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Original poster

Maternity leave dilemma

129 replies

chineybumps · 05/01/2022 17:01

Posting on AIBU because I have less than a week to tell my company that I'm pregnant yet again.

I've been on maternity leave since April 2021 and will be taking the full year. I had only been with the company since August 2020 so I only qualified for SMP and not the company's maternity sceme.

I'm pregnant again and will be due at the end of April so will be going straight on maternity leave again. This time I qualify for the company's maternity scheme which I've copied and pasted below.

• 8 weeks at 100% of your normal pay
• 8 weeks of Statutory Maternity Pay topped up to 50% of your average weekly
earnings if this is higher
• 23 weeks of statutory maternity pay
• The remaining 13 weeks would be taken as unpaid leave

I plan to leave work once my second maternity leave ends. I'm more than happy to just receive SMP from the beginning (it's really not much different from their policy anyway) as I don't want to have to pay any money back when I want to leave.

Now my question is, can I let them know this when I send them my MATB1 form letting them know I'm pregnant? I have to outline when I plan to go on maternity leave so in this email can I just say something like, 'Can I receive SMP from the beginning of my leave as opposed to the company's policy as I may consider leaving upon my return?' Or is it best not to mention leaving?

I recently saw a post saying a woman mentioned leaving before she started her maternity leave and her work paid her SMP in one huge chunk just so they could take her off their payroll and she got taxed MASSIVELY.

The other option is that I take the enhanced pay and take the annual leave I would have accumulated from 2020-2021 and 2021-2022 once my second maternity leave ends and use that to technically 'work' instead of paying the company back.

I've just read that back and I'm so confused so I hope others can understand my predicament😭 please help! What do I do?!

OP posts:
NotRainingToday · 05/01/2022 17:08

Given that your 2nd mat leave runs April to April, it would be taxed exactly the same if they pay you one lump sum as monthly.

IMHO, the 'honourable' thing to do would be to take SMP and tell them you're leaving, then they can at least fill the post. Otherwise you'll have worked 8 months, had 2 years mat leave (during which time they are obliged to hold your position open), then leave without ever returning. By the time they recruit, they might have had no-one in the role for 2.5 years.

jclm · 05/01/2022 17:10

Can you return earlier? That way you'll not run into the tax problems mentioned above.

Original poster
chineybumps · 05/01/2022 17:12

I wouldn't want one lump sum anyway. I certainly prefer to get SMP monthly as opposed to one huge sum. My question is more based on whether I should mention wanting SMP from the start of my leave in case I may possibly leave?
I'd definitely be leaving but I just want to know if it's worth mentioning so I don't have to pay any money back

OP posts:
Starcaller · 05/01/2022 17:12

Is there a form to fill in for going on mat leave? Mine has a box to tick if you plan on not returning.

TheSnowyOwl · 05/01/2022 17:14

If you resign at the end of your second maternity leave then you will also have accrued annual leave.

Double check your policy though as you usually are only eligible for enhanced maternity pay if you qualify for SMP and based on your dates, you might not have earned enough during your qualifying period.

Things change and you might not want to leave your job at the end. By all means say to them that you might not return but it makes more sense to formally decide when you need to, rather than in advance.

Original poster
chineybumps · 05/01/2022 17:16

@jclm not really. My mat leave ends on 3rd April and the new mat leave will start on 4th April. As for 'tax problems,' what do you mean? I'm sure the pp was talking about if I was to receive SMP in one lump sum then the taxes would be the same.

@Starcaller the closest thing on the form is giving an anticipated/approximate date of return. If you leave it blank, it's assumed that you'll take the full 52 weeks

OP posts:
Original poster
chineybumps · 05/01/2022 17:23

@TheSnowyOwl I've read through the policy and I'm sure I qualify for SMP? All I need is 26 or more weeks continuous service and I've had that from before I went on maternity leave. As for the company's maternity pay, you must have 12 months continuous service. I'm sure when you're on maternity leave it's still considered as working or 'continuous service' in this case? I'm starting to overthink now😂

I agree with not letting work know in advance too, thank you

OP posts:
Idontknowlondon · 05/01/2022 17:33

The other option is that I take the enhanced pay and take the annual leave I would have accumulated from 2020-2021 and 2021-2022 once my second maternity leave ends and use that to technically 'work' instead of paying the company back.

