The Unintended Cost of Protectionism: "Hiring Penalty After Maternity Amendment Act, 2017"

Abstract: The maternity Benefit Act, 1961has been the primary legislation in india to protect the rights of working women during the maternity. After more than five decades, parliament amended the law and brought the Maternity Benefits (Amendment) Act, 2017. This amendment increased the period of paid maternity leave from twelve weeks to twenty six weeks, which was seen as a historic and progressive step towards women empowerment. The maternity benefit (Amendment) Act,2017 was introduced with the noble intention of increasing paid maternity leave from 12 weeks to 26 weeks for 2 children. It also provide the Crèche facility if more than 50 employees. The aim was good - to help women continue their jobs after childbirth. But this good law created a new problem. Because the full salary for 6 months has to be paid by the company only also many small companies started avoiding hiring women, especially young women. This is called "Hiring Penalty". It is a current situation which company bears. This paper makes the clear understanding of assessment of the statistical surveys, discrimination against gender -especially in the private sectors. This concept covered under the "CODE ON SOCIAL SECURITY" Keywords: Maternity Benefit Amendment Act 2017, Hiring Penalties, Gender and Statistical discrimination, Women Employment, Labour Laws.