MAHARASHTRA NATIONAL LAW UNIVERSITY , MUMBAI

Name : Jason Laishram. Roll No : 2020 129 Division : A

Subject : Law and Economics
Semester : 3. Submitted to : Prof.Rohit Jadhav
Topic : Maternity benefits act 1961, Economic and legal
perspectives ( Main Draft )

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Topic : Maternity benefits act 1961, Economic and legal perspectives

TABLE OF CONTENTS

INTRODUCTION ……………………………………………………………………………3

PROBLEM OF RESEARCH ………………………………………………………………….4

LITERATURE REVIEW………………………………………………………………………4

OBJECTIVE OF THIS STUDY……………………………………………………………….6

METHODOLOGY ……………………………………………………………………………6

CHAPTER – 1 MATERNITY BENEFITS ACT 1961: DETAILED EXPLANATION…………….6

CHAPTER 2- EFFECTS OF MATERNITY BENEFIT PROGRAMS…………………………….8

CHAPTER- 3 WIDER LEGAL FRAMEWORK ON MATERNITY BENEFITS OTHER THAN

MATERNITY BENEFITS ACT………………………………………………………………..15

CHAPTER- 4 THE JOURNEY TILL THE MATERNITY BENEFITS ACT 2017………………..16

CHAPTER 5- CRITICAL ANALYSIS………………………………………………………….17

POLICY SUGGESTION ………………………………………………………………………18

CONCLUSION ………………………………………………………………………………..19

REFERENCE ……………………………………………………………………………….20

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INTRODUCTION

Maternity benefits are available to all working women. Paid time off (at the amount of her
typical daily wage for the time she is away) and a bonus are examples of maternity benefits
that women are eligible to receive when they are expecting a child. Women in the workforce
have a fundamental right to be informed about Indian law and the country has officially
recognised maternity leave policies. A formal statement from the employer is also required to
advise female employees of the benefits they are entitled to and how to apply for them. The
Indian labour has undergone major changes, including a large growth in the number of
women in the workforce. As a person who plays multiple roles, from mother to creator, it is
vital that organisations and government agencies focus on issues that ease the path of a
woman. There have been several government efforts over the years to alleviate the difficulties
faced by women in the workplace by establishing various women-friendly regulations and
providing the essential advantages for women. Do these ladies, on the other hand, have any
idea what these rules and benefits mean? Half of Indians are women, making up a substantial
share of the population. As a result, the percentage of women in the labour has risen. Indian
society in the modern era has afforded women some measure of self-determination. When it
comes to education and career, women are no longer restricted by their marital status.1 In
terms of women's rights to choose a career or work in an organisation, India was quite

1Lalive, R., & Zweimüller, J. How does parental leave affect fertility and return to work? Evidence from two
natural experiments, The Quarterly Journal of Economics, 124(3), 1363- 1402, (2009)

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conservative. However, we're in the midst of a cultural shift from one that's more basic to one
that's much more modern. Women are urged by their families, spouses, children, laws, and
society at large to work and generate income for their families. Several social security and
labour laws have been passed by the Indian government to support women in the working for
a long time. In Indian society, men have always been viewed more favourably than women,
and this is visible in the workplace as well. And the government has long been worried about
issues such as gender inequality, social security, workplace safety, health and hygiene,
unequal remuneration, maternity, leave, bonuses, and so forth. The Indian government has
developed separate labour and industrial legislation in order to help the working class.
Industrialization and globalisation have accelerated the transition from housewives to career
women. In the recent decade, India's rising globalisation has demanded that human resources,
particularly labour, increase the competitiveness of Indian enterprises in the market. Labour
legislation enhances the efficiency, effectiveness, competitiveness and productivity of the
workers. Since women must balance their work and home lives, the need of labour laws
becomes even greater when we consider women workers.2

It is a requirement of Article 42 of our constitution that acceptable and humane working

conditions and maternity benefits be in place. For the government, the Maternity Benefit Act
of 1961 was a major step forward in the fight for equal rights for mothers and fathers. Of all
the nations on Earth, 51% offer a maternity leave period of at least 14 weeks, which is also a
criterion set by the International Labor Organization's Maternity Protection Convention 2000.
Some countries offer maternity leave of 14 weeks or longer. In several nations, maternity
leave is shorter than the standard 12-week period.3 In 1919, the first International Labour
Conference (ILC) was held, and the first Maternity Protection Convention was adopted.
Convention No. 103 in 1952 and Convention No. 183 in 2000 gradually enlarged the scope
and entitlements of Maternity Safety at Work following that. According to the Maternity
Benefit Act of 1961, every woman working for the company is entitled to a maternity leave
of 84 days or 12 weeks. Only six of the 12 available weeks can be utilised immediately prior

