Motherhood is a journey full of joy and responsibilities! For working women in India, however, maternity often becomes a matter of job security, paid leave, or financial stability. The Maternity Benefit Act of 1961 is extremely important and plays a crucial role as it provides for women’s rights and safeguards those rights during the sensitive phase.
Originally passed in 1961, the Act has been significantly amended, with the Maternity Benefit (Amendment) Act of 2017 being the most recent update. This amended the law extending paid maternity leave from 12 weeks to 26 weeks for the first two children and introducing provisions for work-from-home and mandatory crèche facilities for establishments with over 50 employees.
But what exactly is the Maternity Benefit Act? How is it relevant and applicable across various sectors and what are the rights and obligations of the employees and employers? Awareness of these provisions is essential to ensure adherence, compliance, and protection of the rights of working mothers.
In this article, we’ll cover a comprehensive guide on what the Maternity Benefit Act is, including:
- Terms of maternity leave rights
- Health insurance coverage is mandated by the law
- Eligibility criteria for claiming maternity benefits
- Recent laws, amendments, and legal updates
- A step-by-step guide on what to do if maternity rights are denied
As a result of this article, both employers and employees will gain a clear understanding of how the Maternity Benefit Act shapes maternity policies in Indian workplaces. Read our article: Minimum Wage Laws in India: Current Rates and Compliance.
What is the Maternity Benefit Act? An Overview
The Maternity Benefit Act of 1961 was enacted to protect the employment of women during and after childbirth, helping them avoid job loss or financial hardship. The Act applies to:
- Factories, mines, plantations, and government establishments.
- Retail outlets and businesses with 10 or more employees.
- Private sector entities, including companies, with a workforce of 10 or more employees.
Key Objectives of The Maternity Benefit Act:
- Offering paid maternity leave
- Post-maternity leave job security assurance
- Creating a good work-life balance for working mothers
- Enforcing employer compliance with maternity-related obligations
The 2017 Amendment further expanded the scope of the Act by covering adoptive mothers, commissioning mothers (surrogacy), as well as women employed under organized and unorganized sectors.
What are the Maternity Leave Benefits Under the Act?
Various adjoining maternity leave benefits are provided by the Maternity Benefit Act to an eligible employee, such as:
1. Paid Maternity Leave Duration
- 26 weeks of paid maternal leave for women having a first or second child.
- 12 weeks of paid leave for women giving birth to a third child and beyond.
2. Adoption and Surrogacy Maternity Leave
- 12 weeks of paid leave for adoptive mothers (adopting a child under 3 months).
- 12 weeks of paid leave for commissioning mothers (mothers who are using a surrogate).
3. Work-from-Home Option
- The provision for work from home, subject to approval by employers, was introduced in the 2017 amendment.
- All of this is particularly good for women working in corporate jobs, women working in IT sector, and women in work-from-home jobs/remote places.
4. Medical Allowance and Financial Compensation
- Women not getting free medical facilities under the employer’s scheme are entitled to a minimum medical bonus of Rs. 3,500.
- These measures guarantee that women who intend to be mothers can be released from work molds without financial strain.
Responsibilities of Employers and Compliance
Employers are legally required to create a supportive and safe work environment under the Maternity Benefit Act. These include:
- Providing paid maternity leave without reducing salary benefits.
- Ensuring a safe workplace for employees during pregnancy and a discrimination-free environment.
- You are not terminated, ensuring no termination occurs due to maternity status.
- Providing a creche facility in organizations having more than 50 employees.
- Flexible work arrangements (including work-from-home arrangements).
Penalties for Non-Compliance
The consequences for non-compliance that Employers under the Maternity Benefit Act may face are:
- Fines up to Rs. 5,000
- Imprisonment of up to 1 year
- Legal actions initiated by employees
Legal knowledge of these responsibilities can help employers become more responsible and build a maternity-friendly environment.
Requirements for Maternity Benefits
To claim maternity leave benefits, an employee must:
- Have worked at least 80 days in the 12 months preceding the expected delivery date.
- Be employed in a full-time, contractual, or temporary capacity with a registered employer.
- Report on the pregnancy and maternity leave plan to the employer.
Women employed in small enterprises, startups, and unorganized sectors may find it challenging to claim maternity benefits, which remains a concern in the enforcement of the law.
New Norms and Landmark Judgments
The 2017 Amendment provided a significant boost to maternity leave benefits by implementing:
- Longer paid maternity leave (26 weeks per year)
- New Mother’s Flexibility for Work-from-Home
- Mandatory crèche facilities for larger establishments
Moreover, some legislative changes and landmark Supreme Court and High Court judgments have bolstered maternity rights to protect women from unfair termination or non-provision of maternity benefits.
Challenges and Practical Aspects of Implementation
Notwithstanding its progressive provisions, the Maternity Benefit Act suffers from implementation challenges:
- Financial constraints make it difficult for small businesses to comply
- Women are denied their rights because of a lack of awareness
- Discrimination against workers in certain industries
Addressing these issues requires stronger enforcement, policy reforms, and wider awareness campaigns to ensure that all women can benefit equally.
What to Do if Your Maternity Rights Are Denied?
When employers deny maternity leave or benefits, employees should:
- File a complaint with the Labour Commissioner’s office
- Seek legal assistance to Claim Maternity Rights
- File a complaint of discrimination under the Maternity Benefit Act
- Approach the National Commission for Women (NCW) for intervention and support
Women who face discrimination at work because of pregnancy should not wait to get legal protection.
Frequently Asked Questions (FAQs)
1. Can my employer fire me during maternity leave?
No, Termination on the grounds of pregnancy or maternity leave is strictly prohibited under the Maternity Benefit Act.
2. Is a probationary employee entitled to maternity leave?
Yes, provided they would have served 80 days of service before their leave.
3. Can I get maternity benefits if I switch jobs?
Yes, but your next employer does not have to offer paid maternity leave unless you have been with your new employer for at least 80 days.
4. Are women who are self-employed eligible for maternity benefits?
No. The Act applies only to salaried women working in establishments with 10 or more employees.
Conclusion
By understanding the key provisions, real-world challenges, and legal protections offered under this law, we can work collectively to build a more inclusive and supportive workplace for women across India.
The Maternity Benefit Act serves as an important legislation to protect the rights of working mothers. However, it is only effective when it is properly implemented and when LGBT people are aware of this process. Employers must ensure full compliance with maternity leave laws, and employees should be informed of their rights to claim these benefits with confidence.
About Us
Corrida Legal is a boutique corporate & employment law firm serving as a strategic partner to businesses by helping them navigate transactions, fundraising-investor readiness, operational contracts, workforce management, data privacy, and disputes. The firm provides specialized and end-to-end corporate & employment law solutions, thereby eliminating the need for multiple law firm engagements. We are actively working on transactional drafting & advisory, operational & employment-related contracts, POSH, HR & data privacy-related compliances and audits, India-entry strategy & incorporation, statutory and labour law-related licenses, and registrations, and we defend our clients before all Indian courts to ensure seamless operations.
We keep our client’s future-ready by ensuring compliance with the upcoming Indian Labour codes on Wages, Industrial Relations, Social Security, Occupational Safety, Health, and Working Conditions – and the Digital Personal Data Protection Act, 2023. With offices across India including Gurgaon, Mumbai and Delhi coupled with global partnerships with international law firms in Dubai, Singapore, the United Kingdom, and the USA, we are the preferred law firm for India entry and international business setups. Reach out to us on LinkedIn or contact us at contact@corridalegal.com/+91-9211410147 in case you require any legal assistance. Visit our publications page for detailed articles on contemporary legal issues and updates.