Creche facility for employees

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Hi,

  1. On “Employers having at least 50 employees to provide creche facility”. Is it a mandatory rule? Have companies started providing this facility?
  2. Can company reimburse the same cost of Creche facility to the employees?
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Hi Prabha,

Many large organizations, factories, manufacturing units have started adhering to this mandate. Organizations that cannot set-up a creche facility tie-up with other organizations and jointly fix a third-party service provider in closer proximity.

As per the Maternity Benefit (Amendment) Act:

The establishments that employ 50 or more employees have to provide compulsory day care facilities within prescribed distance from the working place for children aged up to 6 years.

Also a Work from Home option may be of benefit after the maternity leave expires.

The Creche running expenses has to be borne by the employer. The State of Karnataka and Haryana have the rules framed.

If the employer cannot set up the Creche facility may reimburse the expense or discuss with such employee for a work from home arrangement.

Regards,
Bhuvana Anand

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Hi Morning !!

If an establishment has less than 50 employees but has at least 30 females, such establishment will be under the obligation to have a creche under the Factories Act, 1948. Further, if Section 11A of the Maternity Act had been framed to be applicable on establishments with 50 or more female employees, then, Section 48 of the Factories Act, 1948, would have lost its effect as factories having more than 30 women workers but less than 50 women workers would have done away with the compliance of having a creche.

If the creche is not inside the premises, the same should be within 500 mtrs of establishment. Further, It should be administered by an person who is qualified “Dietician” .

Since it is mandatory requirement under the Factories Act, 1948 it has not explicitly enumerated in the law whether it can be compensated / reimbursed.

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