The Maternity Benefit Act, 1961 is a legislation that protects the employment of women at the time of her maternity. It entitles women employees of ‘maternity benefit’ which is fully paid wages during the absence from work and to take care of her child. The Act is applicable to the establishments employing 10 or more employees. The Maternity Benefit Act, 1961 has been amended through the Maternity (Amendment) Bill 2017 which was passed in the Lok Sabha on March 09, 2017. Thereafter, the said Bill was passed in Rajya Sabha on August 11, 2016. Further, it received assent from the President of India on March 27, 2017. The provisions of the Maternity Benefit (Amendment) Act, 2017 (“Amendment Act”) came into effect on April 1, 2017, and the provision with regard to crèche facility (Section 111 A) came into effect with effect from July 1, 2017.
An overview of the Maternity Benefit Act, 1961
The Maternity Benefits Act of 1961 was passed by the Union of India on December 12, 1961, following the country’s independence. The statute included conditional benefits for pregnancy, childbirth, and complications related to those, in conformity with the then-current international standards. The Act covered a lot of areas with meticulous precision and care was paid to many dimensions of considerations influencing maternity benefits, despite the fact that India was still a developing nation and in its 14th year of independence.
The Maternity Benefit Act, 1961 governs maternity benefits in India. Every organisation with ten (10) or more employees is subject to the Act. According to the Act, maternity benefits are available to any woman who has worked for an organisation for at least eighty (80) days.
The Maternity Benefit Act, 1961 aims to provide all the facilities to a working woman in a dignified manner, so that she may overcome the “state of motherhood honourably, peacefully, undeterred by the fear of being victimised for forced absence during the pre or postnatal period”, as was observed by the Supreme Court in the case of Municipal Corporation of Delhi v. Female Workers (Muster Roll) (2000).
According to the Maternity Benefit Act of 1961, the employer must pay the beneficiary a medical bonus of up to 1,000 rupees if there is no prenatal confinement and no paid postpartum care. The Central Government has raised the medical bonus to 25,000 rupees. If the woman experiences a miscarriage or any other pregnancy-related complications, she is entitled to paid leave. A 30-day extra leave with pay is offered to the beneficiary upon verification of any ailment related to pregnancy. After reporting back to work, the mother is entitled to a break and is allowed two breaks to feed the child until they are 15 months old. The “facility of a crèche” has also been mandated to be available in convenient locations in every firm with fifty or more female employees. Women will be allowed to leave with pay for their tubectomy operation based on the proof provided.
According to the Act, it is against the law for an employer to fire or dismiss a pregnant woman while she is away or on account of her pregnancy, or to give notice of a termination on a day when the notice will expire while she is away, or to change any of the terms of her employment to their detriment. According to the law, light work allotted to pregnant women and breaks for child feeding are not grounds for wage deductions.
The statute is applicable to all businesses, including those that belonged to the government and those that employed people to do equestrian, acrobatic, and other acts for display in factories, mines, and plantations. Additionally, it applied to any store or business with ten or more employees. The inclusion of provisions for industrial, agricultural, and commercial establishments marked the act as a significant improvement over the rudimentary one from 1928. The Act covers all maternity benefits in the following sections:
- Section 4: Employment of, or work of, women prohibited during certain periods.
- Section 5: Right to payment of maternity benefits.
- Section 7: Payment of Maternity Benefits in case of death of a woman.
- Section 8: Payment of Medical Bonus.
- Section 9: Leave for miscarriage, etc.
- Section 10: Leave for illness arising out of pregnancy, delivery, premature birth of a child, miscarriage, medical termination of pregnancy or tubectomy operation.
- Section 11: Nursing Breaks.
- Section 12: Dismissal during absence of pregnancy.
- Section 13: No deduction of wages in certain cases.
- Section 18: Forfeiture of maternity benefits.
Benefits covered under the Maternity Benefit Act of 1961
The Act requires the employee to refrain from hiring any known women in any place for the six weeks immediately following the day of the employee’s delivery, miscarriage, or medical termination of pregnancy. During the six weeks immediately following the day of delivery or miscarriage, no woman shall work in any company. The employer shall not require such women to perform any work unless requested to do so by the employed lady.
- Which negatively affects her pregnancy or the foetus’s development normally,
- Any work that could result in her miscarrying or otherwise have a negative impact on her health.
Every woman has the right to maternity benefits, and her employer is responsible for paying them at the amount of the average daily income for the time she was actually away from work, i.e.,:
- The time leading up to the day of her delivery.
