Navigating Maternity Leave: Can We Recover Salary if an Employee Resigns Early?

Hi Jyothi,

One of our employees went on maternity leave, and after 60 days, she has resigned citing personal reasons. Is she eligible for maternity leave benefits? Can we recover the salary paid to her during the maternity leave period? According to policy, she is required to serve one month's notice, but as she is not complying, can we ask her to pay for the one month notice period? I would appreciate any suggestions on how to handle this situation.

Thanks,
Jyothi

Once an employee completes 165 days or more, they become eligible for maternity leave as per the Maternity Benefit Act. If an employee goes on maternity leave and resigns during that period, there could be several reasons for the resignation:

1. Not being able to balance work-life.
2. Health reasons.
3. Family pressure to take care of the newborn.

On these grounds, the company can provide support by offering work-from-home options or a sabbatical leave for a couple of months with Loss of Pay (LOP). If after due consideration, no arrangement can be made, she should be relieved from her services without any pay recovery, considering it as a maternity case.

Regards, Chandana Hyma AVP, HR

As per the Maternity Act, any woman who works for 80 days in the 12 months immediately preceding her date of delivery is entitled to maternity leave. Payment made under maternity leave cannot be recovered even in the case of resignation after completion of the maternity period.

Notice Period Recovery

Regarding your second question, the answer will be "YES." You can surely ask for a 1-month notice period recovery amount if it is mentioned in the appointment letter after adjusting the dues entitled to her. Dues refer to any legal obligations such as bonus amounts, leave encashment, etc.

Thank you.

Dear Jyothi,

The question pertains to the recovery of payment made in lieu of The Maternity Benefit Act, 1961. However, as per the terms and conditions of the appointment letter, mutually agreed and accepted, the notice period salary can be recovered.

Dear Jyothi,

The question of recovering payment made as per The Maternity Benefit Act, 1961 does not arise. However, as per the Terms & Conditions of the Appointment Letter, mutually agreed and accepted, the notice period salary can be recovered.