2M Nikore, India’s Maternity Benefit (Amendment) Act: Can it help increase participation of women at work?
The times of India, (2018)

3 Vinayak, G., Why a 26-week long maternity leave policy may not end a new-mother's problems, (2018)

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to the due date of the child.4 For the past six years, central government employees have been
entitled to six months of maternity leave. Maternity leave is mandated by the sixth pay
commission for private companies. Under this law, beneficiaries are entitled to paid leave and
a Rs 3500 medical bonus. The medical bonus is subject to change due to ongoing
modifications.

PROBLEM OF RESEARCH

Being a patriarchal society, India had been insensitive towards women rights and needs for a
long time. However, things have changed, and legal framework has started addressing
women’s matters more significantly. Maternity benefit is one such example. Maternity
benefits act 1961gave women the hope that being a mother won’t pull them down or leave
them behind anyone else. However, the act was not actually perfect and had some lacuna.
This research will be addressing those loopholes and suggesting probable changes that have
remained unaddressed.

LITERATURE REVIEW

According to a survey, maternity leaves and benefits, as well as job protection after
pregnancy, increase women's labour participation in the workforce, and researchers claim that
there are no negative effects on the organization's productivity. However, due to lax
enforcement of the law, many women are unable to take advantage of these benefits.
(ILO,2011). Despite the fact that maternity benefits are generally applicable, their practical
implementation is problematic, as women employees do not receive enough benefits, despite
the fact that they are required by law. (Sharma,2006). In rural areas, there is a dearth of
understanding among women employees and non-workers. Rural women also lack the
financial means to claim benefits such as legal expenses, court fees, and so on. This is due to
women's illiteracy in rural areas. (Singh and colleagues, 2014) Employers view maternity
benefits as a financial burden and hence avoid hiring females. Maternity benefits, it is
claimed, should not be borne solely by employers, but should be shared by government
agencies, as in other countries such as Sweden. 2012 (Bala).

4 Janjanam, Maternity Benefit Act 1961-A study on history, scope and amendments in India, ResearchGate,
(2018)

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"Pregnancy Outcomes in Working Women with Workplace Stress" examines pregnancy
outcomes and risk factors experienced by women throughout pregnancy as a result of an
increase in working women and their commitment to work during the pregnancy period. The
effects of risk factors for women's health during pregnancy, such as anaemia, postpartum
psychosis, lower plasma volume, blood flow diversion away from the placental bed, and
hormonal imbalance, are depicted in this work. It classifies the types of physical activity that
women should engage in during pregnancy in order to minimise stress and avoid danger
factors. (2017) (Kusuma Naik.M.V, Vedavathy Nayak, Renuka Ramaiah, Praneetha)

The prevalence and determinants of pregnancy-rated anxiety among pregnant women at

fewer than 24 weeks of pregnancy,” a paper focuses on the psychological changes and
anxiety experienced by pregnant women in low-income nations and countries with high
living costs. It clarifies the prevalence of anxiety and despair during pregnancy. (2019)) Anita
Nath, Shubhashree Venkatesh, Sheeba Balan, Chandra S Metgud, Murali Krishna, and
Gudlavalleti Venkata Satyanarayana Murthy

V.V. Giri National Labour Institute, NOIDA, ShashiBala (2012), "Implementation of

Maternity Benefit Act 1961." This paper discusses the establishment of maternity benefits
and benefits, as well as other Post-Constitutional measures designed to safeguard woman and
her kid.

This article by Dr. Rajeshri Randive Admane, "A Study on Effectiveness and Impact of
Maternity Benefit (Amendment) Act, 2017 on Employment in the Unorganized Sector with
Reference to Construction Company (West Nagpur, Maharashtra, India)," aids in
understanding the effectiveness of maternity benefits and raises awareness among working
women about their rights. It enables people to comprehend the benefits of social security and
the safeguards that are accessible to them.

Women workers in the unorganised sector, Bharat B Das, Women workers in the unorganised
sector: Workers in the unorganised sector are not protected by labour regulations, and the
protection that is provided is insufficient. Women make up 92 percent of the workforce in the
unorganised sector. The majority of women employed in the construction business are
exploited and work on a part-time basis. Construction workers' primary characteristics

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include insecure employment and frequent job relocation. They are rarely awarded maternity
benefits, despite the fact that they are required.

