Repaying Company Maternity Pay after deciding not to return to work

shiningstar_2

Hi

Looking for a bit of advice regarding my current situation.

I was due to return to work following Maternity leave on 18th August, however at the end of July after recalculating expenses (nursery, petrol, etc) I decided not to return and handed in my notice.

I received full pay for the first 18 weeks of my Maternity leave. The company policy states I must return to work for 26 weeks or I am obliged to pay back the company pay (the top up from SMP to full pay for that 18 week period) before my contract ends (my leave date).

My manager has failed to provide me with a final sum of what is owed and my leave date has now passed does this make them in breach of their own contract? Do i still have to pay it?

Also as I'm now not working can they actually expect me to pay it back from tax credits/ benefits I receive?

When I handed my notice and spoke to HR they said I would be expected to write a cheque for the full amount which I am expecting to be around £4500. I explained that I dont have that kind of money available and asked about a repayment plan which they said wouldnt be available to me because I will no longer be employed by them.

Has anyone else found themselves in a similar postion? Or know where I stand?

Many thanks in advance

Mimi_Arc_en_ciel

shiningstar wrote: »

Hi

Looking for a bit of advice regarding my current situation.

I was due to return to work following Maternity leave on 18th August, however at the end of July after recalculating expenses (nursery, petrol, etc) I decided not to return and handed in my notice.

I received full pay for the first 18 weeks of my Maternity leave. The company policy states I must return to work for 26 weeks or I am obliged to pay back the company pay (the top up from SMP to full pay for that 18 week period) before my contract ends (my leave date).

My manager has failed to provide me with a final sum of what is owed and my leave date has now passed does this make them in breach of their own contract? Do i still have to pay it?

Also as I'm now not working can they actually expect me to pay it back from tax credits/ benefits I receive?

When I handed my notice and spoke to HR they said I would be expected to write a cheque for the full amount which I am expecting to be around £4500. I explained that I dont have that kind of money available and asked about a repayment plan which they said wouldnt be available to me because I will no longer be employed by them.

Has anyone else found themselves in a similar postion? Or know where I stand?

Many thanks in advance

Yes you need to pay it back and yes they will expect you to pay it out of any benefits recieved.

I seriously doubt anyone would have £4500 just laying around doing nothing though - could you speak to someone else?

You could send them a letter saying you know you owe £XX and that you are willing to pay back £XX a month. They could try and persue it through a court but as you have offered what you can afford a court wont rule higher than what you can pay

SarEl

Where you stand is that you must pay it back. And it won't go away - the employer has six years from the last acknowledgement of the debt to take you to court for non-payment. They are not obligated to accept installments, but it is a little short-sighted of them because when and if they take you to court for it, this will be the outcome the court imposes if you cannot afford it. Although by that time the debt would increase with court fees etc. Or they could, as many companies appear to be now doing, simply sell the debt to a debt collection agency. At this stage your best option would be to write formally asking for a breakdown of exactly what you owe them, and to then make a formal offer of installments. The ball is in their court as to what they do about it.

SarEl

Mimi_Arc_en_ciel wrote: »

They could try and persue it through a court but as you have offered what you can afford a court wont rule higher than what you can pay

But that depends on what you think you can afford and whether the court agrees! There is a vast difference between what you may think you need to live on and what a debt plan says you need to live on.

Mimi_Arc_en_ciel

SarEl wrote: »

But that depends on what you think you can afford and whether the court agrees! There is a vast difference between what you may think you need to live on and what a debt plan says you need to live on.

ah yes - but then the OP could provide a SOA to prove that they are paying back all they could afford. (sorry - its the debt free wannabe side in me lol) and providing the OP doesnt have a surplus of £500 knocking around going to waste or splashing out on holidays etc then there shouldnt be too much of an issue ?

Judith_W

Would it not be worth your while to return for 6 months then leave, rather than leaving after mat leave owing £4500? It might be too late for this but could you see if they would have you back?

SarEl

Mimi_Arc_en_ciel wrote: »

ah yes - but then the OP could provide a SOA to prove that they are paying back all they could afford. (sorry - its the debt free wannabe side in me lol) and providing the OP doesnt have a surplus of £500 knocking around going to waste or splashing out on holidays etc then there shouldnt be too much of an issue ?

I absolutely agree. But in my, admittedly, limited, experience often seem to have a somewhat different view of what is essential. Things like Sky packages, holidays, nights out etc. etc., not being on the list! I seem to recall that there are some fixed amounts to cover what is essential - it isn't as simple as saying what you spend, but you have to both only include those things considered essential and justify your expendture if it is over a certain amount per item.

It just strikes me that the poster who suggested that staying there for 26 weeks is right - although it may be a bit late for that now. But the OP knew that the maternity leave would be reclaimed, so one wonders why they didn't think of this?

DVardysShadow

shiningstar wrote: »

I was due to return to work following Maternity leave on 18th August, however at the end of July after recalculating expenses (nursery, petrol, etc) I decided not to return and handed in my notice.

Looks like you should have included the repayment of Mat leave money in the calculation.

Judith_W wrote: »

Would it not be worth your while to return for 6 months then leave, rather than leaving after mat leave owing £4500? It might be too late for this but could you see if they would have you back?

Is the first thing to try

Sambucus_Nigra

Don't people make these calculations BEFORE taking the maternity pay/having a baby?

shiningstar_2

Thank you for your comments

I had always planned on returning to work. It was literally the end of July when we received our first nursery fee's bill that we discovered we had been mis-lead on the amount of sibling discount we would receive. This as well as rising petrol costs and a 2 hr commute to work each day meant my wages wouldn't cover my outgoings and left me with no choice but to resign.

I have every intention of paying back the money and am not trying to get out of doing so, I was just curious as I have suggested a repayment plan to HR and was told it wasn't possible.

shiningstar_2

Sambucus_Nigra wrote: »

Don't people make these calculations BEFORE taking the maternity pay/having a baby?

Some of the tones in some of these replies are so unnecessary. Im not completely stupid thank you. I DID do my calculations and I HAD EVERY INTENTION TO RETURN TO WORK. Believe it or not I actually liked my job and had done for the last 9 years. Im extremely sorry to be leaving but would be putting myself into debt with spiraling nursery fees and rising petrol costs.

It was clearly my mistake thinking this website was for people seeking advice and help in their current situations and its obviously full of 'know it alls' who have never been in the situation themselves before.

Apologies to those of you who have given appropriate advice and opinions shame some people have to share their petty comments!