25/05/2017
CHANGES IN MATERNITY LEAVES
Women working in the organized sector will now be entitled to paid maternity leave of 26 weeks, up from 12 weeks, as Parliament passed a bill in 2017 in this regard that will benefit about 1.8 million women. The new law will apply to all establishments employing 10 or more people, and the entitlement will only be applicable for the first two children. For the third child, the entitlement will be for only 12 weeks.
EXTENSION OF LEAVES
For first two children – 26 weeks , up from 12 weeks
For Third Child- 12 weeks
For Adopting Mother- 12 weeks
NEW RULES ON CRECHE
It is mandatory for employers in establishments with 30 women or 50 employees, whichever is less, to provide crèche facilities either in office or in any place within a 500-metre radius.
The mother will be allowed four visits to the creche in a day. This will include her interval for rest.
HOW THESE CHANGES IMPACTING ON INDIAN BUSINESS?
For an SME or startup with 20 or 25 employees, a 26-week leave of absence is a significant loss as they operate on thin margins. This kind of scenario will kill the enterprise and render some of the jobs redundant in anticipation. Therefore a businessman must have the freedom to adopt policies that suit his enterprise or industry.
Faced with higher minimum wages, increased PF/ESI contributions coupled with larger bonuses and new leave provisions in this Bill, the Make in India ideal appears tougher than ever.
An absence of 26 weeks is not easy to manage even from the skill/knowledge management perspective; it would take 3-4 months for an individual to get back to routine. Such a massive absence can neither be substituted by a temporary appointee nor managed by the system without affecting productivity.
DOES THESE CHANGES AFFECTS ON RECRUITMENT STRATEGIES?
Employers and recruitment experts fear it could have the opposite effect, particularly for small and medium-sized businesses.
Expert says that in future we will probably see a further decline in women being hired.
The government has mandated 26 weeks of paid maternity leave, but it doesn't provide any financial support for employers. That means companies must bear all the associated costs -- including training and hiring a temporary replacement.
The law also says companies with more than 50 employees must set up daycare services for working mothers. New maternity leave requirements would negatively impact on their profitability.
BENEFITS COVERED UNDER THIS ACT
a) Increase the maximum period of maternity benefit from the existing 12 weeks to 26 weeks in case of women who have less than two surviving children and in other cases, the existing period of 12 weeks maternity benefit shall continue;
b) To extend the maternity benefit to a "commissioning mother" and "adopting mother" and they shall be entitled to 12 weeks maternity benefit from the date the child is handed over;
c) To facilitate "work from home" to a mother by inserting an enabling provision;
d) To make it mandatory in respect of establishment having 50 or more employees, to have the facility of creches either individually or as a shared common facility within such distance as may be prescribed by rules and also to allow four visits to the creche by the woman daily, including the interval for rest allowed to her;
e) Every establishment shall intimate in writing and electronically to every woman at the time of her initial appointment about the benefits available under the Act.
