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SMP & childcare vouchers - repaying ccv when returning to work?

6 replies

Iamweasel · 26/03/2012 09:56

hello

I've seen some great info on here about ccv & SMP

Everything suggests that empoyers have to pay ccv when an employee is on maternity leave

Ive got myself in a dispute with out Hr department

I sent them all the hmrc stuff but they're adamant that if they continue providing my ccv I will have to repay the amount when I get back to work.

They say this is what they've always done and that its a non-cash benefit is irrelevant!

Help! I can't afford this and I Dobt know where to get advice. My ccv provider was no help

OP posts:
flowery · 26/03/2012 13:55

When you sign up to the childcare voucher scheme you and your employer are mutually agreeing to a permanent change to your salary. So your salary might have previously been £23,000, and after joining the scheme you salary permanently changes to (for ease of calculation) £20,000 and you in addition increase your non-cash benefits package to include £3,000 of childcare vouchers.

Your SMP is calculated on your salary alone, not your salary plus benefits. While you are on maternity leave you obviously don't receive salary but you are entitled to all non-cash benefits, including childcare vouchers.

If your employer takes money out of your salary when you get back from maternity leave to compensate them for having had to provide benefits during your maternity leave, it would be the following:

An unlawful deduction from wages as they would be taking money out of your salary without consent, which they are not allowed to do unless it's an overpayment. You may have a clause in your contract allowing them to deduct but it will say under what circumstances, it can't be a 'whenever we like' clause.

Illegal discrimination as they are treating you less favourably purely because you have been on maternity leave.

Iamweasel · 27/03/2012 12:19

Thanks flowery. I think I've got a fight on my hands Sad

OP posts:
flowery · 27/03/2012 13:01

Are you on mat leave at the moment then, and receiving vouchers?

I would write to them saying:

"As you are aware, employers must continue to provide non-cash benefits throughout maternity leave, including childcare vouchers. This is under the Equality Act 2010, and is legislation ensuring that employees who take maternity leave are not disadvantaged or treated less favourably during, or as a result of, their maternity leave.

Any attempt by an employer to reduce an employee's salary to compensate for having had to provide benefits during maternity leave would be less favourable treatment as a result of maternity leave, and therefore illegal under the Equality Act 2010. It would also be an unlawful deduction of wages and breach of contract. My contract with [employer] is that my salary has been permanently reduced to £xxx and my benefits package has been increased to incorporate vouchers. [Employer] is not authorised to reduce my salary further without consent.

If any attempts are made to make unlawful deductions from my salary on my return from maternity leave, I will be raising a formal grievance claiming illegal discrimination, breach of contract and unlawful deduction from wages and will be forced to bring a tribunal claim in the event of [employer] failing to rectify the position following receipt of a grievance."

Or something like that. Basically what you want them to do is talk to a lawyer and hopefully something along those lines will prompt them to do it.

Iamweasel · 28/03/2012 08:27

Flowery that's great Thanks

Would it be ok if I pm'd you the response I've had from my employer?

How does nod go about bringing a tribunal?

OP posts:
flowery · 28/03/2012 09:29

I'm afraid not. I do get PMs fairly often asking for free advice on a personal basis and I just don't have the time to do that. I'm happy to give a bit of free advice on here, partly because lots of other people reading may benefit, but not on a private basis.

Can you not summarise roughly what was said on here?

Bringing a tribunal claim is relatively straightforward, you can do it by yourself or get a solicitor or other adviser to help you. But you're way off that anyway.

Iamweasel · 28/03/2012 18:44

No probs, I understand. The advice you give on here is fab and we're lucky to have you Smile

In a nutshell they said their pproach is that employees can continue to access the Childcare Vouchers scheme throughout maternity leave, but still need to pay for the vouchers. I can do this either by sending in monthly cheques to cover the value of the vouchers or by agreeing a repayment schedule to cover the cost on my return to work.

They say they've checked this with their legal advisers i'm not sure I believe them

I've quoted all the stuff about non cash benefits etc

This month they actually deducted the amount of ccv from SMP, they quickly backtracked and reimbursed me but are pressuring me to withdraw from the scheme

OP posts:
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