OBJECTIVE OF THIS STUDY

➢ To understand the social outlook and need of maternity benefits.

➢ To examine the evolution of comprehension of these benefits in India.

➢ To analyse the provisions of maternity benefits act.

➢ To suggest certain changes in legal framework of maternity benefits in India.

METHODOLOGY

Research is the examination of new facts and the contributions they make to the existing
facts. Analysing the available data and modifying a result based on the analysis is the goal of
this process. Finding a problem, choosing how to collect data, conducting the research, and
coming up with a conclusion are all steps in the research methodology process. This
publication relies on secondary data for its research. The researcher has reviewed and
observed secondary data on maternity benefit programmes that were made available.
Maternity benefit schemes in India and other nations are covered in articles, research papers,
and journals that are used in this research work.

CHAPTER – 1 MATERNITY BENEFITS ACT 1961: DETAILED EXPLANATION

In 1961, the Maternity Benefit Act of was enacted, which protects women's employment
during their pregnancy. A 'maternity benefit' allows female employees to receive full pay
while taking time off to care for their children. The Act applies to businesses with ten or more
employees. A new Maternity (Amendment) Bill, which was passed by the Lok Sabha on
March 9, 2017, updated the Maternity Benefit Act of 1961. After then, on August 11, 2016,
the Rajya Sabha passed the Bill described above. On March 27, 2017, it was also given the
go light by India's President. A provision relating to crèche facilities, Section 111 A, was
added to the Maternity Benefit (Amendment) Act of 2017 (the "Amendment Act").5

5 Antoine Boquen, Understanding Maternity and Marriage Leave in China, New Horizons, (2019)
https://nhglobalpartners.com/maternity-marriage-leave-in-china

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In December 1961, the Maternity Benefit Act (MBA) was enacted in India. Maternity
benefits and the length of time women can work before and after childbirth are regulated by
this law. Women who work in a store or establishment with ten or more employees are
eligible for the MBA. The term "establishment" includes factories, mines, plantations, and
places where people perform equestrian, acrobatic, and other exhibitions. Workers who are
paid on a daily or casual basis are likewise covered by the Act. Maternity benefits are
available to women who have worked 80 days or more in the 12 months prior to giving birth.
According to the MBA, a female employee is entitled to maternity leave for 12 weeks.6 Prior
to the delivery date, these weeks cannot be more than six weeks apart. After a miscarriage or
medical termination of pregnancy, an employee is entitled to six weeks of paid leave under
the MBA, and two weeks of paid leave following a tubectomy operation. In addition, a
pregnant woman who becomes ill at work is entitled to an extra month of leave.

The MBA recommends that a female employee on maternity leave be paid at the rate of her
average daily earnings by her employer while she is on leave. The average daily pay will be
paid in the event of a miscarriage, tubectomy operation, or pregnancy-related illness. For the
first 15 months of a woman's pregnancy, she receives a medical bonus of 2500 rupees and
two breastfeeding breaks each day. According to the Act, firing or dismissing an employee
who is on maternity leave is against the law. Employers are also prohibited from delivering a
notice of termination or dismissal during a maternity leave period.

After a woman has given birth, her employer is not allowed to hire her for the first six months
of her recovery period. Employees can't make pregnant women undertake demanding or
inconvenient work in the month leading up to their due date. In addition, the Act must be
displayed in every area of the workplace where women are working. All employers must also
keep and maintain attendance records, as well as submit annual reports, as mandated by
federal law.

Women's economic security and rights depend on the passage of a maternity benefit law. All
female employees in any shop, factory, mine, or plantation are covered by the MBA. In other

6 Hongyan Liu, Dian Yu & Hui Wang, A review of the development of maternity leave policy in China over the
past 70 years, Springer Link, (2019)
https://link.springer.com/article/10.1007

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words, no evaluation of the sort of labour performed by women in these workplaces is
required to determine eligibility. Also, worth noting is that under the MBA, the state
government is free to extend the Act to any other business.7 When it comes to the Kerala
Shops and Commercial Establishments Act of 1960, the Kerala government has expanded all
of the MBA's provisions to encompass commercial enterprises. It is defined in this act as an
establishment that primarily employs people for office work, such as a hotel, restaurant, or
other establishment that serves food or beverages to the public, such as a boarding house, or
any other establishment that serves refreshments to the public, such as a cafe, bar, or theatre.
1 Women on maternity leave are guaranteed full pay (100 percent) under the MBA, which
states that female employees must be compensated at their average daily wage while they are
away from the workplace.8

