Maternity Leave: A Trap in Disguise

In a hypothetical scenario, let's say a female employee, Rohini, has been working for XYZ Ltd. for 10 months. She is pregnant and due to deliver in 5 months. Now, according to the Maternity Benefit Act, 1961, an employer can't terminate an employee's service unless it's for a 'disciplinary' or 'proven misconduct' reason, during her entire pregnancy period up to 12 weeks from the date of her expected delivery.

Here's the trap, though. If Rohini is terminated on the grounds that the company is winding up its operations or shutting down (Section 2(a)(ii), MB Act) or due to 'discontinuation of business' (Section 9, MB Act), does the employer violate the Act? Most students answer this question with a resounding 'yes.' However, this isn't the case.