Is Your Company Required to Provide a Creche? Understanding the Law for Firms with Over 50 Female Employees

I am looking for clarification regarding the law on companies providing a creche facility. If an organization has more than 50 female employees, is it compulsory for the company to open a creche within their premises?

In case the organization is unable to provide a creche facility, can the employees request reimbursement in lieu thereof? What if the organization denies both providing creche services or paying towards the same?

I have two kids under the age of 5, and arranging daycare for both is very expensive.

Understanding Creche Requirements Under the Maternity Benefit Act

After amendments to the Maternity Benefit Act, a difference in understanding has been created. While the Factories Act prescribes a creche for organizations employing 30 or more female workers, the Maternity Benefit Act has pronounced applicability for those having 50 or more employees.

The Factories Act applies only to factories as defined under clause 2(k) of the Factories Act involved in the manufacturing process defined under its clauses, whereas the Maternity Benefit Act applies to both factories and shops & establishments. It is settled that the court takes a view where there is larger coverage and better benefits. In this context, until any further clarifications or specifications come, the Maternity Benefit Act shall prevail over the Factories Act for the provisions of creche benefits.

An employer can be penalized for not providing a creche as per the penalty prescribed under the Maternity Benefit Act. However, the employee cannot ask for compensation in lieu of a creche facility.

You can file a complaint with the commissioner/appropriate authority under the Act and pursue having such facilities at your company.