The Calcutta High Court has instructed the Reserve Bank of India (RBI) to provide compensation to a female intern who was refused paid maternity leave.
The Court emphasised that all employees, whether regular or contractual, have the same right to maternity benefits. The judge ruled that denying these benefits constitutes discrimination and violates Article 14 of the Indian Constitution.
This court decision reinforces the obligation of employers to provide maternity benefits to all female employees, as mandated by the Maternity Benefits Act, 1961.
Justice Basu Chowdhury emphasised that denying maternity benefits to the petitioner and offering only unpaid leave would effectively force her to work during a crucial period of her pregnancy, endangering both her and her baby. The Court stated that this would go against the principles of social justice.
The petitioner, during her employment, applied for maternity leave due to medical advice but was later informed that she wasn’t entitled to it as per her contract. Despite no explicit rejection at the time of application, she was later notified that her absence would be considered as unpaid leave. The petitioner’s advocate argued that the employment contract shouldn’t override the Maternity Benefits Act, 1961, which ensures maternity benefits for female employees.
The petitioner’s lawyer argued that the Maternity Benefits Act, which is a national law, holds more authority than other regulations, including the terms of the employment contract.
However, the advocate for the bank opposed this, explaining that the contract specifically mentions providing medical benefits but doesn’t mention maternity benefits. He emphasised that the petitioner agreed to these terms when she signed the contract and cannot now seek additional benefits not included in the agreement.
