As an HR professional working in an Indian IT startup with a remote workforce and an employee count between 30 and 50, we have encountered a situation involving one of our female employees who is pregnant. While establishing a maternity leave policy to support our employees, we have learned that this particular employee intends to take advantage of the maternity leave benefits provided by our company but plans to leave and join an MNC soon after her leave period concludes.
Considering our startup's current status, being less than three years old and not currently having ESIC (Employee State Insurance Corporation) and PF (Provident Fund) in place, we are seeking a solution to address this situation. We are exploring the possibility of implementing a clause that requires employees to continue working for a certain duration after their maternity leave ends if they have availed maternity leave benefits from our organization.
This proposed clause aims to ensure that employees who benefit from our company's maternity leave policy fulfill their commitment to the organization after returning from leave. By encouraging a reasonable post-maternity leave retention period, we aim to strike a balance between supporting our employees during this important life event and fostering employee loyalty and stability within our startup.
Is there any clause available or any suggestions on what we can do in this situation?
From India, undefined
Considering our startup's current status, being less than three years old and not currently having ESIC (Employee State Insurance Corporation) and PF (Provident Fund) in place, we are seeking a solution to address this situation. We are exploring the possibility of implementing a clause that requires employees to continue working for a certain duration after their maternity leave ends if they have availed maternity leave benefits from our organization.
This proposed clause aims to ensure that employees who benefit from our company's maternity leave policy fulfill their commitment to the organization after returning from leave. By encouraging a reasonable post-maternity leave retention period, we aim to strike a balance between supporting our employees during this important life event and fostering employee loyalty and stability within our startup.
Is there any clause available or any suggestions on what we can do in this situation?
From India, undefined
Hi,
It is a very common scenario across all private sector companies Female employees either will request for extension of maternity leave beyond 182 days or quite for the sake of taking care of new born baby.
Maternity Benefit given by employers is as per Act and purely statutory. Compelling the Maternity benefit beneficiaries that they should work for stipulated time after resuming back to work from maternity leave period is purely an act of compulsion. Rather you may plan some other Retention strategy like Retention Bonus or some similar schemes which might attract employees.
So just think about it. With my experience I have seen many female employees left the organization so as nurture their new born baby and the same cannot be restricted.
By the by you should cover all your employees under PF & ESI as per respective Act requirement.
From India, Madras
947It is a very common scenario across all private sector companies Female employees either will request for extension of maternity leave beyond 182 days or quite for the sake of taking care of new born baby.
Maternity Benefit given by employers is as per Act and purely statutory. Compelling the Maternity benefit beneficiaries that they should work for stipulated time after resuming back to work from maternity leave period is purely an act of compulsion. Rather you may plan some other Retention strategy like Retention Bonus or some similar schemes which might attract employees.
So just think about it. With my experience I have seen many female employees left the organization so as nurture their new born baby and the same cannot be restricted.
By the by you should cover all your employees under PF & ESI as per respective Act requirement.
From India, Madras
Thanks for your valuable insight Lakshmi Narayanan, really appreciate your response.
Just to give our insights we are already remote-based company giving employees the facility to work from anywhere with utmost flexibility of time, here the scenario is simple it is understandable that if child care is required mother will obviously leave the job but unfortunately if the person leaves to join MNC so it is not the right situation for employeer who is trying to give benefit despite of financial limitations as a start-up.
We are just trying to explore the possibilities like person should stay with us after matenrity leave.
From India, undefined
Just to give our insights we are already remote-based company giving employees the facility to work from anywhere with utmost flexibility of time, here the scenario is simple it is understandable that if child care is required mother will obviously leave the job but unfortunately if the person leaves to join MNC so it is not the right situation for employeer who is trying to give benefit despite of financial limitations as a start-up.
We are just trying to explore the possibilities like person should stay with us after matenrity leave.
From India, undefined
Hi,
Understood. Attrition : It is the biggest challenge across all industries. In spite of congenial work environment combined with benefits & opportunity for growth employees tend to leave for few thousands. Have you analyzed the attrition % and the reason for leaving. If Exit Interview is not in place you may implement it immediately. Being small Organization frequent one to one session is also suggested. One thing I don't understand why post maternity cases are highlighted ? Is it that majority of the employees are females ?
What so ever it may be please analyze all areas right from compensation, whether it is on par with industry norms.. what are the benefits given by competitors etc.
From India, Madras
Understood. Attrition : It is the biggest challenge across all industries. In spite of congenial work environment combined with benefits & opportunity for growth employees tend to leave for few thousands. Have you analyzed the attrition % and the reason for leaving. If Exit Interview is not in place you may implement it immediately. Being small Organization frequent one to one session is also suggested. One thing I don't understand why post maternity cases are highlighted ? Is it that majority of the employees are females ?
What so ever it may be please analyze all areas right from compensation, whether it is on par with industry norms.. what are the benefits given by competitors etc.
From India, Madras
Hi
Please do note that you have mentioned as you have the headcount between 30 & 50.
ESI Registration is mandatory if you have 10 & more employees in your organisation which is not obtained
EPF Registration is mandatory if you have 20 & more employees in your organisation which is not obtained
Both of them is treated as major non compliances.
For maternity rather than the policy Act plays a vital role & Act supersedes policy, if policy is not giving more benefits than the Act & need to follow.
There might be hardly few such cases which leads to attrition post maternity & the same is common across the industries for that you need to have clear hiring process & retention process
From India, Bangalore
Please do note that you have mentioned as you have the headcount between 30 & 50.
ESI Registration is mandatory if you have 10 & more employees in your organisation which is not obtained
EPF Registration is mandatory if you have 20 & more employees in your organisation which is not obtained
Both of them is treated as major non compliances.
For maternity rather than the policy Act plays a vital role & Act supersedes policy, if policy is not giving more benefits than the Act & need to follow.
There might be hardly few such cases which leads to attrition post maternity & the same is common across the industries for that you need to have clear hiring process & retention process
From India, Bangalore
Dear Annonymous,
Experts have already answered your query. My thought is with regard to your apprehension that post maternity, the concerned female employee is going to join an MNC. It may be a hypothetical situation or a confirmed news. However, offering Maternity benefit is by law and doesn't depend on whether a woman employee will join back or not. You have to give it.
It's good that you are thinking about your company. I think, on informal level or as an HR, you can develop a good rapport with that employee that she positively decides to come back. Isn't it?
On other side, prepare yourself for the alternatives if you receive her resignation in due course.
From India, Pune
Experts have already answered your query. My thought is with regard to your apprehension that post maternity, the concerned female employee is going to join an MNC. It may be a hypothetical situation or a confirmed news. However, offering Maternity benefit is by law and doesn't depend on whether a woman employee will join back or not. You have to give it.
It's good that you are thinking about your company. I think, on informal level or as an HR, you can develop a good rapport with that employee that she positively decides to come back. Isn't it?
On other side, prepare yourself for the alternatives if you receive her resignation in due course.
From India, Pune
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Grant of Maternity Benefit Leave to Women Employees Engaged under Outsourcing Policy in Haryana.pdf