Delhi HC: Demoting Woman After Maternity Leave Is 'Ignominy', Orders Rs 10 Lakh Payout

The Delhi High Court has ruled that statutory protection for women on maternity leave extends beyond job continuity to include professional status and career advancement prospects. The observation came while directing a private firm to pay Rs 10 lakh compensation and Rs 1.5 lakh in costs to a woman chartered accountant who was demoted upon her return from maternity leave.

The woman had proceeded on maternity leave while serving as an accounting manager. On resuming duty, she was assigned a clerical role in the treasury department. She subsequently resigned and approached the High Court.

Justice Sachin Datta, in an order dated August 31, held that a woman returning from maternity leave is ordinarily entitled to be restored to the post she held immediately before the leave. If that post is genuinely unavailable for bona fide organisational reasons, the employer must offer a position as nearly equivalent as possible in terms of pay, grade, status, role, responsibilities, managerial authority, and advancement prospects.

"Under no circumstance can maternity be allowed to become a source of ignominy at the workplace," the court observed, adding that where a statutory framework advances constitutional guarantees, courts must interpret it to effectuate, not defeat, those guarantees.

The court noted that neither the Maternity Benefit Act nor the Code on Social Security, 2020, provides a comprehensive framework for post-maternity reintegration. It directed the Centre to frame rules or issue directions within six months covering pregnancy-related accommodations, role protection, return-to-work parity, lactation support, grievance redressal, inspection standards, and safeguards against subtle workplace retaliation.

The court also held that the expression "conditions of service" extends to substantive incidents of employment, including the nature of duties, grade, functional status, reporting hierarchy, supervisory responsibilities, and entitlement to appraisal and promotion. It added that women should not be precluded from seeking adjustments in duties, hours, place, or pattern of work due to post-maternity circumstances, and every such request must be duly considered.

Where the original post is genuinely unavailable, the employer must, before the woman resumes duty, inform her of the reasons and the particulars of the alternative or equivalent position offered.