The Delhi High Court has delivered a landmark ruling affirming that maternity protection must preserve not only a woman’s salary and designation but also her duties, authority, and career advancement opportunities. In a judgment pronounced on August 31, 2026, Justice Sachin Datta ordered an employer to pay Chartered Accountant Rakhi Bisht ₹10 lakh in compensation after she was effectively demoted upon returning from maternity leave.
Background of the Case
Rakhi Bisht, a Chartered Accountant with approximately 14 years of professional experience, joined the organization in 2022 as Manager, Accounting, earning a monthly salary of ₹2.60 lakh. She informed management of her pregnancy in May 2023 and later transferred to another team. She proceeded on maternity leave in December 2023 and returned to work in July 2024. Upon her return, she discovered that her previous position no longer existed and was reassigned to the Treasury Department.
Bisht alleged that the new role was substantially inferior to her earlier managerial accounting responsibilities. She claimed she was assigned no reports and was excluded from managerial meetings. The employer denied these allegations, asserting that her designation, level, salary, and seniority remained unchanged following an organizational restructuring.
Court’s Ruling: Pay and Title Are Not Enough
The High Court ruled that maternity protection cannot be limited to retaining a woman’s salary and job title. It held that ‘conditions of service‘ encompass the nature of duties, functional position, reporting structure, supervisory responsibilities, and consideration for appraisal and promotion. The Court observed that retaining the same designation and remuneration is ‘necessary but not by itself sufficient‘ if other aspects of employment change to an employee’s disadvantage.
As a general principle, the Court stated, a woman returning from maternity leave should resume her previous position. If that role is genuinely unavailable due to demonstrable organizational reasons, the employer must offer a substantially equivalent alternative.
Compensation and Directions
The Court ordered the respondent to pay Bisht ₹10 lakh in compensation and ₹1.5 lakh toward costs. The compensation reflected her professional standing, experience, and salary—approximately four months’ wages. The payment must be made within eight weeks; any delay will attract interest at 9% per annum from the date of judgment.
Additionally, the Court addressed the workplace creche issue, holding that a facility that remains non-functional when needed does not satisfy Section 11-A of the Maternity Benefit Act, 1961. It directed the Union of India to frame rules or schemes within six months under the Code on Social Security, 2020, covering workplace accommodation, protection of women’s roles after maternity leave, creche facilities, grievance timelines, and safeguards against retaliation.
This judgment reinforces the broader interpretation of maternity protection in India and serves as a significant precedent for workplace equality.
