Tax alert: Supreme Court rules that contract tenure not an obstacle to entitlement of maternity benefits


22 May 2024
As per an order (CIVIL APPEAL NO(S). 5010/2023) passed by the Supreme Court (‘SC’) in August 2023, employers in India need to provide maternity benefit to female employees engaged through fixed term agreements even if the maternity period is beyond the contract tenure. In this regard, the SC observed that the Maternity Benefit Act, 1961 (‘Act’) creates a fiction of continued employment by treating the woman to be in employment solely for her to avail her maternity benefits entitlement.

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