As gender-balanced parental leave policies increase, more countries are offering paternal leave, which can lead to better work-life balance for employees and their families, as well as additional benefits for companies.
In India, paternity leave is an essential policy for ensuring new fathers have the time and resources to bond with their newborns. With more Indian male employees embracing this benefit, it’s essential for employers, particularly remote employers, to understand its nuances and ensure compliance with paternity leave and other legally required benefits.
As an employer, you must understand the rules regarding paternity leave in India. This includes the law governing paternity leave — including the number of days of paternity leave an employee is entitled to — and your responsibilities to the employee.
Paternity Leave Laws in India
The legal framework for paternity leave in India is provided by a paternity benefit bill known as the Central Civil Services (Leave) Rule 551 (A), 1972, which mandates certain benefits for eligible male government employees. These workers are entitled to a leave of 15 days within six months of the birth or adoption of a child.
To be eligible, an employee must have worked for an organization for at least 80 days in the 12 months before the expected delivery or adoption date. The rule also provides associated benefits, such as paying wages during the leave period.
Employees have other paternity leave rights:
- Paternity leave is separate from other types of leave; it cannot be deducted from the employee’s leave account.
- Employers can’t deny an employee’s paternity leave request.
There are some limitations to paternity leave benefits:
- If an employee fails to take the leave within the specified time frame, it will be considered lapsed.
- In the case of adoption, paternity leave provisions only apply when the child is under the age of one.
It’s important to note that the 15-day leave is only available to central government employees, and there is no formal policy for private-sector employees.
Following the approval of the Maternity Benefit Act (Amendment) in 2017, a bill to provide paternity benefits to all employees was introduced that same year but was not passed in Parliament. Despite the lack of legislation mandating paternity leave, many private companies continue to provide the benefit, albeit under their own rules.
Best Practices for Implementing Paternity Leave Policies
As paternity leave gains traction among Indian employees and the competition for top talent intensifies, it’s critical for companies hiring in India to prioritize providing such leave policies as an essential component of their employee benefits packages.
The following are some best practices for implementing paternity leave policies in India:
- Ensure your paternity leave policies align with India’s labor laws and regulations.
- Communicate the company’s paternity leave policy and benefits to employees. All relevant information about eligibility for leave should be clearly stated in a written policy document.
- Ensure employees have clear guidance regarding how to apply for leave. An easy application process will ensure that employees feel supported.
- Provide support for employees during and after the leave period.
Examples of companies that have successfully implemented paternity leave policies in India include Tata Consultancy Services, Zomato, and Wipro.
Zomato gives 26 weeks of paternal leave (similar to India’s mandated maternity leave) and an endowment of INR 69,000 to new parents. Wipro provides eight weeks of paid paternal leave, and Tata Consultancy offers 15 days. In Wipro’s case, leave is given to biological and adoptive parents and individuals acting in loco parentis (in place of a parent) as caregivers.
Comparison Of Indian Paternity Leave Policies with the World
In India, paternity leave is a relatively new concept. Although the government has made some progress in providing paternity leave to fathers, it still has some catching up to do compared to other countries in terms of duration, availability, and benefits.
For instance, the country’s current 15-day leave policy is much less than the average global rate of 18 weeks. Moreover, several countries provide up to over a year of fully paid paternity leave, allowing parents enough time to bond with their newborns without worrying about financial insecurity. Sweden, for example, provides 480 days of paid parental leave.
Some countries offer additional parental benefits such as tax credits and subsidies for childcare costs. Global trends in paternity leave policies are also moving toward more extended leave periods and gender-neutral policies.
Companies with remote teams in India should be aware of the differences in paternity leave policies between countries and strive to implement policies that adhere to global best practices. This is a critical component of the overall push toward skill-based remuneration and treatment, consistent with implementing geo-neutral salaries.
The Business Case for Paternity Leave
Paternity leave is an important issue in India, as fathers are increasingly taking on a more significant role in child-rearing. But besides the benefits to fathers and their families, offering paternity leave to employees also comes with numerous benefits for businesses:
More Job Satisfaction and Retention
Companies that offer paternity leave show their commitment to supporting family life and helping employees balance work and home responsibilities. It also shows the company’s commitment to employees’ well-being, likely increasing job satisfaction and employee retention and reducing turnover costs.
Increased Productivity and Engagement
Employees who take paternity leave are more likely to be productive and engaged upon returning to work. They feel more supported and less stressed, which can positively impact their work performance.
Improved Work-Life Balance
Paternity leave helps new fathers achieve a better work-life balance by allowing them to spend time with their newborns and support their partners during the early stages of parenthood. This can lead to improved mental health and reduced stress levels, positively impacting performance once the fathers return to work.
Enhanced Company Culture
Companies that offer paternity leave demonstrate that they value fatherhood as much as motherhood in terms of childcare responsibilities. This can lead to a more positive company culture and help attract top talent.
Legal Compliance
In many countries, paternity leave is a legal requirement. Offering paternity leave to employees caring for a newborn child can help startups comply with local regulations and avoid legal issues.
Given the many advantages of offering paid paternity leave, businesses should strongly consider adopting policies that provide these opportunities for their employees. Doing so will support family life and likely bring long-term gains (both financial and non-financial) to the company.
Providing Paternal Leave Benefits in India with an EOR
Providing paternal leave benefits in India is a progressive step towards creating a more equitable and family-friendly workplace and a crucial one in promoting gender equality and empowering working parents. By implementing seamless and effective systems for paternal leave, companies can attract and retain top Indian talent while fostering a culture of inclusivity and support for all employees.
As we move toward more global workplaces with remote employees, companies need to be aware of employment processes in each country where they’re hiring. This includes leave policies and the general cultural climate. However, learning the intricacies of each country’s labor laws and business culture can be cumbersome and time-consuming.
It’s easier to stay ahead of the curve with the support of an expert team that handles all aspects of global hiring. Instead of setting up your own entity in India, you can work with an Employer of Record (EOR) like RemoFirst to handle talent hiring and onboarding, ensuring compliance without the hassle of establishing a business entity in India. Book a demo to learn more. You can also visit our partner, Uplers, for assistance in sourcing remote Indian talent.
Note: This article was updated on July 18, 2024.