CHAPTER 2- EFFECTS OF MATERNITY BENEFIT PROGRAMS

According to a comprehensive research of maternity at work in many countries, maternity

protection for women employees contributes to the health and well-being of mothers and
their new-borns. UN Millennium Development Goals 4 and 5, which aim to reduce child
mortality and improve maternal health, are considered as a way to achieve maternity
protection.9 This section provides academic findings on the link between maternal health and
maternal and child health in order to show how maternity benefits improve the health of
moms and children.

According to research in the field of public health, women who leave or return to work too
late in their pregnancies or too soon after giving birth experience more severe mental and
physical symptoms. Studies show that women taking maternity leave in the ninth month of
their pregnancy had a four-fold lower risk of caesarean deliveries than those who do not.10
Postpartum women who work had a higher rate of breast soreness, respiratory infections, and

7 Renu Jamwal and Deepti Gupta, Work participation of women and emerging labour laws in India, Asia Pacific
journal of social sciences, Vol 2(1), 2010, ISSN- 0975 5942.

8Rajwinder Singh, Jaspal Singh & Showkeen Bilal Ahmad Gul, AWARENESS AND EXERCISE OF LEGAL
RIGHTS AMONG WORKING AND NON-WORKING WOMEN IN PUNJAB, Educationia Confab, 2014.

9 Richa Jhanwar, The Need for Maternity Benefits for Women Employee, ACADEMIKE,(February 14,2021

10Guendelman, S et al., Maternity leave in the ninth month of pregnancy and birth outcomes among working
women, Women’s health issues, 19, pp. 30-37, (2009)

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gynaecological issues compared to those who are not employed. Mental health outcomes
have been mixed. Some experts feel that mothers who take a short maternity leave are more
likely to have depressive symptoms if they are also coping with marital or professional
challenges at the same time. Returning to work within 24 weeks of giving birth, on the other
hand, is connected to poor mental health, according to others.11 A 2005 economic study found
that women who took longer maternity leave were less likely to be diagnosed with clinical
depression and more likely to have fewer outpatient visits, compared to women who had
shorter maternity leave. When it comes to depression, spending an extra week of maternity
leave can reduce symptoms by as much as 6-7 percent, and returning to work later affects the
likelihood of at least three outpatient consultations in the six months following childbirth,
according to the study.

Parental time is a direct input into children's health capital, according to economic theory. A
small number of studies have examined the link between parental leave and the health of
children.12 One of these studies examined 17 nations from the OECD in 1959, 1969, 1979
and 1989. Infant mortality rates are reduced by 0.5 fatalities per 1,000 live births, according
to a study.13 According to Christopher Ruhm, a professor of public policy and economics,
paid parental leave reduces the death rate of new-borns. His analysis of data collected over a
40-year period from 16 European countries shows that a 10-week increase in paid leave will
reduce neonatal mortality by 2.5-3.4%. In Ruhm's study, unpaid leave had no influence on the
death of infants. Extending paid leave by ten weeks reduces post-neonatal 7 mortality by 3.7
to 4.5 percent and reduces the mortality of children by 3.3 to 3.5 percent, according to Ruhm.
According to a recent study that controls for social spending generosity and covers both the
United States and Japan, paid leave improves infant death rates. Additionally, research has
shown that maternity leave increases the amount of time spent breastfeeding. According to
the WHO, breastfeeding is the most common method of providing nutrients to new-born
infants in order to promote healthy growth and development. Researchers in the United States

11Chatterji, P & Maekowitz, Does the length of maternity leave affect the maternal health?, Southern Economic
Journal, 72 (1), pp. 16-41, (2005)

12 Tanaka, Parental leave and child care across OECD countries, The Economic Journal, 115, (2005)

13 Winegarden, CR & Bracy, P, Demographic consequences of maternal-leave in industrial countries: Evidence

from fixed-effects model, Southern Economic Journal, 61 (4), 1995

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have shown a correlation between maternity leave following childbirth and the duration of
breast-feeding.14 When a mother returns to work soon after giving birth, her baby's chances
of being breastfed or receiving regular medical checkups are significantly reduced. A lack of
complete polio vaccination and an increased risk of developing externalising behavioural
problems at age four are also factors.15

Financial benefits are also to be had. UN Fourth World Conference on Women's Beijing
Platform for Action states that governments should take the necessary steps to guarantee that
pregnant or breastfeeding women are not fired or discriminated against when they return to
the workforce after maternity leave. According to the action plan, this should be
accomplished in order to enhance the economic rights and independence of women.16
Academic results on the links between maternal benefits and economic participation and
efficiency are presented in the following sections to show how maternity benefits influence
economic metrics.

