Maternity Pay and Coronavirus

[BernadetteRostankowskiWolowitz]

N.b. this isn't relevant to my situation but I wondered about it today.

Say you have just started mat leave. Your employer does not offer enhanced maternity so you are on SMP for 39 weeks.

Your workplace has closed due to CV and all staff are furloughed.

Dobyou end your Mat Leave and take the 80% or do you remain as one of the only employed people left but drop to 500pcm or whatever it is?

Would your request to return be declined due to current situation?

I'm in your situation and haven't even considered this. I'm quite happy with my SMP as it's guaranteed whereas furlough isn't in the long run if things get worse.

You remain employed (as do your furloughed colleagues, that's the point of furlough) but as you are already on maternity leave you also remain on SMP.

If your maternity pay ends and your employer is still closed you would then be furloughed, assuming the Scheme is still running then.Your 80% would be based on your basic salary (including any SMP) during the 2019/20 tax year.

If you've been on SMP for a while and are due to come back but be furloughed unfortunately you might lose out because the salary you get 80% of could include a considerable chunk of SMP.

Actually had this come up with one of my payroll clients this week so had to check it out in detail.

If you are due to go on maternity but get furloughed before it starts is still a grey area. Nobody I have spoken to at HMRC seems sure what would happen in that case!

You just need to apply the statutory governance regarding maternity leave; if you're on mat leave, you're on mat leave. If you want to return to work, you need to give your employer 8 weeks notice in writing and if you're positioned is furloughed then furlough T's and C's apply. However, if restrictions are lifted, say, in 12 weeks, and businesses start operating as normal you will be expected to return to work at that point, not in 6/9/12 months time as you will have formally chosen to bring your maternity leave to an end at the point you gave your employer notice to return to work.

I'm an accountant currently on maternity leave so not fully up to scratch with these temporary measures but this is my view.
If on SMP, you'd stay on SMP.
You cannot "return" to work to claim the 80% and then go back onto SMP. As I understand it, maternity leave/pay cannot be broken up. I think once you return to work whether physically or on paper (if you take holidays before returning), you're back to full pay and your maternity leave, pay and rights will cease and you can't go back onto it, not for this child anyway.

If you're due to return but become furloughed, I highly doubt the 80% is based on your SMP. The government have said it's 80% of your regular wage. SMP is not your "regular" wage. Your annual salary is.
I think the information is wrong. Even HMRC staff get it wrong, all the time! You can ring up the same day and get two different answers.

I'd be very surprised if they'd use SMP as your "regular wage" as maternity rules are always about being treat equally.
You're entitled to everything other employees are even pay rises during the year, accruing holidays etc. I reckon they'd face backlash for it as your regular wage for your return would be your salary, not SMP.

I'd ring for a second opinion. Just incase as seems very unfair.

We don't know til we get the portal and full details Laura, but at the moment we are being told by HMRC that it's 80% of your 2019/20 taxable pay, less any bonus or commissions. If you were on maternity leave and SMP during some or all of 2019/20 then that's what your taxable pay would be.

I'm not an accountant. I own and run a payroll bureau.

Oh, just to be accurate if you started after 6/4/19 it's your wage from that employer for the year pro-rata'd according to the number of months you worked.

I didn't make the rules, I'm just trying to a) find out exactly what they are and b) implement them!