The Maternity Benefits Act, 1961 is a beneficial piece of legislation which aims and seeks to regulate the employment of women in certain establishments for certain periods before and after childbirth and to provide for maternity benefits. However, the applicability of the provisions of the Act has continued to remain ambiguous insofar as the status of contractual employees and that of professionals is concerned.
In a recent Judgement dated 23rd April 2024 passed by the Division Bench presided by Hon’ble Mr. Justice Kameshwar Rao, the Delhi High Court had occasion to determine whether a lawyer empanelled with the Delhi State Legal Services Authority would be entitled to maternity benefits under the provisions of the Act.
Upon considering the fact situation, the Court was of the opinion that the services being rendered by the Petitioner were in the nature of a ‘professional’, who was assigned tasks on a day-to-day basis, and the same cannot be said to have created an employer-employee relationship, which is essential for the applicability of the provisions of the Act.
This article seeks to shed light on the essential elements to be taken into consideration in order to determine whether the services rendered shall qualify and be eligible for benefits under the Maternity Benefits Act, 1961, as expounded upon by the Delhi High Court in its recent ruling.
Applicability And Eligibility
- Women who are employed in an establishment with more than 10 employees are eligible for claiming benefits under the Maternity Benefits Act 1961.
- It is mandatory to have worked with the same employer for at least 80 days in the preceding year from the date of her expected delivery.
- The Act extends benefits in leaves among others to women that may be expecting mothers, and women that may be adopting a child or may be experiencing a miscarriage.
- In addition to the previously mentioned, women that have commissioned surrogacy as a surrogate mother are also eligible for benefits under the scheme of the Act.
Employer-Employee Relationship: A Condition Precedent
Recently, a Panel Advocate moved before the Delhi High Court inter-alia contesting that though her employment may be considered as contractual in nature, however, the same shall not disentitle her from maternity benefits during the course of her contract/tenure.
It was argued on behalf of the Authority that the relationship between the Authority and the empanelled lawyer was essentially that of a ‘client-lawyer’ relationship and as such the Authority is not bound to provide benefits to the lawyers engaged by them in a professional capacity, whereas the regular employees on their rolls may be entitled to the same.
It was argued by the Authority that the empanelment of advocates is merely a process by way of which the Advocates are selected to provide legal aid on behalf of the Authority, however, such empanelment does not place them at par with regular employees who are engaged in service by the Authority.
The Hon’ble High Court upon hearing both the parties was of the opinion that while there is no gainsaying that a contractual employee is at par with regular employees insofar as the grant of maternity benefits is concerned, however, what must first be established is whether the individual can be said to be in an employer-employee relationship.
In the aforesaid case it was apparent that the contractual engagement of an Advocate to represent a particular entity does not render the relationship or services provided changed from professional engagement to that of an employee and continues to be a ‘professional engagement’ and does not amount to a ‘contractual employment’.
Therefore, what must first be identified is whether the professional engagement of an individual can be said to have established an employer-employee relationship between the parties.
Payment Of Wages by The Employer
One of the requirements to constitute ‘employment’ in terms of the Act is that of paying wages to such women. Mere supervision being only conditional and patently limited cannot be said to have established an ‘employer-employee’ relationship.
In the case before the Delhi High Court, the Bench took note of the fact that the interpretation of terms “employment’ and ‘wages’ should not invariably result in a situation where an entity engaging professionals like an advocate shall be bound to give maternity benefit to each of those who are engaged professionally.
Conversely, an anomalous situation may arise if professional engagement and payment of fee is taken to be included within the scope of ‘wages’, since Advocates are often empanelled by more than one entity, in which case it would be difficult to ascertain which entity is responsible for extending maternity rights to the person concerned.
Conclusion
The judgment of the Delhi High Court underscores the requisite characteristics of service which essentially qualifies it as such to be covered under the provisions of the Maternity Benefits Acts.
To determine whether the Maternity Benefits Act is applicable in a given case, the mere nomenclature used is not sufficient and it would have to be seen what is the nature of responsibilities that are entrusted upon the person to qualify as a relationship of an employer-employee.
The Delhi High Court while considering the case of the empanelled lawyer, was of the opinion that the services were engaged in a professional capacity and as such, does not give rise to any Employer-Employee relationship, which is an essential condition to be fulfilled for the benefits of the Maternity Benefits Act to be extended.
It has to be seen whether the nature of payment being made to the individual for rendering the services can be said to be regular and on fixed terms. The Delhi High Court has recently taken a view that the payment for each-days’ work/ non-payment of any emoluments for days that Court is not attended does not amount to payment of “wages by an employer” and essentially amounts to her engagement as a Legal Service Advocate on a day to day basis is as a professional, and therefore the services thus rendered cannot be included within the scope of the Maternity Benefits Act.
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