Hol pay when on maternity

[UnicornPee]

I will have accrued at least 20 days holiday when on maternity leave this year.
When I return to work in December I will go from a senior position on 28k to an admin position on 18k.

Will my Hol pay accrued whilst on Mat leave be paid at the £28k pay?

Or will it have to be paid at the new lower salary (which commences when I return)

Thank you in advance

[flowery]

Think of holiday as time off work, rather than pay. You carry on getting paid what you normally do, but don't have to come into work. So it is always paid at the rate you are on at the time you actually take it.

[MadeForThis]

I'm in the same situation. I'm a manager stepping down to an part time position. My company are processing my return from maternity to put me back on the normal payroll system then booking my holidays - I'm using my entire allowance. Once this is used they will transfer me to the part time position and my salary will be adjusted. I will then start back to work.
Hope this helps?

[UnicornPee]

I hope my company do the same as you then that will be nice. It's a big difference in pay and I will need it having been on SMP for 39 weeks!!

[flowery]

If you don't yet know when you're going to take the holiday you need to get that sorted, not just 'hope'. If you want to take it all before you go back to work you need to put that request in, and if you don't want your new role to start until you've taken all your holiday, you need to request that your contract change takes effect from the date you physically return to work, rather than the day your maternity leave ends.

[gallicgirl]

Yes, it should be at the 28K level but pro-rata. As Flowery said, you also need to consider when your new contract starts and when you take the leave.

So if your holiday year and maternity leave starts in January for example, and you return to work after 9 months, you'll have 75% of your holiday entitlement at 28k level, and 25% at the lower level.

I returned to work part time so until my contract changed, I accrued holiday leave on full time hours and then 50% hours after I returned to work.

[flowery]

"So if your holiday year and maternity leave starts in January for example, and you return to work after 9 months, you'll have 75% of your holiday entitlement at 28k level, and 25% at the lower level."

Not at all. She'll get paid whatever she's earning at the time she takes the holiday. That's why if she wants it to be at the £28k level, she needs to take it before her contract change takes effect and her salary goes down.

[INeedANameChange]

Backing up flowery - unfortunately holiday pay is calculated on the day it is taken, not the day it was accrued.

[gallicgirl]

Perhaps I've misunderstood the question and not explained myself very well.

OP, will you be taking the accrued leave or will you be paid in lieu of leave?

If you take the leave, then yes, it will be paid at the rate which is relevant to your contract at the point it's taken. If you're to be paid in lieu then I would expect it to be paid at the rate it's accrued at. However, it would be unusual to be paid in lieu of leave and you need to find out how your employer expects you to take that leave.

[flowery]

My understanding is that the OP is returning to work for her current employer, not leaving, so will be physically taking her holiday rather than receiving a payment in lieu.

[JacquettaWoodville]

As flowery said.

If you are able to, finish your maternity leave 4 weeks early, take the 20 days of holiday as the last 4 weeks on your old contract and commence your new contract on the day you physically return.