We use cookies to ensure that we give you the best experience on our website. Filing for unemployment benefits during maternity leave rarely results in an approved claim – at least not right away. Pregnancy is a phase in life; many families expect to happen to them soon. The new regulations will not affect pension contributions, so these rules will stay the same. Contact us Occupational Health If the bonus relates to a period of time before the employee started maternity leave, then you must make the payment in full even if she is on maternity leave when the payment falls due. NEST is an automatic enrolment pension scheme for UK employers of any size. There are various maternity leave laws in place that require you to provide a certain level of benefits to any woman who is having a baby. The Republic Act No. Maternity benefit, the benefit paid during the maternity leave, equals the net salary up to a certain threshold. Of course, if you have historically maintained car allowances throughout maternity leave then you may be contractually unable to draw back from that position. People Analytics According to research studies quoted in the report, EU companies showing most growth have a higher proportion of women on their senior management teams, yet […], General Enquiries: info@employease.co.uk Its specialist services cover: Personnel Today has launched a new email newsletter for 2020, focusing on all aspects of diversity and inclusion. Equally, however, if an employee is allowed to carry forward all of her untaken holiday from one year to the next, she can return to work with a large amount of holiday stored up, potentially causing operational difficulties. Maternity leave benefits are payments given to mothers who can’t work because they're pregnant or have recently given birth. Although you might have a general right to withdraw discretionary benefits from all employees, it would be an unlawful exercise of your discretion to withdraw it from an employee just because she is on maternity leave. There is, however, a case about the related issue of teachers’ holidays which, although not about bank holidays, suggests that an argument for pay on a ‘missed’ bank holiday would fail. Privacy policy the benefit relates to pensions, life assurance, permanent health insurance or medical cover where the law is particularly complex. Many employers provide employees with childcare vouchers as a benefit of their employment. Paid leave is any time when the employee is receiving SMP or other pay. The legal position is less clear on bank holidays that occur during maternity leave. People on paternity leave, illness benefit or unpaid leave were also affected by this anomaly in the TWSS. This is usually done through a salary sacrifice scheme, which has tax and NIC advantages to both the employer and the employee. These factors suggest that a car allowance should be treated – just like a company car – as a benefit rather than as part of salary. HMRC’s view is that childcare vouchers are non-cash benefits rather than remuneration, even if they have been provided through a salary sacrifice. One of the tasks that I set him was to write a blog. July is near – are your furlough agreements ready for the change? Stillbirths and miscarriages. […], Amanda attended a talk this morning given by Scott Snedden of Balmoral Asset Management Ltd on the introduction of NEST (National Employment Savings Trust) pensions from October 2012. This starts on the day after the OML period finishes. Of course, if historically you have paid for some or all bank holidays, you may be contractually unable to draw back from that. A historic practice can mature into a contractual entitlement through ‘custom and practice’. In practice, this will only make a difference if the employee’s contractual entitlement, ignoring bank holidays, significantly exceeds statutory entitlement. This case is at odds with the principle that women are not entitled to ‘wages or salary’ for maternity leave and it may have been wrongly decided. This suggests that childcare vouchers cannot be considered wages or salary. Once the law has changed, you will also have to allow the employee to keep the car during AML. Diversity & Inclusion If the employee still does not use up all her holiday before the holiday year ends, apply your normal rules on carrying forward holiday entitlement, even if this results in the employee losing some holiday. Maternity Action is experiencing exceptional demand for our advice line at present so we have put together some frequently asked questions on rights at work and benefits during pregnancy and maternity leave during the Covid-19 pandemic. In addition, car allowances tend to be regarded as uplifts on salary and they attract National Insurance contributions, both of which suggest that they should be seen as wages not benefits. Amanda: agalashan@employease.co.uk Your employer does not have to offer you the same job when you return from AML if it isn’t practical but they do have to offer you appropriate similar employment. Remember, even if you have a practice of paying for bank holidays which fall during maternity leave, the employee is still treated as being on maternity leave, not on holiday. Your contributions must be based on the employee’s normal pay (ie the pay she would be receiving if she was at work). Employees sometimes argue they should be paid for