Hi,
Can anybody share if the expense of the creche facility needs to be borne by the organization if the organization ties up with a service provider and makes the service available within the facility? Can the organization choose to ask the employee to directly consult with the vendor and choose if she wants to avail the service and pay the fees? Is it necessary that the organization has to also contribute in any way to the fees being paid to the vendor by the employee?
Regards,
Rinku
From India, Bengaluru
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1Can anybody share if the expense of the creche facility needs to be borne by the organization if the organization ties up with a service provider and makes the service available within the facility? Can the organization choose to ask the employee to directly consult with the vendor and choose if she wants to avail the service and pay the fees? Is it necessary that the organization has to also contribute in any way to the fees being paid to the vendor by the employee?
Regards,
Rinku
From India, Bengaluru
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Dear Rinku, As per the amendment it clearly says that the employer has to provide creache facility to the employee and that mean the expenses will be borne only by the employer.
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Thank you Manoj - For the reply at short notice ! Appreciate your comment ! Regards Rinku
From India, Bengaluru
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From India, Bengaluru
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Dear Rinku
As per Sec 48 of the Factories Act 1948 crèche facility has to be mandatorily provided if there are 30 or more women employees. But as per the latest Maternity Benefit Amendment Act 2008, crèche has to be provided within the facility if there are 50 or more employees irrespective of male or female employees.
Now to answer your question, a crèche can be accommodated within the organization if there is space and also if a need raised by the employees to bring their children to take care of. This would help both employees and organization in a long run. If there is a space constraint to provide crèche in the facility, then the organization can tie up with a service provider (which are generally called community crèches) but make sure that a) it is situated in the closest vicinity b) all the cost should be borne by employer since it is the legal obligation on part of the employer to provide crèche. You can also work on sharing the cost if the employees are willing. c) if possible take an approval/exemption from Inspector of Factories for having such an arrangement as you will always be on a safer side legally. IOF has been granted powers to under the act to approve such an alternate arrangement.
Best regards
Muzammil Khan
From Hong Kong, Central District
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As per Sec 48 of the Factories Act 1948 crèche facility has to be mandatorily provided if there are 30 or more women employees. But as per the latest Maternity Benefit Amendment Act 2008, crèche has to be provided within the facility if there are 50 or more employees irrespective of male or female employees.
Now to answer your question, a crèche can be accommodated within the organization if there is space and also if a need raised by the employees to bring their children to take care of. This would help both employees and organization in a long run. If there is a space constraint to provide crèche in the facility, then the organization can tie up with a service provider (which are generally called community crèches) but make sure that a) it is situated in the closest vicinity b) all the cost should be borne by employer since it is the legal obligation on part of the employer to provide crèche. You can also work on sharing the cost if the employees are willing. c) if possible take an approval/exemption from Inspector of Factories for having such an arrangement as you will always be on a safer side legally. IOF has been granted powers to under the act to approve such an alternate arrangement.
Best regards
Muzammil Khan
From Hong Kong, Central District
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Maternity Benefit Amendment Act 2017_03.04.2017 .pdf