Maternity Pay Question

[Twinkie1]

Just quick question - friend of mine is going on mat leave next week - she recently got a payrise but our employer is saying that her mat pay will not be based on that as they calculate mat pay on the rate that you are on 15 weeks before you qualify for maternity leave - surely this must be against the law and you should be paid your mat pay based on what you are earning when you go on maternity leave?

Thanks Chaps - thsi girl being well and truely screwed over!

i believe the employer to be correct, it is the same as when i went on maternity leave (also having had a pay increase). I dont know whether it is a legal thing i.e. same for everyone, but it was certainly the policy for our company and your friend will be able to get a copy of the policy from her HR dept (if they have one).

Her employer is sort of correct, however see paragraph here about how it's worked out, bit about the impact of pay rises after the qualifying week.

No there are specific weeks actual pay it is based upon. It can work both ways, for example the calculation might include a bonus if one was paid during that time.

NO They are wrong! It USED to be the case, but the legal ruling is known as "Alabaster", see the link below:

Alabaster

Many people get this wrong, but I work in payroll and frequently have to recalculate SMP based on this. The problem is often software does not take it into account.

Hi twinkie.

In order for your friend to challenge her company, ask her to show her employer the evidence.

(and send her our sympathy in having to do anything stressful at a late stage of pregnancy.)

Ooh get her to print off Mary's thing, much more comprehensive than my little paragraph, and I didn't know it was called Alabaster, I am learning so much today!

well its over 2 years since i went on maternity leave sorry...

I spent 2 hours of my day today, going over and over Alabaster with the client whose payroll I process, in relation to specific maternity cases... nothing to do with this thread, but just thought I'd share that... (its not your friend Twinkie, I'd have got her pay right )

sounds like fun...

I am so glad I read this thread, I work in HR but never heard of this ruling. Very useful given some recent things going on at wokr and the fact I am going on maternity. MaryBS does it mean that if you are paid bonuses during this period the company has to pay based on this too? (She asked with fingers crossed)

If the bonuses fall in the "set period" that is used to calculate average weekly earnings, then bonuses are included.

I managed to pull this trick with both my 2, I worked out when I'd have to fall pregnant to qualify, and managed it both times

fbb, you don't know the HALF of it!

on the subject..but a small tangent - does anyone know of a precedent being set for left over annual leave being PAID to you if you can't take it within your financial year?

I went on mat leave in august. I took 4 weeks a/l first (I had tried to take as much as I could) - I am not due back to work until 29th APRIL, and I have 4 weeks a/l left, which my employer is refusing to pay me. I can't go back early and take the leave, coz then I'd forfeit the end of my mat leave and have to go back to work in early april.

does this make sense?

I'll see if I can find something.

My company paid me when I queried the same thing, but in my case I couldn't take the holiday as I'd had the baby a week earlier than expected (4 weeks early).

See here about annual leave and maternity.

It is not lawful to pay an employee for statutory holiday entitlement, or for it to be carried over, but anything over and above that, ie contractual holiday, can be paid or carried over to the next holiday year as agreed between employer and employee.

Basically they can't deny you your holiday entitlement because you were off on maternity leave so you should be allowed to either carry it into the next holiday year, ie tack it onto the end of your maternity leave (that would be my recommendation) or they should pay for it. You can't lose out.

I'm not sure I've made sense there but haven't got time to read it through, DS screaming!

MaryBS when you say qualifying period do you mean the 8 weeks prior to the 15th EWC or do you mean as per the ruling from the 15 week calc to the end of your mat.

If you mean the first I may be stuffed as bonus paid March/April and going on mat leave end Feb.

I did manage last time, along with someone else I met who worked at same company and we were both amazed at the difference!

The qualifying week is the 15th week before the expected period of confinement. I meant the 8 weeks before that.

You could try using a maternity pay calculator if you want to know what you are going to get:

smpcalculator.inlandrevenue.gov.uk/SMP1.aspx