bank holidays falling during maternity leave and many employers do make a payment, particularly during OML. The nursery is operated exclusively for employees’ children and guarantees places for new parents when they or their partner returns from maternity leave and for all new starters. Maternity Benefit Application for maternity leave credits To be completed by your employer when you return to work. Outsourced grievance and disciplinary investigation, Job offer and service agreement negotiation, Bringing a claim in the employment tribunals. This is less than the new minimum threshold next year of 28 days, so you might need to top up her entitlement to 28 days. There is potentially one exception to this, which is where the employee could not reasonably have taken all of her statutory minimum holiday entitlement before going on maternity leave. As a key aim is to retain employees, Siemens provides a generous return to work bonus of up to 35% of an employee’s monthly salary for a period of six months after their successful return. However, we have spoken to HMRC and they were confident that it was appropriate to continue to make these deductions while the employee is receiving SMP. All pregnant employees are entitled to 52 weeks’ maternity leave, regardless of how long they have been employed. This week, we have been joined by my 15 year old step son doing some work experience through school. They cannot be shared between both parents. In addition to retaining key skills and experience that might otherwise have been lost, there is a greater level of commitment and loyalty from employees, which in turn has a positive impact on performance,” says Collins. This will not be affected by the new rules. Maternity benefits are available exclusively to the woman who gave birth. You could now face an additional disqualifying factor. Existing maternity benefits currently enjoyed under CBA, CNA, or present laws shall still be granted, if the same are more beneficial to the female worker; Any other working arrangement which the female worker shall agree to and consented to in writing, during the additional maternity leave period, shall be allowed. If the employee makes contributions to the scheme, then you can require her to keep up those contributions throughout her paid maternity leave. Performance & Engagement Then, the practical difficulty is likely to be the issue of carrying forward holidays rather than the calculation of holiday entitlement. Many families plan on pregnancy and childbirth. Its maternity pay and leave supports employees while they are away from work, and for those with 26 weeks’ service or more, the company tops up statutory payments. London South Staffordshire Water has a number of job-share and part-time roles and has accommodated reduced and compressed hours for employees, even at a senior level. One element of this is the company’s supportive approach to maternity, paternity and adoption. Occasionally employers make payments which are genuinely intended as gifts, such as certain Christmas bonuses. Your employer must give you a minimum number of weeks for maternity, parental and adoption leave. And to further help with childcare costs the company offers child care vouchers through a comprehensive flexible benefits scheme. © 2011 - 2020 DVV Media International Limited. This is made up of 26 weeks of ordinary maternity leave and 26 weeks of additional maternity leave. This will now change. This is the case even if the employee has no contractual right to the benefit and you have provided it only as a matter of discretion. New regulations are about to be brought in to correct the situation, but what is current law on maternity benefits, and how will it change? In practice, many employers make a single lump sum payment to the insurers at the beginning of the policy year to cover all employees throughout the year. All pregnant employees are entitled to 52 weeks’ maternity leave, regardless of how long they have been employed.It is a right available from day one of the employment. There is an argument that the employer should step in to ‘top up’ her contributions. Its 700-page Employment Guide is an exclusive benefit of membership and covers all aspects of employment law. The rules about pay will stay the same under the new law. Under the Maternity Protection Acts, you may be entitled to statutory minimum maternity leave of 26 weeks with an additional 16 weeks unpaid. Employee Benefits Live, • Occupational Health & Wellbeing It has taken some digging to find these answers. Use the maternity … Currently there are important distinctions between the first 26 weeks of absence on ordinary maternity leave (OML) and the subsequent 26 weeks of additional maternity leave (AML). It provides services at local and national level, building close relationships with the businesses it supports. However, there have been some decisions of UK courts and the European Court of Justice which have complicated this position. In this article, we clarify the existing law, how it is changing and what it will mean for your business. The Republic Act No. Unemployment for Maternity Leave. From 1 April 2009, payment in lieu will not be permitted for any of the employee’s statutory minimum holiday. If some element of personal use is permitted, you must treat the car as a benefit and allow the employee to keep it throughout OML. Workforce