Key Clauses in a Maternity Benefit Policy

What is a Maternity Benefit Policy?

Article 42 of the Directive Principles of State Policy states that "the State shall make provisions for securing just and humane conditions of work and for maternity relief."

Working women under the Maternity Benefit Act, 1961 ("Act") are allowed to take maternity leave for up to three months. This law also makes sure that maternity leave is payable and that working women are entitled to payment. The amount payable to her is equal to the rate of average daily wage for the period of her actual absence.

In the past, employers would let go of women employees, and in labour-intensive work, women workers would sometimes have to compensate and overwork if they were pregnant, which was extremely mentally and physically stressful and also injurious to the health of the mother and the child. Thus, to remove any sort of hardship on women, such laws were enacted.

Changes under the 2021 Amendment

The following changes took place via the Maternity (Amendment) Act, 2021:

1. Maternity leave has been raised from 12 weeks to 26 weeks;
2. Prenatal leave is extended to 8 weeks;
3. If a woman already has 2 or more children, she is entitled to only 12 weeks of maternity leave and 6 weeks of pre-natal leave;
4. Adoption leave of 12 weeks is available for women who adopt a child under 3 months;
5. The Act also allows for a 12-week leave for commissioning mothers – those mothers who fertilise their eggs to create an embryo, and implant it into another woman for incubation;
6. Female civil servants are allowed 180 days of leave for their first two children;
7. A pregnant woman is also entitled to a medical bonus of up to Rupees One Thousand if no free medical care has been assigned by the employer; and
8. In an establishment of 50 or more employees, a crèche facility is to be provided by the employer.

What Should the Policy Include?

Every establishment should include these essential clauses in its Maternity Benefit Policy:

1. Policy brief and purpose;
2. Applicability;
3. Definitions;
4. Duration of paid maternity leave;
5. Procedure to contact the company during maternity leave;
6. Manner of notification to the company or HR team as prescribed in the appointment letter;
7. Crèche facility;
8. Non-compliance;
9. Maternity pay and additional maternity benefit;
10. Return to work guidelines; and
11. Annexure including the forms as prescribed in the Act.

Conclusion

Pregnancy is a natural process, and the intellect or working potential of women employees does not disappear through this phase. As a developing nation that promotes education for the girl child, maternity benefits should be considered seriously and implemented in all organisations with total support from the government. It is extremely important that women are given proper maternity leave in order to ensure not only their health but the health of their children. The increase in the duration of maternity leave from 12 weeks to 26 weeks is one such step towards welcoming these changes.

Disclaimer: The content of this article is intended to provide general guidance on the subject matter. Specialist advice should be sought about your specific circumstances.