Looking forward to all your responses on this.

My question is why the organization asks to cover her 3 months, which the organization itself has granted leave to her for the full completion of her maternity process. Although it is a biological process, hence I am sticking to the above points.

Dear Joshinand,

I fully agree with the comments that management has sanctioned the MTL. Furthermore, it is a biological process, but from an HR management point of view, we should not mix both matters, i.e., leave with performance.

Sanctioning leave does not mean that your performance targets stand revised. Actually, in the absence of one, someone else has performed the duty of the absentee. Functions performed by two individuals can never be clubbed for the purposes of performance appraisal of one individual. Benefits can only be extended if one's performance is within the parameters set forth.

Under such situations, emotions do play a role but only to an extent and not beyond that.

Leave is altogether a different issue. MTL involves statutory compliance under ESI or the Maternity Benefit Act, whereas performance appraisal is an internal management issue. It is the philosophy of the management and the appraiser to decide and extend the incremental benefits.

I hope you also agree with this.

Regards,

Anil Anand

Employees on maternity leave are entitled to the same benefits as other employees. We should not discriminate against performance pay-out just because an employee has taken maternity leave. My views on this are as follows:
a) Period to be appraised: 9 months
b) Increment to be for 12 months

Vineet

Dear Vineet,

I respect your opinion, but management decisions are required to be made on a rational basis supported by logic, covering future developments. Allowing a wrong decision today could result in a chain reaction leading to a multiplication of wrong decisions. It is also a management philosophy to provide benefits after nine months or only upon completion of 12 months. If management wishes to provide benefits, no one can stop them. Conversely, if management chooses not to consider this, there are numerous logical reasons available for that decision. Ultimately, the choice is individual.

Have a thought on this.

Anil Anand

In our company, appraisals are done every year when a person completes a year of service - the appraisals are not done in fixed periods.

If a female employee takes LOP leave after completing her maternity leave, what should be done in the given scenario?

1. Appraisal for this employee is in August every year.
2. She was on Maternity Leave from March to May.
3. She was on LOP from June to August.
4. Now, her annual increment - should it be from September when she reports back to work, OR
5. Should it be from October as she was on LOP for 3 months?