Question

Aida Jebat was hired as a clerk with Syarikat Manisan Sdn BHD on 1 July 2010 with a salary of RM1,200 per month. She was placed on six-month probation. On 1 October she informs the company that she is going on maternity leave. Her expected date of confinement is 1 December 2010, and she intends to commence her maternity leave on 1 November 2010. On 29 November 2010, she died from childbirth complications. The child was survived.

1. Is the company obliged to pay any maternity allowance? Explain your answer by relates to related act.

2. If yes, to whom, how many days and how much must the company pay?

Answer 1

1.According to Section 5(3) of Maternity Benefit Act ,1961, maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks, i.e.six weeks prior to and including the day of her delivery and
six weeks immediately following that day.

As per first proviso to above sub-section,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.
Further as pertper second proviso,if women having been delivered of a child dies during
her delivery or during the period of six weeks immediately following the date of her
delivery, leaving behind the child, the employer shall be liable for the maternity benefit for the entire period of six weeks immediately following the day of her delivery but if the child also dies during the said period, then for the days up to and including the day of the death of the child.

In the given case ,Aida Jebat intends to commence her maternity leave on 1.11.10 where her expected date of delivery is on 1.12.10 which is period eligible as per act and she dies duet to child birth complication.

Hence ,in this case company is obliged to pay maternity allowance.

2.According to Section 7 of Maternity Benefit Act, 1961,if  a woman entitled to
maternity benefit or any other amount under the Act, dies before receiving such
maternity benefit or amount, or where the employer is liable for maternity benefit under
the second proviso to sub-section (3) of section 5, the employer shall pay such benefit or
amount to the person nominated by the woman in the notice given under section 6 and in
case there is no such nominee, to her legal representative of such employee.

In the given case ,Employee died and her child survived and she also had given notice of Maternity leave.

So, In this case company is obliged to pay maternity benefit for period of 71 days (from 1.11.10 to 11.1.11 i.e six weeks immediately following the date of delivery )which is and amount of RM 2,840 [(1200/30)*71]