Introduction
The Maternity Benefit Bill was introduced based on the recommendations of the 44th Indian Labour Conference and it brings significant changes such as enhancing maternity leave, providing crèche facilities in organizations with 50 or more employees and other such provisions empowering working women.
The legislative process starts with the introduction of a Bill in either House of Parliament—Lok Sabha or Rajya Sabha. Once the Bill is passed in both the houses “Presidential Assent” is required. Further, when the same are to be notified, they are bound to be published on the official website of Labor Department as well as E-Gazette.
The Rajya sabha had passed the bill in August 2016. The Lok Sabha passed the bill on 09th March, 2017, a day after the world celebrated International Women’s Day. Parliament passed the Bill that takes India to the third position in terms of the number of weeks for maternity leave after Canada and Norway where it is 50 weeks and 44 weeks respectively.
We are still awaiting for president’s assent, upon which the provisions will be enforced.
Background
The Maternity Benefit Act, 1961, protects the employment of women during the time of her maternity and entitles her full paid absence from work, to take care of her child. The Act is applicable to factories, mines and plantations as well as to every ‘shop and establishment’ in which ten or more persons, are/ were, employed, on any given day over the preceding twelve months.
The Maternity Benefit (Amendment) Bill, 2016 has been passed by the Lok Sabha amending crucial elements of the previous Act. The amendments have been made under Section 3 and 5. Also, a new section, section 11A has been inserted.
There are several companies who have proactively changed their policies to benefit the women associates. These companies range from IT to E-commerce, enterprise software and also some startups. This Bill will benefit about 1.8 million working women.
The key highlights of the amendment are as follows:
- Increase Maternity Benefit from 12 weeks to 26 weeksf or two surviving children and 12 weeks for more than two children.
- 12 weeks Maternity Benefit to a ‘Commissioning mother’** and ‘Adopting mother’ a woman who legally adopts a child below three months of age.
** A commissioning mother is defined as a biological mother who uses her egg to create an embryo implanted in another woman. The 12-week period of maternity benefit will be calculated from the date the child is handed over to the adoptive or commissioning mother.
- The Bill introduces a provision which requires every establishment to intimate a woman at the time of her appointment of the maternity benefits available to her. Such communication must be in writing and electronically.
- Facilitate ‘Work from home’. This would apply if the nature of work assigned to the woman permits her to work from home. This option can be availed of, after the period of maternity leave, for a duration that is mutually decided by the employer and the woman.
- Mandatory provision of Creche facilities within a prescribed distance in respect of establishment having 50 or more employees. The woman will be allowed four visits to the crèche in a day. This will include her interval for rest.
Conclusion
This will help women continue their jobs post pregnancy and will also help corporates to maintain healthy gender diversity in their workforce. It will lead to employee centric practices and better engagement at work.
However, the small and mid-size companies will face challenges implementing this as it won’t make economic sense to them.
Update (30th March, 2017) : President Pranab Mukherjee has given assent to the Maternity Benefit (Amendment) Act, 2017
Authored by Ishwari Nirgudkar, Company Secretary & Senior Compliance Specialist at Allscripts India
