HR related question re Mat leave and Holiday pay

[PugPupsMum]

In a recent meeting with my boss, I said that I wished to save my maternity leave for when baby was here, but might use my remaining annual leave to go a bit early (if I am struggling with work/fancy finishing up a few weeks before due date)

She said I was perfectly within my right to do so, but, as I am currently training up my maternity cover hire, if I was willing, she'd rather me work and be paid for my untaken holiday.

I provisionally agreed to this (as I would prefer the money, and my job is a desk role and not strenuous). I then recieved an email from HR telling me I would be paid for the holiday I have accrued to date.

During the conversion with my manager, I was under the impression I would be paid for my remaining annual leave for the whole year (1st Jan - 31st Dec 2019).

I fed this back to HR who said no, I would be paid for the untaken holiday accrued so far this year, and the remaining holiday accrued during my maternity leave would be rolled over to next year + bank holidays (Bonus, didnt think I would be getting them on top).

But now I am not as comfortable with this. It doesnt seem right. I wont be able to take any annual leave while I am on mat leave, as obviously I wont be at my place of work, so that remaining holiday to accrue should already be mine - as I am still employed and entitled to it despite being off work.

Not only that, but by their method, I would be returning to work towards the end of 2020 with 28 days holiday + 2019 holiday accrued during my mat leave + 8 bank holidays, meaning I would have to take loads of time off before the end of the year when it was renewed.

Any advice please would help a lot.

Also, to make matters even more complicated, my DH has suggested I request my holiday lump sum is paid to me when I am receiving stat mat pay, not before, as the lump sum + my usual salary payment will incur a higher rate of tax and student loan payment. Is this correct, and if so is it reasonable/likely to be honoured if I ask for a delayed payment (after the 6 weeks of 90% earnings period)?

Thanks HR/mat leave experts

*I would be returning to work towards the end of 2020 with 28 days holiday + 2019 holiday accrued during my mat leave + 8 bank holidays, meaning I would have to take loads of time off before the end of the year when it was renewed.i

Is this not a massive bonus? It would effectively mean that, If you wanted to, you could take 2 days off a week and thus work part time for a year on full time pay.

I work for a large organisation and they did similar, it meant I could 'return' from mat leave a couple of months before I actually went back to work, and was paid full whack. I had accrued so much I used it for a phased return working 3 days a week over 3 months too, common amongst colleagues.

I am not sure whether they can force you to do this but it is pretty common practice.

I thought the same as you and had my HR team clarify it recently.
I was sure in an earlier meeting they'd told me I could use my annual leave before my mat leave kicked in, but I'd assumed that was my full annual entitlement when in actual fact its accrued.
I felt a bit hard done by at first but the fact I can add it on to the end of my mat leave, or return earlier from mat leave but stay on paid holiday is fine for me.
It's definitely an accrued leave entitlement only pre mat leave though

I'm pretty sure you can only take the accrued leave. Otherwise you are asking them to pay you for leave that you aren't yet entitled to.

If you want to extend your mat leave, you can probably add your accrued leave to the end of your mat leave, meaning that you have an extra month or so off, but at full pay.

Sounds quite normal so as mentioned, you either set an official start date and return a couple of months later or you phase your return using annual leave. Sounds like a win win to me.

Surely this is up to each individual organisation's HR policy? I can take my remaining full entitlement for 2019 prior to starting mat leave.

Have worked in HR for 12+ years.

Technically they shouldn’t be paying out of annual leave unless you’re leaving the organisation. The Working Time Regulations are actually H&S rules, to ensure people are given the right take time off to rest.

Ignoring the fact they shouldn’t really be paying you out of annual leave when you’re not a leaver, it’s certainly not unreasonable not to pay you out of annual leave you’ve not yet accrued.

If you want the cash I’d take it, but I don’t imagine you’ll get anywhere trying to push and get paid out of next years allowance too.

Finally, HMRC work in real time. So whatever you earn in the year is taxed etc at an appropriate rate. As a HR person I’d certainly not be trying to help someone dodge tax or student loan - a) it’s too complicated and b) albeit unlikely it wouldn’t look too good to hmrc / any auditors to have that in an email trail!

If I was your HR person I’d be telling your manager to just let you take your leave.

I think this varies by organisation. We (public sector) have to take all leave for the applicable financial year before Mat leave commences and then accrue for the proportion of the year for Mat leave to take at point of return.
HR will not pay it.
I’d ask them to clarify in writing if possible to save any misunderstandings down the road?