Is the Maternity Benefit Act Applicable to Female Teachers in Private Schools? Seeking Legal Insights

Can you provide me with an authentic opinion on whether the Maternity Benefit Act is applicable to private educational institutes for teaching female staff? Or is there any local court/high court/supreme court ruling on this matter?

Find out whether your state government has declared private educational institutions within the meaning of the Shops and Commercial Establishment Act of your state. If so, it will apply.

Regards,
[Phone Number Removed For Privacy Reasons]

The educational institutions within the meaning of the Bombay Shops and Establishment Act, as declared by the Gujarat government, are exempted under section 4 of the act. However, they are required to comply with all provisions of the act. Therefore, my question still stands.

Regards

According to the Maternity Benefit Act, every woman employee will be covered under the Maternity Benefit Act. Educational institutions are covered under the State Shops and Commercial Establishment Act. All services/employment are covered under the Maternity Benefit Act of 1961. If you are from Maharashtra, please refer to the attachment.

I hope your query will not arise. In case it does, please lodge a complaint using Form No. 6 & 7, which can be sent to the Labour Inspector.

Regards,

Not only Maharashtra, but all states and every employed woman are covered under the Maternity Benefit Act. So, don't think too much; go ahead.

I am talking about the MB Act of 1961. The attachment you provided me is not clear about the MB Act. I have raised a complaint in Form 6 before the Inspector of the Labour Department, Government of Gujarat. However, he has set aside my complaint, stating that the institute is not covered under the Shops and Establishments Act. That is, establishments engaged in educational activities are exempted from complying with all provisions of the act under Section 4 of the Bombay Shops and Establishment Act. Therefore, you are not eligible for that. In this case, what should I do henceforth?

Regards.

If educational institutions are not considered establishments under the relevant Act for the Maternity Benefit Act, as stated by the labor inspector, you cannot do anything unless you are covered under the ESI Act.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Maternity Benefit Act Applicability to Educational Institutions

Please refer to Sec. 2(1)(b) of the Maternity Benefit Act, 1961. We are aware that the Employees' Provident Fund Act is already applicable to all educational institutions employing more than 20 employees. Therefore, the condition stipulated in sub-clause (b)—i.e., an educational institution being an establishment under the EPF Act 1952—stands automatically fulfilled, and hence there is no need for any separate notification in this regard.

Thank you.

I would suggest you carefully go through the notification of exemption issued by the Gujarat Government under Section 4 of the Shop & Establishment Act. If anything is favorable, it's okay; otherwise, go for a writ petition before the Gujarat High Court. The Maternity Benefit Act is a piece of social legislation to protect womanhood and to compensate women during the period of absence due to the birth of a child.

By notification, the government has exempted educational institutes from compliance under the Shop & Establishment Act but not from the provisions of the Maternity Benefit Act.

For the applicability of the Maternity Benefit Act, the establishment should be an establishment within the meaning of the Shop & Establishment Act. An educational institute, as per the Gujarat Shop Act, is surely an establishment within the meaning of the said Maternity Benefit Act.

As per Section 2(1)(b) of the Maternity Benefit Act:
- [(1) It applies, in the first instance,—
(b) to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months:]

Further definition of establishment under the Maternity Benefit Act means:
- [(e) “establishment” means—
(i) a factory;
(ii) a mine;
(iii) a plantation;
(iv) an establishment wherein persons are employed for the exhibition of equestrian, acrobatic, and other performances;
(iva) a shop or establishment; or]

In view of the above definition and applicability of the Maternity Benefit Act, it is surely applicable. An educational institute fulfills the criteria of both the above provisions.

Exemption issued from the operation of the S&E Act does not have any effect.

Frame your arguments in the above-said direction and go for a writ petition. Definitely, you can get the benefit.

Regards,
Sanjay Kumar

Applicability of the Maternity Benefit Act

The Maternity Benefit (MB) Act is applicable to an establishment, whether educational or commercial, only if it is covered under the Shops & Commercial Establishment Act of the respective state. The applicability of EPF or ESI to such establishments is determined by notifications under those Acts. For example, the Honorable Bombay High Court has held that IT firms are considered factories under the ESI Act. With that decision, the Factories Inspector cannot apply the Factories Act to IT firms that are not yet under the Factories Act.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

I have found a judgment of the Honorable Supreme Court of India (decided in the year 2000 and relating to the Municipal Corporation, Delhi) concerning the applicability of the MBA, 1961. The same is attached to this email. Although it does not pertain to educational institutions, I believe that the contents of the judgment could be helpful for seniors and experts participating in this discussion thread.

Thank you.

Regards

I believe that the difference of opinion regarding the application of the Maternity Benefit Act, 1961 to educational institutions stems from the varying interpretations of Sec. 2(1)(b) of the Act. To provide clarity, I have included the relevant extract below:

Application of the Act

"2. Application of the Act. - (1) It applies, in the first instance, -

(a) to every establishment being a factory, mine, or plantation, including any such establishment belonging to the Government and to every establishment wherein persons are employed for the exhibition of equestrian, acrobatic, and other performances;

(b) to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed or were employed on any day of the preceding twelve months.

Provided that the ----------- or otherwise."

I would like to draw your attention to the phrase "to every shop or establishment within the meaning of ANY LAW for the time being in force in relation to shops and establishments in a State." The entity providing employment must align with the definition of a shop or establishment as per the current laws in force; it does not necessarily have to be exclusively defined under the State Shops and Establishment Act. Additionally, it is important to note that the terms 'shop' and 'establishment' are used generically and do not specifically refer to the State S&E Acts. The proviso grants authority to the State Government only in cases of establishments not falling within the scope of existing laws to bring them under the purview of the Maternity Benefit Act through a notification.

Thank you for your attention.

The view of the Labour Inspector is not correct. When can an exemption arise? Only when the Act is applicable. So, the exemption may be partial with regard to certain provisions or total from all provisions, but it is strictly confined to that particular Act only, and the exemption cannot act as a bar on the application of other enactments. Please read my previous reply carefully. I reiterate that the establishment should be an establishment within the meaning of any law applicable to shops and establishments in its general sense. In respect of private educational institutions, labor enactments like the EPF Act and the Payment of Gratuity Act, 1972 are applicable. Therefore, no separate notification by the State Government is necessary. It is better to prefer an appeal under Section 17(3) of the MB Act, 1961, to the Appellate Authority first.

Regards

What is the rate of payment to be paid to a female employee under the Maternity Benefit Act? Is she eligible for gross salary or only basic salary? Please clarify.

Dear Avi,

Payment is to be made on gross salary under MB Act, 1961.

R N KHOLA

Dear Sir/Madam,

Thank you very much for your comments on the Maternity Payment. Is there any government GR or notation regarding the gross salary payment to be made to women under the Maternity Benefit Act?

Please let me know if you need further clarification on this matter.

Thank you.

Best regards

Dear member,

I believe it would be better if you read sections 5, 5A, 5B, 6, 7, and 8 of the Maternity Benefit Act, 1961. I hope you will receive the appropriate response or information after reviewing the provisions mentioned above.