A woman employee returning from maternity leave is entitled to be reinstated in the same position she held before proceeding on leave, the Delhi high court on Monday held, saying that motherhood cannot be allowed to become a source of ignominy at the workplace.
A bench of justice Sachin Datta said that if a woman’s pre-maternity position is no longer available, she must be offered an equivalent role in terms of pay, grade, status, responsibilities, authority and career prospects.
He added that the employer must, before her return to work, inform her of the reasons for the post’s non-availability and provide details of the proposed alternative position, including its grade, remuneration, reporting structure and duties.
“A woman returning from maternity leave is ordinarily entitled to be restored to the post held by her immediately prior to proceeding on such leave. Where, for bona fide and demonstrable organisational reasons, the post is no longer available, she is entitled to be placed in a position as nearly equivalent to it as possible in terms of pay, grade, status, role, responsibilities, managerial authority, and prospects for advancement,” the court said.
The court also asked Centre to frame in six months, rules under the Code on Social Security addressing post maternity reinstatement, lactation support, creche disclosure and grievance redressal timelines in consultation with state government and industry bodies. The court said in doing so, the Centre would consider the suggestions given by its standing counsel Ashish Dixit.
The ruling arose from a petition by a woman appointed as a chartered accountant with a private company in 2022. After informing the management of her pregnancy in May 2023, her responsibilities were altered and she was transferred to another team in September. Upon returning from maternity leave, she was told no position was available in her original team and was assigned to the treasury department. She claimed the new role was unrelated to her managerial accounting position.
Following this, she approached the high court seeking reinstatement to the position in which her male counterparts had subsequently been promoted to senior manager, compensation of ₹50 lakh for the mental and emotional harassment allegedly suffered by her and a direction to the Centre to frame clear and stringent guidelines regulating instances of pregnancy discrimination in private companies.
The company opposed the petition, arguing that it was not maintainable as a private entity discharging no public function and that the woman sought enforcement of a non-enforceable contract of personal service and cited the Code on Social Security, 2020 as an alternative remedy. It denied any demotion, pointing out that the woman’s salary, designation and even an annual increment remained unchanged.
In its 88-page ruling, the court directed the employer to pay her ₹10 lakh in compensation and ₹1.5 lakh costs within eight weeks. It did not pass any order on reinstatement since the woman had already resigned.
In its ruling, the court said that any employment practice that penalises a woman for exercising her maternity rights, or effectively forces her to choose between motherhood and career advancement, strikes at the heart of the constitutional protection guaranteed under the right to life and personal liberty.
“Motherhood cannot be permitted to become a basis for unequal treatment or professional disadvantage in the workplace. Where a woman employee is placed at a disadvantage, deprived of professional growth, denied promotion, stripped of responsibilities, or otherwise subjected to adverse employment consequences solely on account of pregnancy or maternity leave, the resulting action is not merely contrary to the spirit of the Maternity Benefit Act but is also manifestly arbitrary and offensive to the guarantee of equality under Article 14,” the court held.