Maternity Benefit Act in India: Importance of Compliance for Large Employers

The Maternity Benefit Act is a crucial legislation in India that ensures pregnant employees receive adequate support and protection from their employers. Large employers must comply with the Act's provisions, as they significantly impact the workforce and society. Unfortunately, compliance with the Act is still an issue in India, with only 42% of companies adhering to its provisions. Continue reading to explore the importance of compliance with the Maternity Benefit Act for large employers and its impact on women employees. We will also provide recommendations for ensuring compliance and discuss how Sunshine can help organizations in this regard.

The Significance of Implementing the Maternity Benefit Act of 2017

Compliance with the Maternity Benefit Act 2017 is legally required and the right thing to do. Pregnant employees need special care and support, which their employers can only provide. Compliance with the Act ensures pregnant employees receive adequate maternity leave, medical benefits, and other support during and after pregnancy. Moreover, compliance with the Act helps to promote gender equality in the workplace and society, which is crucial for achieving sustainable development. It also helps to build a positive image for the organization, which can attract and retain talented women employees.

Understanding Barriers to Compliance

There are several reasons large employers may not comply with the provisions of the Maternity Benefit Act. Here are five common reasons for non-compliance:

• Lack of Awareness

  Many employers are unaware of the provisions of the Maternity Benefit Act, which leads to non-compliance. Employers may not know about the number of weeks of maternity leave an employee is entitled to, the medical benefits that should be provided, and the provision of a crèche facility.

• Cost Burden

  Providing maternity benefits to employees can be expensive for employers, especially small businesses. Employers may feel that providing maternity leave, medical benefits, and a creche facility in office is an unnecessary financial burden, especially if they hire temporary staff to cover the workload.

• Inflexibility

  Some employers are rigid about their work schedules and do not allow flexible working hours, which makes it difficult for pregnant employees to continue working. This can lead to pregnant employees being forced to take early maternity leave or resign.

• States Slow to Act

  States can slow compliance with the Maternity Benefit Act by failing to allocate adequate resources for enforcement, not conducting regular inspections, and not imposing penalties for non-compliance. Lack of awareness and resistance from employers can also hinder effective implementation.

• Lack of Infrastructure

  Some large employers may not have the necessary infrastructure and policies to comply with the Maternity Benefit Act, such as providing separate feeding rooms, flexible work arrangements, and other facilities required by the law.

Impact of Non-Compliance on Employers

Non-compliance with the Maternity Benefit Act 2017 can significantly negatively impact employers. Here are the impacts of non-compliance:

• Legal Consequences

  Non-compliance can result in legal consequences for the organization, such as fines, penalties, or lawsuits. These consequences can harm the organization's reputation and financial standing.

• Loss of Customers or Business Opportunities

  Non-compliance can lead to loss of customers or business opportunities, particularly if the organization is seen as unethical or untrustworthy.

• Damage to Reputation

  Non-compliance can damage an organization's reputation, leading to negative publicity and decreased public trust. This can harm the organization's ability to attract and retain talent.

• Cost of Remediation

  Correcting non-compliance can be expensive, particularly if it has gone unnoticed or unpunished for some time. This can strain an organization's financial resources and affect profitability.

• Difficulty Attracting and Retaining Talent

  A culture of non-compliance can make it difficult for an organization to attract and retain top talent, particularly if employees feel the organization is unethical or does not value compliance.

• Risk of Workplace Accidents or Incidents

  Non-compliance with safety regulations can put employees at risk of workplace accidents or incidents, leading to harm or injury. This can result in legal and financial consequences for the organization and damage to its reputation.

• Loss of License or Accreditation

  Non-compliance can lead to an organization's loss of license or accreditation, particularly in regulated industries. This can seriously affect the organization's ability to operate and compete.

Recommendations for Complying with the Maternity Benefit Act 2017

The Maternity Benefit Act 2017 mandates employers to provide daycare at workplace to female employees if the organization has more than 50 employees. The crèche should be within a 500-meter radius and have amenities like clean and hygienic surroundings, adequate ventilation, and a trained caregiver. Employers should also ensure that the crèche is functional during working hours and that the female employees can access it. Complying with these regulations can help organizations support their female employees and promote gender diversity and inclusivity in the workplace.

Compliance with the Maternity Benefit Act with Sunshine Corporate Crèche Facility!

At Sunshine Preschool & Corporate Crèche, we understand the importance of compliance with the Maternity Benefit Act. We provide crèche facilities that comply with the Act, ensuring that employees can continue working after maternity leave. Our crèche facilities offer a safe and nurturing environment for children, with trained caregivers and educational programs. Contact us today to discover more about how we can assist you!