Feminist scholars believe that women's self-determination and empowerment depend on

economic participation. Being able to secure a salaried position is essential to one's economic
participation. Paying a salary lessens women's financial dependence on male relatives and
partners, giving them more freedom to leave abusive relationships. Participation in the
workforce is not always considered as a positive thing, however, because it might be the
result of economic constraints, injustices or poverty and it can impose a double weight of
labour on women who are responsible for all household responsibilities. Women's salaried
job is seen as requiring additional benefits, including maternity benefits, as a necessity.
Women's capacity to balance work and family life may improve when they are on maternity
leave.17 Though maternity leave is predicted to improve women's economic participation, the
actual data is varied. In the US, one study revealed that maternity leave had no influence on

14Roe, B et al, Is there competition between breast-feeding and maternal employment?, Demography, 36 (2),
1999

15Berger, L et al., Maternity leave, early maternal employment and child health and development in the US, The
Economic Journal, 115, 2005

16 Beijing Platform for Action, The United Nations Fourth World Conference on Women, 1995

17Moghadam, V & Senftova, L, Measuring women’s empowerment: participation and rights in civil, political,
social, economic, and cultural domains, UNESCO, 2005

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employment, leave, or work; in the US and the UK, another study found that maternity leave
made women more likely to return to their old employers following childbirth.18

Scholars have examined the impact of parental leave on economic participation, and
maternity leave in particular, has been examined. According to a research of European
countries, short periods of maternity leave increase employment-to-population ratios. Data
from Europe and North America shows that parental leave with a moderate duration improves
employment and that parental leave with a short to intermediate duration boosts labour force
participation rates. As a reminder, protracted interruptions from work are associated with less
favourable labour market outcomes.19

According to some economists, benefits like parental leave are detrimental to the economy by
hindering the free flow of labour and so lowering welfare. Benefit package details should be
discussed openly between the company and employee, it is assumed. Additional evidence
suggests that those who are most likely to take advantage of mandated assistance may
become unemployed as a result. In the case of parental leave, these are the women.
Companies may restrict women to occupations where absences are least costly as a result of
parental leave policies. This has been suggested to be the situation in Sweden. In contrast,
mandatory benefits have been demonstrated to be advantageous in lowering unemployment
and promoting employee retention. Using data from a study in the United States, researchers
found that the average benefits of parental leave outweigh the costs by six times. As a result,
parental leave is thought to enhance productivity since it allows workers to stay in positions
where their sector-specific skills are most beneficial.20

Another reason for widespread paternity leave is that of asymmetric knowledge. Employees
have greater information than employers about whether or not they will need parental leave,
and this word is used in this context (asymmetric information). It is possible for employers
who offer these incentives to attract more applicants who need benefits (adverse selection),

18 Waldfogel, J, The family gap for young women in the United States and Britain: Can maternity leave make a
difference?, Journal of Labour Economics, 16 (3), 1998

19 Moss, P & Deven, F, Leave policies and research: A cross-national overview, Marriage & Family Review, 39
(3-4), 2006

20Ruhm, C & Teague, Parental leave policies in in Europe and North America, National Bureau of Economic
Research, Working Paper No. 5065, 1997

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resulting in a lower profit margin. Therefore, governments have been urged to intervene in
the supply of items that only a few employers provide for their employees. On top of that,
there are positive externalities to consider. It is impossible for the provider or recipient to
directly capture the positive externality. In the case of parental leave, the health of the child
could be an additional benefit. Children's health and medical costs are expected to improve
and reduce when at least one parent is no longer working. Medical expenses are not totally
paid by families, which is why a mandate has the potential to boost productivity and
efficiency in the workplace.21

