EMPLOYMENT OF WOMEN SPECIALLY IN SMALL AND MEDIUM ENTERPRISE.

(
MATERNITY AMENDMENT ACT 2017)

INTRODUCTION

The fundamental purpose for providing maternity benefits is to preserve the self-respect for
motherliness, protect the health of women, complete safety of the child etc.
"Beginning in the 1800s with the Industrial Revolution, when women started to go into the formal
workforce, leaving working at home to working in factories, countries realized they needed to do
something.

Main object behind providing maternity benefits

The fundamental purpose for providing maternity benefits is to preserve the self-respect for
motherliness, protect the health of women, complete safety of the child etc. The objective of
maternity benefits is to protect the dignity of “Motherhood” by providing the complete & health
care to the women & her child when she is not able to perform her duty due to her health condition.
There is need for maternity benefits so that a woman is to be able to give quality time to her child
without having to worry about whether she will lose her job and her source of income.

A separate law in India to provide maternity benefits

The maternity leave and benefits are provided to protect the dignity of motherhood by providing for
the full and healthy maintenance of woman and her child when she is not working. As the number
of women employees is growing in India, maternity leave and other maternity benefits are
becoming increasingly common. In 1961, the Maternity Benefit Act was passed by Indian
government aiming at a uniform maternity benefit all over the country with an aims to regulate the
women employed in factories, shops or commercial establishments where 10 or more employees
engaged.

Because of so many international conventions like the Convention of the Elimination of All Forms
of Discrimination against Women (CEDAW), the International Convention on Economic, Social
and Cultural Rights (ICESCR), and the Universal Declaration of Human Rights (UDHR) etc.
International labour organization (ILO) contribution andseveral expert bodies like the WHO have
recommended that 24 weeks of maternity leave is required to protect maternal and child
health.[3]At the same time national judicial pronouncements time to time Indian government
amending the maternity benefit Act to reform maternity benefit Act 1961, in that way recently the
Maternity (Amendment) Bill 2017,an amendment to theMaternity Benefit Act, 1961, was passed in
Rajya Sabha on August 11, 2016; in Lok Sabha on March 09, 2017, and received an assent from
President of India on March 27, 2017.

The provisions of The Maternity Benefit (Amendment) Act, 2017 are effective from April 1, 2017.
However, provision on crèche facility (Section 111 A) shall be effective from July 1, 2017.

The main aim of the Act is to regulate the employment of women during the period of child birth. It
has amended the provisions related to the duration and applicability of maternity leave, and other
facilities.

The key features and implications of the Maternity Benefits Act, 2017 are:
Applicability of the Act:As per Section 2 of the Act, The Act is applicable to all those women
employed in factories, mines and including every shops or commercial establishments employing
10 or more employees. As per this section the original provision will prevail i.e. the Act is
applicable to all women who are employed in any capacity directly or through any agency i.e. either
on contractual or a consultant.

Protection from termination or dismissal during the pregnancy

Section 12 of the Maternity Benefit Act, 1961 emphasizes that any dismissal or discharge of a
women during the pregnancy is unlawful and such employer can be punished under section 12 of
the Act. However, in cases of gross misconduct, the employer can take necessary actions as per the
defined disciplinary policy of the Company.

Duration of Maternity Leave in India: The Act has increased the duration of paid maternity
leaves to 26 weeks from the present 12 weeks. The extended period is applicable to women in case
of the first and second child. Women who are expecting after having 2 children, the duration of paid
maternity leave shall be 12 weeks i.e. 6 weeks pre-delivery and 6 weeks post-delivery.

For adoptive and commissioning mothers: The Act now extends to adoptive mothers as well.
Every woman who has adopted a child will get 12 weeks of maternity leave from the date of
adoption.

Work from Home: It also introduces the option of ‘work from home’ for mothers. After the expiry
of the 26 weeks’ leave period, the woman can use this option to do her work from home. This
option can be modified according to the nature of the work and terms and conditions levied by the
employer.

Crèches: The Act makes it compulsory for every establishment employing 50 or more women to
have in-house creche facilities and allows women to visit the facility 4 times during the daybut the
age of the children up to which age are entitled to the facility of crèche is not mentioned in the Act.

Awareness: The Act makes it compulsory for employers to aware women about the maternity
benefits at the time of their appointment.Such information must be given in writing and
electronically.

Major changes
·The Maternity Benefit (Amendment) Act 2017 has increased the duration of paid maternity leave
available for women employees to 26 weeks from 12 weeks. However for those women who are
expecting after having 2 children, the duration of the leave remains unaltered at 12 weeks.

·The paid maternity leave can be availed 8 weeks before the expected date of delivery. Before the
amendment, it was 6 weeks.

·The Maternity Benefit (Amendment) Act 2017 has extended the benefits applicable to the adoptive
and commissioning mothers and provides that woman who adopts a child will be given 12 weeks of
maternity leave from the date of adoption.

·The Act has introduced an enabling provision relating to “work from home” that can be exercised
after the expiry of 26 weeks’ leave period. Depending upon the nature of work, a woman can avail
of this provision on such terms that are mutually agreed with the employer.

