Navigating ESIC and Maternity Benefits: Who Covers Salary When ESIC Denies Cash Benefits?

Query Regarding ESIC & MB Act

There is one employee who joined us on 5th Oct 2020, and she was pregnant at the time of joining (3.5 months). We covered her under the ESIC Act as her salary is 21K.

Her expected delivery date is the end of February 2021.

Question on Salary Payment for 26 Weeks

Now, my question is, who will pay the salary to her for 26 weeks? When I contacted the local ESIC department, they said she is only eligible for medical benefits, not cash benefits from ESIC because the Insured Person (IP) should be 9 months old.

Does the company have to pay her salary? If yes, then why? The company already covered her under ESIC, and the company is contributing to ESIC. If she does not meet the ESIC norms, it is not the company's fault.

Alternatively, if the company does not have to pay her salary in this case, it will be a loss for the employee because ESIC has denied the benefits, and the company will also deny them.

Please give me your suggestions. I hope you understand my point. If there is any confusion, please let me know.

Thanks,

Jogendra Singh

[Phone Number Removed For Privacy-Reasons]

In the situation where ESIC has denied cash benefits to an employee due to not meeting the eligibility criteria, the responsibility of paying the salary during the maternity leave period typically falls on the employer. Here's a breakdown of the scenario and possible steps to address it:

Understanding the Situation
- The employee was covered under ESIC but was informed that she is not eligible for cash benefits due to not meeting the required criteria.
- The expected delivery date is approaching, and the employee will require maternity leave for 26 weeks.

Employer's Responsibility
- As the employer, it is crucial to ensure that the employee receives her entitled maternity benefits, including salary during the maternity leave period.
- While ESIC may cover medical expenses, the company is responsible for providing the cash benefits during maternity leave if ESIC denies them.

Legal Perspective
- According to the Maternity Benefit Act, 1961, employers are mandated to provide paid maternity leave to eligible employees.
- In this case, since ESIC has denied cash benefits, the employer should adhere to the legal requirements and provide the necessary financial support to the employee.

Steps to Take
1. Review the company's maternity leave policy and ensure compliance with the Maternity Benefit Act.
2. Communicate with the employee regarding the situation and assure her that the company will provide the required salary during maternity leave.
3. Document the decision and arrangements made to support the employee during this period.

Seeking Legal Advice
- If there are uncertainties or legal complexities, it is advisable to consult with legal experts or HR professionals well-versed in labor laws to ensure full compliance and fair treatment of the employee.

By fulfilling the obligation to pay the employee's salary during maternity leave, the company demonstrates its commitment to supporting employees during significant life events and upholding legal responsibilities.