Navigating Maternity Leave: What Happens to My Gratuity and Bond if PF Closes?

I have been working for an organization for the past 4 years, and this is now my 5th year. I am expecting a baby, and the due date is in December. If I apply for maternity leave in my organization, my PF account will be closed. When I rejoin after my maternity leave, I will have to work without PF. In this scenario, what will happen to my gratuity? Also, if I have signed a bond, will it remain valid even if the organization closes my PF account?

Hi there, as you have been working there for 4 years, you are entitled to maternity leave. The maternity leave you take will not affect your PF, and your same PF number will continue to be active. Additionally, gratuity is also included in maternity leave benefits.

Regards,
Karthik

Maternity leave is also part of the service; hence, it will not have any effect on gratuity unless there is a break in service.

Regards,
BrainLight HR Solutions

Maternity Leave and Continuous Service

The period of maternity leave cannot be treated as a break in service but is part of continuous service and hence shall count both for P.F. and Gratuity.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

I'm working for an organization for the past 4 years, and this is my 5th year. I am expecting a baby, and my due date is in December. Now, in my organization, if I apply for maternity leave, my PF account will be closed. When I rejoin after my maternity leave, I have to work without PF. In this case, what happens to gratuity? If I have signed a bond, will it continue even if the organization closes my PF account?

Violation of Labor Laws

How can your company create a rule that is totally against labor laws? If you go for maternity leave, nothing will happen to your PF, and the leave cannot be considered a break in service. Even if there is a break in your service, your company cannot close your PF account when you rejoin. It is against the law and justice.

Moreover, your gratuity will not be affected. Even if you have signed a bond that includes a clause about closing your PF account, it will not affect your PF. A bond cannot override statutory law.

Regards

Why will they close your PF account? Check with your HR department again. Either someone has miscommunicated, or they are working against the rules.

Every organization has a set of rules for availing leave. Just find out from your organization how much maternity leave (ML) one is entitled to if they go on ML. In organizations, the ML period ranges from 3 months to 6 months for one delivery. Ideally, ML is given to an employee for two children only. The ML period is to be treated as paid leave, and during the ML period, PF recovery will continue as usual. Since the question of a break in service will not arise, your period of gratuity will continue as usual.

I agree with the views expressed by the members.

Maternity Leave Entitlements

Under the Maternity Act, you are entitled to leave. This period is considered as continuous service; hence, you are eligible for PF, bonus, and gratuity under the act if you have completed 5 years during maternity leave. During this period, the employer cannot terminate, take any disciplinary action, or reject leave for any employee.

Application Process for Maternity Leave

You need to apply for maternity leave in writing before the expected date of delivery and report soon after the completion of 84 days of leave. Then, you can seek an extension if needed.