How Can Small Companies Balance Maternity Leave Benefits with Practical Needs?

Hi Everyone, we are a small company and have almost 50% women employees. We are reviewing our policies and, in the process, need to update the maternity benefit policy as well. Considering the last amendment, which recommends 26 weeks of paid leave to employees, it seems a little impractical for us. Can we split the leaves between with pay and without pay?

Also, the act says the "maximum of" when it comes to duration. Doesn't that give us flexibility to keep less than 26 weeks as paid leave?

Dear Ravi Pratap,

Once the Maternity Benefit Act, 1961 is made applicable, it continues to be applicable irrespective of the size of the establishment. Consequently, all benefits should be as mentioned therein, i.e., 26 weeks. Furthermore, statutory benefits cannot be reduced or modified by individual employers.

You have no choice but to follow the MB Act as amended.

Take out insurance policy for gratuity payments as laid down in the Act.

Dear Ravi Pratap,

As stated by seniors here, if the MB Act is applicable, it is applicable. Beyond that, if the workmen are receiving the benefits of ESI, the relevant facilities of the MB Act are also covered in ESIC. Please check and make your team/management aware of this, instead of reviewing your policies.

Thanks, everyone. Since the employee covered under ESIC gets maternity benefits covered by the government, are we saying that any organization needs to have two sets of policies depending on the employee's coverage under ESIC?

No need to have two sets of policies, dear. Make a sub-clause in the statement of the policy itself stating that whichever (MB Act/ESIC) is applicable shall play the role.

Hello all,

If an employee is covered under ESIC, then the employer does not need to pay her salary, correct?

What are the prerequisites to receive ESIC benefits?

No employer needs to pay, and also has to confirm to ESIC that she was not paid any wages/salary during such period, was on leave for such period.