Dear all, On one of the WA groups of HRs, the Administrator, Mr. Rajaram Thorve, has raised the topic for discussion on Impact of Maternity Leave on Company Finances and Women's Career. He has posed the following questions for discussion:
Q. 1 Is it true that the maternity leave of six months and the crèche are a boon for female employees but a curse for organizations in compliance?
Q. 2 Is there any fault of female employees when the maternity leave or crèche facility is to be given by the employer as per the MBA?
Q. 3 Is there so much burden on organizations in providing maternity leave of six months twice to female employees in a lifetime, considering their contribution to the organization?
Q. 4 Is it true that because of providing six months of maternity leave, female employees are either not hired or terminated beyond ML due to their non-availability at work?
Q. 5 Is it not an injustice to female employees for being gifted with motherhood for giving birth to both male and female children, but they are not treated well because of ML by both male and female bosses?
Q. 6 Is ML impacting the career growth of female employees when it comes to giving them promotions or merit increments in view of their achievements in the organization?
I have provided replies to the questions as follows:
+++++
Dear Mr. Rajaram Thorve,
The replies to your questions are as follows:
Q. 1 Is it true that the maternity leave of six months and the crèche are a boon for female employees but a curse for organizations in compliance?
Reply: In India, the Maternity Benefit Act was enforced in 1961. A major amendment took place in March 2017 when the number of days of maternity leave was increased from 12 to 26 weeks. This has increased the financial burden on companies. However, it cannot be called a "curse" as such. Secondly, the Shops and Establishment Act or Factories Act mandates having a crèche facility. Therefore, the facility of a crèche was not new as such. Thus, it is neither a curse nor a burden.
Q. 2 Is there any fault of female employees when the maternity leave or crèche facility is to be given by the employer as per the MBA?
Reply: Maternity Leave (ML) or crèche are provisions of the Maternity Benefit Act (MBA). Due to constitutional provisions, female employees cannot be held responsible.
Q. 3 Is there so much burden on organizations in providing maternity leave of six months twice to female employees in a lifetime, considering their contribution to the organization?
Reply: Earlier, there was a provision of 12 weeks of ML. It was increased to 26 weeks. Let us calculate the increase in employee cost. Suppose an average company has 100 female employees. Generally, 5-10% of them avail of the ML. For simplicity, let us assume 8% of them avail of ML every year. Earlier, the pay-out on account of ML was for 12 x 8 = 96 weeks, but now it is increased to 26 x 8 = 208 weeks. Therefore, additional ML cost = (208 – 96) = 112 weeks. This is equivalent to the payment of a woman employee for 112 weeks or 28 months (approximately) per annum. Since the woman employee is paid just the basic salary while on ML, it is difficult to do the calculations.
Unquantifiable costs: When a trained woman employee remains absent for more than half a year, it throws the work of the company out of gear. Getting the right replacement is not that easy.
Q. 4 Is it true that because of providing six months of maternity leave, female employees are either not hired or terminated beyond ML due to their non-availability at work?
Reply: This might happen in unprofessional companies. However, getting the right-skilled person is a challenge. Therefore, if a woman employee has specific skills, she will get a job anyway. There is a critical shortage of labor working in factories like garment factories. Therefore, women working there also will not have a challenge. This challenge may arise for women who do general work where getting their replacement is not that difficult.
Q. 5 Is it not an injustice to female employees for being gifted with motherhood for giving birth to both male and female children, but they are not treated well because of ML by both male and female bosses?
Reply: Maltreatment of a woman employee because of ML may arise or may not arise. In smaller companies, this could happen, but it may not be the case in larger companies.
Q. 6 Is ML impacting the career growth of female employees when it comes to giving them promotions or merit increments in view of their achievements in the organization?
Reply: Whether ML imposes a break or not depends on the social, family, and economic conditions of the woman employee. Occasionally, a few delivery cases become critical, and a woman might require a longer break, which could be beyond 26 weeks of ML. Against this backdrop, many women resign from their jobs, but getting another job becomes difficult. However, this is applicable to women handling general work, and this need not be true for those with special skill sets. ML brings discontinuity in the career of the woman employee. This discontinuity impacts their promotion as well. However, career-conscious women do not allow their careers to be impacted as a whole. Former Prime Minister of England, Ms. Margaret Thatcher, as well as of Pakistan, Ms. Benazir Bhutto, both had three children. Three pregnancies had no consequence on their political careers. Both became Prime Ministers anyway!
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(1)
Amend(0)
8072Q. 1 Is it true that the maternity leave of six months and the crèche are a boon for female employees but a curse for organizations in compliance?
Q. 2 Is there any fault of female employees when the maternity leave or crèche facility is to be given by the employer as per the MBA?
Q. 3 Is there so much burden on organizations in providing maternity leave of six months twice to female employees in a lifetime, considering their contribution to the organization?
Q. 4 Is it true that because of providing six months of maternity leave, female employees are either not hired or terminated beyond ML due to their non-availability at work?