·The amended Act has mandated crèche facility for every establishment employing 50 or more
employees. The women employees should be permitted to visit the facility 4 times during the day.

·The amended Act makes it compulsory for the employers to educate women about the maternity
benefits available to them at the time of their appointment.
Significance of the Amendment Act, 2017
The amended act has raised the maternity benefits from 12 weeks to 26 weeks. This is significant
and is in line with the recommendation of the World Health Organisation which says that children
must be exclusively breastfed by the mother for the first 24 weeks. The extension in the maternity
leave will help in improving survival rates of children and healthy development of both mother and
child.

This will also reduce the instances of women dropping out of the labour force due to absence of
adequate maternity leave.

The amended act also falls in line with international best practices such as the Maternity Protection
Convention, 2000 (No183) which calls for at least 14 weeks of mandatory maternity benefit.

Another significant feature is the introduction of 12 weeks of maternity benefits to the adopting and
commissioned mothers.

The amended provisions have placed India third worldwide only behind Canada and Norway
globally in the amount of maternity benefits being made available to the women workers.

ANALYSIS OF DATA ON PUBLIC FORUM

Now if we analyze the date provided on public forum after the Amendment Act, 2017 it is evident
that there are short-comings and had a greater impact on the employment of women in work places.

Adverse impact on the job opportunities for women: Many private firms may avoid giving jobs
to such women who may enter into pregnancy period as then they have to give them maternity leave
up to 26 weeks. The increase in the maternity leave could also have adverse impact on the job
opportunities for women. The requirement of full payment of wages during maternity leave could
increase costs for employers. It could result in increased preference for hiring male workers. The
provision could also impact the competitiveness of industries that predominantly employs women
workers.

Lack of Institutional support: Though the women working in unorganized sector can avail
benefits from the schemes such as the Janani Suraksha Yojanaand the Indira Gandhi Matritva
Sahyog Yojana, they get their benefit only in terms of cash assistance and lack other institutional
support provided in the maternity benefit Act.
The new maternity benefit law may have its side effects on hiring of female staff by companies
especially the startups and small enterprises.
In a survey conducted by social engagement platform Local Circles, nearly 66 per cent startups and
SMEs said that they would think deep before hiring female staff once the new law is notified.
The Maternity Benefit (Amendment) Bill, 2016 is awaiting presidential assent. But Prime Minister
Narendra Modi made his government's intention clear in his last radio address that the new law
would be notified soon.

The new maternity benefit law provides for a leave of 26 weeks instead of existing 12 weeks. The
Bill has been passed by both the Houses of Parliament.
But, while the law is about to be implemented, the startups and the small and medium sized
enterprises have expressed concern about 26-week maternity leave provision.

WHAT DOES THE SURVEY INDICATE?

The ToI report says that small businesses have been a bit reluctant to hire women due to the costs
that the bill enforces on a company in case a female worker gets pregnant.
Nearly 26 per cent of the SMEs and startups said that they would prefer hiring male employees to
female ones. This means a huge loss of opportunities for women. The job market is already skewed
against women.
About 40 per cent of the respondents said that they would still hire women but they would consider
if the cost of 26-week maternity leave was worth hiring the talent.
However, 22 per cent said that they expected no change in the hiring pattern. 12 per cent were yet to
make up their mind about hiring female staff post-new maternity benefit law.

A sizeable percentage of companies are also nervous about their working ecosystem and
profitability considering the number of female employees they already have.
About 35 per cent of the startups and SMEs said that the new law would have a negative impact on
their working both in terms of cost and profitability.
However, 39 per cent respondents welcomed the new law saying that this would have a positive
impact on the overall working ecosystem. They said that 26-week maternity leave would translate
into happier workforce.
The Maternity Benefit (Amendment) Bill, which is lauded as one of the most progressive reforms in
country, may make it hard for up to 18 lakh women to find jobs this financial year, says a report.
According to staffing company Team Lease Services' latest report - The impact of maternity
benefits on business and employment -- 11 lakh to 18 lakh women are likely to face difficulty in
finding new jobs this financial year across the 10 sectors considered for the study.
Further, while currently, only 27 per cent of total workforce in India is women and 14 per cent of
the overall women workforce is employed in the formal sector, the bill will significantly hamper the
entry of new women into the workforce.

While large, professionally managed companies in the private and public sector and medium-sized,
state-owned firms will actively back the amendment and hire more women, large and medium sized
private companies are likely to maintain the status quo or reduce their intake, the report had said.
Startups and SMEs are likely to also reduce hiring, the report said. The post-maternity retention cost
(at 80-135% of annual salary for each beneficiary) could be seen as prohibitively expensive by
some firms, it said.

CONCLUSION
Besides providing six-month-leave to working mothers, the new law makes it mandatory for the
employers having 50 employees or 30 female staff to arrange for creche facilities either in the office
premises or within 500 metres from the work place.
The move has been welcomed by all quarters, but it may have a negative impact on hiring of female
staff as the companies are already thinking in terms of the cost of creche facilities and six-month
paid leave.
Majority of the startup companies and SMEs, which took part in the survey, viewed the new
maternity benefit law as a challenge at a time when capital and loan availability have become easier
for them. They are more inclined to consolidate their business than catering to their social
responsibility.