A little over one year after India increased the maternity leave benefit to 26 weeks from 12 weeks, a survey said the move could be counterproductive to the cause of a diverse workplace in certain sectors unless other support measures are also undertaken.
According to a survey on the costs and benefits of the new regulations by leading employment services company TeamLease, at least 26 per cent of the 350 startups and small and medium enterprises (SMEs) that responded said they will prefer hiring a male candidate, given the cost of the six-month maternity leave benefit. About 40 per cent of respondents said they will hire women but will consider whether such a cost is worth the candidate.
However, 39 per cent of organisations said the move will have a positive impact and will lead to a happier workforce but 35 per cent of the respondents said that the six-month maternity leave will impact both cost and profitability.
“If we talk about the organised sector,which employs 10 per cent of the women workforce, there is a bias that has started to creep in as our research shows,” said Sonal Arora, vice president, TeamLease Services.
“While many of the startups and SMEs are progressive, a significant number seems to be considering the consequences of this regulation.” Plus, even when organisations do have a policy of non-discrimination in hiring, the recruiting manager could take a short-term view. Therefore, just changing the law is not enough; reinforcements are needed at multiple levels.
Finding ways to implement the law at the level of the government is critical, according to the survey. Getting more companies into the organised fold will help too. A helpline for women who are being denied their rights will aid the cause, according to Arora.
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