We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Pregnancy bombshell

Options
BoxCleva
BoxCleva Posts: 45 Forumite
edited 23 August 2010 at 6:24PM in Small biz MoneySaving
Hi,
My wifes fledgling business employed someone just over a month ago. This week the employee has announced she is pregnant, but would like to come back to work after her full SMP period (39 weeks if I have read the HMRC's site correctly)

It would also appear that my wife has to pay her 90% of her wages for 6 weeks then £124.88 thereafter.

From what I have read on HMRC's site she would only have had to be working for us for a week before falling pregnant and being able to claim the above from us as employers.

There is a good chance that paying SMP and having noone to do the work could signal the end of the business.

The contract that the employee signed included a 3 month probation period, however it states that her work would have to be of a less than acceptable standard, which it is not. Dismissing her is not an option and if it was it would be immensely difficult as my wife has become very attached to her.

I appreciate that I am clutching at straws, but is there anything my wife can do ?

Thanks in advance

Comments

  • It might be best for your wife to ring the government agency / cab and get advice before worrying.
    I know that a friend of mine claimed her maternity allowance from the job centre as she had not quite met her employers terms of minimum employment prior to commencing her mat leave. So there maybe more to it than the website suggests.
    hth
    Cross Stitch Cafe Member No: 86 :j
  • Googlewhacker
    Googlewhacker Posts: 3,887 Forumite
    BoxCleva wrote: »
    Hi,
    My wifes fledgling business employed someone just over a month ago. This week the employee has announced she is pregnant, but would like to come back to work after her full SMP period (39 weeks if I have read the HMRC's site correctly)

    It would also appear that my wife has to pay her 90% of her wages for 6 weeks then £124.88 thereafter.

    From what I have read on HMRC's site she would only have had to be working for us for a week before falling pregnant and being able to claim the above from us as employers.

    There is a good chance that paying SMP and having noone to do the work could signal the end of the business.

    The contract that the employee signed included a 3 month probation period, however it states that her work would have to be of a less than acceptable standard, which it is not. Dismissing her is not an option and if it was it would be immensely difficult as my wife has become very attached to her.

    I appreciate that I am clutching at straws, but is there anything my wife can do ?

    Thanks in advance

    Your wife needs to get the dates sorted, she most likely will be able to claim the SSP back of the government and she needs to get cover for the maternity period.

    Unfortunately employing someone that goes pregnant does cost the employer in effort and extra costs such as advertising, training the cover etc but you are not allowed to discriminate as you know and if you sacked her because of her being pregnant you would get yourself into big trouble.

    Check with ACAS the periods of employment to get SSP but I was of the understanding they have to be there for 26 weeks before they are entitled to SMP.

    Someone else will let you know but definatley check with ACAS.
    The Googlewhacker referance is to Dave Gorman and not to my opinion of the search engine!

    If I give you advice it is only a view and always always take professional advice before acting!!!

    4 people on the ignore list....Bliss!
  • BoxCleva
    BoxCleva Posts: 45 Forumite
    Check with ACAS the periods of employment to get SSP but I was of the understanding they have to be there for 26 weeks before they are entitled to SMP.

    My interpretation of the directgov site is that they have to be in continuous employment with you by the 25th week of her pregnancy (15 weeks prior to due date of birth. )

    This quote is from the diretgov website:
    employed by the same employer continuously for at least 26 weeks into the 15th week before the week your baby is due (the qualifying week)

    So basically she would have had to have been employed by my wife for one week before she got pregnant. And she was.
  • http://www.hmrc.gov.uk/paye/employees/statutory-pay/smp-overview.htm

    according to the above your wife should be able to reclaim most if not all of the smp. Or if her employee doesn't qualify for any reason, you give her an SMP1 form and she can claim Maternity Allowance instead.
    Cross Stitch Cafe Member No: 86 :j
  • Cross Stitch Cafe Member No: 86 :j
  • dawnybabes
    dawnybabes Posts: 3,338 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You can claim it all back from HMRC plus (not 100% sure of this bit) 4.5% - but you have to pay it upfront and deduct it off your payments to them.
    Sealed pot challenge 822

    Jan - £176.66 :j
  • Loopgames
    Loopgames Posts: 805 Forumite
    dawnybabes wrote: »
    You can claim it all back from HMRC plus (not 100% sure of this bit) 4.5% - but you have to pay it upfront and deduct it off your payments to them.

    Yes - this is correct.

    I am a director of my own small business and fell preganant in 2007-2008! lol and had to take time out. However, I got SMP through my business which itself applied for in full HMRC.
  • briona
    briona Posts: 1,454 Forumite
    BoxCleva wrote: »
    So basically she would have had to have been employed by my wife for one week before she got pregnant. And she was.
    No, to qualify for SMP she has to be employed by your wife continuously for 26 weeks into the 15th week before the baby is due. In other words, she needed to have started work one week before she got pregnant, not one week before the 25th week of her pregnancy.

    http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_10018741

    Briona
    If I don't respond to your posts, it's probably because you're on my 'Ignore' list.
  • Mk14:37
    Mk14:37 Posts: 624 Forumite
    Part of the Furniture Combo Breaker
    You are correct about your wife's responsibilities as an employer, and I'm afraid that there aren't any exclusions. However, it does seem a little early for the woman to know she's pregnant- she's told you that she's due in April?
  • emsywoo123
    emsywoo123 Posts: 5,440 Forumite
    BoxCleva wrote: »
    Hi,
    My wifes fledgling business employed someone just over a month ago. This week the employee has announced she is pregnant,

    So she started employment say 5 weeks ago? To know she is pregnant, she has to be say 5 weeks, many do not announce til later.

    I think your wife will be ok, she MUST check the dates.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.