Q. 5 Is it not an injustice to female employees for being gifted with motherhood for giving birth to both male and female children, but they are not treated well because of ML by both male and female bosses?
Q. 6 Is ML impacting the career growth of female employees when it comes to giving them promotions or merit increments in view of their achievements in the organization?
I have provided replies to the questions as follows:
+++++
Dear Mr. Rajaram Thorve,
The replies to your questions are as follows:
Q. 1 Is it true that the maternity leave of six months and the crèche are a boon for female employees but a curse for organizations in compliance?
Reply: In India, the Maternity Benefit Act was enforced in 1961. A major amendment took place in March 2017 when the number of days of maternity leave was increased from 12 to 26 weeks. This has increased the financial burden on companies. However, it cannot be called a "curse" as such. Secondly, the Shops and Establishment Act or Factories Act mandates having a crèche facility. Therefore, the facility of a crèche was not new as such. Thus, it is neither a curse nor a burden.
Q. 2 Is there any fault of female employees when the maternity leave or crèche facility is to be given by the employer as per the MBA?
Reply: Maternity Leave (ML) or crèche are provisions of the Maternity Benefit Act (MBA). Due to constitutional provisions, female employees cannot be held responsible.
Q. 3 Is there so much burden on organizations in providing maternity leave of six months twice to female employees in a lifetime, considering their contribution to the organization?
Reply: Earlier, there was a provision of 12 weeks of ML. It was increased to 26 weeks. Let us calculate the increase in employee cost. Suppose an average company has 100 female employees. Generally, 5-10% of them avail of the ML. For simplicity, let us assume 8% of them avail of ML every year. Earlier, the pay-out on account of ML was for 12 x 8 = 96 weeks, but now it is increased to 26 x 8 = 208 weeks. Therefore, additional ML cost = (208 – 96) = 112 weeks. This is equivalent to the payment of a woman employee for 112 weeks or 28 months (approximately) per annum. Since the woman employee is paid just the basic salary while on ML, it is difficult to do the calculations.
Unquantifiable costs: When a trained woman employee remains absent for more than half a year, it throws the work of the company out of gear. Getting the right replacement is not that easy.
Q. 4 Is it true that because of providing six months of maternity leave, female employees are either not hired or terminated beyond ML due to their non-availability at work?
Reply: This might happen in unprofessional companies. However, getting the right-skilled person is a challenge. Therefore, if a woman employee has specific skills, she will get a job anyway. There is a critical shortage of labor working in factories like garment factories. Therefore, women working there also will not have a challenge. This challenge may arise for women who do general work where getting their replacement is not that difficult.
Q. 5 Is it not an injustice to female employees for being gifted with motherhood for giving birth to both male and female children, but they are not treated well because of ML by both male and female bosses?
Reply: Maltreatment of a woman employee because of ML may arise or may not arise. In smaller companies, this could happen, but it may not be the case in larger companies.
Q. 6 Is ML impacting the career growth of female employees when it comes to giving them promotions or merit increments in view of their achievements in the organization?
Reply: Whether ML imposes a break or not depends on the social, family, and economic conditions of the woman employee. Occasionally, a few delivery cases become critical, and a woman might require a longer break, which could be beyond 26 weeks of ML. Against this backdrop, many women resign from their jobs, but getting another job becomes difficult. However, this is applicable to women handling general work, and this need not be true for those with special skill sets. ML brings discontinuity in the career of the woman employee. This discontinuity impacts their promotion as well. However, career-conscious women do not allow their careers to be impacted as a whole. Former Prime Minister of England, Ms. Margaret Thatcher, as well as of Pakistan, Ms. Benazir Bhutto, both had three children. Three pregnancies had no consequence on their political careers. Both became Prime Ministers anyway!
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(1)Amend(0)
Learned Member Divekar has given his views, which are topical and on point. I will only add that when the government makes a law for social welfare, there will be a cost, and the nation has to bear it. Women have had the rough end of the stick in India for a long time due to poverty and lack of education. However, things are changing. Women have shown their mettle in various fields. These benefits are needed to boost their productivity in the long run. Maternity Leave (ML) and Maternity Benefit (MB) add to the empowerment of women. Short-term costs should not be taken into account. Every industry works for profit but also has a national responsibility. Therefore, progressive industries should play their role in ensuring national objectives are met.
From India, Pune
Acknowledge(1)
Amend(0)
From India, Pune
Acknowledge(1)Amend(0)
I don't differ from the views; however, mostly in developed countries, the onus of paying for maternity leave lies with a public entity and not solely on the employer. The maternity leave pay is mainly sourced from their Social Security. On the contrary, in India, it's the employer who has to bear the entire expense of Maternity Benefit pay, while the government does nothing unless the employee falls under ESIC.
From India, Delhi
Acknowledge(0)Amend(0)
From India, 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.
Maternity Leave Policy - posting.doc
Article-why training does not leave desired impact-anil kaushik.pdf