Balancing Compassion and Business Needs: Can I Let Go of an Employee After Maternity Leave?

Hi, I have an employee I hired on Aug 25 with an 8-month probation offer letter. She took 7 sick leaves within 2 months of joining and in October told us that she is pregnant. On Dec 15, she went for a premature delivery. Our business is based out of Ahmedabad, Gujarat. We have less than 10 employees; hence, the maternity act does not apply to us. On a humanitarian basis, we gave her 30 days of paid leave. She later extended her leave and went on unpaid leave, joining back just now on April 4. Now again, she has already taken 4 leaves since April 4.

I have a business to take care of, and I recently received a new project that I want someone to manage. I cannot rely on her and assign her any responsibilities. What are my options? Can I terminate her due to the "unable to fulfill job requirements" clause?

Termination After Maternity Leave

Since she has rejoined after pregnancy, the Maternity Benefits Act will not apply anyway. You are free to terminate her employment by following the normal regulations, including giving her a chance to defend herself. You will need to give notice and conduct a domestic enquiry. However, since you are a small company with less than 10 employees, some of the regulations may not apply. Check the Shop & Establishment Act and Industrial Dispute Act relevant to your state to decide the process.

I am on a PIP this month. If I terminate during this process, am I eligible for maternity salary? Next month on the 17th, I plan to take maternity leave, and I have submitted all the necessary documents related to maternity benefits to the ESIC office. My company has also approved my leave. Will I receive maternity salary?

If you have informed them of your pregnancy, they cannot terminate you until you have availed yourself of maternity benefits.