MEANING AND SIGNIFICANCE OF THE MATERNITY BENEFIT ACT
The Maternity Benefit Act, 1961 (the “Maternity Benefit Act”) applies to every shop, establishment, enterprise or company wherein ten or more people were employed in the preceding twelve months. One of the primary objectives of the Maternity Benefit Act is to maintain the health of a pregnant female employee and her unborn child.
ELIGIBILITY
To be eligible to receive maternity benefit, a pregnant female employee must have worked for at least 80 (eighty) days within twelve months immediately preceding her date of delivery. Pregnant female employees are eligible to receive payment at the rate of average daily wage of up to six weeks of leave before delivery, and payment of up to six weeks of leave after delivery. The maximum period for which any women shall be entitled to maternity benefit are 12 (twelve) weeks of which not more than six weeks shall precede the date of her expected delivery. In addition to maternity benefit, an eligible woman employee shall also be entitled to receive from the establishment a medical bonus, if no pre-natal, confinement and post-natal care is provided for by the establishment, free of charge. The medical bonus shall be paid along with the second installment of the maternity benefit.
WAGES FOR CALCULATING MATERNITY BENEFIT
Wages for the purpose of calculating maternity benefit mean all remuneration paid to a woman and includes, i) such cash allowances (including dearness allowance and house rent allowance) as a woman is for the time being entitled to; ii) incentive bonus; and iii) money value of the concessional supply of food grains and other articles. The following are excluded from the definition of wages: 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. Consider the following case study:
Case scenario: Mrs. X was employed in a company for the past 22 (twenty two) months and wishes to avail maternity benefits under the Maternity Benefit Act. She was receiving an annual salary of Rs 3,75,000 (three lakh seventy five thousand) paid in monthly installments of Rs 31,250 (thirty one thousand two hundred fifty).
Solution: Considering the above scenario, Mrs. X will be entitled to maternity benefit, calculated as follows: i) advance payment of six weeks leave before delivery – Rs 46,875 (forty six thousand eight hundred seventy five); ii) advance payment of six weeks leave after delivery – Rs 46,875 (Forty six thousand eight hundred seventy five), after submitting proof of birth; iii) medical bonus of Rs 2,500 (two thousand); and iv) additional leave with pay (if deemed necessary) up to one month of Rs 31,250 (thirty one thousand two hundred fifty).
Furthermore, Mrs. X may not be dismissed while she is on maternity leave, and may also not be charged any penalty for not performing her work duties while on maternity leave. She is also entitled to be given light work up to ten weeks prior to the delivery of the child, and two 15 (fifteen) minute nursing breaks per day until the child is 15 (fifteen) months old.
MATERNITY BENEFIT IN CASE OF DEATH OF WOMAN DURING PREGNANCY
Where a woman dies during the period for which maternity benefit is payable, the benefit shall be payable (to her nominee or legal representative) only for the days up to and including the day of her death; Additionally, when the woman having been delivered of a child, dies during her delivery or during the remaining period of maternity benefit leaving behind in either case the child, the woman employee shall be entitled for payment for the entire period of maternity benefit following the day of her delivery.
MATERNITY BENEFIT IN CASE OF MISCARRIAGE
In case of miscarriage, a woman shall, on production of a certificate in Form B or Form D 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.
MATERNITY BENEFIT IN CASE OF MEDICAL TERMINATION OF PREGNANCY
In case of medical termination of pregnancy, a woman shall, on production of a certificate in Form B be entitled to leave with wages a period of six weeks immediately following the day of her medical termination of pregnancy.
MATERNITY BENEFIT IN CASE OF ILLNESS
A woman suffering from illness arising out of pregnancy, delivery, premature birth of child of miscarriage/ medical termination of pregnancy or tubectomy operation shall, on production of a certificate in Form B, be entitled, in addition to the period of absence allowed to her on account of maternity or miscarriage/ medical termination of pregnancy or tubectomy operation, as the case may be, to leave with wages at the rate of maternity benefit for a maximum period of one month. Also, every woman delivered of a child who returns to duty after such delivery shall, in addition to the interval for rest allowed to her, be allowed in the course of her daily work two breaks of 20 (twenty) minutes duration for nursing the child until the child attains the age of 15 (fifteen) months.
FORFEITURE OF MATERNITY BENEFIT
Forfeiture of maternity benefit can only take place if a woman works in another establishment after she has been permitted by the present employer to abstain herself from work due to maternity leave.
PENALTY FOR CONTRAVENTION
Contravention of the Maternity Benefit Act incurs a minimum prison sentence of three months, with maximum of one year. A fine of Rs 2,000 (two thousand) Rs 5,000 (five thousand) may also be imposed.
MATERNITY LEAVE
Maternity leave can be availed by female employees who have worked for a period of at least 80 (eighty) days at the company.For the purpose of calculating 80 (eighty) days on which a woman has actually worked, the days for which she was on holidays declared under any law for the time being in force to be holidays with wages shall be taken into account.
For the purpose of calculating 80 (eighty) days on which a woman has actually worked, the days for which she was on holidays declared under any law for the time being in force to be holidays with wages shall be taken into account.
The maximum period for which any woman shall be entitled to maternity leave is 12 (twelve) weeks, of which not more than 6 (six) weeks shall precede the date of her expected delivery, and 6 (six) weeks post-delivery.
For availing this leave, the women employee shall have to submit her leave application, stating the date from which she will be absent from work, not being a date earlier than 6 (six) weeks from the date of her expected delivery. The application shall be accompanied by such proof as may be prescribed that the woman is pregnant.
In case of miscarriage or medical termination of pregnancy, a woman shall, on production of such proof as may be prescribed, be entitled to leave with salary for a period of 6 (six) weeks immediately following the day of her miscarriage or, as the case may be, her medical termination of pregnancy.