This is an update on the Maternity Benefit (Amendment) Bill, 2016 (the "Amendment Bill"), which has recently received assent from the Rajya Sabha on August 11, 2016.The Amendment Bill seeks to bring about certain significant changes to the Maternity Benefit Act, 1961.

The Maternity Benefit Act, 1961 is applicable to every factory and to every shop or establishment in which 10 (Ten) or more persons are or were employed on any day in the preceding twelve calendar months.

The Amendment Bill is yet to receive assent from the Lok Sabha, pursuant to which it would require Presidential assent prior to it being notified as applicable law.

Key Amendments under the Amendment Bill:

  • Duration of Maternity Leave: The Amendment Bill has sought to increase the duration of maternity leave to be provided to a woman employee from 12 (Twelve) weeks to 26 (Twenty Six) weeks. Further, the duration of maternity leave that a woman can avail prior to the date of the expected delivery has been sought to be increased from 6 (Six) weeks to 8 (Eight) weeks. These revised timelines are however restricted to women having up to 2 (Two) children. In all other cases, the maternity benefit will continue to be 12 (Twelve) weeks, out of which not more than 6 (Six) weeks can be availed of prior to the date of the expected delivery.
  • Adoptive and Commissioning Mother: The Amendment Bill has sought to define the terms - 'commissioning mother' and 'adoptive mother'. A 'commissioning mother' includes a biological mother who uses her egg to create an embryo implanted in another woman, and an 'adoptive mother' includes a woman who legally adopts a child below the age of 3 (Three) months. Accordingly, maternity leave of 12 (Twelve) weeks has been introduced for - (i) a commissioning mother; and (ii) an adoptive mother. The said maternity leave is to be calculated from the date the child is handed over to the adoptive or commissioning mother, as the case may be.
  • Option to Work from Home: Another interesting amendment sought under the Amendment Bill is the introduction of the concept of 'work from home' for women whose nature of work is such that it allows her to work from home. This option can be availed of after the completion of the maternity leave of 26 (Twenty Six) weeks, for such duration as mutually agreed between the employer and the employee. Given that the Amendment Bill is silent on what would amount to 'work which can be carried out from home', it is likely that the said amendment will give rise to varied interpretation at a later date.
  • Crèche facilities: Establishments having 50 (Fifty) or more employees will need to provide for a crèche within a stipulated distance, either separately or along with common facilities. A woman employee will be allowed atleast 4 (Four) visits to the crèche in a given day, which shall also include intervals for her rest. The terms 'employees' and 'common facilities' have not been defined either in the parent legislation, or the Amendment Bill. Hence, we will need to wait and watch whether it would also include 'contract employees' within its scope, and if employers would be permitted to provide common crèche facilities with other establishments in the vicinity.
  • Right to Know: Every establishment will need to intimate a woman about the maternity benefits available to her, at the time of her appointment. Such information will need to be intimated in writing and through the electronic mode.

The details pertaining to the Amendment Bill, as introduced in the Rajya Sabha, are available at http://www.prsindia.org/uploads/media/Maternity%20Benefit/Maternity%20Benefit%20Bill,%202016.pdf.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.