Maternity Leave Dilemma: What Are the Legal Requirements for a Small Company with 8 Employees?

Dear HRs, Greetings! Our company is a private limited company with 8 employees. I have some queries regarding maternity leave as one of the employees is willing to apply for maternity leave, and she is currently expecting her first child.

Maternity Leave Queries

1. How many weeks of maternity leave should we approve for the employee?
2. How much salary should we pay during the maternity period?
3. Do we need to provide any other benefits besides salary?
4. Is the maternity law applicable to a company with 8 employees?

Can anyone please enlighten me on the same?

Hi,

Your 4th question is supposed to be the first question. The MB Act is applicable to all establishments employing 10 or more employees. You claim that your Company's manpower is 8 only. Please clarify whether your total manpower exceeded 10 in the past and now shrank to 8. If the total manpower has always been 8, then you will not come under the purview of the MB Act. As per the Act, 182 paid leave days should be given to the employee.

Thank you for your reply.

We started the company in the year 2015 with 5 employees, and in the same financial year, the employee count reached 15. Currently, we have 8 employees. Could you please confirm if we fall under the MB Act?

Hi,

The Act is applicable if, in the last 12 months, the total number of employees exceeds 10 employees. The Act is applicable to factories, shops, and establishments.

If the employee is covered under ESIC, then the Maternity Benefit Act is not applicable, and she needs to avail the benefits under the ESI scheme. Based on the above criteria, if the Act is applicable, then 26 weeks of paid leave need to be given to the employee.

Regards,

Adv. Manish Gadre
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