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Maternity allowance if quit work when I would start maternity leave?

13 replies

CaringForPod · 21/03/2011 17:38

Hello,

Bear with me on this one...

Basically, I am employed on a fixed term contract, and (a month before I am due to go on maternity leave), my employer has told me that there's no guarantee my contract will be extended for the next season (contract expires 31 October). I am eligible for SMP, but since there's no guarantee I will have a job to go back to, there's a risk I'd have to pay it back to my employer.

So, I am thinking about quitting from mid-April, instead of going on maternity leave. My reasoning is that then I could claim maternity allowance, which it says I may be entitled to if I have recently been employed.

But, looking at the form for MA applications, it asks if you have been employed during your 'test period', which I will have been. It then asks if you are entitled to SMP, which I would have been (and still am as I am still employed).

Does anyone know if I would be able to apply for MA? I'm guessing that if so, it would have to be once I have left my current employment (which would be around 38 weeks, not leaving us much time to play with!).

So in a nutshell:

I am currently employed and eligible for SMP

*BUT I may have to pay the SMP back as my job is fixed term and no guarantee it will still be there when I want to return
I could leave work instead of taking maternity leave as originally planned.
Would I then be able to apply for MA as having been recently employed?

Does this make any sense? I guess I really need to talk to a CAB person, but thought I would see if anyone on here has been in a similar situation.

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suzikettles · 21/03/2011 17:46

I don't think you need to pay back SMP. As I understood it (when on a fixed term contract), as long as you were employed on the day you went on maternity leave you got SMP.

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CaringForPod · 21/03/2011 17:50

Sadly, my employer (a university) seems to be saying otherwise. That's what my department says anyway. The lady in the payroll division is being useless, but am going to keep bugging her until I get an answer!

Thanks for your reply

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Metters · 21/03/2011 17:59

I am guessing they pay enhanced maternity pay, you would have to pay this back. You definately do not have to pay SMP back.

If you do not go back they can pay you all you SMP in one lump sum or keep you on nthe payroll until it has expired.

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suzikettles · 21/03/2011 18:03

Yes, I think they're confusing Enhanced and Statuatory Maternity Pay.

The Government pays SMT to your employer, they only pass it on to you.

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RibenaBerry · 21/03/2011 18:05

You never had to repay SMP. Ever.

If you are employed up to 15 weeks before the due date (and you fulfil the other criteria like length of employment, level of earnings, etc), you get SMP. This is the case whether your employment ends before the baby is born, ends during your maternity leave or continues.

Here is what you do: you go on maternity leave, just as you had planned. You get your SMP, just as you had planned. If your contract isn't renewed part way through your maternity leave, you still keep getting your SMP to 39 weeks. There's no need to worry about MA at all and in any way unless you didn't qualify for SMP anyway for some reason (e.g. don't earn enough).

Sounds like your payroll know naff all. Get onto the central HR if you need to. HTH

ps - enhanced maternity pay is different, you may need to pay that back.

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CaringForPod · 21/03/2011 18:15

Thanks, although I am now more confused than ever!

So, if it is EMP, I would need to pay it back? Why would they pay me that though? I've just googled and it seems that it's when they pay you more than they need to.

But, if I am eligible to SMP, I shouldn't have to pay it back?

I know he'll be worth all of this headache, but honestly, not sure this could be more stressful...

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CaringForPod · 21/03/2011 18:18

Thanks RibenaBerry, didn't see your post - you're a star! Would you mind representing me ?! The problem is my dept has never dealt with a fixed-termer going on maternity leave, just perm staff. I am a large learning curve for them.

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RibenaBerry · 21/03/2011 18:20

Sorry if you're confused.

SMP is a right, set out in law, and (mostly) funded by the Government. It is not tied to returning to work, or even still being in employment when it is being paid. You just need to have enough service with your employer, have earned enough and stay employed until week 25 of your pregnancy.

Enhanced maternity pay is what your employer chooses to pay on top, and the rules are totally up to them. Most, unsurprisingly, say that you have to come back to work or you'll have to repay it. Exactly what circumstnaces you have to repay in vary, as does the length of time you have to come back for. If they don't know yet if your contract will be reviewed, they would normally pay it to you, and claim it back if they needed to.

Does that make more sense?

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CaringForPod · 21/03/2011 18:31

Yes, it does, thank you.

It's ridiculous that I get more sense from people on here than I do from my employer! I've emailed the university's personnel department to get them to clarify my position once and for all. But thank you all so much for your info - sounds like my dept hr lady is being a numpty and scaring the life out of me for no reason...

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KatieMiddleton · 21/03/2011 18:35

When paying enhanced maternity pay (also known as occupational maternity pay) they will be claiming the SMP back from the government and paying you the difference to make it up to normal pay/half pay or whatever extra you get.

What you should do is not resign but calculate how much SMP is (remember you'll be taxed and have to pay NI on this) and then when work pay you deduct the difference from your pay so all you have in your current account is SMP and transfer the difference into a savings account in case you have to pay it back.

However, if they do not renew your contract you may not have to pay it back depending on the wording of your maternity policy or contract. What does the maternity policy say? You can ask HR for this.

And how long have you worked for them? You may also be entitled to a redundancy payment if they don't renew your contract.

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CaringForPod · 21/03/2011 18:39

Thanks Katie -have emailed HR as the maternity pages aren't that clear and say nothing about fixed term contracts.

I don't think I'm flavour of the month at work at the moment, the amount of emails I've been sending. They're lovely people, but don't like to be too bothered by us part-timers.

Should hopefully get an answer from HR tomorrow...

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KatieMiddleton · 21/03/2011 18:50

Well legally you can't give full timers or permanent staff better terms and conditions than part timers or fixed term staff so that will be why no mention as you should get the same treatment.

Hope you get some decent info soon

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CaringForPod · 22/03/2011 09:15

So, the moral of the story is to bypass your department admin person and go straight to HR, who actually know what they are talking about.

You are all correct - even if my contract is not renewed while I am on maternity leave, I am entitled to 39 weeks SMP which I have been told I will not need to pay back. I'm not getting enhanced pay.

Thanks for all your advice, it's just about saved my sanity!