Seniors, kindly advise:

My company is a private limited (pvt ltd) entity operating in the service industry. We are in the process of shutting down one of our divisions due to its non-viability and poor performance of the service product. Among the employees affected by this situation is a pregnant woman. The question is whether we can terminate her along with the other employees from the division.

Thank you.

From India, Mumbai
Acknowledge(0)
Amend(0)

Dear Jayashree, Maternity Benefit act gives protection to every pregnant women employed by the organisations. Thus you cannot terminate an pregnant employee.

Acknowledge(0)
Amend(0)

Termination of Employees and Maternity Considerations

The question of terminating other employees and one female employee who is pregnant does not arise at all. As per your information, you are closing your unit for economically non-viability reasons. Furthermore, you have mentioned that your female employee is pregnant. Is she currently on maternity leave? It would be most appropriate to provide closure compensation as per the Industrial Disputes Act, 1947 to all employees, including the female employee.

Payment of Maternity Benefits

Regarding the payment of maternity benefits to the female employee, it depends on when she will be on maternity leave, the date of the closure of your unit, etc.

From India, New Delhi
Acknowledge(0)
Amend(0)

Thank you, Manoj and Srinath.

Srinath Sai Ram, will the payment be under the following 25FFF: "PROVIDED that where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman under clause (b) of section 25F shall not exceed his average pay for three months."

ML for the colleague would be applicable 3 months after closure. Kindly guide further.

Thank you.

From India, Mumbai
Acknowledge(0)
Amend(0)

With regard to compensation, you may work out the same after a discussion with affected employees.

Consequent to closure, the question of ML payment does not arise. If employees are covered under ESI, they can avail the same.

From India, New Delhi
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.