Navigating Resignation During Maternity Leave: What Are Our Liabilities Now?

Dear Sir/Madam, This is in regards to an employee proceeding on maternity leave and resigning while still on leave. One of our employees proceeded on maternity leave from 1st Oct 2018, and we have paid the said employee full salary while on leave for the months of Oct 2018 and Nov 2018.

Resignation During Maternity Leave

Effective 21st Jan 2019, the employee, who is in a managerial role, has submitted their resignation with immediate effect. What will be our liability now?

Maternity Leave Clause

Our appointment letter clause is as follows: "6. Maternity Leave: Maternity leave will be granted to female employees in accordance with the Maternity Benefits Act. Maternity leave will be granted only if the staff member has the intention to return to work at the end of such leave."

The employee has privilege leave which was until 31st Aug 2018. We also have a notice period of 1 month.

Statutory Maternity Benefit

Statutory maternity benefit for a woman (employee) is provided in the form of authorized absence with salary/wages calculated on an average basis of her earnings during the immediately preceding 3 months for a period of 26 weeks. The only condition for the grant of this benefit is her completion of 80 days of service in the establishment during the 12 months immediately preceding her expected date of delivery, as certified by a registered medical practitioner. No other conditions can be added by the employer at their discretion.

Resignation and Maternity Leave

Resignation is the unilateral termination of the employment contract by the employee at will and is solely governed by the conditions of notice. Therefore, the grant of maternity benefit by the employer or its utilization by the employee cannot be a condition for the acceptance of resignation.

Based on the information provided in the post, her maternity leave extends until sometime in April 2019. Consequently, she could utilize the entire leave period and then resign, but she has opted to resign midway. This suggests that she has her own compelling reasons for doing so.

Hence, you have the option to adjust the notice period in consideration of her leave and proceed with accepting her resignation.