Maternity Leave Dilemma in Small Businesses: How Should I Support My Employee?

I have a small business with fewer than 10 employees. A lady who joined us three months ago needs maternity leave. Since the MB Act of 1961 applies to establishments with more than 10 employees, what leave policies should I implement for my organization? What do you think would be sufficient?

Dear Colleague,

It is highly commendable that you have good intentions as you explore how to help your employees, even though you are not covered by the threshold number of the Act and other labor laws. The government has set certain numbers of employees under each labor law with the intention of not hampering the establishment's growth and progress through inspections, administration, licensing, and so on.

Role Model Employer Practices

As a role model employer, voluntarily extending certain beneficial welfare provisions mentioned in the law, such as Maternity Leave, Casual Leave, Emergency Leave, and a Weekly Off system, is commendable. This will create a positive work environment. Even though this will incur a small cost, the impact it creates in the minds of employees will be significant, and in the long run, it will benefit the business too. You may consider covering your employees under a good Mediclaim Policy to take care of medical expenses.

Financial Considerations and Alternatives

If your business and financial position are not viable, then look for good Mediclaim Insurance Coverage for your employees, as well as implement a Weekly Off and Emergency Casual Leave/Medical Leave system for your employees.

Once again, our sincere appreciation.

Thanks,
Dr. P. Sivakumar
Doctor Siva Global HR
Tamil Nadu

The intention is appreciated, but before granting certain privileges, please remember that in India, it is very easy for privileges to become employee rights. Therefore, my advice is that if a particular law is not applicable to you, do not introduce it into your organization. Instead, wait for the date of application to come. Otherwise, for each issue, demands may arise from employees, and you could find yourself in trouble. Ignore this if not acceptable! This advice comes from someone who has been in the HR field for the last three decades.