Maternity Benefit Act: What Employers Need to Know to Stay Compliant and Inclusive

In today’s workplace, ensuring gender inclusivity is not just a trend; it’s a leadership imperative. One key aspect of this is understanding and implementing the provisions of maternity leave in India under the Maternity Benefit Act. For CEOs, HR heads, and senior management, compliance with maternity laws goes hand in hand with building an inclusive and future-ready organisation.

What is the Maternity Benefit Act and Why Does It Matter?

The Maternity Benefit Act 1961 plays a crucial role in protecting the employment rights of women throughout pregnancy and after childbirth. It ensures that women receive paid maternity leave and related benefits, creating a secure and supportive workplace.

The Act underwent a major update in 2017, increasing paid maternity leave from 12 to 26 weeks for the first two children, an important shift that placed India among the top countries for maternity benefits. For the third child onwards, the entitlement is 12 weeks.

Key Features of the 2017 Amendment: What Changed?

The Maternity Benefit (Amendment) Act, 2017, introduced several crucial enhancements:

  • 26 Weeks of Paid Leave: Applicable for the first two children.
  • 12 Weeks of Leave: For third or subsequent children.
  • Adoptive and Commissioning Mothers: 12 weeks of leave for women adopting a child below 3 months or using surrogacy.
  • Work-from-Home Option: Employers may allow remote work post maternity leave, depending on the role.
  • Crèche Facility: Mandatory for establishments with 50 or more employees, within a prescribed distance.

     

These additions aim to improve workforce participation of women and reduce attrition related to maternity.

Who Is Covered?

The Act applies to all establishments like factories, shops, and offices that employ 10 or more employees. Women are eligible if they’ve worked for at least 80 days in the 12 months preceding the expected delivery date. This also includes contractual and temporary workers meeting the service criteria.

What Should an Ideal Maternity Leave Policy Include?

For seamless implementation, employers must create a formal maternity leave policy that aligns with the Act while supporting workforce planning. Key elements include:

  • Eligibility Clause: Clearly state the 80-day requirement and applicable employee categories.
  • Leave Breakdown: Outline paid leave durations and any unpaid extension procedures.
  • Notice Requirements: Employees should submit prior written notice with medical documentation.
  • Return-to-Work Support: Offer flexibility such as phased rejoining, reduced hours, or remote work.

A well-documented policy minimises confusion and ensures consistent treatment of all employees.

Employer Responsibilities During Maternity Leave

Employers must ensure the following during the maternity period:

  • Full Wages: Paid as if the employee were actively working.
  • Job Security: Dismissal or adverse changes to employment terms during maternity leave are prohibited.
  • Medical Bonus: Payable if prenatal and postnatal care is not provided by the employer.
  • Crèche Access: For eligible organisations, compliance includes providing nursing breaks and access to childcare facilities.

     

Fulfilling these obligations builds employee loyalty and contributes to a healthier workplace culture.

Balancing Business Needs with Legal Compliance

One of the common concerns among business leaders is managing productivity during long maternity leave periods. With proper planning, businesses can maintain continuity without compromising on compliance:

  • Cross-Training Staff: Identify backups for critical roles.
  • Structured Handover: Encourage expecting employees to plan handovers in advance.
  • HR Automation: Use leave management tools to streamline tracking, documentation, and payroll adjustments.

Integrating these practices into your workforce planning ensures operational readiness while supporting your employees’ needs.

Maternity Leave in India vs Global Standards

India’s provision of 26 weeks of paid maternity leave is more generous than that of many developed nations. For instance, the US has no federal mandate for paid maternity leave, while the UK offers 39 weeks (with part-payment only).

This creates a strong positioning opportunity for Indian companies to brand themselves as progressive employers supporting work-life balance for women professionals.

FAQs

Q1: Can maternity leave be denied if the 80-day criterion isn’t met?

Yes. According to the Act, eligibility requires a minimum of 80 working days in the previous 12 months. Employers must maintain accurate attendance records to verify this.

Q2: Does maternity leave cover adoption or miscarriage?

Yes. Women adopting a child under 3 months or those who’ve had a miscarriage are entitled to 12 weeks and 6 weeks of leave, respectively.

Q3: Will maternity leave affect promotions or bonuses?

No. Maternity leave is counted as continuous service. Employers cannot deny benefits like bonuses or promotions on this basis unless contractually excluded.

Final Thoughts

An inclusive maternity leave policy isn’t just about compliance, it’s about values. As workforce dynamics evolve, supporting maternity and parenting must be embedded into company culture and leadership strategy. The 2017 amendment to the Maternity Benefit Act reaffirmed this by making India a front-runner in family-friendly legislation.

By aligning business needs with legal mandates and proactively supporting women through effective maternity leave policies, companies not only build trust, but they also secure long-term talent, loyalty, and brand equity.

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