Voluntary Severance before maternity leave starts.

ScottAnne

Hi there

Find this very confusing and wonder if someon could clarify.

I am due to begin maternity leave on 16th May. My work are offering vol redundancy at 1.5 weeks per year or vol severance at 15 weeks pay. I have just over 4 years service and as this is my second baby and the cost of childcare, I was provisionally thinking I probably wouldn't return to work. At the moment the current contract states one does not need to repay the enhanced element of maternity pay but I know that the policy is being re written to change this to repaying if not returned for 3 months. When this will be passed and in effect I dont know.

I will get 90% for 6 weeks, then 50% for 12 plus smp then smp only. My salary is a mere £14000 per annum ( however I am in the middle of a job evaluation appeal and have a hearing date of 10th may) so this may change. But the applications for vol red or severance need to be in by end of may.

I'm so confused as to what would be better for me to do, stick with the mat pay and maybe have a job to go back to or take the vol severance package with the reality that I may not be able to afford to go back to work with 2 babies in childcare. Another question, if I did take vol severance would I still get stat mat pay from the government.

Thanks in advance.

dazza.mk

Any changes to the maternity policy should only affect new starters to the company, the company can't change the policy for existing staff so easily (unless the change is due to statutory changes).

In the event you do leave you can't get SMP, but you may be able to claim Maternity Allowance:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_10018869

michelle1506

I was facing a similiar postion to you, but the salary I am on was much higher, and the redundancy payment was a lot more also. I decided not to take it, as the amount offered in question, was still not worth my while. I also like the option of having a job open to me, albeit on a part time basis once my maternity period was over.

I think providing you are still employed by the company at least 15 weeks before you due date, the company you worked for still has to pay your Statutory Maternity Pay which is paid at something like £128 for up to 39 weeks. The company do in fact claim this money back from the government.

ALIBOBSY

The real question is will you be returning to work or not. To be honest for me I went part time after the first child, took over 3 years off after the second then finally finished after the 3rd (now have 4 children) and am now a SAHM.
I feel this is better for me and better for the kids buts its a personnal choice. I reckon unless you are on a high wage and/or have a family member who will do child care for free or not much it is pointless.

When I worked part time on 16 hrs (with my mum kindly looking after my 2 youngest before and after school and nursery-nursery was on the free child place so no childcare costs) I and a friend at work with 2 children compared our income after costs and what with extra petrol and car costs-we shared one car and I dropped him off/picked him up on the days I worked (luckily we both were on flexi days at the time), plus the child minder/nursery costs even on the same wage -around 16k (me on prorata of that) she was only better off by about £100 per month.

The way I looked at it was if we could cover all the bills off OH's pay (after doing the money diet al la martin to ensure costs are as low as possible) leaving enough to cover petrol costs and food/cleaning stuff we would go for it. We had to cut back and learnt to live on a much reduced food budget, but I had the time to cook from scratch and bake much more, plus extra time to shop around for best deals and prices. You become time rich and cash poor so you use your time. I am also into growing my own and during the summer our bills plumet. We also have chickens and animals so the kids get the lifestyle I always wanted (although more land and a bigger house would be perfect lol) but we don't have fancy holidays (only my eldest ever went abroad) and the only reason we have a big tv is because my hobby is competitions and I won it lol.

If you decide you probably won't want to go back then take the cash. Use the time you have free to get old style and do more yourself so saving cash.

If you really can't afford not to work then you may have to hold on, but to be honest if you don't take it now there is still a possibility they could do compulsary redundancies later and you would still be pushed out on less money.

Good luck whatever you decide but for me it would be a no brainer I would want to be at home with the kids whilst they are small.

ali x