Maternity Policy Dilemma: Should We Implement One for Our Small Sales Office?

Dear Seniors, Our company does not currently have any maternity policy in place. However, we now have two maternity cases within the company. Should we consider implementing a maternity policy moving forward? It is important to note that both maternity cases are from our branch office (sales office) where the staff count is less than 10. Please advise on how we should proceed in this matter. Thank you.

It is not clear whether the sales branch office is to be treated as separate or if it will be considered as part of the cumulative total. More facts are needed to examine this. Regardless of whether the applicability is there or not (employee strength >10), it would be a commendable welfare measure to provide maternity benefits to women employees eligible as per the MB Act 1961.

Our company does not currently have any maternity policy in place. However, under the MB Act 1961, female employees are entitled to certain benefits. We now have two maternity cases to address. Both cases should be handled in accordance with the provisions of the MB Act 1961, as it is mandatory for every organization to comply with these regulations.

Maternity Benefits Eligibility

If any female employee has been working in the company for at least 9 months, she is eligible for maternity benefits (MB).

Proposal for Maternity Benefits

As per the MB Act of 1961, create a proposal for maternity benefits and present it to the management. It is mandatory for every company that employs women to adhere to the provisions of the MB Act of 1961. No company has the right to deny the benefits outlined in the Act.

Legal Recourse for Denial of Benefits

It is important to communicate to the company's management that a female employee has the legal recourse to file a case against the company if it refuses to provide the entitled benefits.

You have mentioned that in your sales office, there are fewer than 10 employees.

Applicability of the Act

The act states that it applies to any establishment with more than 10 employees.

Definition of "Establishment"

Sec 2(e) of the act defines "establishment" as:

(i) a factory;

(ii) a mine;

(iii) a plantation;

(iv) an establishment where persons are employed for the exhibition of equestrian, acrobatic, and other performances;

(iva) a shop or establishment; or

(v) an establishment to which the provisions of this Act have been declared under sub-section (1) of section 2 to be applicable.

Since the sales office probably has a shop and establishment license, it is covered in the definition above. If it has fewer than 10 employees, I suppose it is exempt.

State-Specific Considerations

However, you also need to check the shop & establishment act of your state because some states have included additional clauses extending the applicability of the Maternity Benefit Act to offices with fewer than 10 employees.

Management's Willingness to Comply

Despite the exemption, if your management is willing to comply with the law, that is commendable. You cannot make an assumption, so you should officially inform them of the cases and ask whether they would like to cover the employees even if not strictly applicable.