Date: August 18, 2023
In a significant ruling, the Supreme Court of India has held that maternity benefits must be granted to women even if the period of benefit extends beyond the term of their contractual employment. The judgment emphasizes the protection and entitlement of maternity benefits beyond the confines of employment duration.
The case before the court involved an appeal against a Delhi High Court ruling that had restricted maternity benefits to a mere 11-day period based on the expiration of a contractual agreement. A three-judge bench comprising Justices Aniruddha Bose, Sanjay Kumar, and SVN Bhatti heard the appeal and delivered the ruling.
The Supreme Court, in its judgment, directed employers to pay maternity benefits as per the provisions of Sections 5 and 8 of the Maternity Benefits Act, 1961, even if the contractual employment period has ended. The court emphasized that the statute itself envisions the continuation of benefits beyond the term of employment, highlighting that entitlement to medical benefits under Section 5 of the Act extends beyond the employment duration.
Referring to Section 12(2)(a) of the Maternity Benefit Act, 1961, the court emphasized that the entitlement to maternity benefits applies even to employees who are dismissed or discharged during their pregnancy. The court emphasized that the benefit accrues by fulfilling the conditions under Section 5 and is not co-terminus with the employment period. The court also cited previous judgments that upheld the principle of extending maternity benefits and noted that Section 27 of the Act overrides other laws and agreements.
The appellant argued that once the prerequisites under Section 5(2) of the Act are fulfilled, a contractual employee is entitled to full benefits as contemplated therein. The appellant further highlighted that she had worked for more than 180 days during the preceding year, meeting the requirement for eligibility.
The respondent, on the other hand, argued that once the term of the contract ends, there cannot be a notional extension of the contract to provide maternity benefits under the 1961 Act. The respondent contended that any benefits should be limited to the contractual period and should not extend beyond it.
The Supreme Court rejected the respondent’s arguments and emphasized that the statutory scheme of the Maternity Benefit Act does not support limiting benefits based on the expiration of a contractual agreement. The court noted that the Act provides for the extension of maternity benefits even after the termination of employment.
The court’s ruling establishes an important precedent by ensuring that women are not deprived of maternity benefits simply because their contractual employment has ended. It upholds the rights of women to avail themselves of maternity benefits as mandated by the Maternity Benefits Act, 1961, regardless of the duration of their employment.
This judgment is a significant step towards protecting and promoting the welfare of women in the workforce, ensuring that their maternity rights are safeguarded beyond the confines of contractual employment. It reaffirms the legislative intent to provide support to women even after their employment period ends and sets a progressive precedent for future cases related to maternity benefits for contractual employees.
Tags: Maternity Benefits, Contractual Employees, Justice Aniruddha Bose, Justice Sanjay Kumar, Justice SV Bhatti, Maternity Benefit Act 1961
Written By Shriya Ayalasomayajula, College Name: Nyaya Vidya Parishad, Intern At Legal Vidhiya
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