Next dueIncome Tax
7 OCTTDS / TCS deposit · Deducted in Sep 2026in 6 days 31 OCTITR filing · Audit cases · AY 2026-27in 30 days 15 DECAdvance Tax · 3rd (75%) instalment · FY 2026-27in 75 days 31 DECBelated / revised ITR · AY 2026-27in 91 days 30 SEPTax Audit Report · Form 3CA/3CB · AY 2027-28in 364 days 11 OCTGSTR-1 · Outward supplies · Sep 2026in 10 days 15 OCTPF & ESI · Contributions · Sep 2026in 14 days 20 OCTGSTR-3B · Summary return · Sep 2026in 19 days
All due dates

Sections 68–70 of the Code on Social Security, 2020: Dismissal During Absence, Deduction of Wages and Forfeiture

While a woman is absent in accordance with Chapter VI, it is unlawful for the employer to discharge or dismiss her during or on account of the absence, to give a notice expiring...

Published
Updated
Reading time
7 min
Views
2
Questions
6 answered
  • Expert Reviewed
  • High Complexity
Topic
Labour Laws
Published
September 30, 2026
Last updated
Oct 1, 2026
Reading time
7 min
0:00
Last updated: October 2026Verified against: Government sources

Section 68 makes it unlawful to dismiss a woman, or to worsen her service conditions, because she is absent under Chapter VI, and gives her an appeal. Section 69 bars wage deductions for certain light-duty and nursing arrangements. Section 70 denies maternity benefit for any period in which she works for remuneration.

Why it matters

Dismissal in this window is the classic maternity dispute, and the procedure is narrow: the written order, the listed misconduct, and the sixty-day appeal. HR leaders and in-house counsel planning exits, restructuring or disciplinary action should involve our employment and labour law advisory team before any step touching a woman on leave. This article reads with section 62 on notice and sections 71 and 72 on complaints. For the older rule, see dismissal during maternity under section 12.

Section 68(1): what is prohibited

When a woman absents herself from work in accordance with the provisions of this Chapter, it is unlawful for her employer to:

  1. discharge or dismiss her during or on account of the absence;
  2. give notice of discharge or dismissal on such a day that the notice will expire during the absence; or
  3. vary to her disadvantage any condition of her service.

The two provisos

ProvisoEffect
FirstDischarge or dismissal at any time during pregnancy, if she would otherwise have been entitled to maternity benefit or medical bonus, does not deprive her of the benefit or bonus
SecondWhere the dismissal is for gross misconduct as prescribed by the Central Government, the employer may, by order in writing communicated to her, deprive her of maternity benefit, medical bonus, or both

The protection is tied to absence "in accordance with" the Chapter, so a woman who has not followed the Chapter's requirements is not automatically covered. Note also that failure to give notice does not cost her the benefit under s.62(6).

Gross misconduct under rule 38

The Central Rules, 2026, rule 38(1) list the acts that are gross misconduct for this proviso:

  • wilful destruction of the employer's goods or property;
  • assaulting any superior or co-employee at the place of work;
  • a criminal offence involving moral turpitude resulting in conviction in a court of law;
  • theft, fraud or dishonesty in connection with the employer's business or property;
  • wilful non-observance of safety measures or rules, or wilful interference with safety devices or firefighting equipment.

The list is closed in the rule. An employer relying on another ground would not bring the case within the second proviso, in the Central sphere.

Section 68(2) and rule 38: the appeal

A woman deprived of benefit or bonus, or discharged or dismissed, may within sixty days from the date the order is communicated to her appeal to the competent authority. The decision of that authority is final.

Rule 38(2) sets the procedure:

  • appeal in Form XII, in writing, handed over, sent by registered cover or electronically;
  • the authority sends a copy of the memorandum of appeal to the employer, calls for his reply and documents, and fixes a date;
  • the competent authority may ask for further details from both sides;
  • the appeal is disposed of within three months of receipt, extendable by reasons recorded in writing by a further period not exceeding three months;
  • if the employer does not reply or produce documents in time, the authority may decide ex parte.

Rule 40(3) adds that a woman does not lose her right merely because she used a form other than the specified one; the authority may, within fifteen days, ask her to resubmit in the right form.

Section 69: no deduction of wages

No deduction from the normal and usual daily wages of a woman entitled to maternity benefit shall be made by reason only of:

  • (a) the nature of work assigned to her by virtue of section 59 (the light-work relief during pregnancy); or
  • (b) the nursing breaks under section 66.

Employers who pay on a time or piece basis should check that a move to lighter work or the breaks do not lower pay. See our articles on section 59 and sections 65 and 66.

Section 70: forfeiture

A woman who works for remuneration during the period for which the employer permitted her to absent herself for maternity benefits is not entitled to maternity benefit for that period. The text is short and does not limit the rule to work for the same employer. Note that her notice under section 62(1) includes the statement that she will not work in any establishment while she receives the benefit.

A worked example

Nisha, a store supervisor, is on her 26-week benefit. Her employer wants to close her branch and issues a termination notice which would expire during her leave. Under section 68(1) that notice is unlawful. A second employee is dismissed during pregnancy after a disciplinary inquiry that does not allege any rule 38 misconduct; she keeps her right to maternity benefit and medical bonus under the first proviso, and can appeal within sixty days to the competent authority if she is dismissed or deprived. A third employee takes freelance paid work during leave; under section 70 she loses benefit for that period. (Illustrative.)

Need help before acting on a woman employee's exit?

Wrong steps here lead to reinstatement claims, benefit liability and inspection findings. If you want a disciplinary or restructuring plan checked against sections 68 to 70 and rule 38, our employment and labour law advisory team can assist.

Key takeaways

  • No dismissal, notice expiring in the absence, or adverse change of conditions during or on account of Chapter VI absence.
  • Dismissal during pregnancy does not remove accrued entitlement to benefit and bonus.
  • Only prescribed gross misconduct and a written order can deprive benefit or bonus; rule 38 lists five acts.
  • Appeal within 60 days to the competent authority; decision final; Form XII under the Central Rules; disposal in 3 months, extendable by up to 3.
  • No deduction from normal daily wages for light work under s.59 or nursing breaks.
  • Working for pay during permitted absence forfeits benefit for that period.

Read next

Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.

Quick recapKey facts & short answers

Key Facts About Sections 68

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Can an employer dismiss a woman who is on maternity leave?

Not during or on account of her absence in accordance with Chapter VI; s.68(1) makes it unlawful.

Can benefit be withheld for gross misconduct?

Yes, by written order, if the dismissal is for gross misconduct as prescribed. Rule 38(1) of the Central Rules lists the acts.

Sections 68: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Was this article helpful?
VS
About the author
9,274 articles
Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

Last reviewed: Live

Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Not during or on account of her absence in accordance with Chapter VI; s.68(1) makes it unlawful.

Yes, by written order, if the dismissal is for gross misconduct as prescribed. Rule 38(1) of the Central Rules lists the acts.

Sixty days from the date the order is communicated (s.68(2)); Form XII under the Central Rules.

Yes. Section 68(2) says the decision of the competent authority is final.

No. Section 69(b) bars deduction by reason only of the breaks.

Section 70 denies maternity benefit for that period.