Being charged for work benefits across may leave but not receiving the benefits

[Cocolatte24]

I’ve just recently had my maternity leave call with my employer and they have told me that the work benefit I opt in to each year of purchasing additional annual leave will come out of my maternity pay packet next year because it was in my salary during the reference period this year. I haven’t opted into it for next year.

As our maternity policy is quite good it adds up to a substantial amount of money... 7% of my expected maternity pay over the period.

Today they told me that even though I haven’t opted into that benefit for next year because that amount was extracted from my salary this year I still have to forfeit that amount and I won’t receive the additional days that I have purchased and affectively paid for.

AIBU to be annoyed at this?

Are there any laws people know of that protect against this?

I asked them to escalate it but they told me it’s been escalated before and nothing happens because it’s part of the policy... How can it be fair and part of the policy to charge someone for benefits that they then don’t receive they’re effectively cutting my pay by 7%!

If you have opted into it every year and will presumably opt back in when off maternity leave then i can see where they are coming from!

I understand the part about it coming out of this years pay because that's what you commited to when you opted to receive that benefit and you will benefit from that additional leave but the part about next year is non-sensical and you need to challenge that with HR and/or your benefit provider.

Then you need to receive the extra days as leave. Just as you would if you weren't on maternity.

Yeah you should get the days as leave when your mat leave finishes or before it starts so you basically get a longer mat leave. Otherwise I’d consider getting ACAS or Pregnant Then Screwed involved.

You should still get the days as leave and can ask to add this to the end of your maternity leave if you wish.

You accrue annual leave while you're off on maternity, plus you will get the days you buy. So take it at the end, or use it to effectively work part time when you go back, or ask if you can carry extra over and use a bit/ keep some.

I don't understand the part about being in the scheme last year - is this a scheme you have to be in for a calendar year/ tax year/ leave year and your mat leave will cross years? So you have to pay up to the end of the year?

Is it to do with when you start your maternity leave rather than it being salary sacrifice? My maternity leave crossed the end of the tax year/leave year and I had the baby a few weeks earlier than expected so dropped straight from the annual leave I was taking at the time, into maternity leave - a week earlier than planned. HR told me I had to lose the week of my annual leave as it was due from the first year - couldn't carry it over to the second year as I hadn't taken it in time. In between the exhaustion, I was spitting feathers!

You'll be entitled to those extra annual leave days when you return, so you're not really losing out I guess.

Are they saying that your mat pay is calculated on your salary after the cost of the additional leave was deducted?

So your mat leave pay is based on a previous pay period to calculate it. But your previous pay period had a deduction of extra annual leave.

i read this in my contract too so purposely didn’t buy any extra days before getting pregnant.

i would buy the extra days this year so at least you are getting the extra days and then you can add them onto your leave.

This may be a salary sacrifice situation where you have voluntarily lowered your salary. There should be guidance around this from HMRC.

You need to talk to ACAS and Pregnant Then Screwed. Ideally you want a payroll/pay policy expert rather than general HR.

The bit I question is you not getting the additional leave.

Yes! This! They’re saying I had a deduction in this calendar year for additional purchased annual leave so my mat pay had been based off of that that means that in the next calendar year when I’m due I’ll be effectively paying for the days (the benefit) and they won’t allow me to have any ‘purchased annual leave days’

I think that the mat pay being calculated with the reduced amount is true. This used to happen if you had childcare vouchers.

But you should absolutely be getting the additional days back.

I opted in to the benefit for this calendar year and paid the contributions and I’m getting my full benefit this calendar year. But they’re basing my maternity pay for next calendar year off of this year where I had those deductions and they’ve told me I won’t get the purchased days even though I’ve technically paid 7% of my salary for them

This is helpful, thank you!!

@Cocolatte24 I think this is the relevant info it’s focus is child care vouchers as that is the most common type of salary sacrifice. However, I know employees still get the vouchers during Mat leave which is why I think you should still get the additional annual leave.

www.gov.uk/guidance/statutory-maternity-pay-employee-circumstances-that-affect-payment#salary-sacrifice

Note: Occupational mat pay is a top up to SMP and is contractual which is why you need someone with payroll/pay policy experience.