Contract vs. Company Employees: Are Maternity Leave Rules Different for Women?

Hi sir, are the contract women employees eligible for maternity leave? Is there any difference in rules for contract and company-side women employees?

The Maternity Benefit Act, 1961 applies to all women employees, including employees engaged on a contract basis.

Maternity Benefits Act Overview

The Maternity Benefits Act is an Act to regulate the employment of women in certain establishments for specific periods before and after childbirth and to provide for maternity benefits and certain other benefits.

There is no difference between permanent employees and contract employees as far as this Act is concerned.

Court Rulings on Maternity Benefits

Some excerpts from court rulings:

In a significant ruling, the Central Administrative Tribunal (CAT) has stated that temporary, ad hoc, and contract women employees are also entitled to maternity leave and consequent benefits akin to regular staff. The Rajasthan High Court held that maternity benefit is a social and legal acknowledgment for a woman, and denial of such benefits on the basis that the employee is a contract worker is not legal. The court also directed the employer to sanction her leave benefit.

Yes, eligible without any hesitation. Provide all as regular employees.

Dear Sir,

But who will pay the benefits – the company or the contractor?

Dear Friend,

If the contractor does not pay, the principal employer has to pay. The principal employer pays the contractor, and the contractor pays the workmen. You have to ensure that it is paid. If the workmen are covered under the ESI scheme, then ESI pays.

Warm Regards,

Bharat Gera
HR Consultant

Maternity Leave for Contract Female Workers

Contract female workers must be treated equally with regular employees. Therefore, they are eligible for maternity leave and benefits from ESI only. However, in many private companies, if a worker is found to be pregnant, they often deny these rights of equality and terminate them. Furthermore, if they report for duty after delivery, most private companies do not offer jobs, as other processes like providing a creche should be followed. You can raise this issue with the labor department for a concrete solution. Please refer to the Maternity Act for relief.

Dear Gita,

It applies to all workwomen working either in a factory, mine, or plantation, including to every shop or establishment in which ten or more persons are employed or were employed on any day of the preceding twelve months, irrespective of cadre (Permanent, Contractual, or Casual).

Woman employees engaged as Contract Labor employees are also equally eligible for benefits provided under the Maternity Benefit Act, and there are no differences in rules for contractual and/or permanent on-role employees.