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Can a company have different enhanced maternity pay policies for different lengths of service?

2 replies

SweetTheSting · 14/05/2012 16:54

Just what it says in my title really!

If a company has a policy of paying enhanced pay of 50% pay for six weeks after the 90% pay period if you have been there for two years before the qualifying week, but otherwise it is statutory pay only, is that OK? I figure it is as other benefits like pension contribution can be different for different lengths of service but I don't know if maternity is different somehow.

I have googled but can only pull up info about statutory pay.

Thanks in advance!

OP posts:
KatieMiddleton · 14/05/2012 17:05

Yes that sounds fine. As long as it's not for an excessively long period which could cause problems with age discrimination legislation then it's fine to offer benefits for length of service. If it was for more than 5 years, for example, that could potentially cause problems because you're unlikely to have 6 years service at age 22 years for example or in a professional role you would be unlikely to have 6 years service at 26 years old and have had time to qualify and graduate.

As regards occupational maternity pay it is very common (and prudent in my opinion) to have a minimum length of service. This ensures the organisation is only paying the enhancement to people who have proved themselves to be loyal employees.

SweetTheSting · 16/05/2012 13:43

Thank you Katie!

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