How companies are engaging women on maternity leaves?

The maternity leave policy in India comes under the Maternity Benefit Act 1961, which is designed to safeguard the interest of pregnant and new mothers in the organisation. The law is applicable to all sectors of India where female employees are employed such as healthcare, software professionals and more.

Companies or organisations need to adhere to the provisions listed under the Maternity Benefit Act. Below are some of the crucial features of Indian maternity leave policy:

-Maternity Leave

The Maternity Benefit Act, 1961 entitles female employees to take time off from work for up to 26 weeks for two pregnancies. Under this act, women can take leave 8 weeks prior to their due date and 18 weeks of leave after the childbirth.

-Medical Bonus

Under the Maternity Benefit Act, women are also entitled to receive medical bonus, which will cover the prenatal and postnatal care. Employers need to provide the medical bonus to their female employees.

-Wage Benefit

The Maternity Benefit Act also entitled female employees to receive full wages during the leave period. This ensures that the female employees will have sufficient funds to support their child and family while away from work.

-Creche Facilities

Under the act, organisations that have 50 or more employees need to offer creche facilities to their workforce. This will ensure a conducive environment for female employees to look after their infants while they are at work.

-Prohibition of Work

Under the Maternity Benefit Act, female employees who are employed in industry that requires physical or strenuous labour are prohibited to physically work assigned by employer.

This is applicable only for women that have recently given birth or are pregnant. This feature is to ensure the safety and well-being of female employees.

-Prohibition of Dismissal

Another feature of Maternity Benefit Act, 1961 is that it prohibits employers from discriminating or dismissing female employees during their maternity leave period.

Employees who want to take benefit of companies’s maternity leave policy first need to meet the eligibility requirements which are as follows:

• The female employees should have worked for 80 days in the previous year before their expected delivery date.

• Adopting mothers or women who underwent miscarriages are also eligible for the maternity leave benefits.

• Medical termination or miscarriage is payable up to 42 days or 6 weeks from the day of miscarriage.

• The Maternity benefits Act is applicable to both public and private sector employees.

• Commissioning or surrogate mothers get 26 weeks leave from the date the newborn is handed to adoptive parents.

• Extra leaves can also be given to female employees based on medical grounds for health recovery under maternity leave policy.

There are certain responsibilities of the organisation, which they need to follow to create a more progressive and dynamic workforce. Some of the basic responsibilities of companies on maternity leave policy are listed below:

-Awareness and Communication

Whether it is government maternity leave policy or private company policy, they need to ensure that their female employees are aware of the right under the Maternity Benefit Act. The company should have a proper communication medium to educate female employees about the act provisions, entitlements and process to avail them.

-Fair Implementation of Policies

Another crucial responsibility of employers is to ensure the fair implementation of maternity leave policy in organisations that align with the Maternity Benefit Act. Under the company's maternity leave policy, employers need to create mechanisms for granting leave, establishing creche facilities, offering medical benefits and more.

-Safe Working Environment

Another significant responsibility of an organisation is to provide a safe working environment to their employees especially pregnant women. It means organisations should have access to modify work conditions to ensure the safety and wellbeing of their pregnant employees.

-Non Discrimination

Companies whether private sector or government sector should have culture or ethics that promotes gender equality. The organisation should not discriminate against women employees due to pregnancy or other maternity related matters.

-Facilitate Flexible Working Arrangements

Another crucial company policy on maternity leave is providing flexible work arrangements like remote work, work from home, flexible hours, etc., to female employees. This is necessary for female employees who want to manage their professional and personal life responsibilities.

Every organisation needs to have a well-structured maternity leave policy. Companies can easily find sample maternity leave policy online, based on that they can craft a policy which aligns with their organisation goals.

A well-designed maternity leave policy offers significant advantages to both private and government companies. Some of the crucial benefits are listed below:

-Enhanced Employee Well-being

One of the crucial benefits for companies on adopting maternity leave policy is that it helps in enhancing employee well-being. It allows mothers to recover physically after childbirth and take the time to bond with their newborns.

Furthermore, it also contributes to mental health by reducing stress and anxiety, knowing that they have time to adjust to the changes in their lives.

-Better Employee Retention

Another significant factor of implementing Indian maternity leave policy in organisations is that it offers better employee retention. When employees know the company they are associated with values family life and offer maternity leave they are less likely to leave the job. WIth higher job retention, employees need to incur less administration cost to hire new employees.

-Gender Equality

Maternity leave is crucial for promoting gender equality in the workplace. It ensures that women are not penalised for childbirth and that their careers can continue to progress after having children.

-Good Reputation

Another benefit of having maternity leave policy is directly impacting the company reputation. A company that offers maternity leave policies often earn a reputation as progressive and employee-friendly employers. This can help attract top talent who value family support and work-life balance.

-Enhanced Productivity

Another benefit of employing maternity leave policy in private companies is enhanced productivity. Employees who are supported during significant life events such as childbirth are more likely to return to work with higher morale and energy. This can result in increased job satisfaction and higher productivity.

Policies on maternity leave in India helps in empowering the female professionals. It helps in promoting gender equality at the workplace and offers a safe and secure environment to female employees.

By having a maternity leave policy in private companies and government organisations, employers gain trust of their female employees, which results in loyalty and hard work from employees. It also improves the employee retention rate of the company.

However, organisations nowadays go through various risks, hence to safeguard, there is business insurance in India available. These insurance plans offer coverage to businesses against various unforeseen situations. One such business insurance is group medical insurance policy for organisations.

The group health insurance plan offers medical coverage to the group of people such as workers or employees. The plan is generally offered as a perk or benefit to employees by employers.

TATA AIG has various SME insurance plans like corporate health insurance, which offers standardised health coverage to employees. Under our plan, various benefits are included such as in-patient treatment, hospitalisation expenses, ambulance coverage and more.

Furthermore, based on policy terms and employers' needs, we can also extend maternity coverage in our group health insurance plan. Get your employees secured now with our comprehensive group health insurance plan.

Is it possible to extend maternity leave?

Yes, it is possible to extend maternity leave, depending on the organisation's policies, and individual circumstances.

Can companies use sample maternity leave policies available online?

Yes, companies can use sample maternity leave policies available online as a starting point or template. However, they should customise the policy to comply with local labour laws, industry standards, etc.

Can employers deny maternity leave in India?

In India, employers cannot deny maternity leave to eligible female employees, as it is a legal right under the Maternity Benefit Act, 1961. According to the Act, women working in establishments with 10 or more employees are entitled to 26 weeks of paid maternity leave for the first two children.