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Bonus while on maternity leave

4 replies

DuchessofHaphazard · 26/04/2012 13:27

This isn't an issue yet, but given the monumental cock-up my employer made of my last maternity leave, I want to make sure that all my ducks are in a row well before I go on leave.

I'm due in December (very early days so haven't told my employer yet), and haven't yet decided how long I will be taking off. I was originally thinking of taking 6 months, but then I have 6 weeks plus bank holidays of annual leave to use up before the leave year ends in September, and have realised that school holidays will be in July / Aug, so it may make more sense to be off longer.

Our appraisal year (which determines our bonus level) runs from April - March, so I will have been working for 8 1/2 months of the appraisal year when I go on maternity leave. Our bonuses are actually paid in July (so for the appraisal year April 2012 - March 2013, the bonus is paid in July 2013). If I am still on maternity leave in July, should I receive my bonus (presumably pro-rated) then, even though I'm on maternity leave? It makes quite a difference to how long I'll be able to stay off, as my maternity pay is not particularly generous.

I can't find anything on my employers maternity policies which cover this (although I have found out that my current year bonus will uplift my maternity pay, which has made me very happy).

Also, while on maternity leave I won't require childcare vouchers. If I withdraw from the scheme, when I return will I fall under the new tax regime (ie higher rate tax payers)? As I understand it, if I don't withdraw from the scheme, I will remain under the original rules and will get tax relief at the higher rate (am just barely over the threshold), but it's not clear if that's the case if I withdraw and return.

Any help would be much appreciated - thanks!

OP posts:
WhatWillSantaBring · 26/04/2012 14:07

I'm not qualified to give help, but I think that you should still get your bonus for the months that you worked if your bonus is a contractual term. (i.e. does your contract say you will be paid a bonus) as they would otherwise be discriminating against you for being on ML. (You should therefore arrange with your boss for an appraisal before you go on ML to determine your bonus level). However, I would get written confirmation from HR before you disappear so you have it in writing that you will get paid.

I'm not sure on the childcare vouchers thing (joined after the tax regime changed, so I'm on the lower level). But you could continue to take the vouchers while you're off, and save them up for your return as you don't have to redeem them straight away. Or go back part time at a level that means you're not a higher rate taxpayer, then move to full time in the next tax year...

WidowWadman · 26/04/2012 18:42

You can save up the childcare vouchers for when you need them - and you will get them, even when on SMP from which they cannot be deducted - are you sure you want to leave the scheme?

Bonus afaik depends on what your contract says

Hpbp · 02/05/2012 13:42

You can quit the childcare voucher scheme for a period of 12 months and come back to it under the old terms. And yes, you can also save them for later.
Can't say anything about Bonus though.

lacroixsweetie · 11/05/2012 14:08

Assuming you remain employed, you should receive a pro-rated bonus for the period that you were working prior to going on mat leave. Make sure you have a formal written appraisal before you go and you personally make sure HR have a signed copy.
Speaking from personal experience, having said that, bonuses are a)discretionary and subject to fluctuation and b) once out of sight out of mind. The only way in practise to ensure that you receive a fair bonus (ie: in line with your peers compensation for that year) is to ensure that your HR representative makes sure to compare the £ you receive against your grade and your peers grades/£ well before it is paid out. That's probably the only way to keep it honest. I would simply ask HR what the formal process is for calculating your bonus and ensuring a fair hand is applied while you are on maternity leave. If you find out anecdotally later that you have been discriminated against, they will potentially be in a world of pain so in my experience it pays to remind them that you will be keeping tabs. It's also worth sending v strong signals to your boss that you intend to return to work, even if you are still unsure as to your plans. Some workplaces are great, some will not have any sort of formal check and balance whatsoever. A friend got a payrise and a promotion while on mat leave. My bonus halved but everyone's did due to the economy so I couldn't say much really.

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