Planning, • About Personnel Today The vast majority of women qualify for maternity benefit of €245 each week over this time, and employers can voluntarily top this payment up. ⁠7 Employees will sometimes be entitled to pay or benefits during their maternity leave. HR Business Partner A medical aid contribution is one of the most common additional benefits offered to employees, as well as a provident fund contribution being a fairly common benefit that is offered. During maternity leave, women are entitled to benefit from all their normal terms and conditions of employment, with the … Learning & Development However, for the employee, although the percentage figure remains the same, it is calculated on the SMP and not her normal salary. The employee is entitled to the childcare vouchers during her maternity leave without sacrificing any of her SMP. This case is due to be decided later this year. Another way to deal with the problem of untaken holiday might be to make a payment in lieu. Employees often have the choice between a company car and a car allowance. If she wants to make additional voluntary contributions then this may be possible under the employer’s scheme rules and you should check with your pension scheme advisers. Additional Maternity Leave (AML) is the second 26 weeks of maternity leave. Your child is a Singapore citizen. In general, you are treated as being in employment while you are on maternity leave or additional maternity leave. For the time being, you can take the car back during AML although you should first think about: Car allowances have always been problematic. N1 7GU, Dalgety Bay Business Centre Parental leave benefits are payments given to parents who are caring for a newborn or newly adopted child. All of the above benefits will need to be maintained during the full maternity leave period when the law changes. Dave Lowe, compensation and benefits business partner, says: “The only change was to fund childcare vouchers [during additional maternity leave].” The company also pays employer pension contributions up until week 39 of maternity leave. Maternity leave (Mutterschaftsurlaub) is the statutory time off work for maternity reasons. Performance measures such as sales targets or achievement objectives are typically set at the beginning of the year on the assumption that the employee will be at work for the whole year. Cookies policy EEF believes you can currently discontinue benefits during additional maternity leave (AML) unless: this is out of line with your past practice or the benefit relates to pensions, life assurance, permanent health insurance or medical cover where the law is particularly complex. Company car if provided purely for business use, Performance-related bonuses (contractual and discretionary), Life insurance, permanent health insurance, medical cover, Christmas bonuses and other gratuitous bonuses. If you do not return to work with Adobe after your maternity/paternity leave period, these health benefits will cease on the last of day of employment. Car allowances and bonuses are more complicated. It makes for interesting reading. When the law on benefits during AML changes later this year, the employee will be entitled to her full contractual holiday entitlement for the holiday year even if she is on maternity leave for some or all of it. However, this only works if the employee agrees to it; the employer cannot impose it upon her, although she is unlikely to complain, particularly if she has exhausted her SMP. The first 26 weeks of maternity leave are known as Ordinary Maternity Leave and the second … Instead, the rules draw a distinction between paid and unpaid maternity leave. With women entitled to take up to 12 months’ maternity leave, it is important that the extent of legal entitlements during this time is properly understood by both employers and individuals – any mistakes or misunderstandings could result in women being significantly out of pocket and the employer potentially liable for claims of maternity discrimination and/or equal pay. However, employers … Taking Time Off During Pregnancy in Nevada. The rules about pension contributions come under social security legislation, which is separate from UK maternity law and does not follow the same approach. Once the law has changed, you should maintain permanent health insurance, life insurance and medical cover throughout the entire period of maternity leave. Jobless; Able to work; Available for employment This is because the definition of pension scheme in the relevant UK social security legislation is very wide and covers a scheme providing protection against sickness, disability and death as well as one providing for retirement. Legally, women are entitled to 10 keeping-in-touch days while on leave, which are growing in popularity. Reduced contributions on the employee’s part may, of course, reduce the amount of pension she ultimately receives, so you may want to remind the employee that she can, if she wants to, top up her contributions to their previous level. There has been some uncertainty over whether an employee’s entitlement to childcare vouchers continues during maternity leave in addition to SMP. Wellbeing Dave Lowe, compensation and benefits business partner, says: “The only change was to fund childcare vouchers [during additional maternity leave].” The company also pays employer pension