Understanding the Maternity Benefit Act: Can Someone Clarify Its Applicability for Me?

Hi everyone,

I am a virtual HR Manager for three companies in Hyderabad. To be honest with you, I am aware of the Maternity Benefit Act but would like clarity on its applicability. If anyone can provide detailed information on this, it would be greatly helpful.

I look forward to your reply as soon as possible.

Shankar

"Positive thinking people will not let down others."

Hi,

Please find below the MATERNITY BENEFIT ACT, 1961.

APPLICABILITY

This Act is a central legislation, which provides maternity benefits and is applicable to factories covered under the Factories Act, 1948. It also applies to Shops and Establishments in which ten or more workers are employed or were employed on any day of the preceding twelve months.

The provisions of this Act do not apply to any factory or establishment to which the provisions of the Employee State Insurance Act, 1948 apply. The Rules have been framed under this Act, according to which the Inspector of Factories is ex-officio Chief Inspector under this Act in respect of factories registered under the Factories Act, 1948.

Definitions.- In this Act, unless the context otherwise requires,-

(a) "appropriate Government" means, in relation to an establishment being a mine, the Central Government and in relation to any other establishment, the State Government;

(b) "child" includes a still-born child;

(c) "delivery" means the birth of a child;

(d) "employer" means -

(I) in relation to an establishment which is under the control of the Government, a person or authority appointed by the Government for the supervision and control of employees or where no person or authority is so appointed the head of the department.

(ii) in relation to an establishment under any local authority, the person appointed by such authority for the supervision and control of employees or where no person is so appointed, the chief executive officer of the local authority;

(iii) in any other case, the person who, or the authority which, has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to any other persons whether called a manager, managing director, managing agent, or by any other name, such person;

(e) "establishment" means a factory, mine, or plantation, or an establishment to which the provisions of this Act have been declared under sub-section (1) of section 2 to be applicable;

(f) "factory" means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);

(g) "Inspector" means an Inspector appointed under section 14;

(h) "maternity benefit" means the payment referred to in sub-section (1) of section 5;

(I) "mine" means a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952);

(j) "miscarriage" means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but does not include any miscarriage, the causing of which is punishable under the Indian Penal Code (45 of 1860);

(k) "plantation" means a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);

(j) "prescribed" means prescribed by rules made under this Act;

(m) "State Government" in relation to a Union territory, means the Administrator thereof;

(n) "wages" means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes -

(1) such cash allowances (including dearness allowance and house rent allowance) as a woman is for the time being entitled to;

(2) incentive bonus; and

(3) the money value of the concessional supply of food grains and other articles, but does not include -

(I) any bonus other than incentive bonus;

(ii) overtime earnings and any deduction or payment made on account of fines;

(iii) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force; and

(iv) any gratuity payable on the termination of service;

(o) "woman" means a woman employed, whether directly or through any agency, for wages in any establishment.

Hope the above-mentioned details would help you. Besides, the government has proposed to revise the medical bonus, but it has not yet come into force. The proposed copy is attached here.

KATYANA

Dear Shankar,

Greetings!

Application of Act:

(1) It applies, in the first instance, to every establishment being a factory, mine, or plantation, including any such establishment belonging to the Government. Provided that the State Government may, with the approval of the Central Government, after giving not less than two months' notice of its intention of doing so, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply also to any other establishment or class of establishments, industrial, commercial, agricultural, or otherwise.

(2) Nothing contained in this Act shall apply to any factory or other establishment to which the provisions of the Employees' State Insurance Act, 1948 (34 of 1948) apply for the time being.

Right to Payment of Maternity Benefit:

(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence immediately preceding and including the day of her delivery and for the six weeks immediately following that day.

Explanation - For the purpose of this sub-section, the average daily wage means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity, or one rupee a day, whichever is higher.

(2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of the employer from whom she claims maternity benefits for a period of not less than one hundred and sixty days in the twelve months immediately preceding the date of her expected delivery. Provided that the qualifying period of one hundred and sixty days aforesaid shall not apply to a woman who has immigrated into the State of Assam and was pregnant at the time of immigration.

Explanation - For the purpose of calculating under this sub-section the days on which a woman has actually worked in the establishment, the days for which she has been laid off during the period of twelve months immediately preceding the date of her expected delivery shall be taken into account.

(3) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks, that is to say, six weeks up to and including the day of her delivery and six weeks immediately following that day. Provided that where a woman dies during this period, the maternity benefit shall be payable only for the days up to and including the day of her death. Provided further that where a woman, having been delivered of a child, dies during her delivery or during the period of six weeks immediately following the date of her delivery, leaving behind in either case the child, the employer shall be liable for the maternity benefit for the entire period of six weeks immediately following that day of her delivery. But if the child also dies during the said period, then, for the days up to and including the day of the death of the child.

Payment of Maternity Benefit in Case of Death of a Woman:

If a woman entitled to maternity benefit or any other amount under this Act dies before receiving such maternity benefit or amount, or where the employer is liable for maternity benefit under the second proviso to subsection (3) of section 5, the employer shall pay such benefit or amount to the person nominated by the woman in the notice given under section 6, and in case there is no such nominee, to her legal representative.

Payment of Medical Bonus:

Every woman entitled to maternity benefit under this Act shall also be entitled to receive from her employer a medical bonus of twenty-five rupees if no prenatal confinement and postnatal care are provided for by the employer free of charge.

Leave for Miscarriage:

In case of a miscarriage, a woman shall, on production of such proof as may be prescribed, be entitled to leave with wages at the rate of maternity benefit for a period of six weeks immediately following the day of her miscarriage.

Leave for Illness Arising out of Pregnancy, Delivery, Premature Birth of Child, or Miscarriage:

A woman suffering from illness arising out of pregnancy, delivery, premature birth of a child, or miscarriage shall, on production of such proof as may be prescribed, be entitled, in addition to the period of absence allowed to her under section 6, or, as the case may be, under section 9, to leave with wages at the rate of maternity benefit for a maximum period of one month.

Dismissal During Absence of Pregnancy:

(1) When a woman absents herself from work in accordance with the provisions of this Act, it shall be unlawful for her employer to discharge or dismiss her during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service.

(2) The discharge or dismissal of a woman at any time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus referred to in section 8, shall not have the effect of depriving her of the maternity benefit or medical bonus. Provided that where the dismissal is for any prescribed gross misconduct, the employer may, by order in writing communicated to the woman, deprive her of the maternity benefit or medical bonus or both.

Any woman deprived of maternity benefit or medical bonus or both may, within sixty days from the date on which the order of such deprivation is communicated to her, appeal to such authority as may be prescribed, and the decision of that authority on such appeal, whether the woman should or should not be deprived of maternity benefit or medical bonus or both, shall be final. Nothing contained in this subsection shall affect the provisions contained in subsection (1).

No Deduction of Wages in Certain Cases:

No deduction from the normal and usual daily wages of a woman entitled to maternity benefit under the provisions of this Act shall be made by reason only of:

(a) The nature of work assigned to her by virtue of the provisions contained in subsection (3) of section 4, or

(b) Breaks for nursing the child allowed to her under the provisions of section 11.

Penalty for Contravention of Act by Employer:

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. Where the contravention is of any provision regarding maternity benefit or regarding payment of any other amount and such maternity benefit or amount has not already been recovered, the court shall, in addition, recover such maternity benefit or amount as if it were a fine and pay the same to the person entitled thereto.

I hope this helps you to some extent.

Regards,

John N