Navigating Maternity Benefits: What Happens if Your Contract Isn't Renewed?

My wife has been working in a software company for the last 2.5 years. ESIC is also deducted from her salary. The service contract is renewed on a yearly basis. However, now that she is taking maternity leave as she enters the eighth month of pregnancy, the company is refusing to extend the service agreement. There is only one month left before the service agreement expires. Can we still apply for maternity benefits and receive a salary under maternity benefits through ESIC even if the service contract is not extended?

Hi, as your spouse comes under the purview of ESIC, she can avail of the maternity benefit through ESIC. The company not willing to renew the contract is not right. Continuance with the company is a must.

Since your spouse is entitled to maternity benefits based on her past contributions, the ESIC will provide her with maternity benefits even if her service has been terminated.

Can he receive a salary under ESIC maternity benefits?

She will receive benefits such as 26 weeks of leave from the ESIC.

Should the leave be paid or not? If it is paid, will ESIC cover the salary because the company should not extend the service agreement?

The leave will be paid leave. Since the leave is taken during her benefit period, it should be paid leave, and it is the responsibility of the ESI to pay it irrespective of whether the employee has left the company or become out of coverage. You may contact the ESI and start availing the medical benefits now. If you visit the member portal of ESI, this entitlement will be shown there itself.

Procedure to Get Salary from ESIC During Maternity Leave

I am currently eight months pregnant, and I have already sent the application for maternity leave to HR. However, their reply stated that my service agreement ends on March 31, 2023, and the company refuses to extend it. They cannot sign any documents related to the ESIC application, such as the self-declaration required for maternity benefit claims. My ESIC card is valid until June 30, 2023, but the company is not supportive. They mentioned that since my service agreement is ending soon, they are unable to take any action.

What should I do in this situation?

There is no need to get any certificate from your HR person. You can call the Medical Officer, who will issue a sickness report that can be given to your HR Manager. Once you start your leave, HR can mark "ESI Leave," indicating leave without pay only. The employer has no cost to incur, as the ESI Corporation will pay the salary during the maternity days.

I didn’t understand "My ESIC card valid till 30th June 2023." What does that mean? There is no validity to an ESI card. If you have paid contributions for a minimum of 80 days in the two contribution periods (each lasting six months) before your maternity leave, you should be eligible for leave from ESIC. Visit the Medical Officer and provide an update in this forum. Please do it as soon as possible.

Medical Officer in ESIC
Does a medical officer mean someone who is seated in the ESIC dispenser? Can I inform the ESIC medical officer that my service agreement ends on 31st March 2023 and it is not extended by the employer, and there is no support from the company's side?

Understanding ESIC Entitlements

No need to mention your agreement with the company as the Employees' State Insurance Corporation (ESIC) is not concerned about these matters. The only thing you need to do is visit the ESI dispensary to which you are attached and consult the medical officer there. He will provide you with further guidance. They will not inquire about your service continuity; they are solely interested in the contributions the company has remitted for you, which will be accessible on the online portal. Since you have made contributions in the past, it is your entitlement and right.

Finding Your ESI Dispensary

I believe you have never utilized the services of ESIC, which is why you may be confused about the medical officer and the dispensary. You can find the name of the dispensary on your ESI ID card (it should be a printed paper with your photograph and your family's affixed therein, signed across by the employer). If you have not received the card, ask HR for the E-pahchan card of ESIC.

Addressing Contribution Issues

If they also refuse to provide it, then it may indicate that there is an issue with the contributions not being paid. In that case, you can approach the ESIC and file a complaint. They will handle the situation accordingly!