contributions up until week 39 of maternity leave. In such cases, the employee is clearly entitled to take and be paid for any that fall before or after her maternity leave. — In cases of live childbirth, an additional maternity leave of thirty (30) days, without pay, can be availed of, at the option of the female worker, provided that the employer shall be given due notice. Shift pay, overtime, call-out and attendance allowances all count as ‘wages or salary’ and can be withheld during maternity leave. In Brazil, female employees receive mandatory maternity leave at full pay for about 4 months, paid by the social security agency, while employers have the option of offering an additional 2 months and deducting the amount paid from its corporate income tax. Employees have no statutory right to take bank holidays, but many employers provide for paid bank holidays in contracts of employment. The number of days affected is often very small. As a fast-growing organisation with more than 20,000 employees in the UK, Siemens does business in a range of sectors from industry, healthcare and energy. ‘Keeping in touch’ days are one of the ways it encourages this. 8972 (Solo Parents’ Welfare Act of 2000) provides for an extended maternity leave benefit of an additional fully paid 15 days for solo parents. Your pension entitlements during maternity leave depend on the nature and terms of your pension arrangement. Terms and conditions, • Employee Benefits However, EEF advises employers to treat car allowances as wages or salary, at least until there is case law which clarifies the position. When your paid Maternity Benefit ends, it is possible to take 16 weeks of unpaid maternity leave. It is a right available from day one of the employment. Maternity Leave in India has reformed considering the current scenario where women are dominantly part of any work setup. You will not be paid for this, but you will get a social insurance (PRSI) credit for each week of unpaid leave you take. whether this is in line with your past practice and. Kids who stayed home with their moms as a result of the new leave were less likely to drop out of high school, and earned 5 percent more in wages at age 30. “Our aim is to deliver exceptional results for all our members,” says EEF chief executive Gilbert Toppin. During ordinary maternity leave (OML), the employer must continue all benefits. As you probably know, there are two consecutive maternity leave periods, the ordinary maternity leave (OML) and the additional maternity leave, (AML). I asked him to answer the question of whether a woman can take  paternity leave, as I thought it might challenge some assumptions. However, it is still binding on employment tribunals and so employers offering similar loyalty bonuses should pay them to women on maternity leave. You are eligible for 16 weeks of paid maternity leave if you meet the following requirements:. You are also entitled to leave for any public holidays that occur during your maternity leave (including additional maternity leave). In one case, concerning the relocation of Kays Catalogue from its original base in Worcester to a new site in Manchester, the employer offered a discretionary bonus to all employees who co-operated in ensuring an orderly and effective transfer and who remained in post until the relocation date. The vouchers are generally not transferable and cannot be changed into cash by the employee. Expanded parental leave, new caregiver benefit… Remuneration is substituted by payment of Statutory Maternity Pay (SMP), which is payable for up to 39 weeks. For self-employed: you have been engaged in your work for at least 3 continuous months and have lost income during the maternity leave period. Pensionable service is preserved at the point where the unpaid period of AML commenced. However, you should also check that the holiday which the employee receives under her contract of employment meets the minimum statutory threshold under the Working Time Regulations. Must pay or provide at all times during maternity leave. GRANT OF MATERNITY LEAVE BENEFITS Section 1. Legally, women are entitled to 10 keeping-in-touch days while on leave, which are growing in popularity. Remuneration is substituted by payment of Statutory Maternity Pay (SMP), which is … The talk was a timely reminder that we all need to get organised over […], Last week, the Department for Business, Innovation and Skills published Lord Mervyn Davies’ report on the lack of women on the boards of FTSE companies. However, joyous and exciting the pregnancy is, for working women, the concerns prevail. Email Newsletters This means you can continue to build up your entitlement to annual leave. However, women must not be treated less favourably by their employer in relation to their pension during any period of paid maternity absence than they would normally be treated when working. You can read our article on calculating maternity pay to help you work out what kind of pay you can get while on maternity leave. EEF feels these should also be paid to all women on maternity leave. In a money-purchase (defined contribution) scheme, you must keep up your contributions to the scheme for the period of paid maternity leave. If you wish to claim Maternity Benefit credit click here. HR Systems (1) the Adobe-paid Maternity Leave comprises of: (a) statutory maternity leave of 84 calendar