Spreading Maternity Payments

[JustPurple]

I had planned to take 12 months of maternity leave and had arranged with my employer to have the money that I was getting above SMP split equally over the year. Now I am arranging to come back early.

I've asked HR what happens to the money if I come back early. They have told me that I lose it all. Does anybody know if this is right? Even though I was going to be getting it over the next six months, my entitlement to it was from January to July so it doesn't seem fair that I lose it altogether. I've looked at the policy and it mentions that you can't change your mind once you've picked the option, but it doesn't say that you will lose money if you come back early. I feel like I'm being punished for not staying off any longer.

You can't claim maternity pay AND a salary!!!

You should get MP for the time you were on mat leave, but that's all. Otherwise you'd be being paid twice.

I get what you're saying, but it's money that I would have already had if I hadn't have asked for it to be spread. It's showed on on my payslips that it was money due to me but is being held back for the moment.

Why is it such a stretch that I can get it paid?

I get what you're saying. Presumably they are claiming the smp back from the government for the number of weeks off. So for ease say smp is £145/week (forget the 6 weeks at 90% for this example) and you were off for 39 weeks then they would have claimed 39 x £145 = £5655. However you would have received£5655/52x39 = £4241. Making them £1413 in pocket.

I understand the policy on not changing your mind but you're also entitled to £145/week and have gone back early (not changed your mind as such). I don't see how they're entitled to keep it but I could be wrong. Give Maternity Action a call. They're good with this stuff and will be able to advise.

What amount are we talking here? If you had gone for the normal option what would you have had by now?
Is the amount you have had actually less than the smp minimum?

If an employer's enhanced package is only slightly over smp (eg 90% for 12 weeks then 50% for 14 weeks then smp for 13 weeks then nothing) and if you are on a low-ish salary eg £16k - then that amount spread over 52 weeks is only £116 per week and withholding what you are owed would be illegal.

If on the other hand the package is significantly better than smp and you have therefore exceeded smp already, then you may not be able to do anything about it as maternity pay in excess of smp is usually discretionary to some extent in cases where there is any uncertainty.

Ah! I see what you mean.

You would have been entitled to, say, £100pw for 10 weeks, but you took £50pw to make it last for 20 weeks, but then went back after 10, so they owe you £500.

Sounds reasonable.

Yes, that's exactly what I mean. You explained it much better than me though

It just seems like they've been able to save themselves money at my expense. I want to go back, not least because everyone at work is having a tough time with being so busy, but for the next 3 months I will only get £100 more for working than I would for staying on leave. That's not taking account of childcare.

So don't go back. Given childcare you would lose money by going back. you do not owe them anything. Don't let yourself be used.

I agree. Don't go back yet. Stay at home and get paid the money you're owed.

That would be the sensible answer, but I would like to go back. Not just because they're struggling at work, but because I'm struggling at home a bit too.

I know it seems like I want too much, but I guess it came as a shock to hear I'd lose out.

Is there a Union you could talk to? Or Citizens Advice??

That doesn't sound right to me. Check your contract or your work maternity policy for your entitlements. Usually these would be standard and not based on being spread over 12 months (eg full pay for X weeks then statutory), so unless you're coming back really early and your employer is generous (eg returning at 15 weeks and your work usually pays for 22 weeks leave) you should get the same. If you can easily see this from the maternity policy (hr can give you a copy if it's hard for you to get access while on leave), it may well just be a payroll misunderstanding and politely pointing them to the right paragraph will do it. If it doesn't, that's when I'd seek advice from union etc. If you have a good relationship with your manager you could drop them a message sharing your concerns first. Keep it friendly to start with - but all in writing!

Separately for anyone reading this - don't get your pay split out, unless you are genuinely so unreliable with money that you'll blow it all! Even if you want to spread your spending, why on earth wouldn't you get it early, you can pop it into a separate savings account, earn interest on it, avoid situations like this or worse, like if the company goes bust, and have extra cash in case of a rainy day. Not to criticise you OP! But maybe warn someone else...

I had mine split over the longest period to avoid NI contributions, which would have been more than the interest I could have earned by putting it into savings. I took a full 12 months with both of our DC, but I was only paid for 9. I knew I would not be going back early.