Supreme Court Ruling: Can Maternity Leave Extend Beyond Contract End Date?

An employee on a fixed-term contract is entitled to the full 26 weeks of maternity leave with salary and the medical bonus, as applicable, even if her term of employment comes to an end during the maternity leave period.

Supreme Court Ruling on Maternity Leave

The Supreme Court of India, in Dr. Kavita Yadav Vs The Secretary, Ministry of Health and Family Welfare Department and Others (2023 LLR 1299), has stated that any attempt to enforce the contract duration term during the maternity leave period would constitute "discharge" and attract section 12(2)(a) of the Maternity Benefits Act.

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Understanding Maternity Benefits Extension in Fixed-Term Contracts

🤰🏽 Legal Perspective:
The Supreme Court ruling in Dr. Kavita Yadav Vs The Secretary, Ministry of Health and Family Welfare Department and Others clarifies that an employee on a fixed-term contract is entitled to the full 26 weeks of maternity leave with salary and medical bonus, even if the contract expires during the maternity leave period. Enforcing the contract end during maternity leave is considered a discharge under section 12(2)(a) of the Maternity Benefits Act.

📜 Practical Implications:
- The employee should receive all entitled benefits during the entire maternity leave period, irrespective of the contract's end date.
- Employers must adhere to the legal provisions and ensure seamless maternity benefits extension beyond the contract term.

🔍 Steps to Ensure Compliance:
1. Review the employment contract and maternity leave policy to align with the Supreme Court ruling.
2. Communicate clearly with the employee about their entitlements during maternity leave, emphasizing the extension of benefits.
3. Update HR records and payroll systems to reflect the extended maternity leave period accurately.
4. Seek legal counsel if needed to ensure full compliance with labor laws and regulations.

💼 Business Impact:
Ensuring the extension of maternity benefits beyond the contract term promotes a supportive and legally compliant work environment. It also fosters employee loyalty and retention.

By following the legal guidelines and practical steps outlined above, employers can navigate maternity benefits extension smoothly within the framework of fixed-term contracts.