Can My Company Deny Maternity Benefits Without Written Approval? Seeking Legal Advice and Next Steps

I was working for more than 5.5 years in a private limited manufacturing company. I went on maternity leave two weeks before my delivery. My leave was discussed and approved by the MD verbally. No written communication was provided. Suddenly, one month into my leave, they stopped my salary. I was terminated via telephone by HR. Despite several emails, I did not receive any notice or confirmation of my termination. My leave expires next month. My queries are:

Maternity Benefits and Lack of Written Communication

1. Can they deny giving maternity benefits due to the lack of written communication?

Resignation and Legal Entitlements

2. Can I resign now citing distrust in the company and request maternity benefits, gratuity, and PF? Is this legal?

Acceptance of Termination

3. Am I compelled to accept the termination?

Approaching the Labor Commission

4. Should I go to the Labor Commission?

Government Forums for Assistance

5. What are the government forums I can approach? Will it be helpful?

Dear Aditri, did you inform them in writing and do you have the acknowledgment with you? If not, please send the intimation immediately with registered AD. Please mention the verbal intimation and approval in that letter, along with the date you will be joining your duties. Also, try to talk with your HR through this, as if yours is a manufacturing firm and they are still denying the maternity benefits, they must have some point. Please clarify the same with HR. If they still don't cooperate, please visit the local labor office. If everything is right, they cannot deprive the employee of maternity benefits.

Dear Aniket,

Thank you for your reply. After receiving the phone call, I emailed them asking for the reason for my termination as I was informed by telephone. In the email, I mentioned the verbal approval of my maternity leave. However, I did not receive any proper response from them. I have decided that I do not want to join again. Therefore, I am confused whether if I resign, they will still be legally compelled to give me Maternity Benefit.

Thank you.

As advised, try to talk to the management, including HR, after sending them the email detailing the discussion and verbal assurance given by the Managing Director regarding maternity leave. Attempt to resolve the issue amicably and approach with the intention of finding a solution rather than adopting a confrontational stance. They cannot deny you maternity benefits or other entitlements if you decide to leave the company. Aim to depart on your own terms or on mutually agreeable terms if it comes to that. They are not allowed to terminate your employment during your maternity leave. If they are unwilling to reconcile, you may seek assistance from labor authorities, but inform the company that you will be compelled to take further action if they do not attempt to resolve the matter.

Dear Aditri,

They cannot terminate you while being on maternity leave. That's why I am asking you to send them the letter and then approach the authorities. After receiving the acknowledgment of the letter, ask HR to send you a proper termination notice that will stand against them. Please keep everything documented.

"My leave was discussed and approved by the MD verbally. You should have given written intimation of pregnancy. When did all these events take place? (month and date)

Maternity Benefits and Notice

To get maternity benefits, notice may be given during the pregnancy or as soon as possible after the delivery. On receipt of the notice, the employer shall permit such a woman to absent herself from work after the day of her delivery. The failure to give notice, however, does not disentitle the woman to the benefit of the Act.

Action Steps

Do not resign on your own and refuse to accept the termination notice. Take up the matter with your company immediately in writing, including medical proof of delivery, and ask for leave as authorized under the MB Act. The company cannot legally dismiss you on this ground. If the company does not withdraw their letters asking you to leave, approach the Labour Commissioner of the area."

Thank you for your replies. I have worked for 8.5 months during my pregnancy. Yes, it is true that I have not provided any written communication regarding my pregnancy and maternity leave; it was a verbal discussion. Everyone, whatever you are saying, I have already sent emails and a letter within these 4 months asking to explain my termination. I have received only one reply from them where they have just mentioned the company's termination policy anonymously. I have asked for an appointment to meet them, but they did not respond to that. Also, the salary for these 4 months is still pending.

Now, I need clarity on whether if I do not rejoin on the grounds of distrust toward my company and claim maternity benefits, will that be legal?

Please read my queries and answer them. Give specific month-wise details. When did you go on leave, and when was the date of delivery? You must return to the company after your leave is over. The company cannot legally deny you maternity benefits. What is the company's termination policy? Are you under ESIC coverage?