Is there a reason you wouldn't do this? Seems like the obvious and financially beneficial solution. and personally I'd say essentially 12 weeks of full pay (the equivalent of what you are getting) is MUCH better than 6 weeks at 90%.

violetbunny · 05/01/2022 17:42

I wouldn't tell them you're leaving, anything could happen. If you're planning to rely on your partner's income for instance, what if they were made redundant? A lot can happen in 12 months.

If you're worrying about having to pay back enhanced leave, could you not just stick it in a separate savings account?

Original poster
chineybumps · 05/01/2022 17:42

@Idontknowlondon that seems like the best option right? However my policy says,
'Employees are usually required to take all holiday in the leave year in which they accrue, excluding bank holidays and public holidays and are not usually permitted to carry any holiday forward from one holiday year to the next.'

So I'm not even able to take any over holiday over to the next year, I'd have to ask and hope that they can make an exception and it'll be allowed. So annoying

OP posts:
Hankunamatata · 05/01/2022 17:44

Talk to employer that you do not attend to return, you can get smp and they may do you a deal over holiday pay so they can recruit for new post.

Kevinthesnipe · 05/01/2022 17:45

Could you not resign and apply for maternity allowance?

czycoup · 05/01/2022 17:49

How long do you have to go back to work for before you don't have to pay the enhanced pay back? At my work someone officially ended their mat leave and used up annual leave to "return". They handed their notice in on the first day of annual leave and didn't have to pay the enhanced pay back and never actually came back to the office.

LIZS · 05/01/2022 17:53

You would need to check if using accrued leave is counted towards the return criteria. You would need to formally give notice at some point and that may invalidate enhanced terms in itself.

czycoup · 05/01/2022 17:57

@Kevinthesnipe

Could you not resign and apply for maternity allowance?
She might miss out on other benefits in her contract. Plus if she changes her mind she can't go back and ask for her job back presumably (although seems like she's made her kind up)
Original poster
chineybumps · 05/01/2022 18:01

@Kevinthesnipe I could but then it'd affect my Universal Credit as MA as seen as earnings and will get deducted from the amount I usually get. I get this amount to pay my rent in full so it'd definitely fuck me up

OP posts:
MrsWalrus · 05/01/2022 18:02

It isn’t just tax you need to be aware of if you get paid SMP in a lump sum, it’s also huge national insurance payments, student loan if applicable and pension.

I know there is a benefit to the last two but it happened to me and really screwed up my finances.

Original poster
chineybumps · 05/01/2022 18:03

@czycoup

How long do you have to go back to work for before you don't have to pay the enhanced pay back? At my work someone officially ended their mat leave and used up annual leave to "return". They handed their notice in on the first day of annual leave and didn't have to pay the enhanced pay back and never actually came back to the office.
How long do you have to go back to work for before you don't have to pay the enhanced pay back?

Now this is a great question! @czycoup
I don't actually know and my line manager is new so he doesn't know either. It's a huge company but HR's a bit of a mess and there's no number to call and speak to a real person to ask. I'll try my best to find that information out before the end of the week because once I know that, it makes things easier for me.

It'll also help my decision because I'd love to do what the person at your work did. It seems so simple to do it that way

OP posts:
Original poster
chineybumps · 05/01/2022 18:08

@LIZS that's a good point and I bloody well hope it is. I'll double check the policies but I haven't seen anything written about it

OP posts:
Original poster
chineybumps · 05/01/2022 18:08

@MrsWalrus

It isn’t just tax you need to be aware of if you get paid SMP in a lump sum, it’s also huge national insurance payments, student loan if applicable and pension.

I know there is a benefit to the last two but it happened to me and really screwed up my finances.

I pray I won't receive a lump sum! I don't think I'll mention anything about wanting to leave
OP posts:
pollyparrot45 · 05/01/2022 18:13

Can't you just take the maternity package you're entitled to & save the money that's in excess of SMP and then you'll have it available to return to them should you leave?

HippeePrincess · 05/01/2022 18:15

Have you warned enough in the qualifying weeks to even get any pay at all? If your normal earnings are based on a time when you were in the unpaid weeks, then 8 weeks at 100% is zero. Same as your smp you may not be eligible and have to claim mat allowance anyway. You need to speak to HR.

MrsWalrus · 05/01/2022 18:15

I wouldn’t - I lost a fortune! It still smarts.

HippeePrincess · 05/01/2022 18:15

Earned not warned Blush

underneaththeash · 05/01/2022 18:22

No, say nothing. You'll get accrued holiday, which they will have to pay you for if you're not able to take it.

Just put the extra cash in a premium bond and pay it back when you resign.