Let us get the following legal aspects very clear:
1. Dismissal or discharge of pregnant woman employee is prohibited only during maternity leave as per the Act (i.e., after the employee serves notice of maternity leave) and such dismissal or discharge is on account of her absence from work thus.
2. In the event of discharge or dismissal for gross misconduct at any time during her pregnancy, a pregnant woman would be entitled to maternity benefits.
3. As it is not very clear whether the pregnant woman employee was discharged for poor performance during maternity leave or prior to that, she is entitled to full maternity benefit. However, if she is discharged during maternity leave, that would be ipso facto unlawful as per Section 12 of the MB Act. The same is reproduced below:
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.
(2) (a) The discharge or dismissal of a woman at any time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus referred to in section 8, shall not have the effect of depriving her of the maternity benefit or medical bonus:
Provided that where the dismissal is for any prescribed gross misconduct, the employer may, by order in writing communicated to the woman, deprive her of the maternity benefit or medical bonus or both.
2*[(b) Any woman deprived of maternity benefit or medical bonus, or both, or discharged or dismissed during or on account of her absence from work in accordance with the provisions of this Act, may, within sixty days from the date on which order of such deprivation or discharge or dismissal is communicated to her, appeal to such authority as may be prescribed, and the decision of that authority on such appeal, whether the woman should or should not be deprived of maternity benefit or medical bonus, or both, or discharged or dismissed shall be final.]