Maternity leave issues - help, I feel I'm being put in a corner!

[burmesegrumbler]

Can anyone help me?

I am a director of a company, but own just a 30% share and have been employed full time for two years with my company. The other two directors are not employees and own a 35% share each.

I announced my pregnancy last October and was given firm assurance (but not in writing) by the other two directors that I would be able to work from home until I return to work full time and that my salary would rise sufficiently when return full time to allow me to cover child care costs.

I have been on mat leave since 1st June, I used my holiday allowance for time off in May. I was sent an email by the other directors 11 days after giving birth asking when I would be returning to work. I had said before going on mat leave, my intention was to start working from home a little from July/August - however my baby was very overdue and I now feel September is more realistic, when my baby will be three months - I stated this in an email and they have come back saying they need to know for sure what my plans are. I stated it was too early (just 11 days since birth) for me to know, that I would like ideally six weeks left in peace and would come back to them with my intentions (most likely to work part time from home after three months gradually building back up to a full time position (only if my salary were to rise by the £11,000 we had discussed back in October), but did also mention that I may well change my mind.

They have stated there will be no room for a pay rise, or a performance related bonus based on the current year end (our year end is June and I worked up to it and made the company over a lot of money, pretty much single handed, with help from just one other employee (who was paid moe than me) and leaving for mat leave in a position that they could afford to employ a further three people to cover my role (also paid more than me) I take home currently £1500 per month before annual bonus and directors dividends. In two years my bonus/directors dividends have amounted to a further £15,000 - I was happy with this situation in order to grow the business, but always stated my basic salary would have to rise significantly in order to return full time after mat leave.

Does anyone know where I stand legally as a director and an employee?

I do not see how they can say there will be no bonus before the year end accounts are completed and we see what profit is showing (there should be plenty) and I do not see how they can go back on their word of increasing my salary, especially when they are currently paying everyone else in the company more than me for less responsible roles?

Would I need to renounce my directorship with companies house in order to go after them for unfair pay and do I have anything to go after them with on mat leave issues - surely 11 days after birth is too soon to ask an employee their plans for returning to work when I had said all along I will need a couple of months to work out the babies daily routine before knowing how much work I can take on and when?

Also I have heard if I take full mat leave on stat pay, I can still be paid in full for holiday pay during this period, is this correct?

Should I go to Citizens Advice or as a director will they dismiss me as i am not just an employee?

Basically I have gotten the company into a great position and while I am away they are trying to take over - that is the feedback everyone at the company is giving me on there new daily involvement, previously I ran everything day to day.

Does anyone know where I might stand legally?

My gut instinct is to walk away, my baby is so much more important, but I do want to ensure I have my facts straight before I go back to them and say for a price I will walk away, despite working my backside off for the company building it from nothing to employing five people in two years and turning a profit after just four months.

[nellie12]

I know nothing about companies so bumping for you.

But, this does sound a lot like sexual discrimination. you state that people are doing the same job as you but are paid more??

You are the lowest paid in the company despite your work?

As for contacting you 11 days post birth repeatedly - again I cant comment on private companies but I can say that this could be construed as harassment. It is certainly poor practice. A good maternity leave policy would say that you have to give 28days notice to the company if you intend to return to work before your official mat leave ends.

(bearing in mind that the government does say you are entitled to stay off for a year and smp is paid for 9months.

Maybe cab would be a good place to start but I would also be tempted to investigate employment tribunal for the unfair pay and possible sexual discrimination.

Anyway hope someone a lot more knowledgeable comes along.

[poppy34]

Not an expert but your maternity rights are protected as an employee (not sure being a director adds anything to this). You are entitled not to name when you come back but

As for contacting you within 11 days they are skating on thin ice as you are legally meant to have 14 days not working after the birth.

Re job and pay I suppose that if nothing was in writing they can say no - what they can't do if you come back within 6 months

I am mystifiEd as to how they can say no bonus as doesn't this need to be agree at a meeting which you should be at as director and shareholder?

Sl if you do go do wt acme proper advice as they should but you out and at a proper price (I am assuming you have. 30% of same type of shares they have).

