Skip to main content

Part A: Eligibility – Understanding the Scope and Applicability of the Maternity Benefit Act to non-profits and Employees of non-profits

The MB Act, inter alia, applies to:

Every shop and establishment employing ten or employees on any day of preceding twelve months;

Every factory, mine or plantation including factories, mines and plantations belonging to the government

Establishments where persons are employed for the exhibition of equestrian, acrobatic and other performances; and

Such other shops or establishments notified by the appropriate government.

Yes, the MB Act is applicable to any establishment, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months. Therefore, the MB Act will be applicable to non- profits, including trusts, societies or Section 8 companies that have 10 or more persons employed in their organisation.

Illustration 1:

Anita, works at X Foundation, a non-profit trust with 12 staff members. She is pregnant.

She applies for maternity leave but the organization hesitates, assuming the MB Act doesn’t apply to non-profit organizations.

The law mandates that any establishment with 10 or more employees—be it a trust, society, or Section 8 company—must provide maternity benefits.

Foundation grants Anita her rightful benefits.

Yes, the MB Act applies to part-time employees and consultants. It extends to women employed, whether directly or through any agency, for wages in any establishment. This includes contractual, casual, fixed-term employees, and consultants.

However, eligibility for maternity benefits under the Act requires a woman to have worked with the same employer for at least 80 days in the 12 months preceding her expected delivery date. The Delhi High Court in the case of Neelam Kumari vs The University Of Delhi & Ors emphasized that maternity benefits cannot be denied to a female employee solely because her employment is contractual.

Illustration 2:

Y Foundation employs 30 staff members, including Priya, a contractual graphic designer.

She becomes pregnant. Having worked for over 4 months in the past 12 months with the foundation, she applies for maternity benefits.

Under the MB Act all women employees— whether regular, contractual, or casual—are entitled to maternity benefits if they meet the 80-day work requirement.

Foundation grants Priya her rightful benefits.

To be eligible for maternity benefit, a woman must have worked for the employer for at least 80 days in the 12 months preceding the expected delivery date. Days when the woman was laid off or on paid holidays are counted towards these 80 days. The Delhi HC in the case of Dr. Baba Saheb Ambedkar Hospital Govt. of NCT of Delhi & Anr. vs. Dr. Krati Mehrotra, clarified that maternity leave must be granted even to employees on ad-hoc contracts, such as the respondent, who served for 89 days with multiple extensions.

Illustration 3:

Teena, who works as a full-time legal associate at X Foundation, is pregnant.

Her expected date of delivery is on August 15th, 2024. She has been working with the organization since January 1st, 2024. As of July 30th, 2024, she has already worked for 227 days in the 12 months preceding  her due date.

She is eligible for maternity benefits provided by her employer.

Yes, maternity benefits can extend

beyond the contractual period, and non-profits are legally required to provide them if the employee meets the eligibility criteria under the MB Act, which is 80 days in the 12 months preceding the expected delivery date.

Illustration 4:

Y Foundation, a non-profit focused on women’s empowerment, hired Rina on a one-year contract from January to December.

In October, she was six months pregnant and applied for maternity leave starting in November.

Though her contract ended in December, she had already completed the required 80 days of work and was entitled to all the maternity benefits under the MB Act.

Back to top