Can My Company Legally Make Me Repay Maternity Leave Pay If I Resign?

Hi, I work for an MNC in Gurgaon. I have recently returned from my paid maternity leave. My question is this: If I were to resign now (I now feel I am unable to handle work and home), am I required by law to pay back my 6-month maternity leave pay? Can my firm impose this clause on me now?

I have not signed any bond/document. However, there is a generic policy document on the firm's website that states I will have to return my maternity pay if I resign within a year of joining. I wish to know if this can be upheld by law if challenged?

An Act to regulate the employment of women in certain establishments for a certain period before and after childbirth and to provide for maternity benefits and certain other benefits.

In my opinion, I do not think a company can make a rule of returning the maternity benefit received, and if imposed, it can be challenged.

No policy or rules of an organization, whether it belongs to the public or private sector, can override the provisions of any statute passed by the Parliament or a State Legislative Assembly. The Maternity Benefit Act, 1961, is a protective and beneficial legislation to ensure the employment rights and benefits of women employees during the prenatal and post-maternity phases in consonance with the Directive Principles of State Policy as set out in Art. 39 and in other Articles, especially Art. 42 of the Constitution of India. Therefore, such a legal benefit granted to a woman employee because of her pregnancy cannot be revoked because of the termination of her employment for whatever reason afterwards.

Therefore, you need not pay back the amount of maternity benefit you received.

My suggestion is that you should join for 1-2 months or 15-20 days and then resign, stating that it is difficult for you to manage your office and home properly. This will save you from such confusion.

Regards

A rather simple answer to your query - Nope. There is no provision under the law that your employer can demand the benefits (cash or kind) paid to you on account of maternity under the provisions of the Maternity Benefit Act.

However, consider the flipside - if the employer has extended all the benefits to you as per the mentioned act, and now you would want to quit. To deter employees from doing so, they may mention it in the policy. However, there is no provision under the law to demand the benefits back.

Maternity benefits and their impact on employment

Maternity benefits are granted by law for women's empowerment and welfare. Firms pay such benefits to entitled employees, but for them, it is like paying 6 months' wages without working, which adds to their costs. While no law can stop you from leaving without any fear of having to repay anything to the firm, it should be borne in mind that such actions affect working women at large. Many firms decline to hire women employees because of these additional costs.

Legal perspective on repayment of maternity benefits

Ideally, you should work and then, after a few months, leave if the situation demands. Specifically to your query, the generic directive about the repayment of maternity benefits holds no water and is in violation of existing laws.

Source: https://economictimes.indiatimes.com...w/64372836.cms

Hi Nilofar,

Laws passed by the Indian Parliament are supreme. No firm or organization can override them. Therefore, any monetary benefit granted to a woman employee because of her pregnancy cannot be taken back due to the termination of her employment from either side.

So, paying back the amount of maternity benefit you received is ruled out.

Regards,
Dinesh

The company should technically withdraw its anti-social statement of recovering maternity benefits extended to an employee that is mandated by law and apologize to the employee for a casual attitude towards the law.

If the company has recovered such amounts from its employees, the monies recovered should be returned with interest to its former employees.

You are not required to return your maternity benefit to the company even if you resign from your service just after enjoying the 26 weeks of maternity leave. However, you are required to serve a notice period as per the terms of your employment/appointment. Serving the notice period has nothing to do with your pregnancy or the enjoyment of maternity benefits.

Understanding Maternity Benefit Policy

To address your query, first, read the Maternity Benefit Policy. If you joined the organization at least 6 months before the expected delivery, then you are eligible for maternity benefits. After taking the benefit and delivering, if you are unable to work and can provide a medical certificate and prescription, you can receive a benefit for another 6 months, although this will not be payable.

However, if you have stated that you are not willing to work after maternity leave, and the company has already provided you with the maternity benefit once, and you have satisfied the eligibility criteria for receiving the Maternity Benefit, then the employer cannot ask you to pay it back.

Rights Under Physical Fitness

Another right you have is under physical fitness, where you can request resignation and lead your life as you wish.

If an employer forces you to pay back maternity benefit amount, you can file a complaint against him at the area's Labour Department. However, your working days in the company should not be less than 80 days in 12 months for eligibility under the Maternity Benefit Act. Your employer cannot take the money back as it is your right. I would also like to suggest that you refer to the Maternity Benefit Act for a better understanding of your rights.