CORPORATE BURDEN VS. WORKER SECURITY: A COMPARATIVE ANALYSIS OF MATERNITY BENEFIT FUNDING IN INDIA AND THE UNITED KINGDOM

AUTHOR – T ADISREE, STUDENT AT SCHOOL OF LAW, CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

BEST CITATION – T ADISREE, CORPORATE BURDEN VS. WORKER SECURITY: A COMPARATIVE ANALYSIS OF MATERNITY BENEFIT FUNDING IN INDIA AND THE UNITED KINGDOM, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (2) OF 2026, PG. 701-709, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

This research paper provides a comparative analysis of maternity benefit funding models in India and the United Kingdom, examining the socio-economic consequences of employer-liability and social insurance frameworks. Following the 2017 amendment to the Maternity Benefit Act, India extended paid maternity leave to twenty-six weeks while retaining a pure employer-liability funding model. Empirical research suggests that this structure has contributed to a measurable “motherhood penalty,” including reduced interview invitations and a shift toward precarious employment arrangements for women of childbearing age.

A central focus of this analysis is the Supreme Court’s decision in Kavitha Yadav v. Ministry of Health and Family Welfare. The Court established the doctrine of notional employment extension, holding that maternity benefits cannot be curtailed merely because a fixed-term contract expires during the leave period. While this interpretation strengthens worker protection, it simultaneously expands the financial obligations of employers.

By contrast, the United Kingdom’s Statutory Maternity Pay system operates through a social insurance framework funded by National Insurance contributions. The existence of Small Employers’ Relief allows firms to reclaim a significant proportion of maternity payments, thereby reducing the financial disincentive to hire women. This paper argues that India should gradually transition toward a shared-responsibility model, combining employer participation with state-funded reimbursement mechanisms.

Key Words: Maternity Benefit, Employer Liability Model, Social Insurance , Family Welfare, Motherhood Penalty