The maternity penalty: return to work denied in a high-growth startup

Research methodology This case was developed using a primary field-research methodology. The core narrative is built on three semi-structured interviews with the case protagonist, conducted between June 2025 and October 2025. Each interview was recorded and transcribed. To ensure factual accuracy and provide a multi-dimensional perspective, the primary interview data were triangulated with documentary evidence. This included an analysis of a thread of emails and instant messages between the protagonist and a company representative.Follow-up correspondence via email and messaging was used to resolve ambiguities and verify the chronological sequence of events. The narrative was constructed through a pedagogical lens, in which data were selected and organised to align with the case’s learning objectives and to highlight specific decision points suitable for classroom discussion. Data from the three interviews and the verbatim correspondence were selected and organised to highlight specific decision-making points and dilemmas. To maintain narrative integrity, the case follows a chronological structure. Including email exchanges ensures that students are presented with the “raw” data the protagonist faced, allowing them to experience the ambiguity of the situation firsthand. The protagonist’s recollections were cross-referenced with her contemporaneous correspondence with the company. This triangulation ensured that the timeline of events and the specific language used in critical interactions were accurately represented in the final narrative.To comply with ethical standards and protect the privacy of the parties involved, the case uses a disguised identity approach. Names of individuals, the specific company and identifying locations have been changed.While the case reflects an individual experience, it is situated within broader patterns of workplace behaviour and maternity-related challenges, making it a representative teaching tool. Case overview/synopsis This case follows Aditi Sharma, a high-performing marketing leader at a fashion-tech start-up, Meraki, as she prepares to return from a year-long maternity leave, with six months paid and six months unpaid, all pre-approved and communicated. Despite a strong track record and a recent 35% salary hike, Aditi was unexpectedly asked to re-interview for her role and complete an assignment to reassess her suitability.She was later informed that her year-long caregiving “gap” rendered her unfit for the role. She was presented with an ultimatum to resign with a backdated letter. Aditi must now weigh her options – resign quietly, negotiate, take legal action or go public.The case explores complex themes such as gender equity, psychological contracts, procedural justice and employers’ legal and ethical obligations under the Maternity Benefit Act. It highlights the emotional and professional challenges women face in navigating career re-entry after childbirth. It also provokes rich discussions on HR policy, leadership responsibility, start-up culture and inclusive organisational practices in high-growth environments. Complexity academic level This case is ideally suited for Human Resource Management, Organisational Behaviour, Diversity, Equity and Inclusion (DEI), Business Ethics and Employment Law and Policy courses. It is appropriate for MBA students, whether in core or elective HR/OB courses, as well as for Executive MBA and Executive Education participants, particularly those in leadership roles or HR/DEI functions. The case provides a practical and emotionally resonant scenario to explore organisational responsibility, legal compliance, inclusive culture and ethical decision-making in high-growth business contexts.Given the universality of maternity discrimination and the “motherhood penalty” across geographies and industries, the case also fits well in women’s leadership programs, where it can spark more profound reflection on systemic barriers to career continuity. It provides a practical and emotionally resonant scenario to explore organisational responsibility, legal compliance, inclusive culture and ethical decision-making in high-growth business contexts. The case is designed to move from individual decision-making to organisational policy design, ensuring alignment with the stated learning objectives.