I am not sure what you do but it sinus kike it is focussed on your efforts- they must have been to a very odd shook
Of business to treat a key emploeee and other shareholder lie this if theydont think it's going to muck up their investment if you leave or xome back unhappy.

[poppy34]

Sorry meant to say I back within 6 months you can hv your old job back- if you wanted to work from home qs part of that that may be changing terms of job so theycould say no.

[seeyoukay]

I'll try to go over these one at a time. I hope flowery etc is around.

As a Director (by Director I assume you mean listed at companies house - rather than just director in the job title). You have different rights to employees (e.g. the national minimum wage doesn't apply).

A lot depends on the reporting line. Who reports to who. Its its all done on a vote then they can say if there is to be a bonus or not - and they can decide this before or after year end.

Yes if you take full mat pay then you still acrue holiday.

nellie: Its not sexual discrimination. When you become director its hard to prove "same job". If your a driver or cook its easy but when you start to negotiate pay individually its not illegal to pay employees different amounts but is illegal to say "all men get £4 an hour and all women £3"

But just having two directors getting paid ore than some other director (especially when they own more share capital) is no way shape or form sexual discrimination.

The problem your facing is a 70% vs 30% share split and you don't have anything as to what was agreed.

Simply your an employee and are covered by those rights - so just refuse to tell them when your back. Don't walk away, that's probably what they want you to do.

[burmesegrumbler]

Thank you all.

I do own 30% of the shares in exactly thesame way as they own 35%each, we are all listed as directors at companies house.

They have dismissed staff who were on to cover
my role during mat leave and decided run the company themselves on a daily basis for which they will take a salarygoi g forwards, but will not have any client facing contact, my role was day to day running plus a full on client facing sales and project management role.

Not sure what I wl do next, the talent our agency represents are very supportive of me, the other directors have never had working relationships withthe roster, they tried to get more involved after the first year and the talent were not very happy, they wanted to deal with me on a day to day basis. I think they are using my mat leave to take control now things are going so well. My husband says let them, when I'm ready I could take any of the talent with me and start over, the business will flop without me anyway. I just don't know if I have the energy to start over having worked so hard for two years and having just had a baby three weeks ago.....

[Lizcat]

As a partner in a business (so similar set up just not limited liability) if this had happened to me I would be beginning to ask myself could I continue to work with these people. Whilst I understand it is hard to start over I did this when my DD was just a few months old and to be truthful that is the easiest time to do it, as when they get to school age they need alot more from you. Now my DD is 6 years old and I still work hard developing my business, however as it is not in it's infancy I can stand back from it sometimes.
If you want to continue it maybe worth investigating what someone in your position in your industry ( I assume as you are running the show you are managing director) with kind of turnover you have is earning to give you bargainning power.
Your dividend should then be proportional to your stake.

[burmesegrumbler]

Thanks lizcat.
I don't think I can work with them going forwards, it's letting go of something I have worked do hard to build and the relationships I have with the talent that makes the decision trickier, but having slept on it, I must walk away, just a question of how and when now.
Thinking I will bide my time, tell them it'sy intention to take a full year off but remind them I can change my mind and come back earlier, I just need to give 28 days notice, wait for the year end accounts, get some money and then slowly and carefully begin to build up my own agency during my mat leave, as long as I don't draw a salary this wouldn't effect my mat leave rights would it?

I will also get an appointment at CAB, just to be on the safe side, I don't want them to have any amunition to come back at me with.

[burmesegrumbler]

Sorry for many typos iPhones and breast feeding don't combine so well !!

[poppy34]

No if don't draw a salary shouldn't affect your ml but does the shareholder agreement or your contract (or contracts with talent) have anything about not competing?

[burmesegrumbler]

Good to know Poppy34.

No contracts were put in place with the talent, though I'm guessing the other directors are busy preparing contracts now...... I have known and worked with all the talent for many years and they came on board to work with me.

[poppy34]

In which case may be difficult to argue about the talet moving but add that to your cab questions.
Meant to say In all this congrats re your baby - give it another couple of weeks and you might feel like have more energy to devote .