The much awaited transformation in the Labour Law empowering women employment, the Maternity Benefit (Amendment) Bill was passed by Rajya Sabha on 11th August, 2016. While the bill is yet to be passed in Lok Sabha. The bill highlights the increasing the period of maternity leave from 12 to 26 weeks for Organized Formal Sectors.

The Bill amends the Maternity Benefit Act, 1961.  The Act regulates the employment of women during the period of child birth, and provides maternity benefits.  The Act applies to factory, mines, plantations, shops and other establishments.  The Bill amends provisions related to the duration and applicability of maternity leave, and other facilities.

Highlights of the Maternity Benefit (Amendment) Bill, 2016

·         Duration of Maternity Leave – The Act states that every woman will be entitled to maternity benefit of 12 weeks. The Bill increases duration to 26 weeks.

·         Under the Act, the maternity benefit should not be availed before six weeks from the date of expected delivery, the bill changes to eight weeks.

·         In case of a woman who has two or more children, the maternity benefit will continue to be 12 weeks, which cannot be availed before six weeks from the date of the expected delivery.

·         Maternity leave for adoptive and commissioning mothers: The Bill introduces a provision to grant 12 weeks of maternity leave to: (i) a woman who legally adopts a child below three months of age; and (ii) a commissioning mother.  A commissioning mother is defined as a biological mother who uses her egg to create an embryo implanted in another woman.

·         The 12-week period of maternity benefit will be calculated from the date the child is handed over to the adoptive or commissioning mother.

·         Option to work from home: The Bill introduces a provision that states that an employer may permit a woman to work from home.  This would apply if the nature of work assigned to the woman permits her to work from home.  This option can be availed of, after the period of maternity leave, for a duration that is mutually decided by the employer and the woman.

·         Crèche facilities: The Bill introduces a provision which requires every establishment with 50 or more employees to provide crèche facilities within a prescribed distance.  The woman will be allowed four visits to the crèche in a day.  This will include her interval for rest.

·         Informing women employees of the right to maternity leave: The Bill introduces a provision which requires every establishment to intimate a woman at the time of her appointment of the maternity benefits available to her.  Such communication must be in writing and electronically.

Need for the Transformation in the Law

With the rise of Nuclear family concept in India and with that the social and family support is decreasing for young parents. This has become one of the major reason why more and more young and progressive women have to give up their career, which in turn proves a huge loss to society. Thus, the government taking into consideration this fact has made provision to increase the maternity leave from 12 weeks to 26 weeks for all organized formal sectors covering women working in both public and private sectors.

However, one such drawback which can be seen is that the women in the Unorganized Sector won’t be benefitted from Maternity Benefit Act Amendment Bill, 2016. So, the women who work from home (whether they are freelancers or work at small establishments like rolling bidis etc) and work without a fixed employer are left out. Yes, working women without fixed employer have been left out from the bill completely.

The amendment recognises the economic rationale of women's participation in India’s economy. Innumerable studies have highlighted the importance of involving half of India’s population in measurable economic activities. Today, women contribute only 17 percent to India’s GDP against a global average of 37 percent (source: McKinsey). Countries like Norway, Sweden or Denmark, that have one of the world's highest median per capita income, also have the highest female labour participation rate, higher than 70 percent. If India can increase its women participation in labour force by 10 percentage points by 2025, it could increase its GDP by16 percent (source: Catalyst). A study by Booz and Company estimates that if men and women in India were to be equally employed, its GDP could go up by 27 percent. For a family, double income helps them to fulfil their economics needs and social aspirations while single women need it as a cushion against economic adversity. Therefore, household bound non-employed women who are finding it difficult to work are an economic concern that needs to be fixed.

Other Major Amendments and their impact

For a Mother of Two, the Maternity Leave remains 12 weeks – Its sheer discrimination for the third child. 26 weeks isn’t for the mother of two or more. So, a mother of two will only have 12 weeks leave. So, while, the maternity benefit amendment bill 2016 favors the first and second child. Yes, the child will face discrimination and will also be deprived of dietetic benefits of breastfeeding. The mother can avail the leave only before six weeks of the expected delivery.

Surrogate Mothers and Mothers Who Adopt Will Get 12 Weeks of Maternity Leave - This amended bill also introduces maternity leave of 12 weeks for commissioning and adoptive mothers. Commissioning mothers are biological mothers who use surrogacy method for childbirth and adoptive mothers who legally adopt a baby below 3 months of age. Though the bill is a progressive bill, but it is still a question as to  why the 26-week leave is not slated for mothers who have children through surrogacy and adoption.

Option to Work From Home Post the Maternity Leave - Post the 26-week maternity leave, the bill introduces a provision where the employer may permit “Work from Home” for the new mother. This would apply to only those who nature of work allows them to work from home. The duration of “Work from Home” is something that the employer and employee can decide mutually.

The Maternity Benefit Act Amendment Bill 2016 Also Introduces Creche Facilities - Organizations with more than 50 women employee will have to provide crèche facilities within a prescribed distance according to the amended Maternity Benefit Act. Mothers will be allowed 4 visits in a day to the crèche including her break time.

Impact of Amended Bill for India

Labour Ministry officials said that these changes in the maternity leave are aimed at helping mothers devote more time towards the health and care of their child and to increase the number of women in India’s workforce. Our country has a very low labor force participation rate for women which has been on the decline for over a decade – in 2005, it was 37% but this fell to 29% in 2010 and today it stands at 22.5%.

These figures are particularly alarming as the downward spiral has continued despite India’s rapid economic growth. While the declining female participation is highest in rural population, it is also present in urban population across all age groups and levels of education. Ironically, the gap between male and female labor force participation is evident in the Rajya Sabha where only 31 of the 244 members are women.

As the amendment goes beyond economics, it can be termed “historic”. It is a long overdue recognition of the aspirations of innumerable Indian women who aspire to attain their rightful place in India’s economic growth, without requiring to compromise on their role as mother and nurturer.