Supreme Court Landmark Ruling on Maternity Benefit for Fixed-Term & Contractual Employees
Parties: Dr. Kavita Yadav v. The Secretary, Ministry of Health and Family Welfare & Ors.
The appellant was appointed as a Senior Resident Doctor on a 3-year fixed-term contract. While pregnant, she applied for statutory maternity leave. The employer sanctioned leave only until the date her fixed-term contract expired (around 11 weeks) and refused to disburse the remaining 15 weeks of maternity salary, arguing that maternity benefits cannot extend beyond the contractual period of appointment.
A three-judge bench of the Supreme Court held that once a female employee fulfills the statutory requirement of working not less than 80 days in the 12 months preceding her expected delivery under Section 5(2), her entitlement to the full 26 weeks of maternity benefit becomes an absolute statutory right. The court explicitly ruled that the expiration of a fixed-term contract does not truncate maternity pay. The employer was ordered to pay full maternity salary for the remaining period with all consequential statutory arrears.