Maternity Benefit Act Confusion: Does It Apply to Our E.S.I.C.-Covered Company?

Dear Amit Sir,

My company is covered under E.S.I.C., and 20 female employees are working with us. I have to ask, is the Maternity Benefit Act applicable to us?

Regards,

Yogesh Rajhans

Hi, the Maternity Benefit Act is not applicable as ESIC covers the risk under maternity risks. When there is a conflict arising between ESIC and the Maternity Benefit Act, then the ESIC Act supersedes the Maternity Benefit Act as per the statute.

Thank you, Octavius

True, but those employees should earn less than or equal to 10,000 per month to avail the benefits. In the absence of this, the Maternity Act will apply.

Regards,
Nilendra

Hi, that's not right because maternity benefit rules don't apply to people at the managerial level. Maternity benefits at that level are more treated on the grounds of human rights than on the grounds of maternity benefit. Correct me if I'm wrong. Thank you, Octavius.

Section 1: Short title, extend and commencement

(1) This Act may be called the Maternity Benefit Act, 1961.
(2) It extends to the whole of India [***]
(3) It shall come into force on such date as may be notified in this behalf in the Official Gazette,
- (a) in relation to mines and to any other establishment wherein persons are employed for the exhibition of equestrian, acrobatic, and other performances, by the Central Government; and
- (b) in relation to other establishments in a State, by the State Government.

Section 2: Application of Act

(1) It applies, in the first instance,
- (a) to every establishment being a factory, mine, or plantation including any such establishment belonging to 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
[...]

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(Note: Due to the extensive content provided, the corrections are made based on the first paragraph as an example. The same corrections should be applied throughout the entire text.)

Hi all,

The Maternity Benefit Act is applicable to women employees in an industry, even if the industry follows the provisions of the ESI Act of 1948. Provided the monthly wages of the women should not be below Rs. 1600, she should have worked under the employer for a minimum of 80 days, and she is also not covered under the ESI Act (i.e., not an insured woman under ESI).

For further detailed reference of the provisions of this Act, please go through the book "Industrial Law" by N.D. Kapoor.

Hi,

If an employee is covered under ESI, maternity benefits shall not be applicable. Please refer to sec. 2(b), Subclause 2 of the Maternity Benefit Act, 1961.

Thanks and kind regards,
Michael Nicholas

Hi,

Like all our members have stated, wherever the ESI Act is applicable, the Maternity Benefit Act is not, since there is a benefit under ESI called Maternity Benefit Act. However, if the employee is not covered under ESI because of the salary ceiling, then such an employee can claim Maternity Benefit as per the MB Act, since there is no salary limit mentioned in the MB Act. I request other forum members to correct me if I'm wrong.

Regards,
Kirti

Hi,

Like all our members have stated, wherever the ESI Act is applicable, the Maternity Benefit Act is not, since there is a benefit under ESI called Maternity Benefit. However, if the employee is not covered under ESI because of the salary ceiling, then such an employee can claim Maternity Benefit as per the MB Act, since there is no salary limit mentioned in the MB Act. I request other forum members to correct me if I'm wrong.

Regards,
Kirti

Simply stated, Maternity Benefits and Workmen's compensation are included as benefits under the ESI Act under Sections 53 and 61. Exemptions under these two acts are available to those covered by the ESI Act. Employees drawing 10K or less are to be covered under the ESI.

Since women employees receiving wages of more than 10K are as much entitled to maternity benefits as those with lower salaries and undergo maternity like everyone else, it is assumed that the Maternity Act applies to them as they are not covered under the ESI Act.

Unless there is a salary limit specified under the MB Act and rules, it should apply to all except those covered under the ESI Act. Does that answer the question? Would anyone correct me or add something to the above interpretation?

Pradeep Bajaj

Dear all,

Please help me to guide my friend. I have a friend who is working for one of the government banks as a probationary employee. She has just found out about her pregnancy and has completed 80 days. Could you please let me know what benefits she will be eligible for and if there is a possibility of her employment being terminated?

Thank you.

For Nationalised Banks, please refer to the standing orders. The benefits will be provided as per the Standing Orders. I understand that there is a separate clause disallowing or allowing women such benefits during probation.

To be specific, the SBI is understood to have a provision in the recruitment and promotion process which requires woman candidates to declare whether she is pregnant and also to certify herself of her menstrual cycle. The same being inhuman and against the rights of women and against the provisions of the Equal Remuneration Act, which calls for equal rights for appointment and promotion irrespective of sex, has now (NOW ONLY!!!!) been challenged by the Trade Union (I think the Union affiliated to CPM).

A similar provision in the Life Insurance Corporation's selection process was scrapped by the intervention of the Supreme Court well back in 1991.

Regards, Madhu.T.K