The Delhi High Court has directed software firm HashiCorp to pay Rs 10 lakh in compensation to a chartered accountant who was reassigned to a clerical position following her return from maternity leave. Justice Sachin Datta delivered the order, which also required the company to cover Rs 1.5 lakh in legal costs within two months. The court ruled that pregnancy and maternity must not result in professional disadvantages, demotions, or career stagnation, emphasizing that such practices violate constitutional guarantees of equality and dignity under Articles 14, 15, 21, and 42.
Case Background And Resignation
Rakhi Bisht joined HashiCorp as an accounting manager in June 2022 with a monthly salary of Rs 2.6 lakh. After taking maternity leave in December 2023, she resumed work in July 2024 only to find her role reassigned to the treasury department. The assigned duties corresponded to a staff accountant position situated approximately three levels below her designation and were clerical in nature. Informed by management that no vacancy remained in her original team, Bisht resigned in October 2024 and approached the high court, requesting Rs 50 lakh in compensation alongside the establishment of strict anti-discrimination guidelines for private companies.
Constitutional And Legal Framework
During the proceedings, the court highlighted that neither the Maternity Benefit Act of 1961 nor the Code on Social Security of 2020 explicitly provides a comprehensive statutory framework for the post-maternity reintegration of female employees. Justice Datta noted that this legislative gap risks undermining existing statutory protections and constitutional commitments. The court established that employees returning from maternity leave are generally entitled to reinstatement in their previous roles or placement in equivalent positions matching prior pay, grade, status, responsibilities, and advancement prospects. Additionally, employers are required to document reasons for unavailability and communicate alternative role details.
Mandatory Workplace Guidelines
The court ordered HashiCorp, a private software company recently acquired by IBM, to formulate comprehensive rules and directions within six months. These directives must cover pregnancy-related workplace accommodations, role and status protection following maternity leave, lactation support, crèche facilities, grievance disposal timelines, and retaliation safeguards. Furthermore, the court incorporated recommendations presented by Union government Standing Counsel Ashish K Dixit. These proposals include a protected period spanning from initial pregnancy disclosure until six months post-return, alongside mandatory individualized assessments within seven days of disclosure to ensure appropriate workplace accommodations without forcing employees onto leave or inferior roles.
