pay rise while on maternity leave

sarahlady

Iv been on maternity leave since march '09 and am planning to return to work in jan '10.I am currently earing min wage which has just increased this month,the problem is that my employer is saying that im not entitled to the increase untill i return to work in jan. is this correct? as far i i'm aware i should be entitled to it.

sarah

Savvy_Sue

Are you on full pay throughout your maternity leave? I'm not sure what the calculation is if you're on Statutory Maternity Pay, but I agree with you that the calculations should be based on the new minimum wage not the old one. But isn't it x% of your wages OR £y, whichever is the greater? If you're on the £y, it wouldn't increase.

I hope that's making sense ...

surreysaver

If you are earning minimum wage, I cannot see your employer paying more than the statutory maternity pay, so you would only have had 90% your average earnings for the first six weeks, followed by to flat rate for the next 33 weeks. That is all they have to pay by law, unless your contract states differently.

sarahlady

i earn less than the max amount of smp so there is room for an increase

surreysaver

In that case, if you earn less that SMP, then you get 90% of your average gross weekly earnings.

From:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_175917

How your average weekly earnings are calculated

To qualify for SMP your average weekly earnings must be at least £95 a week, this is called the lower earnings limit (LEL).
To calculate your average weekly earnings your employer will average your gross earnings over a period of at least eight weeks up to and including the last payday before the end of your qualifying week. The qualifying week is the 15th week before the week your baby is due. This period may vary depending on how often you are paid – weekly, monthly or other intervals.

So no, you would not be entitled to a payrise until you actually return to work, as the pay is based upon the qualifying period, which is before you start your maternity leave.

sarahlady

i followed your link and now im realy confused ater finding this :
f you get a pay rise

If your employer awards a pay rise which is effective at any time from the start of the set period used to work out your SMP and the end of your maternity leave, your employer must work out your SMP again and pay you any balance due to you.

surreysaver

Typical Government, then, saying something in one sentence then taking it away in the next. Although the increase wouldn't have affected the amount your average earnings are based on, so there wouldn't be an increase anyway? Ot perhaps it would only have affected your average earnings if they went about the SMP level, and if they did go above the SMP level, that would be more than the law requires, so your employer wouldn't necessarily be obliged to pay it anyway?

chrisbur

If there is a pay increase between the start of the eight week period that is used to work out the SMP rate and the end of the maternity leave then the SMP rate should be recalculated, and the extra payment made to the employee. This period can cover more than a year so it may be that if there is an annual increase then two recalculations may be needed. From what you have said I believe that this should apply to you. This was the result of a European court ruling as a result of the Alabaster case.

Full details can be found in the employers' handbook E15(2009). On page 19 of.....
http://www.hmrc.gov.uk/helpsheets/e15.pdf
I have quoted the first few paragraphs below.

"You must recalculate SMP Average Weekly Earnings
(AWE) to take account of pay rises awarded, or which
would have been awarded to a woman had she not
been on maternity leave, if:
• you awarded a pay rise on or after 6 April 2005, or
before that date had granted a pay rise which had
not been put into payment by then, and
• the pay rise was effective from anytime between
the start of the eight-week set period for calculating
SMP and the end of the woman's statutory maternity
leave. (This is Ordinary Maternity Leave and
Additional Maternity Leave.)"

or google "alabaster case" for details and background.

chrisbur

surreysaver wrote: »

In that case, if you earn less that SMP, then you get 90% of your average gross weekly earnings.

From:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_175917

How your average weekly earnings are calculated

To qualify for SMP your average weekly earnings must be at least £95 a week, this is called the lower earnings limit (LEL).
To calculate your average weekly earnings your employer will average your gross earnings over a period of at least eight weeks up to and including the last payday before the end of your qualifying week. The qualifying week is the 15th week before the week your baby is due. This period may vary depending on how often you are paid – weekly, monthly or other intervals.

So no, you would not be entitled to a payrise until you actually return to work, as the pay is based upon the qualifying period, which is before you start your maternity leave.

To clarify on this the next section from the above site advises about the Alabaster rules.
"If you get a pay rise

If your employer awards a pay rise which is effective at any time from the start of the set period used to work out your SMP and the end of your maternity leave, your employer must work out your SMP again and pay you any balance due to you."

surreysaver

So this only applies if the average pay is below the standard rate - ie if your employer pays more than the statutory minimum, they do not have to re-calculate?

surreysaver

At least women get all these rights - men can't even have a year off with no pay, let alone get paid for looking after a baby unless their wife dies!