Can a company make its own maternity policy?

If a company have 90% female employee is there any relaxation for maternity benefit, can a company make its own maternity policy stating:-
1. Maternity can only be taken after completion of 2 Years.
2. If you are on maternity you will be paid for 3 months.
3. On maternity you will be paid an only a basic salary.

Can a company include these points in their maternity policy for Maharashtra?

Dear Member,
If the points are against the provisions of the Maternity Benefit Act then how can we consider these points in your Maternity Benefit policy. First go through the MB Act & then see whether your points are against law & if your answer is yes then this can not be taken into consideration while framing the policy.
R N KHOLA

Hi,

The Maternity act applies if you are employing more than 10 employees it doesn't matter if you are employing 90% female employees.

The Act applies to mines, factories, circus, industry, plantation and shops and establishments except employees covered under the Employees State Insurance act, 1948. It can be extended to other establishments by the state governments. There is no wage limit for coverage under the Act.

You can always provide extra benefits to the employees which is not stated in the act but not less.

Please go through the MB act. You will definitely conclude with 'NO' for all your questions.

Regards,
Sudha

Dear colleague,

Yes , nothing stops you from making your own MB policy provided-- and this is important-- the same gives better benefits than the MB Act to your women employees. Remember, the Act always stipulates the minimum conditions which must be complied without any choice.

Therefore, if if you make any policy which stipulates lesser benefits - which is what seems to be your clear intention in your proposal - it is violation of the Act entailing punitive action by the Authorities.

Choice is yours.

Regards,

Vinayak Nagarkar
HR and Employee Relations Consultant

Dear Colleague,
It is not advisable to bring a separate Policy for Maternity benefit to employees as uniform implementation is not possible here. In case of employees who are covered under ESI, the provisions will be mandatorily apply as you as an employer will be contributing and employees are also contributing. ESI will extend the benefit/ medical care for the Insured person. In case of employees not covered under ESI, then the provisions of Maternity Benefit Act 1961 applies. Here the employer has to directly extend the benefits to the applicable employees as and when arises. Hence for employees implementing any independent policy may not be much relevant. If you want to extend any thing more than ESI and Maternity Benefit uniformly for all such employees then well and good. It is an additional benefit but in the present economic scenario think twice and then decide.

No policy shall be inconsistent with the terms of statutes. You can provide additional benefits than the Act, but should not be less or inconsistent. This provision applicable to all statutes and not only to Maternity Benefit Act.
I think all our HR policy makers shall keep in mind the relevant statutory provisions before making any policy.

Statutory Acts like MB Act, ESI Act or PF Act, in broader sense, aims for the benefit and security of the employees. With the very same purpose only HR policies are drawn. HR policies vary from company to company, in terms of its administration, benefits, procedures etc. But irrespective of companies, HR policies ensure the welfare of its employees. Hence any benefit over and above what a statutory act prescribes, is welcome

Hence benefits as per HR policy shall be more than what prescribes under a statutory act.

Yes, you can have a separate Maternity Benefit Policy, provided it gives more benefits than the Maternity Benefit Act. You cannot give anything less than the MB Act. The MB Act stipulate the minimum benefits an employer should give to a female employee. Giving less than that is a gross violation and it is punishable in the court of law. The department of labour will take your company to the court.