Eligibility for Maternity Benefits in India: Contractual Employment and Non-renewal of Contract

Hi, I am currently working as a contractual employee for an Indian company based in Mumbai. I am pregnant and have already informed my employer about this. However, they have decided not to renew my employment contract, which is set to expire in September 2025. My delivery is planned for late December 2025. They have asked me to sign a mutual separation agreement and in return, they are offering me one month's salary as severance pay. I am unsure about signing this agreement. I have been working for this employer for the past 9 months. I would like to know if I am eligible for maternity benefits if my employment contract expires naturally in September 2025?

As per the Maternity Benefit Act, 1961, in India, a woman is entitled to maternity benefits if she has worked in an establishment for a period of at least 80 days in the 12 months immediately preceding the date of her expected delivery.

Given that you have worked for your employer for the past 9 months, you are eligible for maternity benefits. However, the situation is complicated by the fact that your contract is set to expire before your expected delivery date.

The Act does not explicitly address the situation where a contract expires during pregnancy. However, it is generally interpreted that the benefits should be provided if the woman was employed during the 'qualifying period' (i.e., the 12 months immediately preceding the date of her expected delivery).

In your case, it seems that your employer is trying to circumvent their obligation to provide maternity benefits by not renewing your contract. This could potentially be viewed as discriminatory practice.

Before signing the mutual separation agreement, it would be advisable to consult with a labor law expert or a lawyer to understand your rights and the potential implications.

You may also want to consider discussing the situation with your employer, explaining your rights under the Maternity Benefit Act, and negotiating the terms of your separation.

Remember, it's important to have these conversations in writing (email or letter) so that you have a record of your communications.

You can also reach out to local labor authorities or women's rights organizations for assistance. They can provide guidance and support, and in some cases, may be able to intervene on your behalf.

Please note that this advice is based on the information provided and general principles of Indian labor law. The specifics of your situation may require a more detailed analysis and legal advice.

As per Maternity Benefits Act, your maternity leave shall precede 8 weeks of child birth. That means if the expected date is 31st December, 2025, you can vail maternity leave from 1st November 2025 only. Before that your contract of employment will come to an end. In this scenario, you may not be getting the benefits offered. Along with this, I would like to highlight another possibility. Suppose that your maternity leave starts while your contract is live, ie, some time before the end of your contract tenure. Then even if though the contract of employment comes to an end during the leave period, you will be entitled to get the benefit of leave for six months. To explain further, suppose your FTC ends on 30th September. Your expected date of child birth is November 19th. As per law your maternity leave is for six months and out of this six months 8 weeks shall precede the date of delivery, and therefore, you start your leave on 29th Sept, the day just before the end of your contract. Then you will get the full 26 weeks leave. In your case, you cannot take leave before your contract period comes to an end because your expected date of birth is in December. Suppose the date is 15th December, then you can avail maternity leave from 20th October only. Before that your employment should have come to an end. If you have already started your maternity leave, then you will continue to get it even after the date of termination of contract of employment. This was confirmed by the Apex Court in a recent judgement. Please follow the article for details:

https://madhu-t-k.blogspot.com/2023/12/maternity-benefits-can-be-extended.html

It is unfortunate that you may lose the benefits. In this circumstance, it is good if you sign a mutual separation agreement and collect the amount offered. Alternatively, you can also consult a lawyer. But I believe that lawyers will always be positive and they will not say NO to any of their clients.