Maternity Pay Issue

csa

I work for a small company (3 of us). I've been on maternity leave for nearly 2 months and have only been paid a token amount of money. Originally my boss was going to give me more than SMP but at the moment the company is having finical problems and can't afford to pay anyone a wage. He says we are owed quite a lot of money but is having trouble getting companies to pay despite putting penalty warnings on the invoices.

I can't even get SMP as they wont pay him until he pays me first. I'm struggling to pay my bills and can't go on like this. He says there's nothing he can do until he gets some money.

Can I offer to resign from the company and claim SMP? Not sure if the company will survive by the sounds of things, but if it does this situation could carry on and I can't cope with this.

Not sure what to do.

P.S. I am a company director if that makes any difference to anything, but I'm not involved in the finances.

Amethyst1978

Hi.

If you are entitled to SMP your employer must pay you, simple as that.

They do not claim it back from anyone, or get re-imbursed in anyway, it is paid just as normal wages would be. Even if you were to leave the company, you would still be entitled.

I have added the link to the DWP SMP information here http://www.dwp.gov.uk/lifeevent/benefits/statutory_maternity_pay.asp

Due to the problems you are having with your employer you could make a claim for Maternity Allowance instead. When you complete the claim form, make sure you explain the situation because normally if you are entitled to SMP you would not qualify for Maternity Allowance but due to your circumstances this may be overruled.

You must get form SMP1 from your employer when you apply for MA.

If you are single and you are within 11 weeks of your due date, and/or if you have a partner who is unemployed or working less than 24 hours per week you could also claim Income Support.

I hope this helps.

I work for Jobcentre plus who deliver these benefits. So if you need any further help feel free to ask.

Good luck . x

tinkerbell84

Amethyst1978 wrote: »

Hi.

They do not claim it back from anyone, or get re-imbursed in anyway, it is paid just as normal wages would be. Even if you were to leave the company, you would still be entitled.

I have added the link to the DWP SMP information here http://www.dwp.gov.uk/lifeevent/benefits/statutory_maternity_pay.asp


I work for Jobcentre plus who deliver these benefits. So if you need any further help feel free to ask.

Good luck . x

Erm, as it is a BENEFIT paid by employers, they DO claim it back (at 104%, actually). They have to pay it first and then claim it back from DWP

stazi

To correct posts # 2 & 3-

post#2 - If the OP is entitled to SMP the E/R must pay it. The OP cannot go and claim MA. If the E/R goes bust/closes, HMRC become liable to pay SMP to the OP. Amethyst1978 -If you do work for JCP as you say, then you are offering incorrect advice. I suggest you read the MA leaflet NI17A.

post#3 - SMP is not a benefit -it is a wage replacement. The E/R maybe refunded the SMP costs- but by HMRC- not DWP. The E/R is 'paid' by HMRC by offsetting the monthly amount of Tax & NIC due, against the SMP paid.


The OP says that she is a director of the company, but for the purpose of SMP is like any other employee.

However, she needs to be aware that if the company goes bust owing HMRC any Tax & NIC, she could be treated as a 'negligent director' by them. As a director - in any capacity within a company- she should be aware of the company's financial position. I would not think that HMRC would accept a defence of ' I'm not involved in the finances'.

csa

Thank you for relying stazi.

So by the sounds of it there is nothing I can do?

Yes my Directorship is a joke. I was asked if I wanted to become a Director in order to get some benefits from this position and also so that my boss could hand the business over to me when he retires, but I'm totally naive about this position which I know is extremely stupid but that's the way it is.

I'm considering asking him to make me redundant and relinquish my Directorship. He'll say he hasn't got the money to pay me redundancy or buy my 20% but after all this, I think it's time for a fresh start, plus will I be able to get my SMP then?

If you have further advice, I would welcome it. Really not sure what I can do. If he says he has no money and both he and other employee haven't been paid, and the bank won't increase the overdraft, I'm at the mercy of our customers paying some bills.


I'm married with two children so can't claim any other benefits.

stazi

Once SMP entitlement has been etablished, the E/R is liable to pay it. It will depend on what you want your future relationship with this E/R to be.

If you want your money, you may have no alternative but to force the issue with the E/R or HMRC. However, once HMRC are involved.....

I would suggest you consult a lawyer. Try to find one that may offer a free 30min consulation!.

csa

Finally would citizens advice be an idea or would I be best looking for a lawyer instead? Thanks

stazi

As you have a number of issues, in particular the directorship, I think you need expert legal advice,- it's not something I think the CAB would want to touch -but you could ask them anyway.

Regards

gloom_2

csa wrote: »

Originally my boss was going to give me more than SMP but at the moment the company is having finical problems and can't afford to pay anyone a wage. He says we are owed quite a lot of money but is having trouble getting companies to pay despite putting penalty warnings on the invoices.

I can't even get SMP as they wont pay him until he pays me first. I'm struggling to pay my bills and can't go on like this. He says there's nothing he can do until he gets some money.

Hi I'm a director of my own company and I have have been looking into getting SMP for my partner who is just about to have our baby - she is also a director. Your company are legally obliged to pay you this - however I'd advise you to ask them to claim Advanced funding from the accounts office of HMRC - they can do it through the link at the bottom of this page at: http://www.hmrc.gov.uk/employers/statpayments-recovery.htm

csa

Thanks Gloom, the link you provided just may help the situation.

Good luck with the baby.