Maternity leave can prevent pregnant women from quitting their employment or re-entering
them under less favourable circumstances, as can be shown from the preceding sections.
Maternity leave is essential for attaining gender equality since it allows women to continue
working throughout their babies' intensive care. People who take maternity leave don't fall
too far behind those who don't, and the income gap between men and women is kept to a
minimum because of this paid leave. The impact of maternity leave terms and conditions on
gender equality has been observed by scholars, though. During a UN panel discussion on
equal distribution of duties between men and women, Susan Himmelweit argues that longer
leave periods may penalise workers and limit promotion chances. Because of the perception
that women are more likely than men to take protracted maternity leave absences, pregnant
women may be discriminated against in the workplace. Birth discrimination has increased
since maternity leave was extended in the UK, according to Himmelweit. When one sex takes
long periods of leave, she says that it will increase gender imbalance in the workplace and in
men's and women's ability to participate equally to caring for family members. It's not
uncommon for unequal parental responsibilities to continue once both parents return to work,
according to Himmelweit.22 As a result, the traditional gender divide in the workplace can be
maintained through the use of long maternity periods.

Gender-neutral leave is recommended by Himmelweit due to the negative effects of sex-

specific leave and to narrow the difference in leave between men and women. She believes

21 Summers, L, Some Simple Economics of Mandated Benefits, The American Economic Review, 79 (2), 1989

22 Himmelweit, S, Rethinking care, gender inequality and policies, United Nations Division for the
Advancement of Women, Expert Group Meeting on “Equal sharing of responsibilities between women and men,
including care-giving in the context of HIV/AIDS”, 2008

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that during the postpartum phase, there is no need for women to take additional time off from
work. As an alternative, the leave should be treated as a fundamental personal and/or family
entitlement.23 To encourage fathers to take a reasonable amount of time off, studies have
found that the right to take leave should be independent, with some non-transferable time
available for each parent, the leave should be paid at a rate comparable to male earnings, and
leave should be flexible in the ways that it is taken.24 It turns out that neither gender-neutral
nor gender-specific employment benefits can relieve the problem of workplace inequity,
according to a study of legislative responses in Sweden, Canada, and the United States to
pregnant employees. In order to achieve gender parity in the workplace, the author argues
that in addition to maternity and paternity leave policies, programmes promoting pay
fairness, child care accessibility, and men's involvement in childcare and the home are also
essential components. Work must also be restructured to remove the idea that it is separate
from personal life. Although women are more likely to work part-time or on short-term
contracts, maternity and parental leave programmes assume that male work characteristics
are the norm, despite the fact that many women do so. As a result, the research suggests that
in order to achieve justice and equity, the traditional division of labour between men and
women should be taken into account.25

CHAPTER- 3 WIDER LEGAL FRAMEWORK ON MATERNITY BENEFITS OTHER THAN

MATERNITY BENEFITS ACT

Article 14 offers the right to equality in law, Article 15 provides the right to social equality,
Article 16 provides the right to social equality in employment, and Article 21 guarantees the
right to life and dignity. "Right to an adequate means of livelihood," "Right to equal pay for
equal work," "Right that the health and strength of workers both men and women are not
exploited or abused," "Right to just and humane conditions of work," and "Right for
improvement in employment opportunities and conditions for the working women" are all
included in Article 39 of the Directive Principles of State Policy.

23 Ibid

24Carlsen, S. Men on parental leave- how men use parental leave in the Nordic countries. Nordic Council of
Ministers, Copenhagen.

25Baker M, Parental Benefit Policies and the Gendered Division of Labor, Social Service Review, 71 (1), pp.
51-71, 1997

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In a landmark ruling, a significant milestone is set in this regard. Disciplinary action was
taken against the female stewards and the male pursers, both of whom worked in the same
cabin. One of the three issues was the pregnancy termination clause in the Air India
Corporation Act, which specified that if any of the air hostesses became pregnant, their
employment would be immediately terminated. The Supreme Court concluded that this
clause violates and infringes on Articles 14 and 15 of the Constitution, which questioned its
constitutionality. The air hostess' capacity to return to work after childbirth is a personal
matter that should not be coerced.
Additionally, in 1948, the Employees State Insurance Act was passed. Under the Employees
State Insurance Act of 1948, which is in addition to the above statutes, maternity benefits are
also offered If you're eligible for the benefits listed in Section 46, 50, and 56, you'll get them
based on what the Central Government has to offer. Under Section 73 of the act, employers
are prohibited from firing or disciplining any employee during the maternity benefit period,
and no notice of dismissal or termination will be valid during this time. Though the
"Employees State Insurance Act, 1948" also covers maternity benefits. Section 2 of the
Maternity Benefit Legislation, 1961, however, prevents a contradiction between the two acts
by stating that the act is applicable. Except for Sections 5A and 5B of this Act, no factory or
establishment to which the Employees' State Insurance Act, 1948 applies will be subject to
this Act. Leave Regulations for Civil Servants: For example, Rule 43 of the Central Civil
Services Leave Rules, 1972 provides for the same criteria for 180 days of leave.26
CHAPTER- 4 THE JOURNEY TILL THE MATERNITY BENEFITS ACT 2017
The Maternity Benefit Act was amended in April 2017. Working mothers' needs can be
satisfied while still preserving a work-life balance according to this liberal regulation.
Concerns concerning the act's influence on new jobs for women and other problems in the act
have been raised by several critics of the legislation.

