Maternity Benefits Without ESIC: Can Employers Deny Paid Leave and Claims?

One of our female employees is not covered under ESIC. She will receive her wages for the maternity leave period directly from the employer; hence, all statutory contributions, including EPF or ESIC, need to be paid by the employer.

Maternity Benefits and Employer Obligations

Please confirm if this act by the employer is statutory or voluntary. Could an employer deny the employee from receiving maternity benefits such as paid leave and reimbursement of maternity claims?

Hi Pragya,

Maternity benefits under the Maternity Benefit Act, 1961

Maternity benefits are statutory as per the provisions of the Maternity Benefit Act, 1961. For eligibility, a female employee should work for at least 80 days in the previous 12 months before the expected date of delivery. Yes, "She will get her wages for the maternity leave period directly from the employer; hence, all statutory contributions including EPF or ESIC need to be paid by the employer." Here she will be eligible for paid leave of 26 weeks, and the rate of wages will be the average of the previous 3 months from the beginning of maternity leave.

Employer obligations and penalties

Regarding your last question, an employer can't deny the employee from providing maternity benefits like paid leave and reimbursement of maternity claims. If any employer contravenes the provisions of this Act or the rules made thereunder, he shall be punishable with imprisonment, which may extend to three months, or with a fine, which may extend to five hundred rupees, or with both. Hope this information helps you.

Best Regards, Vijay Singh Raghav

Hi,

If the employer is covered under the Maternity Benefit Act, then sanctioning 182 days of leave with salary is compulsory. Maternity benefit is statutory, and the employer can't deny it. If the employee is covered under ESI, she can claim through ESI.

Reimbursement of maternity claims

The obligation of the employer is limited to sanctioning 182 days of leave only, and there is no need to reimburse maternity hospital bills. However, if the employer is offering free mediclaim insurance, the employee should be allowed to use it for her delivery expenses.