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Is this legal - maternity pay and annual leave?

84 replies

WhyTheHeckMe · 04/03/2018 21:54

Don't get me wrong I'm not complaining about this, but only just found out it may not be legal! And just worried they may take it away..
Basically I work for a huge company, everyone in the UK has heard of them

They offer a good maternity package and they allow you to use annual leave the whole way throughout. Eg. I get 25 days a year and they allow me to book 5 days per month for the last few months which is great

I'm due to go on mat leave with dc2 and I did the above with dc1 so I've not misunderstood it.

However upon talking to someone in hr at another company they told me they were 99% sure this isn't allowed.

Is this correct? If so, why?

Thanks!

OP posts:
pattimayonnaise · 04/03/2018 22:11

I'm on mat leave at the moment and also work for a large company. I will officially go back to work 6 weeks before I return to the office but I'll be using my accrued holiday to be paid in full during this time. You can't be on mat leave and annual leave at the same time. I think you get up to 10 KIT days which you would be paid for, but you'd have to actually go in.

WhyTheHeckMe · 04/03/2018 22:12

I don't want the extended leave as 9 months off was enough for me, that's why it's better for me to have the extra money each month. Had no idea it wasn't the right thing to do.

OP posts:
Ginmakesitallok · 04/03/2018 22:12

You won't lose your annual leave - it just gets added on after your maty leave finidhes

LIZS · 04/03/2018 22:13

Aren't you therefore being paid twice for 8 days in Dec 2018?

WhyTheHeckMe · 04/03/2018 22:13

Patti yes so last time I did kit days and got paid for these too.

So to make it easier say I'm on £100 per day

Most months I was taking home around £1200 while on mat leave, that was smp at £600 plus £400 for 4 days annual leave, plus £200 for the 2 kit days I worked

OP posts:
Ginmakesitallok · 04/03/2018 22:13

You could end your maty leave at 8 months and take the 9th as annual leave?

pastabest · 04/03/2018 22:13

Sounds like the company have offered this as a carrot to get people back sooner.

My employers offer to give a standard monthly payment across the amount of months you are your maternity leave rather than paying the full whack at the start and then reducing to nothing after SMP finishes.

I wonder if your employer is trying to do something like this but mistakenly thought they can include payment in lieu of annual leave in it as well.

WhyTheHeckMe · 04/03/2018 22:15

Lizs - I'm not too sure.
I get 25 days a year and don't use any till I go on mat leave, then save them to use them each month.
So I am entitled to take the annual leave it's just a case of when

OP posts:
Akire · 04/03/2018 22:15

They could be seeing it as money owed not Holiday. So pay it as a top extra maternity pay alone with SMP. That’s only way can see get around it. Don’t suppose it matters if they call it paid Holiday or extra allowance. Just normally extra maternity pay is at the start then goes down to nothing.

LIZS · 04/03/2018 22:16

But not at the same time as receiving smp.

WhyTheHeckMe · 04/03/2018 22:16

Gin that doesn't benefit me though as I get smp for 9 months. So technically I could take 9 months then use annual leave for month 10 but I'd rather have the money every month and go back at month 9

OP posts:
Strawberry2017 · 04/03/2018 22:17

You can't use annual leave whilst claiming SMP.
Annual leave can only be used once your SMP stops.
Using annual leave would be considered you bring back at work which means you would no longer be entitled to the SMP.
You can use annual leave once you have finished the SMP period of your mat leave to extend your time off.

Ginmakesitallok · 04/03/2018 22:17

And how many kit days are you taking? Only allowed 10

Ginmakesitallok · 04/03/2018 22:19

Well it does benefit you - because you'd be getting paid full pay for the months annual leave - not just smp

WhyTheHeckMe · 04/03/2018 22:20

Yeah they only allow 10 kit days so they got something right!
If this ever gets found out who would be in trouble - me or them? Would I have to pay money back?

Stressed!!

OP posts:
Nicketynac · 04/03/2018 22:25

You are not taking annual leave, you are being paid for it? So that when you return to work you don't have any accrued annual leave to take?
Employers are allowed to pay you for it, but I think it is unusual to be paid in instalments. Not sure that it would be illegal or affect SMP as you are not "working", and you are not "taking" annual leave.
I had issues with KIT pay during my first mat leave and I think I phoned ACAS for advice. Maybe give them a call?

TheNecroscope · 04/03/2018 22:25

I've done a quick google and it does seem that you can only take annual leave at the start or the end of your maternity leave. Once you take annual leave, you are deemed to be back at work and therefore can't go back on maternity as it has ended.

You should bring this up with the company, I know it's more beneficial to you the way they have been working it, but they are wrong and it's not worth the stress!

MaggieFS · 04/03/2018 22:26

Agree with what Strawberry said -either you're on ML getting SMP or you're working and using AL.

TheNecroscope · 04/03/2018 22:27

you don't need to be in work or have returned to work for any time in order for the 'annual leave' to end your maternity by the way, as soon as it is 'taken' ie you are paid for it, then your maternity leave has ended.

CotswoldStrife · 04/03/2018 22:27

Probably best to ask them and see what they say, OP. It is difficult to see how they are putting this through the payroll that does not count as working time, especially with the KIT days in the same month but they obviously have a way!

Nicketynac · 04/03/2018 22:28

Not sure I worded that properly - you are being paid NOT to take annual leave on return from mat leave, which is OK but I have always heard of people getting it as a lump sum when they return.

coffeeforone · 04/03/2018 22:28

Are they not just paying you for the annual leave you are accruing and spreading the payments over several months? Then when you go back you will have been paid for your leave instead of taking it?

WhyTheHeckMe · 04/03/2018 22:30

2 years ago when I was on mat leave my mat leave was over at the end of the year so it made it easier, I left in March and didn't use any annual leave at the apart, took days months from month 5-9 then went back to work on Jan and started fresh with a new AL allowance.

This time my mat leave will be over 2 years ie. I leave in a few months and my 9 months ends in Feb. So I'll be using this year's allowance this year and then 5 days of my 2019 allowance in Jan, then return in Feb.

OP posts:
coffeeforone · 04/03/2018 22:31

My employer would pay it as a lump sum if unused at the end of the holiday year. If an employee asked they wouldn’t have an issue spreading the payment so the employee was paid for a few days each month. It’s effectively payment in lieu of holiday though.

MynameisJune · 04/03/2018 22:33

I thought any extra payments during Mat leave meant that your SMP was affected. You can’t get paid for kit days and get SMP for the same day. It’s either one or the other. As these payments are paid monthly I would look at the legality of receiving both those and SMP in the same month. It might be easier for work to pay you up front in a lump sum that you put aside and use monthly yourself.