- On the day she gave birth and for the period immediately afterwards.
Features of the Maternity Benefit Act, 1961
- Duration of leave: A woman is entitled to twelve weeks of maternity leave under the terms of the Act, not more than six weeks of which may come before the due date. The ILO guideline at the time took this into account.
- Job protection: According to the guidelines of the 1961 Act, it has been ruled unlawful for an employer to fire or let go of a woman at any time during or because of her absence. However, the employer may notify the employee in writing if the dismissal or discharge is the result of serious wrongdoing.
- Remuneration during leave: Women who meet the requirements for maternity leave outlined in the legislation are entitled to maternity benefits at the rate of the average daily salary for the time that they are really absent from work.
- Financial benefits: According to this law, every woman is entitled to maternity benefits and the option of receiving a medical bonus from her employer in the event that neither prenatal nor postpartum care is provided by the latter at no cost to the employee. The employer is responsible for paying all debts, including maternity benefits, to the woman’s nominee or legal representative in the event of her death.
Applicability
The Maternity Benefit Act, 1961 is applicable to establishments such as factories, mines, and plantations. It is also applicable to government establishments that are employed for acrobatic equestrian performances. The above Act is also applicable to any organisation that employs more than 10 employees a day during the preceding 12 months, which is applicable to any shop or establishment in the particular state of India. This Act is also applicable to various plants and organisations. It must be followed for the goodwill of the employees.
Each company must follow this Act and provide certain benefits to the employees. This ensures that the proper health of the employees is maintained, and they get the best possible service in return. The employees grow the company, and hence, their well-being is a must.
Eligibility
The eligibility for Maternity Benefit Act, 1961 is described as follows. To be entitled to access the benefits under this Act, the employee (women) must be employed with the establishment for a period of 80 odd days in the past twelve months.
Maternity Benefit Act, 1961: Amendment 2017
The 2017 Amendment was enacted in response to the 259th Law Commission Report, which stated:
“The Maternity Benefit Act is revised in conformity with the forward-looking requirements in the CCS Rules, increasing maternity benefits from twelve weeks to 180 days.” Maternity benefits should be made mandatory by the state rather than left to the discretion of employers, and they should apply to all women, even those working in the unorganized sector. It is advised that the government develop policies or guidelines outlining minimum requirements for paid maternity leave for women working in the private sector.”
Mr. Bandar Dattatreya, Minister for Labor and Employment, tabled the Amendment Bill in the Rajya Sabha. The Bill was proposed after the 44th Session of the Indian Labor Conference (ILC) advocated increasing the length of maternity leave, which was reaffirmed in the 45th and 46th Sessions. This was in addition to the recommendations by the Ministry of Women and Child Development to expand the scope of maternity benefits for women. According to World Health Organization recommendations, there was a need to extend Maternity Leave to preserve the health of both the mother and the child, especially since a kid needed to be nursed for the first 24 months to boost survival rates.
B. Shah v. Presiding Officer, Labour Court Coimbatore (1978)
The Supreme Court noted in B. Shah v. Presiding Officer, Labour Court Coimbatore (1978) that it must be remembered when interpreting the terms of helpful laws like the Maternity Benefit Act, 1961, which is intended to achieve the goal of ensuring social justice to female employees employed in the plantation and which squarely falls under the purview of Article 42 of the Indian Constitution.
The question of whether Sundays, which are paid holidays, should be factored into the maternity benefit period computation came up in court. The Maternity Benefit Act, 1961, when taken into account with Article 42 of the Indian Constitution, was intended to assist women in protecting not just their maternity rights but also their ability to work effectively and maintain a stable level of efficiency, as was observed by the Supreme Court of India. She consequently requests any sum that may become due to her in place of paying for the child’s health and medical costs. To help women effectively manage their roles as mothers and workers, the law makes maternity benefits mandatory. Therefore, the Court declared that Sundays would be included in the indicated time in accordance with the rule of advantageous construction.
Who is entitled to maternity benefits under the Maternity Benefit Act?
According to the Act, a woman must have worked as an employee at an establishment for a minimum of eighty days in the previous 12 months to be eligible for maternity benefits. The nominal daily earnings for the period of absence are used to compute payment during the leave period.
What does the Maternity Benefit Act, 1961 entail?
The Act limits women’s employment in designated establishments for a specified period before and after childbirth, as well as grants maternity benefits and other advantages.