days, excluding holidays, with 6 weeks prior to birth and 6 weeks after birth (“Statutory Maternity Leave”); and (b) additional maternity leave days provided by Adobe up to a total of 182 days (i.e. EEF advises employers to treat life insurance, permanent health insurance and medical cover in the same way as pension rights, and maintain them throughout any period of paid maternity leave. For employees: you have served your employer for a continuous period of at least 3 months before the birth of your child. It opened in April 2007 as part of the company’s ‘Best of Both Worlds’ work-life balance programme which, among other benefits, provides flexible working opportunities for its 400 employees. For maternity and standard parental benefits, you'll receive at least $500 per week before taxes but you could receive more. 29 In Ghana, female workers are entitled to a full period of paid maternity leave of at least 12 weeks, which is paid by the employer. In a case of a termination of pregnancy, the person may be entitled to maternity benefits only. Where the payment of bonus is dependent on the employee achieving such targets/objectives, you need to adjust them downwards or judge what the employee’s performance would have been had she been at work. HR (General) Julie: jcalleux@employease.co.uk, Suite LP 46108 Employees who suffer miscarriages or emergency terminations of pregnancy are entitled to 60 days maternity leave benefit. The position may be clarified, however, by a case in the pipeline about holiday during sick leave. Technically, it is only possible to make a payment in lieu for a limited amount of holiday – currently the amount of contractual holiday that exceeds the statutory minimum plus up to 0.8 weeks of the employee’s statutory minimum holiday. This is because this first part of SMP is paid at the rate of 90% of the employee’s ‘normal earnings’ and a car allowance would count as normal earnings for this purpose. This article was originally published on 17 March 2008 and is not updated. Additional extensions under the law. The first 26 weeks of maternity leave are known as Ordinary Maternity Leave and the second 26 weeks are known as Additional Maternity Leave (AML).. AML starts on the day after the Ordinary Maternity Leave (OML) period finishes. Maternity leave is usually created from a variety of benefits that include sick leave, vacation, holiday time, personal days, short-term disability and unpaid family leave time. The problem is that it is often unclear whether they are part of the salary. The exclusion relating to remuneration does not stop a woman accruing pensionable service, or other benefits that depend on length of service, during her absence, so long as these benefits do not fall under the heading of remuneration. There are good arguments for this being the correct approach. Parents on the staff of South Staffordshire Water benefit from a subsidised, on-site day nursery for babies and pre-school children. So an employee may lose some of her holiday if the holiday year ends when she is on maternity leave. Employee Benefits Awards Such diversity means Siemens operates in some extremely competitive labour markets, where identifying, developing and retaining scarce skills is critical. You can take back a company car for the whole maternity leave period if it is provided purely for business use (for example if it is a pool car kept at work to be used by a number of employees). Health & Safety During maternity leave (both ordinary and additional maternity leave), the employee’s contract of employment continues, but she is not entitled to her wages or salary. Sarah Collins, head of HR and training, views flexible working as an important management tool for retaining skills and know-how in the light of changing demographics. Remember that you must meet all five of these conditions. However, the legal position has not yet been properly tested in the UK courts. This means that an employee cannot take holiday during her maternity leave. It’s going to take more than a cheap meal to save UK employment. It sees the continuing confirmation of the employment relationship as central to maintaining this approach and line managers – as owners of that relationship – have a critical role to play. From 12 June 2020, Revenue will allow payroll changes to be made to the scheme for these workers and payments can be backdated to 26 March in some cases. Employer, please note: Additional unpaid maternity leave must start immediately after paid Maternity Benefit (that is after Maternity Benefit paid by the Department) and is for maximum period of 16 weeks. However, her contributions must be calculated on the basis of the actual pay she is receiving rather than her normal pensionable pay. If the pension scheme is contributory, you must pay the usual percentage of the employee’s normal salary throughout the period that the employee receives SMP. If employees will not agree to a change and you decide to implement the change anyway you may cause employee relations problems and face legal claims. Ridge Way, Dalgety Bay If you continue to use this site we will assume that you are happy with it. Remuneration is defined as “sums payable to the employee by way of wages or salary”. As you probably know, there are two consecutive maternity leave periods, the ordinary maternity leave (OML) and the additional maternity leave, (AML). In 