Hi Everybody,

I was surfing the economictimes.com site and read this article on "Cos profit lie on employees wellness". I found that all the IT companies are introducing innovative methods and benefits, especially on maternity leave and flexible working hours, etc.

As far as I know, all IT companies come under the "Shops and Establishment Act" (hope I am correct). Now, I want to know what the significance of these laws is in the IT sector when each company adopts its policies and laws.

What is your opinion and idea on this?

Regards,
Ranjani

From India, Madras
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Dear Ranjani,

Sorry for the inordinately delayed response because only of my recent membership! You are correct that I.T Companies are covered under the States' Shops and Establishments Acts. Section 2(1)(b) of the Maternity Benefit Act, 1961 enables its application to shops and establishments in which 10 or more persons are/were employed.

The purpose of this special law is to regulate the employment of women in certain establishments for certain periods before and after childbirth and to provide for maternity benefits and certain other benefits.

THE REGULATORY ASPECT of this special law comprises of the following:

(1) A woman is entitled to maternity benefits if she has actually worked in an establishment of the employer to whom the claim is made for a period not less than 80 days in the 12 months immediately preceding the date of her expected delivery [S 5(2)].

(2) Employment of women knowingly by the employer and work by a woman during the 6 weeks immediately following the day of her delivery, miscarriage, or medical termination of pregnancy are prohibited [S 4(1) and (2)].

(3) The employer shall not require a pregnant woman, on a request made by her in this regard, to do any arduous nature of work involving long hours of standing or in any way likely to interfere with her pregnancy or the normal development of the fetus or likely to cause miscarriage or otherwise adversely affect her health during the period of ONE MONTH immediately preceding the period of 6 weeks BEFORE the date of her expected delivery and any period during the said period of 6 weeks for which the pregnant woman does not avail leave of absence u/s 6 [S 4 (3) & (4)].

(4) In addition to the normal interval for rest, on returning to work after delivery, a nursing mother should be allowed 2 nursing breaks until the child attains the age of 15 months [S11].

(5) Discharge or dismissal of a woman undergoing maternity leave or for that absence or issuing notice for such purpose which will expire during such absence or varying the conditions of her service to her disadvantage is unlawful [S 12(1)].

MATERNITY BENEFITS:

(1) Every woman shall be paid maternity benefit @ average daily wage for the period of her actual absence immediately preceding the day of her delivery, the actual day of her delivery, and any period immediately following that day [S 5(1)].

(2) The maximum period is 12 weeks of which 6 weeks shall precede the date of her expected delivery [S 5(3)].

(3) Every woman entitled to M.B is also to be paid a MEDICAL BONUS of Rs.250/-, if no prenatal confinement or postnatal care is provided for by the employer free of charge [S 8].

(4) Leave for miscarriage [S 9].

(5) Leave with wages for tubectomy operation [S 9A].

If the terms and conditions of the Maternity Benefit Policies devised by the Companies by their own are more beneficial in all aspects, please go ahead!

From India, Salem
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Hello Ranjani,

The Shops and Establishments Act provides guidance on the minimum processes or types of leaves to be given but does not restrict an employer from offering more. For example, as per the S&E Act, maternity leave is for 3 months; however, there are companies that offer maternity leave for up to 6 months.

Similarly, the leave policy mandates a minimum of 21 leaves to be provided. Nevertheless, many companies, particularly in the IT industry, offer a leave structure that allows for 30-35 leaves per annum, with the option to carry forward or encash certain leaves.

The IT industry is known for being high-stress, which is evident from its elevated attrition rate compared to other industries. To retain talent, innovative measures and additional benefits need to be provided to employees.

I hope this information is helpful. :-)

From India, Mumbai
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