Product details

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Authors: Rika Misra
Published by: Amity Research Centers
Published in: 2019

Abstract

On June 3rd 2019, Zomato introduced some changes in its parental leave policy. The company announced 26 weeks paid paternity leave for the new fathers. Also, to improve diversity across various levels in the organisation and to lower the number of women quitting their job, Zomato would offer 26 weeks paid maternity leave or would follow the government mandated policy (whichever was more), to all women in all the 13 countries it was present. Zomato's new parental leave policy would also cover non-birthing parents and would include cases like adoption, surrogacy and same-sex partners. According to an analyst, this progressive parental leave policy would help employees perform their best and also facilitate in developing an aspirational work-culture. Moreover, by providing the mother and the father equal opportunity to take care of their newborn, it was expected that women would not be unjustly penalised with relatively lower pay. This was because out of 73 countries, the largest disparity in average hourly wages between men and women prevailed in India. Zomato's new parental leave policy was likely to draw more attention to the gender pay gap issue and encourage other companies to introduce better parental leave benefits. However, there were many instances in several companies in India where women were removed from important assignments or were made to join a relatively lower position when they resumed office after a break. Also, in India, if both husband and wife worked in the same organisation, it would be tough to give 26 weeks parental leave to both of them. Against this backdrop, would it be possible for Zomato to sustain its humanistic HR policy? What could be the likely issues and challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

Zomato
Employees:
5001-10000
Type:
Self-owned
Industry:
Food aggregator

About

Abstract

On June 3rd 2019, Zomato introduced some changes in its parental leave policy. The company announced 26 weeks paid paternity leave for the new fathers. Also, to improve diversity across various levels in the organisation and to lower the number of women quitting their job, Zomato would offer 26 weeks paid maternity leave or would follow the government mandated policy (whichever was more), to all women in all the 13 countries it was present. Zomato's new parental leave policy would also cover non-birthing parents and would include cases like adoption, surrogacy and same-sex partners. According to an analyst, this progressive parental leave policy would help employees perform their best and also facilitate in developing an aspirational work-culture. Moreover, by providing the mother and the father equal opportunity to take care of their newborn, it was expected that women would not be unjustly penalised with relatively lower pay. This was because out of 73 countries, the largest disparity in average hourly wages between men and women prevailed in India. Zomato's new parental leave policy was likely to draw more attention to the gender pay gap issue and encourage other companies to introduce better parental leave benefits. However, there were many instances in several companies in India where women were removed from important assignments or were made to join a relatively lower position when they resumed office after a break. Also, in India, if both husband and wife worked in the same organisation, it would be tough to give 26 weeks parental leave to both of them. Against this backdrop, would it be possible for Zomato to sustain its humanistic HR policy? What could be the likely issues and challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

Zomato
Employees:
5001-10000
Type:
Self-owned
Industry:
Food aggregator

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