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What happens if the company folds while I'm on mat leave?

5 replies

decorecor · 28/07/2022 14:33

Wondering if anyone has experience of this situation. I'm on mat leave. The company is making redundancies to try and stay afloat. I'm safe for now, but there's a strong chance the company won't still be there by the time I go back.

If it goes under part way through maternity leave, would I continue to get maternity pay (SMP)? Would I get any kind of redundancy payment? Anything else I should be aware of? Just trying to get my head around the possibilities. Thanks!

OP posts:
Thecupofdoom · 28/07/2022 14:36

Speak to Acas.

I was put at risk when pregnant and on mat leave but it was slightly different because the company was still afloat.

If you get made redundant, you are still entitled to SMP for the statutory 39 weeks. You should be paid in in a lump sum if made redundant.

Fizzgigg · 29/07/2022 18:54

I took voluntary redundancy on maternity leave. My SMP and enhanced mat pay were included in my lump sum settlement

decorecor · 30/07/2022 10:35

Thanks. I'm just not sure if it counts as redundancy (with payments) if the whole company shuts down. I'll speak to ACAS if I find out more but for now was just generally wondering how it might work.

OP posts:
CherieBabySpliffUp · 30/07/2022 10:41

I was on maternity leave when one of the big high street chains went to the wall. It's over a decade ago so the details are hazy but I received a redundancy payment and continued maternity pay though I can't remember if it was just the SMP rate.

CherieBabySpliffUp · 30/07/2022 10:46

decorecor · 30/07/2022 10:35

Thanks. I'm just not sure if it counts as redundancy (with payments) if the whole company shuts down. I'll speak to ACAS if I find out more but for now was just generally wondering how it might work.

If an insolvency company is brought in to deal with creditors etc then that will definitely be classed as you being made redundant. In my case thousands of us were affected and there was a department of the government that paid out the redundancy money. You'll only get one week per year you've been with your company rather than whatever is written in your contract.

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