Did you know the Maternity Benefit Act was introduced in 1961 by the government of India? As a woman who is employed at recognized organizations and factories, you are eligible to take leave before and after childbirth for an agreed duration. During this time, you are protected by the Maternity Benefit Act where you receive multiple benefits from your employer. These benefits include and are not limited to, medical bonuses, paid leaves, and nursing breaks. The act was introduced in an attempt to safeguard the professional environment of women employees in India.

The objectives of the Maternity Benefit Act are:

1. Maternity Leave: The Act mandates that women employees are entitled to maternity leave for a specific period before and after childbirth.
2. Paid Maternity Leave:  The Act mandates employers to pay the woman employee regardless during the maternity leave period.
3. Medical Bonus: In addition to maternity leave, medical expenses related to pregnancy and childbirth are covered.
4. Prohibited from Work: During the maternity leave periods, employers are not allowed to assign any work that is vigorous or may involve long hours of standing, which can adversely affect the health of the woman or the child.
5. Job Security: The Act ensures that the woman employee will still retain her job during the crucial period of pregnancy and childbirth.
6. Secured Role: The Act guarantees that women employees will be eligible to return to the same position or an equivalent position with the same benefits and pay.
7. Facilities for Nursing: The Act recommends that employers provide facilities for nursing mothers to feed their babies. These facilities are also known as Creche Facilities, depending on the number of women employees the company decides to provide.
8. Women’s Awareness of her Rights: It is mandatory for employers to inform their women employees of the maternity benefits their company provides under the Maternity Benefit Act. These benefits must always be displayed in the workplace.

How does this impact the employee?

The Maternity Benefit Act has had a significant impact on the working realm for all women employees. While there have been countless positive benefits, one should also take into consideration the possible drawbacks of this act. Below are the possible outcomes for both scenarios.

Benefits:

1. Women are financially Secure: One of the major outcomes the Maternity Benefit Act has ensured is that women are paid their wages despite being on leave. It creates a stable environment for the woman to embrace motherhood while also knowing her job is secure.
2. Work from Home: This act has allowed women the freedom to opt for work from home based on the organization they are in. This way they continue to progress in their career while also staying close to their newborns.
3. Rise in Women Employees: With the benefits of the Maternity Act, more women are likely to join organizations that in turn reduce the gender gap in companies. Women feel confident and secure knowing, they would not have to choose either.
4. Creche Facilities: Several organizations provide access to such facilities that in turn keep the mother and her child in safe health.

The Maternity Benefit Act has turned the tables for the careers of women in India. However, it is important to note that there are still limitations. Like, for example,  

1. Job Security: While the act mandates that women are entitled to retain their job roles, there is still a large gap where companies mercilessly fire women employees or hire them back at lower pay, using their pregnancy/childbirth as an excuse.
2. Lack of Awareness: Women working in smaller organizations are unaware of their rights and entitlements. Due to which, women are under more pressure to perform at work and manage their pregnancy. The Paybooks HR system prides on ensuring transparency and awareness is just a click away.
3. Career Growth: During such leaves, women are likely to miss out on opportunities that would be a potential promotion.

Impact on Employers

It is not a hidden fact that the maternity act largely benefits women employees. However, through several experiences, it is safe to say that companies are also in many ways benefitting from it.

Benefits:

1. Employee retention: In providing the maternity benefit, employers avoid recruitment and training costs, which significantly reduces the company costs and a potential employee.
2. Cultural shift: This kind of attitude helps companies build a very work-friendly reputation, which in turn increases the chances of attracting more and better talent.
3. Boosting Employee Morale: Providing maternity benefits can boost employee sophistication which in turn encourages the employees’ loyalty and an increase in productivity.

Challenges:

1. Temporary Hires: Maternity leaves that can last longer, or in some instances have multiple women employees on leave at the same time, can create a gap in the workforce. This might require companies to hire temporary staff which can be expensive.
2. Financial Expenses: Employers are liable to pay the entire cost of the maternity leave. This kind of expense can put a strain on the financial conditions of the companies especially in the small and medium enterprises.
3. Compliance Regulation: Companies are required to set up creche facilities especially if they house employees over 50. This adds to their infrastructure and operational costs.

The Maternity Benefits Act is a vital step towards women’s employment in India. Many women do not begin their careers as they believe it is not sustainable after childbirth. However, with the Maternity Benefits Act, a lot of women can choose their career alongside of motherhood.

However, while the maternity act is a significant boost for the women employees it does put a financial strain on companies especially those on smaller scales. To reduce the impact employers can introduce flexible work policies that would help the employees transition back to work smoothly or continue working from home during the crucial couple of weeks. With Paybooks HR Solutions, maternity benefit policies and compliances can be regulated and automated, ensuring a seamless experience for employers and employees alike.