Is Maternity Leave Possible Without ESI Coverage in Private Organizations?

Dear Experts,

I would like to ask if any female employee has been working in a private organization for the past year, considering the organization is not covered under the ESI Act. Would she be eligible for maternity leave of 182 days? Could you please advise if ESI coverage is necessary to avail maternity benefits in any private organization?

Regards,
Krishna Chaitanya

Dear Krishna,

Coverage of an employee under the ESI Scheme is determined by the threshold salary. In such a situation, the employee not covered under the ESI Scheme for whatever reason would be entitled to maternity benefit under the MB Act, 1961 provided the Act applies to the establishment and the employee has worked for 80 days therein during the preceding 12 months' period prior to the expected date of her delivery.

Dear sir,

If an employee has completed her maternity benefit with 182 days and later wishes to extend the leave for 3 months, the organization has options:

1. They can allow her to extend her leave as per her request.
2. If not, the organization has the right to terminate her services due to the leave extension.

I am seeking your suggestion on the best practice in this particular issue and how it may impact the employee's service and gratuity period.

Regards,
Krishna Chaitanya

Hi,

After the completion of 182 days of maternity leave, a further extension of one month is to be allowed for physical illness, subject to authorization by a doctor. Any additional extension may be considered on a humanitarian basis without salary. At the time of separation, if she is qualified for gratuity, the gratuity should be cleared by the employer.