Facing Pay and Bonus Issues During Maternity Leave: What Are My Rights Under the Maternity Benefit Act?

I have been working as an FOE since 2013 in a private hospital. My due date is 1st January 2018. I sent an email on 5th September because my doctor informed me about the pre-delivery situation. I am on leave from 10th September 2018. My HR department declared increments for all employees, but not for me. When I asked for a reason, they pointed to my maternity leave of 6 months. After the approval of my maternity leave, they refused to pay me on a monthly basis and stated that they would provide me with all 6 months' salary upon my return. Additionally, they declined to give me the Diwali bonus. I seek assistance with the details of the Maternity Benefit Act 1961, including information on salary, rules of leave, increments, and bonuses.

Increment

It is not mandatory to give an increment. If you are left out from the salary increment even for unjustified reasons, then also nothing can be done as the annual salary hike is out of the purview of labor laws.

Withholding Salary During Maternity Leave

It is illegal. Maternity leave cannot be the grounds for the stoppage of the monthly salary.

Diwali Bonus

Every employer must pay a statutory bonus to eligible employees. However, most employers pay before the Diwali festival, hence the name "Diwali Bonus." Apart from the timing of the bonus disbursement, the question arises as to whether you are eligible to receive the statutory bonus. Therefore, please confirm your basic salary and gross salary.

You can file a complaint with the labor office in your area for the non-payment of wages. However, provide the information asked in point (c) above. Wait for other seniors' replies, and then we will decide the future course of action.

Thanks,
Dinesh Divekar

Thank you so much, sir. All the members this month received increments, even the office boy. In our center, there are only two responsible persons: myself and my senior or assistant.

At the time of my maternity leave approval, the HR department approved my leave. Now they say I am on unpaid leave because my due date is December 2018. However, I have 30 days of earned leave balance and also new financial year leave up to 30 days.

Every year before Diwali, we receive a bonus equivalent to one full month's salary. As per the HR department, this year I am not eligible for the same. However, I am working until September 10, 2018. Please help me solve my matters.

I believe that the expected date of your delivery is 01-01-2019. The date of intimation was 05-09-2018. Your absence on account of maternity actually started from 10-09-2018 as already intimated. Therefore, as per sec. 6(5) of the Maternity Benefit Act, 1961, your employer is bound to pay the amount of maternity benefit, i.e., the salary for the period from 10-09-2018 to 31-12-2018 in advance. The benefit for the subsequent period of leave should be paid to the woman within 48 hours of the production of such proof as may be prescribed that the woman has been delivered of a child. Therefore, any practice adopted by the employer to pay the Maternity Benefit contrary to the above provision is illegal.

Increment and Maternity Leave

Increment, being the periodic hike in the salary granted by the employer to his employees subject to certain conditions, cannot be claimed as a matter of right unless as a measure of discrimination or victimization. Normally, no increment would be sanctioned during the course of leave other than casual leave. Even if sanctioned, the monetary effect would be from the date of rejoining only. Before making any complaints in this regard, better make a representation to your management citing the above provision of the MB Act regarding the procedure of payment during the maternity leave period.

As other learned members have explained, in almost all cases, an increment cannot be claimed as a right. While not granting an increment on the pretext of availing maternity leave is also not justifiable, as maternity leave is also considered 'service rendered' being a statutory requirement. However, I don't think any employer would give this reason in writing. Altogether, you have availed 6 months of combined leave. You did mention some Leave Without Pay (LWP), isn't that so? Sometimes, this LWP can become a cause for denying benefits as a normal practice. If you are covered under the Bonus Act, you will have a case to fight it out as this is based on the past year.

Suggested Approach

What could be suggested now is to better put your case across with your HR/CEO in a conducive approach without risking spoiling the chances, as it appears your establishment is not large enough to fight it out through channels like a Union or grievance cell. All the best.

My join date of organizations is 30 Nov 2013. In this Nov 30 Nov 2018, I completed 5 years. They consider Sep-Oct as unpaid leave. After Nov, they consider my leave as maternity leave. I have a question: if I resigned after 6 months of maternity leave, resigned in May, am I eligible for my gratuity? Is my maternity duration considered under 5 years or not? So, for the duration of Nov 2013 to May 2018, is the maternity duration (Nov 18 to Apr 18) considered for gratuity or not? Please explain to me.

I am on maternity leave from September 10, 2018. November 30, 2018, is the date when I completed my 5 years. The company considers September and October 2018 as unpaid leave after the approval of maternity leave. Now they have refused to give me the Diwali bonus and salary for the same period.