One of two Directors/Shareholders - Maternity leave policy

[Staciejaneburnett]

Hi there

Myself and a friend/current colleague are in the process of setting up our own business which will be launching in August.

Unlike my business partner, I plan to have children within the next three/four years so will need to take maternity leave at that point and we want to agree on a maternity leave policy.

I wondered if anyone had been in a similar situation, in which they were co-Director (and one of two shareholders, each owning 50% of the business) and one of those Directors fell pregnant.

We want to adopt a policy which is fair for my Partner and makes financial sense (we will need to hire a replacement for myself whilst I am off) but equally, allows me to have the maternity leave I am entitled to and enjoy that time without too much financial strain.

We'll be on a very low salary and take the majority of our income from dividends.

Hoping someone can offer some advice!

Many thanks

Stacie

So statutory maternity pay- as you will be on a low income anyway- so it wouldn't be much- as a small company you will get assistance- small employers relief

Dividends would stay the same as they are based on profit- so 50% of the post tax profits (which will be lower for both of you if you are not contributing and they are paying for a replacement). So they will be paying for your maternity in effect.