I went on maternity leave on the 1st of October. The date of delivery is the 18th of October.

Two types of leave policy are:

1. The company can terminate anytime in case of anything prejudicial to the interest of the company.
2. One month's notice will be given if the company wants to terminate anyone.

The company provides ESI to those whose salary is below 15,000. I am not under ESI coverage as my salary slab is higher.

Please tell me how to take this matter ahead. How can I go to rejoin when I know what they intend to do? I will be harassed if I go there to even discuss, forget rejoining. Now, how can I claim all the dues?

Understanding Your Rights During Maternity Leave

One has to be bold. What harassment can they do? Your termination during maternity leave is illegal. There is a provision in Section 6(3) which is helpful in your case.

Section 6: Notice of Claim for Maternity Benefit and Payment

Subsection 3) Any woman who has not given the notice when she was pregnant may give such notice as soon as possible after the delivery. So give written intimation to your company and ask for your dues.

Section 12: Dismissal During Absence of Pregnancy

(1) When a woman absents herself from work in accordance with the provisions of this Act, it shall be unlawful for her employer to discharge or dismiss her during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service. Do not be scared, but be firm. Take advice from a lawyer and join back on completion of leave. Request politely all your maternity benefits. The Labor Commissioner will help out and force the company to pay.

Thanks a lot. I was afraid whether my ground is strong or not as I had no written approval, but your suggestions showed me that I have a strong ground. One thing is also in my favor, I hope, which is they have paid me for October, the month I deliver my baby. That will work as their affirmation of my maternity leave.

Dear Aditri, never rely on verbal communication. Neither have you submitted a maternity leave application in writing, nor have they sent you an official termination letter. I feel the conditions mentioned in the termination policy are not right, and this policy will only be beneficial for the company.

Please approach the nearest labor office. Request their help in this matter. You can send a letter along with all medical evidence through registered post. At the bottom of the letter, write CC to LEO, the address of the labor office. You can seek the help of an advocate for a well-drafted letter.

It may not be in your best interest to continue with that organization, but you can fight for your statutory rights, i.e., maternity benefits, gratuity, etc.

There is another thing that I need to know if you can clarify. If I want to join a new organization after my maternity leave is over and until that time if I did not receive my MB claims, what should I do? I work because I need money to pay my bills, so I have to search for jobs.

Clarification on Maternity Leave

You should have clarified whether your maternity leave is under the ESI Act or the M.B. Act. Your sanction of ML by MD and subsequent telephonic communication about your termination while on ML is verbal. The act of denial of ML and termination during the ML by the company is in blatant violation of the legal provisions and is grossly unjust. The company officials have committed grave and illegal acts against you.

But everything is done verbally. So my advice is as follows:

1. Don't panic and do not, I repeat, do not resign in a huff.
2. Engage a good labor lawyer and send a suitably drafted letter putting all sequence of events factually, chronologically, and demanding full maternity benefit.
3. Since the company cannot legally terminate your services, ignore all verbal communication and join duty after your ML. If they do not allow you to rejoin, threaten them with legal action and follow up the same in consultation with your lawyer.

If you have to leave the job, it has to be an honorable exit after receiving all legal dues, including full ML with benefits.

Regards,
Vinayak Nagarkar HR-Consultant

Dear Aditri, I have been following the entire discussion and conversation that is going on over the matter. The learned members have dug out the reasons. I am sure that you are well-qualified from your postings and replies made to the queries raised by the members. It is disheartening when literate and qualified people act like illiterate and ignorant. Every day, there are advertisements on TV, electronics, and print media about the new MB Act-2017 to raise awareness among the public.

It is not useful to discuss all these occurrences after they have happened, but it is important for others to be informed. If a member is under ESI, you will have no problem; otherwise, the employer may pose challenges.

You may have made a mistake, but your employer is obligated to provide benefits under the M.B. Act and cannot terminate you. This will not happen automatically; you have to fight against the injustice done to you. Have you received any termination letter? If not, inform your HR that you are ready to resume duty as everything is in order. Be present in the office on the specified date and observe the situation.

If there are no developments from your office, you are free to seek assistance from the nearest labor office with legal representation.