Is My Friend's Wife Entitled to Maternity Benefits at a Small Branch Office?

Hello everyone,

My friend's wife has been working in a Pvt Ltd company (registered in Mumbai but has a branch office in Karnataka) that has fewer than 10 employees. She has been working there for over 4 years as a regular employee. The branch office falls under the Shop and Establishment Act, even though the company's total staff Pan India exceeds 200 employees.

Entitlement to Maternity Benefits

Is she entitled to maternity benefits? The employment contract does not mention maternity benefits, and there is no employment handbook. I would greatly appreciate your advice on her entitlement.

Thank you.

She is entitled to maternity benefits as the company as a whole has more than 10 employees.

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If you have any further questions or need clarification, feel free to ask.

Dear Nathrao,

First of all, thanks for your kind reply. Would you mind elaborating or sharing some guidelines/case laws that support the reasoning mentioned above?

Regards.

One will have to go by sheer logic.

Your company has more than 10 employees all over India and hence attracts the provisions of the MB Act (or benefits under ESIC). Just because one branch does not have 10 employees will not disentitle the employee benefits of Maternity.

Please wait for comments from other learned members also.

Section 2 in The Maternity Benefit Act, 1961

2. Application of Act.

(1) It applies, in the first instance,
(a) to every establishment being a factory, mine, or plantation, including any such establishment belonging to the Government and to every establishment wherein persons are employed for the exhibition of equestrian, acrobatic, and other performances;
(b) to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months: Provided that the State Government may, with the approval of the Central Government, after giving not less than two months' notice of its intention of doing so, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply also to any other establishment or class of establishments, industrial, commercial, agricultural, or otherwise.

(2) Save as otherwise provided in sections 5A and 5B, nothing contained in this Act shall apply to any factory or other establishment to which the provisions of the Employees' State Insurance Act, 1948 (34 of 1948), apply for the time being.

Section 2 (1)(b) of the MB Act clearly states the applicability is restricted to establishments where ten or more persons are employed.

Dear Allmail1983,

The company has branches in other parts of the country and more than 200 employees Pan India. The number of employees in some branches may be less than 10; however, does that put the company out of coverage of the MB Act?

In my opinion, the company is obligated to pay Maternity Benefits to eligible employees.

Thank you.

Maternity Benefit Act Applicability

If the Maternity Benefit Act, 1961 is applicable to the company located in Mumbai, the same will be applicable to all other branches located in India. Admitting that a branch located in Karnataka is registered under the S&E Act and has fewer than 10 employees does not mean that a woman employee is not eligible for maternity benefits. A branch is not a separate entity but part of the main company. EPF, ESI, IT, Maternity Benefit Act, etc., are all central legislations.

Clarification on Employment Contract

What do you mean by "The employment contract does not provide the maternity benefit?" Without worrying much, submit your claim to the management. The strength of the company as a whole should be taken into consideration, not just that of one branch.