India's courts have done an outstanding job of expanding and broadening the scope of the
Maternity Benefit Act since its inception in 1961, with decisions that have helped women and
their employers. However, a look at a few examples shows the county's discontent with
working mothers, as evidenced by the rule's application in some cases. Legal limits prevent
the courts from extending maternity leave beyond a certain point. Another issue that has

26 Central Civil Services (Leave) Rules, 1972

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come before the courts is the extension of maternity benefits to temporary female employees
(not on the rolls of the company).

It was found that, in spite of the fact that the work assigned to regular female employees
differed little from that assigned to daily wage female employees on the muster rolls, the
Municipal Corporation of Delhi (MCD) only granted maternity leave to its regular female
employees in the case of Female Workers' (Muster Rolls) & Anr.20. Another petitioner who
had worked as a guest professor at the school and had her services terminated because she
requested maternity leave was examined by the Central Administrative Tribunal. In order to
protect the Act's advantages for regular employees, the petitioner was forced to take an
unpaid leave of absence throughout her pregnancy. CAT ruled in favour of the petitioner
(Anuradha Arya v. The Principal, Government Girls' Senior Secondary School21) and
ordered the school to restore her and pay her back wages and other associated benefits. All
permanent employees are entitled to the same maternity leave and other benefits as
temporary, contract, and ad-hoc employees, according to the judgement.

In order to understand the need for the Act's amendment, research and independent inquiries
among female employees were critical. Both at home and at work, women in semi-urban and
urban Indian culture have taken on more and more responsibility for domestic and financial
responsibilities. In order to ensure that working women are better prepared when they return
to the workforce following the birth of a child, the entire length of maternity leave must be
granted and enforced.

CHAPTER 5- CRITICAL ANALYSIS

Preventing the loss of a mother's self-respect by providing adequate care and attention for her
when she is unable to fulfil her responsibilities as a mother due to illness is the purpose of
maternity benefits. The maternal hypothesis was extensively discussed in this case. The goal
of this benefit is to allow the mother to spend quality time with her child without having to
worry about losing her job or losing her financial stability. As a result of the lack of clarity
regarding childcare facility distance and the fact that an employer must pay for 26 weeks of
paid leave before hiring women, why would he not avoid doing so in order to save money?
These laws do have some disadvantages, such as not covering working women in the
organised sector. Women's financial independence will be increased as a result of the new

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amendment, which guarantees comprehensive maternal care during the full bloom time. One
of life's most necessary and lovely experiences, motherhood must never be exploited. Human
rights are violated when discrimination and exploitation are practised, and this is wrong on
both a moral and ethical level. This type of sensitive information should be guarded at all
costs.27

To guarantee that the advantages of this legislation are fairly dispersed, all of India's labour
laws must be uniformly applied to all workers. Women in both the organised and unorganised
sectors must gain from eliminating differences in features, leave, and pay advantages. The
financial burden on private employers must also be shared (the Labour Ministry is reportedly
working on an incentive programme that would reimburse firms that hire women and offer
them a 26-week paid maternity leave). In order to implement the Maternity Act amendment,
the Ministry of Labour and Employment will incur a financial burden of around Rs. 400
crores. Taking this step is a good idea, and it should be done right away. The Employee State
Insurance Act should include all female employees, and employers, especially in the private
sector, should share the financial burden equally (middle and small size industries). For
Indian enterprises, however, the cost of postnatal leave would rise if they had to pay for
maternity leave, which is a required investment in gender diversity.

Overall, the 2017 Benefits Act is a step in the right direction for the federal government. The
government should simultaneously fix the flaws in the legislation and ensure that women
have equal rights at work. When it comes to the economy, allowing women to take maternity
leave is a must because it will assist the company attract and retain the best workers.

