Delhi High Court orders Rs 10 lakh compensation after maternity-leave role downgrade

Rakhi Bisht, a chartered accountant with about 14 years of experience, returned to work after maternity leave to find her original managerial accounting post replaced by a lower-level treasury assignment, with no staff reporting or participation in senior meetings. The Delhi High Court, presided over by Justice Sachin Datta, clarified that the Maternity Benefit Act requires employers to reinstate women to a position substantially equivalent in pay, grade, duties, authority and promotion opportunities, not merely preserve salary and title.

Finding the employer’s justification unconvincing, the court awarded Bisht Rs 10 lakh in compensation and Rs 1.5 lakh in costs, payable within eight weeks with interest for delay. It also ordered the Union of India to formulate comprehensive maternity-protection rules, including functional creche facilities and grievance procedures, within six months. The judgment underscores that any reduction in service conditions during protected leave violates statutory safeguards.