Navigating Maternity Return: Can We Legally Offer Half-Day Work-from-Home with Adjusted Salary?

Dear All,

One of our employees is completing her maternity leave benefits, and now she wants to return with a half-day work-from-home option by compromising on salary for 2-3 months.

Salary Adjustment for Half-Day Work-from-Home

Please confirm if we can pay half salary in such cases, as all her statutory contributions like PF will be based on the lower salary, and we cannot reduce the basic salary.

Guidance Needed on Legal and Statutory Compliance

I need your guidance on the following:

1. Is such an arrangement allowed by law?
2. How do we manage statutory benefits when the salary is on a half-day basis?
3. If we can allow this, what precautions should we take?

Please advise on the same.

Hi, If it is mutually agreed between the employee and the employer, then I don't think there will be any statutory issues. However, it is better to request a letter from the employee stating that it is her own decision and not out of compulsion from the employer. If possible, encourage the employee to work from home on a full-time basis, for a minimum of 7-8 hours a day. During future PF claims, these non-chargeable paid (NCP) days might be questioned by PF authorities.

Please also note that even after completing the 182 days of maternity leave period, if necessary based on physical conditions, the employee has the option to extend the leave with pay for another month, provided she submits proper medical proof supported by a gynecologist's certificate.