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partially withheld bonus due to maternity leave

12 replies

LurcioLovesFrankie · 07/03/2012 18:57

I'm posting on behalf of a friend at work (with her permission - exact details changed for confidentiality, but I don't think I've changed anything germane to the issue). In FY 2009-10 she did some outstanding work and was given a bonus. Due to our current pay freeze rather than give her a pay rise (as would have happened in the past) she got a non-consolidated bonus to be paid monthly over the next financial year. Let's say (for the sake of argument) it was £1200 spread over the year. So April and May she got £100, and in June went on maternity leave. Our maternity pay is not bad, so for June, July and August she got her full salary plus the £100. For the rest of the FY she got SMP for 6 months, then nothing, and did not get the remaining £700 of bonus. Our HR department says this is not discriminatory since a man who went on long-term sick leave would have been treated in exactly the same way. But surely it's indirect discrimination because women are disproportionately affected (it would be equally morally shit if they did this to a man, incidentally, but legally I think her best approach might be sex discrimination legislation).

Are there any HR professionals or employment lawyers out there who could tell me if she has a case? And also, whether there's anywhere she could get free legal advice (unfortunately she's not a union member).

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LurcioLovesFrankie · 07/03/2012 19:25

Bump?

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ohdearwhatdoidonow · 07/03/2012 19:33

I'd say it depends on the exact wording of either contract bonus policy or maternity policy. Mine for example specifies that bonus will be paid in OML and AML.

I'm the absence of anything specific it's indirect discrim.

How much is it worth net and is it worth the fight for her?

LurcioLovesFrankie · 07/03/2012 19:47

She's said she can't afford an employment lawyer.

I suspect (though I'm not entirely sure) that the wording in our policy was probably originally drawn up back in the old days when good performance gained you a consolidated pay rise on your way to the mythical realms of "target rate for the job" - hence your new and higher pay would cease when OMP did, but re-commence at the higher rate when you returned- and that this rule is being applied unthinkingly to a different situation, namely a time-limited non-consolidated bonus.

I'd kick up an unholy fuss on principle if it was me, but I'm a mardy cow, bloody-minded and a lefty feminist with a long history of trade union activism! My friend is much quieter and not a union member, sadly (otherwise loads of us in the union would pitch in to help - wondering if there's anything I can do to help outside of union channels).

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suburbophobe · 07/03/2012 19:47

Just from the title I'd be inclined to say F.O. to them on your behalf......

Makes me mad that women aren't even allowed to take time out to GIVE BIRTH!

They should be thankful that there will be people around later to pay their pension and !!

tribpot · 07/03/2012 19:54

Surely she had earnt the bonus in the period before maternity leave, they may have chosen to pay it in installments (which is still a bit shit if you ask me) but it wasn't related to performance during the period in which the payments were made. Otherwise how could they have awarded her the full amount in April?

LurcioLovesFrankie · 07/03/2012 19:56

Suburbophobe - me too!

Tribpot = that's precisely the issue. The work was done before ML, a man who had done exactly the same work would have received £1200 for it, but she's only received £500 because of technicalities in the wording of the bonus policy. Just wondering if the policy is legal or not. (Clearly it's immoral!)

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tribpot · 07/03/2012 19:58

But what exactly does the bonus policy say? What do they do with employees who leave the organisation part way through the payment period for this alleged bonus? (I mean leave-leave rather than go on leave)

CervixWithASmile · 07/03/2012 20:01

I have had shares and bonuses that vest over a period stop vesting during maternity leave but then they do eventually vest afterwards. EG supposed to vest over a year. Maternity falls in the middle for six months so take 18 months to vest instead. But sounds like your friend is not getting hers at all - I guess it depends on the original terms of the bonus?

LurcioLovesFrankie · 07/03/2012 20:04

Will be back after I've got DS to bed - I suspect problem may be that reward for performance was given as a non-consolidated pay rise (i.e. only for FY) rather than as a bonus (I think 'cos everyone in the organisation is still in the mind-set left over from the time when good performance could get you a genuine, ongoing pay-rise). One thing I've done is tried to draw it to the attention of managers so they know to give bonuses as lump sums where possible rather than as non-consol. pay rises in future.

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SootySweepandSue · 07/03/2012 20:07

Sounds very wrong to me. Morally at least.

I got a bonus for the full year whilst on ML and only worked 2/12 months.

I did get a relocation bonus unpaid though that was meant be paid annually abd included 9/12 months i was on ML. Employer said I would get it the day I returned, except I didn't so I missed out Sad. Wish I challenged it at the time.

hermioneweasley · 07/03/2012 21:10

There is no entitlement to normal remuneration during maternity leave, so I believe they can do this legally. Practically, if you are giving bonus the recognise work already done then it seems an odd decision, and she might want to query it with her boss.

LurcioLovesFrankie · 08/03/2012 08:01

Thanks Hermione (if I remember correctly from threads, yo.u're a specialist in the field). Your answer kind of consolidates what I'd been thinking overnight, namely that because it was given as a salary increment (albeit a time-limited one) rather than a bonus, HR are acting legally. I think her boss acted in good faith, thinking it was a way of getting her the £1200, and didn't realise the implications of giving it as a salary increment, rather than a straight bonus (it may also be that there's a lower limit on what can be given as a bonus and he just wanted to get her the higher payment - I will check this at work today).

The best we can do for next time round is make sure managers are aware of this, so they know to give lump sums where possible. I told my manager yesterday (he was shocked) and he'll make sure it's discussed at our annual performance meeting, and I think my colleague's manager will do the same in the meeting in her bit of the office (he's actually a friend of mine, and was the person who suggested she talk to me because of my background in the trade union).

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