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Original poster

If you resign during mat leave do they pay for your accrued annual leave

19 replies

NightandViolets · 08/06/2023 10:19

Some of you may have seen previous thread where I've been talking about trying to find a new job while on mat leave, as things have really changed at my company and I don't feel like I've been well treated.

Things might finally be getting somewhere, but I can't find an answer anywhere on whether they would have to pay me for my accrued annual leave if I resign before going back- does anyone know? I understand if it's a no but it's a lot of days and would really help!

Would also love to hear from anyone who got a new job while on mat leave and didn't look back! I'm excited but also bit nervous, but feel it's right for me and family.

OP posts:
Bumble84 · 08/06/2023 10:21

I don’t know the answer really but could you return from Mat leave and use up your annual leave whilst simultaneously resigning.

word of caution, if you had any OMP then you’d likely have to pay that back if you left

eurochick · 08/06/2023 10:23

Bear in mind you will almost certainly have to pay back any enhanced maternity pay if you don't go back for a certain length of time.

I accepted a new role during Mat leave. It was a big and difficult to get promotion. My baby didn't sleep through until after I had been back at work for over a year. It was brutal. I'm not sure how I functioned!

Original poster
NightandViolets · 08/06/2023 10:24

Bumble84 · 08/06/2023 10:21

I don’t know the answer really but could you return from Mat leave and use up your annual leave whilst simultaneously resigning.

word of caution, if you had any OMP then you’d likely have to pay that back if you left

Thanks. No have checked the policy and I don't need to pay anything back - they aren't very generous!

OP posts:
ArdeteiMasazxu · 08/06/2023 10:29

You only need to pay them back if they gave you more than the statutory minimum.

Your right to fully paid annual leave is not something that they can choose whether or not to give. You have a right to it. Yes it gets paid. What you need to be cautious of is what your leaving date is.

MrsLilaAmes · 08/06/2023 10:30

They should pay you in lieu for whatever leave you have accrued up to the point that you resign. Did you have any annual leave that you accrued before Maternity Leave and were being allowed to carry over beyond the end of the usual leave year?

However PP is correct that you will likely need to repay any enhance maternity pay if you don't return to work for the specified amount of time. It is usually around three months back at work, but your company may have a tiered system where you get to keep a percentage of the enhanced pay if you return for one month, two months, three months or more.

One possible solution to this, as per PP, is to tack your accrued annual leave onto your maternity leave. So you could end your maternity leave now and switch to annual leave. That counts as returning to work, and then you hand in your notice at the appropriate point. This way you could potentially 'return to work' for enhanced pay purposes without ever actually going back, depending how the number of days available to you line up.

Original poster
NightandViolets · 08/06/2023 10:32

MrsLilaAmes · 08/06/2023 10:30

They should pay you in lieu for whatever leave you have accrued up to the point that you resign. Did you have any annual leave that you accrued before Maternity Leave and were being allowed to carry over beyond the end of the usual leave year?

However PP is correct that you will likely need to repay any enhance maternity pay if you don't return to work for the specified amount of time. It is usually around three months back at work, but your company may have a tiered system where you get to keep a percentage of the enhanced pay if you return for one month, two months, three months or more.

One possible solution to this, as per PP, is to tack your accrued annual leave onto your maternity leave. So you could end your maternity leave now and switch to annual leave. That counts as returning to work, and then you hand in your notice at the appropriate point. This way you could potentially 'return to work' for enhanced pay purposes without ever actually going back, depending how the number of days available to you line up.

Thank you. I don't have enhanced pay and have doublechecked policy - I wouldn't need to pay anything back or return for a set period.

OP posts:
Original poster
NightandViolets · 08/06/2023 10:34

MrsLilaAmes · 08/06/2023 10:30

They should pay you in lieu for whatever leave you have accrued up to the point that you resign. Did you have any annual leave that you accrued before Maternity Leave and were being allowed to carry over beyond the end of the usual leave year?

