Maternity Leave Dilemma: Can My Company Deny Benefits After Termination?

Hi all, I am a software developer working in a Private Limited company with a staff of over 350 employees in Mumbai, and I need your guidance for some of my queries. According to our company policy, we can avail maternity benefits for a leave of 3 months. Then, we can use our balance leaves in case we need to extend our maternity leave, and the salary for maternity leave will be paid once you join and have worked consistently for 3 more months.

In my case, I was on leave from 1st Dec 2013 and was supposed to join on 1st June 2014. However, suddenly, my HR has informed me that they don't have any project for me to work on, and I have been removed from my job effective from 1st March 2014. They claim that I am not eligible for the benefits and that I have to email them stating that I am resigning from the post.

Is this the correct procedure?

Can I still avail the benefit and receive my 3 months full salary? Does the company have the right to override the Maternity Act 1961? Please help me with this.

Thanks in advance to all.

As per the Maternity Act, they cannot ask you to submit your resignation. Do not resign from your current organization. Request them to provide everything in writing and contact a nearby labor officer for assistance.

Thank you,

Regards,
Ashish

Maternity Benefits Act: Protection Against Dismissal

Please refer to the section below under the Maternity Benefits Act. You are eligible for all benefits, but do not submit any resignation letter from your end.

Section 12: Dismissal During Absence or Pregnancy

(1) Where a woman absents herself from work in accordance with the provisions of this Act, it shall be unlawful for her employer to discharge or dismiss her during or on account of such absence, or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service.

(2) (a) The discharge or dismissal of a woman at any time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus referred to in section 8, shall not have the effect of depriving her of the maternity benefit or medical bonus. Provided that where the dismissal is for any prescribed gross misconduct, the employer may, by order in writing communicated to the woman, deprive her of the maternity benefit or medical bonus or both.

(b) Any woman deprived of maternity benefit or medical bonus or both may, within sixty days from the date on which the order of such deprivation is communicated to her, appeal to such authority as may be prescribed. The decision of that authority on such appeal, whether the woman should or should not be deprived of maternity benefits or medical bonus or both, shall be final.

Regards,
Tushar Swar

Thank you. I was adamant that I wouldn't give the resignation letter from my end but was not sure about the maternity benefits. Your answer helped me.

One more thing I wanted to ask was... Since my company is removing me abruptly from the job, should they also pay me my notice period salary?

Thanks in advance.

Hi, it's me again. My company's HR called yesterday and mentioned that they will be giving me my maternity leave benefits, which was good news. However, she also added a condition. My appraisal was due in September 2013, but it was done in October 2013, and that too after I had continuously asked them. In the appraisal letter, it's written that all my arrears as per the new revised salary will be paid once I join in the month of June 2014, and my next appraisal will be in June 2015.

Now, the conclusion she is giving me is that since they are discontinuing my service from their end, she will pay me the notice period salary, but that will be as per my old salary and not as per my revised salary. Also, the arrears that I am supposed to get will not be given, as the appraisal letter states that all arrears will be given after I join, and the new salary will be effective from when I join.

Is this okay? Should I agree to this?

Maternity Benefits and Employment Rights

- Maternity benefits shall be sanctioned within 48 hours from the submission of relevant documents.

- Dismissal of a female employee while on maternity leave is unlawful, and therefore, it is null and void.

- Leave extended after 3 months of the maternity leave period cannot be considered as maternity benefits.

- If your termination notice was received before 01.03.2014, it is null and void under the Maternity Act.

- The company has no right to deny your maternity benefit (3 months' salary), and it is claimable through a legal notice, failing which, you can pursue it through the labor tribunal.

- If your termination notice was received after 01.03.2014, it is null and void. As you are on regular leave, you should be called to attend the office, issued a memo, a proper inquiry conducted, and then served a termination letter under lawful cause. If your company fails to follow these dismissal procedures, then it is null and void, and you can challenge it in the labor tribunal.

- If the company states it has no projects, then it cannot terminate you. It can only lay you off from service, provided the company compensates you with a minimum of 3 months' salary.

- Do not resign from your service on your own accord.

As per your appraisal letter, the company is supposed to pay your arrears according to your revised salary. The company cannot escape this obligation.

If the company accepted your leave until the end of May 14, then you cannot be terminated without the proper termination procedures being followed. The company should inform you if it is canceling your leave after 28.02.14, call you back to work in the office, issue a memo, conduct an inquiry, etc.

So, don't agree to any premature termination. You have a large scope:

- To receive complete maternity benefits
- Not to be terminated as you are on regular leave
- To receive arrears pending as per the revised salary
- To receive compensation since you can only be laid off following due process

Act soon, consult a lawyer, and send a legal notice to comply within 15 days; otherwise, you can claim all those benefits. Additionally, if your case wins after 3 years, the company should pay the salary for the entire 3 years.

Advance wishes to you for winning the case.

It's me again. I spoke to my HR regarding my compensation and all, and two days after our talk, my HR called me up and said that they are not discontinuing my appointment as they have some new projects for me to work on. She also emailed me mentioning the same. So, the good news is that I still have my job and will get my arrears after I join on May 14 and maternity benefits after I complete 3 months after joining. She asked me to join in May instead of June. 

Thanks to all for your support and guidance. It helped me a lot. 