Dear Anupam,
Why employees are placed under the Performance Improvement Plan (PIP)? They are placed under PIP in order to give a chance to the under-performing employee to improve the performance. It acts as a warning to the employee on what can happen if he/she does not improve the performance. During PIP, the reporting manager or HOD is expected to invest time in the underperforming employee so that he/she elevates his/her performance.
Now in your wife's case, disclosure of the pregnancy has become the cause of the PIP, which is solely illegal. Her organisation is using PIP as a tool to checkmate the woman employee. Therefore, nothing wrong per se to approach Labour Officer (LO) for the withdrawal of the PIP letter.
By the way, how many employees report to your wife? Under the provisions of the Industrial Dispute Act, 1947 only "workman" can approach the LO. Those who are the supervisors and above cannot approach LO. However, your wife's case is different and denial of maternity benefits certainly comes within the jurisdiction of the office of LO.
In your wife's case, it is not a direct denial of the maternity benefits but implied denial. Therefore, I stand by my recommendation to approach the LO. In her application, let her write that disclosure of maternity has become the cause of the letter issued to her.
Nevertheless, before approaching LO, she may put up application addressed to the MD for the withdrawal of PIP. If MD remains inclement then the only option will be left is to approach LO.
General Comments for the HR Fraternity: -The way HR has issued a letter to the employee speaks volumes about that HR professional. That person is so confused that he/she has not understood concepts of the PIP when the employee can be terminated and so on. On the one hand, HR wants to engage their employee. On another hand, they also work to disengage the employees. When a woman employee is denied maternity benefits, obviously other employees will have sympathies with her and it impacts the morale of the employee.
Thanks,
Dinesh Divekar