Maternity Leave Demotion Ruled Unlawful in Landmark Delhi High Court Case
Published on 09/02/2026 at 23:27 | Editorial boerse-global.de
The Delhi High Court has ruled that maternity leave must not cost women their professional standing or career prospects, ordering a company to pay significant compensation to a manager who was demoted upon returning to work. The August 31, 2026 judgment signals a growing international consensus on pregnancy-related workplace protections, echoing recent tribunal and regulatory actions in the UK and US.
Career Status Protected Under Indian Law
Justice Sachin Datta ruled that Section 12 of the Maternity Benefit Act safeguards more than a woman's salary — it extends to her professional grade, reporting hierarchy, and supervisory duties. The court made clear that motherhood cannot serve as grounds for workplace disadvantage or a barrier to career advancement.
The case centred on Rakhi Bisht, a Chartered Accountant who had worked as a manager since 2022 on a monthly salary of ?2.6 lakh. After returning from maternity leave, she was moved into a treasury role that the court described as clerical. Finding this to be a clear demotion, the court ordered employer HashiCorp to pay ?10 lakh in compensation plus ?1.5 lakh in legal costs.
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The ruling also establishes that women returning from leave are entitled to their original position or an equivalent role. Where a specific post is no longer available, employers must now provide formal reasons for any change in status.
UK Tribunals Back Mothers in Separate Cases
Across the UK, employment tribunals have been reaching similar conclusions. Murron Stewart, 27 at the time of proceedings, was awarded more than £47,000 after the real estate firm Purplebricks was found to have unfairly and constructively dismissed her. The tribunal ruled that Stewart faced discrimination on grounds of pregnancy, maternity and sex.
Stewart felt compelled to resign after her role was altered and her request for part-time hours was met with criticism. The total award of £47,323.73 comprised approximately £27,626 for constructive dismissal, £18,647 for injured feelings and a basic award of £1,050.
In a separate action, sales manager Jessica Morgan won a victimization claim against Panelex Wood Agency. The tribunal heard that Morgan was subjected to discriminatory remarks suggesting pregnant women were unwelcome in certain professional settings. A remedy hearing in that case is still pending.
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Regulatory Pressure Builds Internationally
The Delhi High Court also directed India's central government to frame formal rules under the Code on Social Security, 2020 within six months. These rules aim to standardize protections for women returning to the workforce and prevent employers from using maternity leave as a pretext for demotion.
Similar scrutiny is evident in North America. The US Equal Employment Opportunity Commission (EEOC) has filed a federal lawsuit against Family Dollar Stores of North Carolina, alleging a breach of the Pregnant Workers Fairness Act. The commission reported that an employee was terminated on New Year's Eve in 2024 after providing medical documentation for a high-risk pregnancy clinic referral. The worker subsequently suffered a miscarriage following her dismissal.
