Who Should Pay for Creche Services? Navigating Employer and Employee Responsibilities

Hi,

Can anybody share if the expense of the creche facility needs to be borne by the organization if the organization ties up with a service provider and makes the service available within the facility? Can the organization choose to ask the employee to directly consult with the vendor and choose if she wants to avail the service and pay the fees? Is it necessary that the organization has to also contribute in any way to the fees being paid to the vendor by the employee?

Regards,
Rinku

Dear Rinku,

As per the amendment, it clearly states that the employer has to provide a creche facility to the employee, and that means the expenses will be borne only by the employer.

Dear Rinku, as per Section 48 of the Factories Act 1948, a crèche facility must be mandatorily provided if there are 30 or more women employees. However, according to the latest Maternity Benefit Amendment Act 2008, a crèche must be provided within the facility if there are 50 or more employees, regardless of gender.

Now, to answer your question, a crèche can be accommodated within the organization if there is space and if employees express a need to bring their children for care. This would benefit both the employees and the organization in the long run. If there is a space constraint for providing a crèche within the facility, the organization can partner with a service provider (commonly known as community crèches). Ensure that: a) it is located in the closest vicinity, b) all costs should be borne by the employer since it is a legal obligation for the employer to provide a crèche. You can also consider sharing the cost if the employees are willing. c) if possible, obtain approval or exemption from the Inspector of Factories for such an arrangement to ensure legal safety. The Inspector of Factories has the authority under the act to approve such alternate arrangements.

Best regards,
Muzammil Khan

For how long does the employer have to provide the creche facility? What is the maximum age for kids?

Thank you.