However PP is correct that you will likely need to repay any enhance maternity pay if you don't return to work for the specified amount of time. It is usually around three months back at work, but your company may have a tiered system where you get to keep a percentage of the enhanced pay if you return for one month, two months, three months or more.

One possible solution to this, as per PP, is to tack your accrued annual leave onto your maternity leave. So you could end your maternity leave now and switch to annual leave. That counts as returning to work, and then you hand in your notice at the appropriate point. This way you could potentially 'return to work' for enhanced pay purposes without ever actually going back, depending how the number of days available to you line up.

I think I had a day or two carried over ahead of starting mat leave. I've accrued over a month of leave since going off so it would be nice to get paid for it.

OP posts:
MrsLilaAmes · 08/06/2023 10:47

Sorry I had cross posted with you. That's great to know you haven't got the hassle of paying EMP back.

They need to pay you in lieu for the leave you've accrued by your end date. Remember that you continue to accrue leave after handing in your notice until your final day.

If they agreed for you to carry over a few days they should really pay you for those too, certainly if they were accrued during the current leave year. However, lets say for sake of argument your leave year ends in December and you started mat leave in January. They were allowing you to carry over two days from the 2022 leave year to the end of your mat leave as a special consideration because they valued your presence for those extra days before the start of mat leave. They might decide not to pay you in lieu for those two days. I think that would be stingy and I wouldn't do it myself, having agreed to you carrying them over past the end of the leave year that's the potential risk they were taking.

If I were you I would tot up the total leave you've accrued, including the days you were allowed to carry over. Then when you hand in your notice I would add a paragraph to your resignation letter stating 'By my final day the 'xth of month', I will have accrued 'total' annual leave days. Please confirm that payment in lieu for these days will be added to my final payslip.'

I had a DF who was made redundant during mat leave and started a new job, she was annoyed at the faff at the time but it worked out really well for her. They were great with flexible working hours around pick ups and drop offs at the nursery from the offset. I hope the new job works out really well for you.

Original poster
NightandViolets · 08/06/2023 10:51

MrsLilaAmes · 08/06/2023 10:47

Sorry I had cross posted with you. That's great to know you haven't got the hassle of paying EMP back.

They need to pay you in lieu for the leave you've accrued by your end date. Remember that you continue to accrue leave after handing in your notice until your final day.

If they agreed for you to carry over a few days they should really pay you for those too, certainly if they were accrued during the current leave year. However, lets say for sake of argument your leave year ends in December and you started mat leave in January. They were allowing you to carry over two days from the 2022 leave year to the end of your mat leave as a special consideration because they valued your presence for those extra days before the start of mat leave. They might decide not to pay you in lieu for those two days. I think that would be stingy and I wouldn't do it myself, having agreed to you carrying them over past the end of the leave year that's the potential risk they were taking.

If I were you I would tot up the total leave you've accrued, including the days you were allowed to carry over. Then when you hand in your notice I would add a paragraph to your resignation letter stating 'By my final day the 'xth of month', I will have accrued 'total' annual leave days. Please confirm that payment in lieu for these days will be added to my final payslip.'

I had a DF who was made redundant during mat leave and started a new job, she was annoyed at the faff at the time but it worked out really well for her. They were great with flexible working hours around pick ups and drop offs at the nursery from the offset. I hope the new job works out really well for you.

Thank you, you've been a massive help 🤗

OP posts:
fourlambbhunas · 08/06/2023 11:13

I had a baby last year and my employer tried to get away with not paying me my accrued holiday. I got legal advice and it is absolutely illegal to withhold any accrued holiday pay- even if you were sacked for a terrible offence they would still have to pay it. Companies will try their hardest to screw over women on maternity leave though x

CC4712 · 08/06/2023 12:10

I was going to suggest asking HR or ACAS for advice.