POLICY SUGGESTION

Women in India's workforce have declined from 35% in 1990 to 27% today, according to
World Bank estimates. Between 2005 and 2012, the gender wage gap in India worsened by
20 million women leaving their jobs, while the number of men entering the workforce
increased by 24 million. Preliminary studies on the subject found that a woman's leave of
absence should be extended so that she has time to recoup and breastfeed her newborn child.

27Maternity Leave & Paternity Leave Benefits in India, HELPLINE LAW, http://www.helplinelaw.com/family-
law/MPBI1/maternity-leave-and-paternity-leave-benefits-in-india.html

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An important step forward has been made by addressing this in the amendment. It's a pity
that the negative press has placed a cloud on the matter. Recruitment services business Team
Lease found that at least 26% of start-ups and Small and Medium Enterprises (SMEs) prefer
hiring male candidates because of the six-month maternity leave perk.28 Small and medium-
sized enterprises were the focus of this study, which raised the possibility that increasing
maternal benefits could be harmful. Many companies feel the change will have a positive
impact and result in happier employees, said the research.

Research shows that female employees are pleased that maternity leave has been extended.
To put it another way, India's maternity leave policy is among the most advanced in the
world, and it's both an honour and a big step forward for women's working rights. This quick
assessment brings to light some critical issues that, if solved at the policy level, will help this
vital law be implemented effectively and remove obstacles in its path.

If employers bear the entire burden of providing maternity insurance, they are incentivized to
give no insurance at all. It is therefore necessary to distribute the costs of maternity insurance
among multiple authorities. There are numerous reports indicating a decrease in female
worker recruitment due to a rise in the number of maternity leave days, and the Government
of India has chosen to pay women on maternity leave 50 percent of their 14-week salary. The
incentive is available to any woman who makes more than Rs. 15,000 each month. An
official announcement on this is expected to be made soon. This should be expedited,
according to the proposal.

CONCLUSION

The instalment of maternity benefit, which is the money payable to her at the rate of the usual
every day wage for the duration of her true nonattendance, is one that each lady may be
eligible for, and her boss should be subject to. Maternity benefits are required in order for a
mother to be able to devote quality time to her child without fear of losing her job or source
of income. Following the breakdown, it can be deduced that the Maternity Benefit Act of
1961 is a benefit to working women because they are not unable to work during their
maternity time. Whatever the case may be, the Act does have some flaws that should be

28 B. Chandra Mohan Patnaik, Ipseeta Satpathy and Anirban Mandal, “Working and Living Conditions of Labor
in Jhuggi Jhopadi (Slum)”, International Journal of Management (IJM), Volume 5, Issue 7, 2014

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considered. Initially, the length of leave must be determined with the purpose of allowing a
mother to fully recoup and rejuvenate while also being able to effectively nurture her newly
born child. Within this, the post-natal time should be extended to account for issues such as
the rise in the number of usually relational unions, caesarean births, atomic families, and
urbanisation. Maternity Leave under the Maternity Benefit Act should be raised from the
current level of 12 weeks to 24 weeks, according to the 44th Indian Labour Conference, held
in February 2012. Furthermore, the MBA does not agree with universal models, and its
application is riddled with flaws because the Act's whole responsibility rests with the
organisation. Setting the entire burden of providing maternity benefits on the employer is
akin to providing him with a motivational motive to not provide any benefit at all. As a result,
the expense of maternity insurance should be shared among multiple workplaces via a social
security plan or a general tax assessment. Third, the responsibility of today's thinking is
sometimes exclusively put-upon ladies. This promotes man-centered views and assumptions,
as well as the separation they feel from their employers. With a stated purpose of reducing
these components, the Act should also influence a paternity agreement to leave and adopt a
more popular approach. Additionally, security should be available to those who care for
children.

REFERENCES

Articles

- Carlsen, S. Men on parental leave- how men use parental leave in the Nordic
countries. Nordic Council of Ministers, Copenhagen

- Nikore, M, India’s Maternity Benefit (Amendment) Act: Can it help increase

participation of women at work? The times of India, (2018)

- M Baker, Parental Benefit Policies and the Gendered Division of Labor, Social
Service Review, 71 (1), 1997

Web sources

http://m.paycheck.in/main/career-tips/workandpay/maternity-benefits-2013-a-mode-
ofdignifying-motherhood,10/08/2014

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http://www.lawisgreek.com/maternity-benefits-what-are-your-legal-rights

http://www.lawyersclubindia.com/articles/print_this_page.asp?article_id=580

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