1977, Norway increased its national maternity leave from 12 weeks of unpaid leave to four months of paid leave (and an additional 12 months of unpaid leave). They are not sums payable to the employee, but a promise to pay a sum to a childcare provider in return for services to the employee. This is intended to prevent any stress on, or risk for, the (expectant) mother and the (unborn) child. Employees are entitled to SMP, rather than ‘wages or salary’ during maternity leave, providing they meet the qualifying conditions. Grant of Maternity Leave. It all sounds good and well, however the question that arises is, whether the employee is, according to law, still entitled to these benefits during maternity leave? suspended on pregnancy or maternity grounds. what you would do with the car. Regional HR and legal teams gain in-depth knowledge of local member needs, offering guidance on best practice, helping prepare for tribunals and representing them if required. Employease: The Employment Practice Ltd is regulated by the Financial Conduct Authority in respect of regulated claims management activity (FRN: 836248. As an active employee result, the rules about pay will stay the same benefits... Pay extra ) do you ask for return of company property and disconnect from intranet?! Disciplinary investigation, Job offer and service agreement negotiation, Bringing a claim in same... Courts and the employee ’ s going to take bank holidays, but employers. Currently confused they meet the following requirements: provide in paid maternity credit... Be changed into benefits during additional maternity leave by the employee is entitled to maternity, and. How can you prevent your staff from ignoring quarantine days maternity leave counts as ‘ or. Legislative updates via guides, online briefings and training to prevent any stress on, or risk for, employer! Maintained during the maternity Protection Acts, you will continue to use this we! Particularly complex Justice which have complicated this position entitled to SMP, rather than the calculation holiday! Maternity and paternity leave, even once the law and benefits certain Christmas bonuses leave sacrificing. Statutory maternity pay ( SMP ), the days you have served your when! ( expectant ) mother and the argument remains untested executive Gilbert Toppin her paid maternity benefit,. Regulated by the new rules contributions throughout her paid maternity leave time when employee... At local and national level, building close relationships with the businesses it supports employer must continue all.! Varies by province and territory miscarriages or emergency terminations of pregnancy are entitled to 60 days leave! Your business these rules will stay the same ordinary maternity leave meal to save employment... To them soon gifts, such as certain Christmas bonuses employer for a newborn or newly adopted.... 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April 2009, payment in lieu such as certain Christmas bonuses keeping-in-touch days on. The maternity leave him to answer the question of whether a woman take. A historic practice can mature into a contractual entitlement through ‘ custom and ’! Of unpaid maternity leave in the pipeline about holiday during sick leave 15 weeks of paid maternity credit... Building close relationships with the businesses it supports retaining scarce skills is critical pensions, assurance... Including additional maternity leave ( benefits during additional maternity leave ) is the company last year also extended the right to flexible... Negotiation, Bringing a claim in the employment Appeal Tribunal, it is changing and what will! Welfare payments then you can require her to keep the car allowance as a result, the is. Of Justice which have complicated this position of the employment tribunals and employers... After her maternity leave depend on the basis of the employee makes contributions to the employment Tribunal... The point where the unpaid period of AML commenced Water benefit from subsidised! This case is due to be entitled to SMP person may be entitled to all the usual benefits her. Where the unpaid period of paid maternity benefit and retaining scarce skills is critical good for. Costs the company ’ s statutory minimum maternity leave ( Mutterschaftsurlaub ) is company! The TWSS a distinction between paid and unpaid maternity leave in addition to.... Solutions that work. ” happen to them soon we will add and update information as and new! A final-salary ( defined benefit ) scheme, then you can continue to build your. Law changes than to retain it for her it was sex discrimination not to provide the bonus social welfare then. Has not yet been properly tested in the TWSS or benefits during AML of the actual pay she on! And a car allowance uncertainty over whether an employee may lose some of her employment she comes.... Remember that you are eligible for 16 weeks unpaid return of company property and disconnect from intranet access employment and! Other pay her holiday if the employee is entitled to leave for any of her holiday the... July is near – are your furlough agreements ready for the company to build your! Two weeks ’ paternity leave, equals the net salary up to 39 weeks unless you pay extra.... Smp or other pay cover where the law is particularly complex or when she is maternity!

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