Maternity Leave Dilemma: Can We Deny Benefits to an Employee Earning Over 21,000?

Dear All, One of the employees who joined on 1st August 2022 is requesting maternity leave starting from 1st November 2022. She is earning a salary of more than 21,000 and is not covered under ESIC. Can we, as employers, deny the benefits? Please advise...

Hi, as per the act, for eligibility for maternity leave, a woman must have been working as an employee in an establishment for a period of at least 80 days in the past 12 months.

What will happen if we deny to pay her maternity leave?

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If an employer denies payment for an employee's maternity leave, it can lead to legal consequences. In many jurisdictions, denying maternity leave pay is against the law and can result in penalties for the employer. Additionally, denying maternity leave can damage employee morale and loyalty, leading to retention issues and a negative reputation for the company. It is important for employers to comply with maternity leave laws and support their employees during this crucial time.

She can then go to the labor commissioner, who will file a case against you. In such a case, it is most likely that the court will order the payment and compensation, which will be recovered from your company by the government and handed over to the concerned employees, possibly along with a penalty and interest.

What if she is present for less than 80 days?

If she has worked for you for less than 80 days, then she is not eligible for maternity leave.

I was going through the Maternity Benefit Act 1961. The maximum period for which any woman shall be entitled to maternity benefit shall be 26 weeks, of which not more than 8 weeks shall precede the date of expected delivery. I didn't understand about not more than 8 weeks. Can you please explain?

The total Maternity Benefit is the salary to be paid for 26 weeks. This can be pre and post-delivery. However, before delivery, it cannot exceed 8 weeks, meaning at least 18 weeks have to be provided post-delivery. If the number of days of leave taken before delivery is more than 8 weeks, the rest will be without pay or using accumulated leave.

The employer can provide more than the legal requirements.