Navigating Division Closure: Can We Terminate a Pregnant Employee Legally?

Seniors, kindly advise:

My company is a private limited (pvt ltd) entity operating in the service industry. We are in the process of shutting down one of our divisions due to its non-viability and poor performance of the service product. Among the employees affected by this situation is a pregnant woman. The question is whether we can terminate her along with the other employees from the division.

Thank you.

Dear Jayashree,

The Maternity Benefit Act provides protection to every pregnant woman employed by organizations. Therefore, you cannot terminate a pregnant employee.

Termination of Employees and Maternity Considerations

The question of terminating other employees and one female employee who is pregnant does not arise at all. As per your information, you are closing your unit for economically non-viability reasons. Furthermore, you have mentioned that your female employee is pregnant. Is she currently on maternity leave? It would be most appropriate to provide closure compensation as per the Industrial Disputes Act, 1947 to all employees, including the female employee.

Payment of Maternity Benefits

Regarding the payment of maternity benefits to the female employee, it depends on when she will be on maternity leave, the date of the closure of your unit, etc.

Thank you, Manoj and Srinath.

Srinath Sai Ram, will the payment be under the following 25FFF: "PROVIDED that where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman under clause (b) of section 25F shall not exceed his average pay for three months."

ML for the colleague would be applicable 3 months after closure. Kindly guide further.

Thank you.

With regard to compensation, you may work out the same after a discussion with affected employees.

Consequent to closure, the question of ML payment does not arise. If employees are covered under ESI, they can avail the same.