Is She Eligible for Maternity Leave After Company Transition and Temporary Employment?

Employment Timeline and Company Transition

We hired a female candidate for our sales team on 01/12/2016 as an Executive. In the first week of February, she informed her HOD that she was pregnant. Due to some financial crises, the management made a strict decision to hand over the company to another company, and finally, we closed our company on 31/03/2017, clearing all dues of employees (including PF, ESI, salary, gratuity) and accepting their resignations.

Transition to a New Company

The new company took over on 01/04/2017 and absorbed our employees, issuing them new appointment letters effective from 01/04/2017. Unfortunately, the new company turned out to be fraudulent, so they vacated our premises on 21/06/2017. From 21/06/2017 to 30/09/2017, we operated the company again as we did not have a new vendor, paying salaries in cash during that period.

Temporary Employment Conditions

No PF/ESI/Appointment Letter was provided to any employee. The work was temporary as we were attempting to sell the company to a new vendor.

Current Employment Status and Maternity Leave Eligibility

Finally, on 01/10/2017, we regained control of the company and issued fresh appointment letters to our employees, except for the mentioned lady. However, she had already left for delivery, having the baby in the first week of September. Is she eligible for maternity leave? Actually, she is not on our payroll at present as she is on maternity leave.

Dear Geeta, The 'Establishment' changed hands three times in the past 6-7 months, and the employee has not worked at all with the current employer. The eligibility for Maternity Benefit as per the MB Act is a minimum of 80 days of service in the past 12 months in the employer's establishment. It will be very difficult to realize anything against employer no.1 & 2. However, there is a mention of ESI coverage during some period. The period of contribution needs to be ascertained and examined for coverage, for which relevant data may be provided.

Dear Geeta,

As per the scenario mentioned above, the employee is not entitled to Maternity Benefits from your company. A minimum of 80 days of continuous service is required before claiming the benefit, which is not found in the said employee's case.