Maternity Bill Amendment May Cost 18 Lakh Indian Women Their Jobs: Report
India became the most progressive country after Canada and Norway encouraging women to continue in their jobs post pregnancy.
The Maternity Benefit (Amendment) Bill aimed to improve maternity benefits for working women in the country may backfire. Lauded as one of the most progressive reforms in the country, it can cost jobs of 18 lakh women this financial year. With the bill, India became the most progressive country after Canada and Norway encouraging women to continue in their jobs post pregnancy. However, according to staffing company TeamLease Services' latest report – The impact of maternity benefits on business and employment says 11 lakh to 18 lakh women may face difficulty in finding new jobs across 10 sectors included in the study.
Rituparna Chakraborty, Co-founder & EVP, TeamLease Services said, "The Maternity Benefit (Amendment) Act 2017 positions India as the third most progressive country after Canada and Norway. However, the bill, in spite of having the intent to benefit the women workforce, has been counterproductive to the new women workforce participation in the next 1-4 years."
The report reads, "Their apprehension is due to the overhead expense of maternity leave reimbursement and cost of establishing post-maternity support infrastructure." Also, start-ups, SMEs, medium-sized multinational companies see the amendment as a deterrent and may decrease the intake of women employees.
Leading employers also think of a probable situation where employees who are reaping the benefits of the bill may not re-join the same company. The immediate term positive impact of the amendment may be restricted to only three out of 10 sectors included in the study.
Chakraborty further said, "The investment employers will make towards this end will go a long way in improving women's workforce participation and, thereby, boost national income. The government should support the corporate at every step by allowing flexibility as well as financial support so that all types of companies can be a part of the endeavour without hesitation." Looking at the bright side, the Maternity (Amendment) Bill 2017 will have a positive effect on retention. In the next four years, the post-maternity attrition which is currently 56 per cent will drop to 33 per cent.
(The above story first appeared on LatestLY on Jun 27, 2018 08:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).