Delhi High Court Awards Rs. 10 Lakh Payout for Post-Maternity Demotion

Delhi High Court ruled that maternity protection covers duties and career opportunities, not just salary and designation. The Court awarded Rakhi Bisht Rs. 10 lakh compensation after her role changed.
Delhi High Court Awards Rs. 10 Lakh Payout for Post-Maternity Demotion
Written By:
Somatirtha
Reviewed By:
Achu Krishnan
Published on
Updated on

The Delhi High Court ruled that maternity protection extends beyond retaining a woman’s salary and designation. A woman returning from maternity leave should ordinarily resume the post she held before her leave, including her duties, managerial authority, reporting structure, and opportunities for career advancement.

Justice Sachin Datta delivered the judgment on August 31, 2026, in a petition filed by Chartered Accountant Rakhi Bisht, who had around 14 years of professional experience.

Woman Returned to Reduced Role

Bisht joined the organization in 2022 as Manager, Accounting, with a monthly salary of Rs. 2.60 lakh. She informed the management about her pregnancy in May 2023 and later moved to another team.

She went on maternity leave in December 2023 and returned to work in July 2024. On returning, she learned that her previous position was no longer available and received a posting in the Treasury Department.

Bisht alleged that the new assignment was substantially inferior to her earlier managerial accounting responsibilities. She said she received no reports and was excluded from managerial meetings.

The employer denied the allegations and maintained that her designation, level, salary and seniority remained unchanged following an organizational restructuring.

Court Says Pay and Designation Alone are Not Enough

The High Court ruled that maternity protection cannot remain limited to retaining a woman’s salary and job title. The Court said ‘conditions of service’ include 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.

It ruled that, as a general principle, a woman returning from maternity leave should return to her previous position. If that role becomes genuinely unavailable for demonstrable organizational reasons, the employer must offer a substantially equivalent alternative.

Rs. 10 Lakh Compensation Awarded

The Court ordered respondent no. 2 to pay Bisht Rs. 10 lakh in compensation and Rs. 1.5 lakh toward costs. The compensation reflected her professional standing as a Chartered Accountant, approximately 14 years of experience, and a monthly salary of Rs. 2.60 lakh. The amount was roughly equal to four months’ salary.

The payment must be made within eight weeks. Any delay will attract interest at 9% per annum from the date of judgment until realization.

Directions on Maternity Protection

The Court also considered the workplace creche issue, holding that a facility that remains non-functional when required does not satisfy the statutory requirement under 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. The framework should address workplace accommodation, protection of a woman’s role and status after maternity leave, creche facilities, grievance timelines, and safeguards against retaliation.

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