Is My Employer Right to Deduct Salary for Maternity Leave After My Resignation?

Hi, my employer says that I am not eligible for maternity leave because I have not been working at their firm for the past 2.5 years. However, as per my understanding, to avail benefits under the Maternity Benefit Act 2017, a woman should have been working in a particular establishment for at least eighty days in the past twelve months. I joined their firm on 27th March 2017, and I found out about my pregnancy on 24th August 2018 (17 working months till date). I took my maternity leave from 1st April 2019 (25 working months till date), with my delivery date being 30th April 2019.

Their firm is a proprietorship with 10 working employees, including the pantry boy, driver, and site supervisors (excluding my two bosses who own the company). Although they granted me 6 months of leave (3 paid and 3 unpaid), the issue arose when I rejoined the office after completing my 6 months of leave. Four months after rejoining, my mother-in-law became ill (as she is on insulin and due to workload, she couldn't take care of herself), and I realized I had to leave my job to care for my family. However, my employer deducted one month's salary as compensation for the maternity benefit, stating that it was too early to resign and that I was not eligible for the maternity benefit. They mentioned that, despite this, they gave me 3 months of paid maternity leave to maintain a good relationship. So, I want to know, are they right? Was I not eligible, or do I have to compensate one month's salary?

Eligibility for Maternity Benefits

From the details given by the poster about the length of her service in the establishment prior to her actual date of delivery and the number of employees in the establishment on the very date of the commencement of her maternity leave, it clearly indicates her eligibility for statutory maternity benefits and the applicability of the Maternity Benefit Act, 1961 to the establishment.

Having said that, at the same time, it is also not clear to me from the narrative on what legal ground the employer holds that she was not entitled to maternity benefits despite sanctioning three months of maternity leave and another three months of leave without salary. If there had been any mention about the type of establishment and its activities in the post, it would have been possible to come to a clear-cut conclusion either way.

Similarly, the post is silent on whether she still remains in service after submitting her formal resignation, if any, and whether there is any notice clause in her contract of employment. Therefore, further clarification is essential from the poster to provide an exact answer to her query.

Madam, if all the particulars furnished in your posts are correct, your entitlement to maternity benefit as revised in 2017 with effect from 01-04-2017 cannot be disputed by your employer. His decision to deduct one month's salary as compensation is legal. Additionally, you are also entitled to a medical bonus under Section 8 of the Maternity Benefit Act, 1961.

You have the option to appeal under Section 12(2)(b) of the Act to the inspector for the area for the recovery of the full maternity benefit from the employer within 60 days from the date of his refusal.

The employer may be thinking that their firm is not a shop or commercial establishment within the meaning of it under sec 2(1) of the MB Act. Kerala HC had held that Architectural firms are shops for applying the ESI Act. Check whether the concerned state govt has notified such establishment under the proviso to sec 2(1) of the Act.

Varghese Mathew 9961266966 Tvm