Termination of pregnant women in case of company shut down

Hi, my wife is on first week of her maternity leave. Her current organisation is getting closed and they are asking for resignation from my wife too. Once resigned, she will have to forgo her maternity benefits. What should she do? Please help with legally and professionally complaint reply. It would be great help.

Dear friend,

If the company is getting closed then where is the question of maternity benefits? All other employees, are eligible to get their wages till the last working day of the company. In your wife's case instead of salary, it can be called as maternity benefit.

If the company is getting closed then in fact company need not ask for the resignation. However, they appear to be playing safe and showing that the employees left the company voluntarily in order to avoid unforeseen hassles. However, in your wife's case as she is already on maternity leave, tell her to put up application stating that on completion of her maternity leave she is not interested to continue her employment. Therefore, period from the date of resignation till the last day of her maternity leave, may be considered as notice period. Now it remains to be seen whether the company pays the maternity benefits even after the closure or the last working day of the company.

Thanks,

Dinesh Divekar

Every member of ESI is eligible for the benefits for Six months even after resignation, if the contribution is made for the previous half yearly period. As such she can get the benefits from the ESIC. Anyhow, please check up with your Local ESI office and follow their advise. However, if your wife is not resign, she may not get the other benefits from the company in time and may be she has to wait her actual date of resignation.

Every statutory employment benefit due to the employee is coterminous with the normal terminal benefits of his/her cessation of employment. Like Mr.Dinesh said some unscrupulous employers resort to create a scene of voluntary termination of employment on the part of employees to make the process of closure of their undertakings simple and less costlier to circumvent the statutory provisions relating to closure. It is discernible from the original post that the closure process has not yet started. Therefore, my suggestion would be joining duty after the expiry of maternity leave and then resign so that the maternity benefits remain intact.

Thanks for your views. But, Since company is getting closed it must have to pay all its liability towards its employees such as Gratuity, salaries, maternity benefits etc. I presume maternity benefits are top priority. Please suggest.

Please produce medical certificate/Delivery Certificate etc & make claim for 26 weeks benefit in advance on the ground that company is going to be closed at the time of completion of 26 weeks.Though company is going to close, Employer is liable to pay the benefit in full.

Dear Concern,

Here, the first question is since how long your wife is working with that organization? This is very important question, as all the benefits for which she may be entitled are based on service length. Second thing, how she was communicated for putting resignation?

The above comments from respected members have must clear the picture in your mind, but still I want to clear few things.

As Dinesh Ji has well said, she need not revert to the organization's communication for resignation, as she will cease all her benefits from the date of resignation, including maternity benefits. So, it is better to keep quite and let the company process at its own.

As the company is shutting down, they need not any resignation but, if they will settle the Full & Final Account of an employee, they will have to settle his / her all legal dues as per land of law and in terms of the employee's Appointment Letter too.

So, in my view, she need not to give the resignation at her own.

Thank so much to everyone for suggestions. My only query is If employer is of natorious mindset can they close the company without paying maternity claim and can they stop relieving letter as well?

First of all I don't think she is covered under ESIC otherwise employer would have asked her to get benefits from esic. also if she is already on maternity leave she must be eligible for it. Now the question is even if she submits the resignation what if employer accepts her resignation and relieves her immediately. I don't think she should resign. instead she should ask HR people that she will resign on the last day of company after getting her benefits till date.

Dear Mr Pathak,
When the Company is closing its operations, the question of Employees submitting Resignation does not arise.Further, not withstanding Closure of Company, Employee already under Maternity Benefit, should get full benefit i.e 26 Weeks