Vibhut Small Finance Ltd. is a registered NBFC under regulations issued by RBI. The Company was formed in 2010. As on date, market cap of the Company is ₹15,434.56 Crore with total customer base of 34,549 in 173 branches

CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2025
Vibhut Small Finance Ltd. is a registered NBFC under regulations issued by RBI. The Company was formed in 2010. As on date, market cap of the Company is ₹15,434.56 Crore with total customer base of 34,549 in 173 branches all over in India. The total employee's strength is 3,983 with 76: 24 male and female ratio. Being one of the largest private sector NBFC, the Company offers various benefits to employees as well as welfare services. There are various Internal Committees to investigate the matters related complaints under POSH Act. During the period from 1st April 2024 to 31st March 2025, total complaints received was 305, out of which 226 was disposed of within 3 months. It was observed that the Internal Committee prima-facia looked into the matter and based on the gravity of the matter, the employees were terminated immediately, where found guilty, as per recommendation of the Internal Committee. No departmental proceedings were conducted. In one case, the Branch Manager denied leave to a woman who had adopted a 2-month-old child. The contention of the Management was that as there is no birth, hence maternity benefits can't be given. In certain cases, it was also observed that if the child dies during the maternity leave, prior to the delivery period, leave for the rest of the period were being cancelled as per internal policy. Mrs. Lata, who was the cashier in a rural area branch, had met with an accident due to slippage. In absence of First-Aid Box, there was huge loss of blood and she couldn't survive. The view of the Management was that as there are only 22 employees in the Branch, which is less than 150, hence there is no need to maintain a First-Aid Box. Through outsourcing agency, the Company hires security personnel. The number of guards depends upon the size of the Branch. It was noticed that in a few branches, the drinking water facility was not available. The view of the Management was that such facilities are to be provided by the contractor, and not by the Company. The matters in Vibhut Small Finance Ltd., therefore highlights the importance of strict adherence to labour laws in protecting the rights of workers, maintaining industrial harmony, and ensuring that businesses remain compliant with statutory obligations. It also shows that expansion and profit-making, while important for business growth, cannot come at the cost of ignoring legal responsibilities owed to employees. In view of the above-mentioned facts, answer the following by mentioning the legal provisions of applicable laws : Can remaining Maternity leave be cancelled in case of death of the child prior to expected delivery date ?

Answer & Explanation:

Section 5 of the Maternity Benefit Act, 1961 deals with Right to payment of maternity benefit. The maximum period for which any woman shall be entitled to maternity benefit shall be twenty-six weeks of which not more than eight weeks shall precede the date of her expected delivery. However, the maximum period entitled to maternity benefit by a woman having two or more than two surviving children shall be twelve weeks of which not more than six weeks shall precede the date of her expected delivery. If a woman dies during this period, the maternity benefit shall be payable only for the days up to and including the day of her death. Where a woman, having been delivered of a child, dies during her delivery or during the period immediately following the date of her delivery for which she is entitled for the maternity benefit, leaving behind in either case the child, the employer shall be liable for the maternity benefit for that entire period. If the child also dies during the said period, then, for the days up to and including the date of the death of the child. Thus, the Maternity leave cannot be cancelled in case of death of the child prior to expected delivery date.

Topics: Industrial and Labour Laws

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