Maternity Benefit Act: Ensure Compliance to Empower Women at Your Workplace

As businesses grow and evolve, so do the responsibilities that come with managing a workforce. One area that requires special attention is ensuring compliance with the Maternity Benefit Act, legislation designed to safeguard the rights of working mothers and their newborns. With the increasing number of women entering the workforce and taking on leadership roles, it's more important than ever to create a workplace that supports and empowers women.

In this blog, we'll discuss the importance of complying with the Maternity Benefit Act and explore requirements that businesses need to fulfil to ensure that they support the well-being of their female employees.

Key Requirements that Need to be Fulfil to Comply with the Maternity Benefit Act

Here are the requirements that businesses need to fulfil to comply with the Maternity Benefit Act in India:

  • Eligibility

    The act applies to all establishments with 10 or more employees and to all women employees who have worked for a minimum of 80 days in the 12 months preceding their expected delivery date.

  • Paid Leave

    Women employees are entitled to 26 weeks of paid maternity leave. This includes 8 weeks of leave before the expected delivery date and 18 weeks of leave after delivery.

  • Medical Benefits

    Employers are required to provide women employees with access to medical facilities during their maternity period, including pre-natal and post-natal care.

  • Provision for Work-From-Home

    The act allows women employees to work from home if their work permits it. The employer cannot reduce the woman employee’s salary or other benefits during this period.

  • Crèche Facilities

    Establishments with 50 or more employees are required to provide crèche facilities within a prescribed distance from the workplace. Women employees are entitled to visit the crèche four times a day.

  • Intimation

    Women employees are required to give written notice to the employer of their expected delivery date and the duration of their absence at least six weeks before the delivery date.

  • Non-Discrimination

    The act prohibits discrimination against women employees on the grounds of pregnancy or maternity.

Employers need to comply with the Maternity Benefit Act to avoid legal repercussions and to provide a supportive work environment for women employees during their maternity period.

How Compliance with the Maternity Benefit Act Benefits Employers

There are several benefits for employers to comply with the Maternity Benefit Act (MBA) in India, including:

  • Legal Compliance

    Compliance with the MBA ensures that employers are adhering to the legal requirements set out in the act. This helps them avoid any legal penalties or disputes arising from non-compliance.

  • Attract and Retain Female Talent

    Offering maternity benefits and complying with the MBA can help attract and retain female talent in the organization. This helps create a diverse and inclusive workplace, leading to better business outcomes.

  • Improved Employee Morale

    Complying with the MBA can boost employee morale, as it shows that the organization values its female employees and is committed to supporting them during their maternity period.

  • Better Productivity

    By providing women employees with paid maternity leave and other benefits, organizations can ensure that they can take care of their health and their new-born, ultimately resulting in better productivity upon returning to work.

  • Positive Brand Image

    Complying with the MBA can help organizations build a positive brand image, as it shows that they are committed to social welfare and are respectful of employee rights.

  • Reduced Absenteeism

    By providing women employees with access to medical facilities and other benefits during their maternity period, organizations can help reduce absenteeism and ensure that employees return to work in a healthy and productive state.

Overall, compliance with the MBA is beneficial for both employers and employees, as it helps create a supportive and inclusive workplace, which can lead to better business outcomes and improved employee well-being.

The Cost of Ignoring Maternity Benefit Act Compliance

Non-compliance with the Maternity Benefit Act (MBA) in India can result in several penalties for companies, including:

  • Fine

    Employers who violate the MBA can be fined up to Rs. 5,000, which can be increased to Rs. 10,000 for subsequent offences.

  • Imprisonment

    In cases where the employer fails to pay the maternity benefit to the woman employee, they can face imprisonment for up to three months.

  • Legal Action

    Women employees can take legal action against the employer for non-compliance with the MBA. This can result in additional penalties, such as court fees and legal expenses.

  • Reputational Damage

    Non-compliance with the MBA can damage the reputation of the organization and lead to negative publicity.

  • Loss of Talent

    Non-compliance can lead to a loss of female talent, as employees may choose to leave the organization if their rights are not being respected.

  • Ban On Government Contracts

    In some cases, the government can ban companies that are found to be non-compliant with the MBA from being awarded government contracts.

Overall, non-compliance with the MBA can result in financial and legal penalties, as well as reputational damage and loss of talent. Companies need to comply with the act to avoid such penalties and ensure that they are creating a supportive and inclusive workplace for women employees.

Final Thoughts!

Compliance with the Maternity Benefit Act is not just a legal requirement but a moral responsibility for employers. By ensuring that women have access to the benefits and support they need during this crucial time, employers can create a positive and family-friendly work environment that promotes gender equality and empowers women. It's time for businesses to prioritize compliance with the Maternity Benefit Act and take meaningful steps toward supporting the well-being of their female employees. By doing so, you will not only attract and retain top talent but also contribute to building a more equitable and inclusive society.

Ensure Maternity Benefit Act Compliance with Sunshine Preschool and Corporate Crèche!

Sunshine Preschool and Corporate Crèche is a leading provider of corporate crèche facilities in India. With over 30 corporate in-house crèche facilities operational across India, we can help your organization comply with the Maternity Benefit Act by providing convenient and accessible childcare options for women employees. If you want to learn more about how Sunshine can help your organization comply with the Maternity Benefit Act and improve your employee benefits package, contact us today.

 

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Amit Prasad

Amit Prasad is a Vice-Chairman & MD of Sunshine Preschool & Corporate Crèche . He conceptualized the preschool & corporate crèche model way back in 2005. He splits his time between his ventures, at Sunshine his focus is on strategy. Amit loves to travel to new places, play golf and read biographies.

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