Regarding being on mat leave though. After weeks of CV reviewing, short listing, interviewing etc etc I appointed a lady to start. It wasn't until bank details etc had been completed that HR found out she was on mat leave and it would have been illegal to employ at that point!

I don't recall the details if she hadn't resigned or if was the failure not to tell us- but do make sure you get advice regarding getting another job- whilst on mat leave. Best of luck.

MrsLilaAmes · 08/06/2023 12:27

CC4712 · 08/06/2023 12:10

I was going to suggest asking HR or ACAS for advice.

Regarding being on mat leave though. After weeks of CV reviewing, short listing, interviewing etc etc I appointed a lady to start. It wasn't until bank details etc had been completed that HR found out she was on mat leave and it would have been illegal to employ at that point!

I don't recall the details if she hadn't resigned or if was the failure not to tell us- but do make sure you get advice regarding getting another job- whilst on mat leave. Best of luck.

There are two potential issues:

  1. You legally must take a minimum of two weeks' maternity leave immediately following the birth of the baby. Believe it or not I have had to tell women in this situation they may not come into work! But I don't think this is the OP's position, nor your candidate @CC4712 since your process sounds lengthy!

  2. You can't start work in a new job while continuing to receive Statutory Maternity Pay. But that's an easy fix- if the OP wants the new job, she just needs to resign and not start the new job until her notice has been worked. If she is still in the paid period of her maternity leave, she needs to make sure her current employer know that she is ending her maternity leave and not just her employment. And if she is claiming child tax credits or the relevant parts of universal credit, she will need to update that she is no longer on maternity leave. No big deal.

Original poster
NightandViolets · 08/06/2023 12:51

MrsLilaAmes · 08/06/2023 12:27

There are two potential issues:

  1. You legally must take a minimum of two weeks' maternity leave immediately following the birth of the baby. Believe it or not I have had to tell women in this situation they may not come into work! But I don't think this is the OP's position, nor your candidate @CC4712 since your process sounds lengthy!

  2. You can't start work in a new job while continuing to receive Statutory Maternity Pay. But that's an easy fix- if the OP wants the new job, she just needs to resign and not start the new job until her notice has been worked. If she is still in the paid period of her maternity leave, she needs to make sure her current employer know that she is ending her maternity leave and not just her employment. And if she is claiming child tax credits or the relevant parts of universal credit, she will need to update that she is no longer on maternity leave. No big deal.

Show quote history

Thank you. I’m not receiving anything any more as just passed the point where you stop receiving stat pay and fend for yourself!

OP posts:
MrsLilaAmes · 08/06/2023 13:19

It’ll be really straight forward then xx

CC4712 · 08/06/2023 14:07

@MrsLilaAmes Thanks for clarifying for the OP that its straight forward. I recall HR being up in arms about our candidate not disclosing that she was on mat leave and it caused delays in terms of recruitment, getting short term bank cover etc. I longer work there though 😄

MrsLilaAmes · 08/06/2023 14:23

That sounds pretty messy @CC4712 I wonder if your candidate was aiming to start a new job and still receive maternity pay?! I would never have had the energy for that level of subterfuge when I was on mat leave… Or maybe they were just sleep deprived and hadn’t put 2+2 together…

CC4712 · 08/06/2023 15:30

@MrsLilaAmes I remember now that the candidate wanted to join our bank and work- whilst she was also still on mat leave from her other job! As it was zero hours, she didn't want to stop mat leave incase we didn't have the hours available for her. It was a fairly senior, qualified role, hence having to interview for bank- but it was a pain from our end/HR's side I recall.

Fandabedodgy · 08/06/2023 15:35

They must pay you all accrued annual up to your last day.

It's worth leaving resigning as late as possible to maximise this

It's a legal right.

If you get any problems ACAS can advise on how to resolve this.

Whatyoutalkingabouteh · 08/06/2023 21:27

You’re entitled to the leave that’s been accrued whilst on mat leave up until you leave

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