Delhi High Court Rules Against Workplace Demotion Following Maternity Leave

The Delhi High Court has ruled that women returning from maternity leave are entitled to be reinstated in the same position they held before their leave. Justice Sachin Datta stated that motherhood cannot be allowed to become a source of ignominy at the workplace. If a woman's original position is no longer available for bona fide organizational reasons, the court held that she must be offered an equivalent role in terms of pay, grade, status, responsibilities, authority, and career prospects.

The ruling followed a petition from a chartered accountant at a private company. The employee alleged that after informing her management of her pregnancy in May 2023, her responsibilities were altered and she was transferred. Upon her return, she was assigned to the treasury department, a role she claimed was unrelated to her managerial accounting position. The company opposed the petition, arguing that it was a private entity and denying any demotion by noting that the woman's salary and designation remained unchanged.

The court directed the employer to pay the woman 10 lakh rupees in compensation and 1.5 lakh rupees in costs within eight weeks. Because the woman had already resigned, the court did not issue an order for reinstatement. Additionally, the court ordered the Centre to frame rules within six months under the Code on Social Security to address post maternity reinstatement, lactation support, creche disclosure, and grievance redressal timelines.

The court emphasized that any practice penalizing a woman for exercising maternity rights strikes at the heart of constitutional protections regarding the right to life and personal liberty.