Hi, my wife is on the first week of her maternity leave. Her current organization is closing down, and they are asking her to resign. If she resigns, she will lose her maternity benefits. What should she do? I need assistance in drafting a legally and professionally sound response. Your help would be greatly appreciated.
From India, Delhi
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From India, Delhi
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Dear friend,
If the company is closing, then where is the question of maternity benefits? All other employees are eligible to receive their wages until the last working day of the company. In your wife's case, instead of salary, it can be called maternity benefit.
If the company is closing, then, in fact, the company does not need to ask for resignation. However, they seem to be playing it safe by showing that the employees left the company voluntarily to avoid unforeseen hassles. In your wife's case, as she is already on maternity leave, advise her to submit an application stating that upon completion of her maternity leave, she is not interested in continuing her employment. Therefore, the period from the date of resignation until the last day of her maternity leave may be considered as the notice period. It remains to be seen whether the company will pay the maternity benefits even after closure or until the last working day of the company.
Thanks,
Dinesh Divekar
From India, Bangalore
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8032If the company is closing, then where is the question of maternity benefits? All other employees are eligible to receive their wages until the last working day of the company. In your wife's case, instead of salary, it can be called maternity benefit.
If the company is closing, then, in fact, the company does not need to ask for resignation. However, they seem to be playing it safe by showing that the employees left the company voluntarily to avoid unforeseen hassles. In your wife's case, as she is already on maternity leave, advise her to submit an application stating that upon completion of her maternity leave, she is not interested in continuing her employment. Therefore, the period from the date of resignation until the last day of her maternity leave may be considered as the notice period. It remains to be seen whether the company will pay the maternity benefits even after closure or until the last working day of the company.
Thanks,
Dinesh Divekar
From India, Bangalore
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Every member of ESI is eligible for benefits for six months even after resignation if the contribution is made for the previous half-yearly period. As such, she can receive benefits from the ESIC. Please check with your local ESI office and follow their advice. However, if your wife does not resign, she may not receive other benefits from the company on time, and she may have to wait until her actual date of resignation.
From India, Vijayawada
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From India, Vijayawada
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Every statutory employment benefit due to the employee is coterminous with the normal terminal benefits of his/her cessation of employment. Like Mr. Dinesh said, some unscrupulous employers resort to creating a scene of voluntary termination of employment on the part of employees to make the process of closure of their undertakings simple and less costly to circumvent the statutory provisions relating to closure. It is discernible from the original post that the closure process has not yet started. Therefore, my suggestion would be to join duty after the expiry of maternity leave and then resign so that the maternity benefits remain intact.
From India, Salem
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From India, Salem
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Thanks for your views. However, since the company is closing down, it must settle all its liabilities towards its employees, including gratuity, salaries, and maternity benefits. I believe that maternity benefits should be given top priority. Please advise.
From India, Delhi
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From India, Delhi
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Please submit a medical certificate, delivery certificate, etc., and make a claim for 26 weeks of benefits in advance on the grounds that the company will be closed upon the completion of 26 weeks. Even though the company is closing, the employer is still responsible for paying the benefits in full.
From India, New Delhi
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From India, New Delhi
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Dear Concern,
Here, the first question is, how long has your wife been working with that organization? This is a very important question, as all the benefits to which she may be entitled are based on service length. Secondly, how was she informed about submitting her resignation?
The above comments from respected members should have clarified the situation for you, but I would like to add a few more points.
As Dinesh Ji rightly pointed out, she does not need to respond to the organization's communication regarding her resignation, as she will lose all her benefits from the date of resignation, including maternity benefits. Therefore, it is better to remain silent and let the company proceed as necessary.
Since the company is closing down, there is no need for her to submit a resignation. However, if they are settling the Full & Final Account of an employee, they will have to clear all legal dues as per the law and as stated in the employee's Appointment Letter.
In my opinion, she does not need to initiate her resignation herself.
From India, Delhi
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Here, the first question is, how long has your wife been working with that organization? This is a very important question, as all the benefits to which she may be entitled are based on service length. Secondly, how was she informed about submitting her resignation?
The above comments from respected members should have clarified the situation for you, but I would like to add a few more points.
As Dinesh Ji rightly pointed out, she does not need to respond to the organization's communication regarding her resignation, as she will lose all her benefits from the date of resignation, including maternity benefits. Therefore, it is better to remain silent and let the company proceed as necessary.
Since the company is closing down, there is no need for her to submit a resignation. However, if they are settling the Full & Final Account of an employee, they will have to clear all legal dues as per the law and as stated in the employee's Appointment Letter.
In my opinion, she does not need to initiate her resignation herself.
From India, Delhi
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Thank so much to everyone for suggestions. My only query is If employer is of natorious mindset can they close the company without paying maternity claim and can they stop relieving letter as well?
From India, Delhi
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From India, Delhi
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First of all, I don't think she is covered under ESIC; otherwise, the employer would have asked her to get benefits from ESIC. Also, if she is already on maternity leave, she must be eligible for it. Now, the question is, even if she submits the resignation, what if the employer accepts her resignation and relieves her immediately? I don't think she should resign; instead, she should ask HR people that she will resign on the last day of company after getting her benefits till date.
From India, Pune
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From India, Pune
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Dear Mr. Pathak,
When the company is closing its operations, the question of employees submitting resignations does not arise. Furthermore, notwithstanding the closure of the company, employees who are already under maternity benefits should receive the full benefit, i.e., 26 weeks.
From India, New Delhi
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When the company is closing its operations, the question of employees submitting resignations does not arise. Furthermore, notwithstanding the closure of the company, employees who are already under maternity benefits should receive the full benefit, i.e., 26 weeks.
From India, New Delhi
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