Maternity Leave Benefits in Village Factories Without ESI Coverage: What Are the Options?

Dear HR Team, I would like to inquire about the coverage of ESI in my factory, as it is not currently covered due to its location in a village area. If a female employee applies for maternity leave, would she be entitled to the benefits of maternity leave? Please provide confirmation.

Regards,
Lingaraju N
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]

If your factories are not covered under ESIC, then you can first consider Comp. Policies or refer to the Factory License Act. Your company is required to provide 90 days of paid leave as per the Factory License Act.

Regards,
Jaydeep Chauhan

Coverage Under Maternity Benefit and Employee Compensation Acts

Women will be covered under the Maternity Benefit Act, while others will be covered under the Employee Compensation Act.

Advice on ESI Coverage

These two acts are costlier than the ESI, so you can approach some other companies in your area to pool employee populations and establish an ESI dispensary. Get covered under ESI by writing a letter to the Branch Manager. Not having ESI could prove to be a costly affair for you and other companies.

Regards.

Hello Professional Friends,

Regarding the ESIC and Maternity Leave/Facilities, the best course of action based on my experience is as follows:

1. Mr. Ramnarayanhr has provided the right advice. If implementing his suggestion is feasible, please take the necessary steps. Both you and your employees will benefit from this.

2. I previously served as the Factory HR/Manager at a site where ESIC hospital/dispensary facilities were not available. In such cases, I would allocate the company's contribution as a medical allowance to the workers every month.

3. Following Ramnarayan's advice, I attempted to collaborate with other nearby factories and exerted pressure on the ESIC office to establish a dispensary there. Their recommendation was for companies to obtain ESIC registration so that workers could receive treatment from Government Hospitals in their vicinity and later claim the treatment cost with appropriate supporting documents.

4. Maternity leave is mandatory as per Government regulations. If you have female employees on your payroll, the company must provide 90 days of paid leave. Subsequently, unpaid leave may be granted.

I hope I have addressed your queries effectively.

Thanks,

Supriya

Yes, she is eligible for maternity leave and benefits as per the Maternity Act, and you have to pay the benefits.

Regards,
D. Gurumurthy
HR & IR Consultant
Hyderabad.

When the ESI Act is not applied to any area, female employees are entitled to maternity benefits under this act, provided the female employee has worked for 80 days in the factory/establishment.

Regards,
Gajare M. B.
Joint Labour Commissioner (Retd)
Consultant Compliance and Industrial Relations
Mumbai
[Phone Number Removed For Privacy Reasons]

As per the MB Act, whether in the case of a factory or commercial establishment, the leave with salary is for 12 weeks—6 weeks prenatal and 6 weeks postnatal. In addition, 30 days of benefits are eligible for women suffering from sickness arising out of delivery. Government rules are not applicable. If an employer gives more leave, it is his policy.

Regards,
Varghese Mathew
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Thank you for your reply. Yes, you are right—12 weeks are equal to 3 months; hence, it's almost 90 days. Any company can give more; that will be their policy. An extra 30 days can also be availed by a female worker with proper medical documents.

Therefore, I believe anyone following this discussion has understood that if it is a factory or any other establishment with female workers on their payroll, working 80 days without any break (except for the weekly off) entitles them to Maternity Leave with pay, regardless of the existence of ESIC.

Hope we can conclude the discussion here. Thank you all for participating and sharing your valuable knowledge.

Regards,
Supriya

You have received all the advice needed on how the leave is to be granted under the Maternity Benefit Act. However, the vital point here is that if your factory is not covered under the ESI, it becomes mandatory for you to cover all your employees under the WCA. Please verify this and ensure that you are not on the wrong side of the law.

Regards,

More clarifications. The MB Act will be applicable only to women who are not covered under the ESI Scheme. Both will not be applicable to a person at the same time. The EC Act will not be applicable to all employees not covered under ESI. It is applicable only to the employees defined as such under the Act in the employment specified therein. Many employees fall outside this definition.

Regards,
Varghese Mathew

Yes, female employees are entitled to maternity benefits under this act, provided the female employee has worked for 80 days in the factory/establishment.