Is It Legal for Hospitals to Delay Maternity Pay Until After Leave? Seeking Advice on Salary and Bonuses

Dear Advisors,

Please help us with the below query. My wife has been working in a hospital for the past 8 years, which follows NABH standards. Recently, HR informed us that her salary for the 6 months of maternity leave will not be paid, and it will only be paid when she resumes work after 6 months.

Could you please confirm whether her salary should be paid every month or only when she resumes work after 6 months? Additionally, we would like to know if she is entitled to Maternity Bonus and when it should be paid.

Thank you for your assistance.

Right to payment of maternity benefit

Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence. This period includes the time immediately preceding the day of her delivery, the actual delivery day, and any period following that day.

Notice of claim for maternity benefit and payment thereof

Any woman employed in an establishment and entitled to maternity benefit under the provisions of this Act may give notice in writing in the prescribed form to her employer. The notice should state that her maternity benefit and any other entitled amounts under this Act may be paid to her or a nominated person. It should also declare her non-availability for work during the maternity benefit period.

In the case of a pregnant woman, the notice should specify the date from which she will be absent from work, not earlier than six weeks from the expected delivery date. If a woman has not provided the notice during pregnancy, she should do so promptly after delivery.

Explanation: The average daily wage refers to the average of the woman's wages payable for the days worked in the three calendar months immediately preceding her absence due to maternity. Additionally, it is based on the minimum wage rate set under the Minimum Wages Act, 1948, or ten rupees, whichever is higher.

It is due to an apprehension of whether the employee will join back that the HR is saying that payment of salary for the maternity leave period will be paid only once she resumes work after the leave is over. But legally, she is entitled to leave pay every month, and you cannot pay it after she joins back.

Thank you for the details, Nathrao and Madhu. When I contacted HR, they informed that she can approach the legal route only after six months to claim the salary in case she is not paid after joining the duty. Currently, a promotion is also pending. Please guide on how to approach this legally without creating job insecurity. Thank you.

It is not as the HR has said. She can approach the appropriate authority once she is not paid her first month's salary. But before that, ensure that she will be joining the company and the company will not retaliate for her act of approaching the labor department.

Promotion and Employee Rights

Promotion is not a right of the employee. Therefore, if the employer thinks that her promotion can be postponed even for a year, you cannot defend.

Salary During Maternity Leave

In the matter of salary on a monthly basis during maternity leave days, the employee can make a decision whether to move legally or to accept the salary once she joins after six months. In the latter case, the employee-employer relationship will be maintained. She can receive the salary for the entire six months after six months and then continue peacefully. But in the former case, the labor department will direct the employer to pay your salary every month, but you cannot expect the same peaceful relationship. This will follow you even when you leave the present employment and join or decide to join another organization because a remark in the background verification about your approaching the Labor Officer for your rights will be viewed very negatively when another employer hires you.

Handling Salary Post-Maternity Leave

A company that insists the employee to wait for her leave salaries till she returns after the maternity leaves may even refuse to pay the salary once you join back after leave. In that circumstance, you can use the tool of administrative machinery, I feel. This is my advice on practical grounds.