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India: a decision on maternity benefits and term employment contract

  • On 17 August 2023, in the case Dr. Kavita Yadav v The Secretary, Ministry of Health and Family Welfare Department and Others (Civil Appeal Number 5010 of 2023), the Supreme Court of India stated that maternity benefits must be granted, even where they extend beyond the duration of a fixed-term employment contract.
  • It clarified that a woman employed on a fixed-term basis who meets the eligibility criteria for maternity benefit under the Maternity Benefit Act (MB Act) 1961 is, therefore, entitled to the whole 'maternity benefit,' even if the period of that benefit exceeds the duration of the employment contract.

The case concerned a contract doctor at the Janakpuri Hospital in Delhi, who had been granted maternity allowance for a shorter period than required by law (26 weeks paid by the employer), only until the end of her contract (11 June 2017). When she applied for a maternity allowance, the employer informed her that she could only be granted 11 days.

The Central Administrative Tribunal of New Delhi and the Delhi High Court upheld this approach. 

The Supreme Court, however, also referring to other precedents, overturned those decisions based on an interpretation of Section 12(2)(a) of the MB Act, which provides that maternity benefits must also be paid to an employee who is dismissed or discharged at any time during her pregnancy (provided that the woman is not already absent due to pregnancy), if that employee would have been entitled to such benefits had she not been dismissed.

Applying this principle to the present case, the Court set aside the judgment of the Delhi High Court and ordered the employer to pay the plaintiff her full maternity benefit within three months of the decision.

The issue had been somewhat debated, with non-uniform decisions in favour of one or the other interpretation.

Therefore, employers must consider this Supreme Court decision when applying for maternity benefits, where the statutory access requirements are met.