Maternity Pay - HELP!!!!!

sharkmark

I need some advice guys - my wife is expecting our first child in April and this means we fall into the new rules for 9 months maternity pay.

However the company she works for (TRAVELCARE - owned by Co-Op) decided to close her shop last month and all staff were made redundant. Now they paid her a pathetically small redundancy package (2 weeks pay) and after checking they said that she'd get her maternity pay still - paid as a lump sum. We were obviously very pleased about this as we weren't clear on whether we'd get this or not.

Therefore we received over £8000 as a lump sum (6 weeks at 90% of earnings + £108 x 33 weeks).

What I don't understand is this...is Travelcare paying us this £8000 from their own coffers or are they claiming it back from the Govt? If they are claiming it back how do they know that my wife is not going to go back to work earlier than the end of the 9 months? You cannot be employed and being paid maternity so I don;t understand how Travelcare are claiming the money from the Govt without knowing when my wife intends to return to work.

My suspicion is that they claim this from the govt and simply don't bother asking any more questions, OR they are paying this out of their own coffers as part of the redundancy package. IN this case we are entitled to claim maternity from the govt as well. Anyone had similar experience of any HR staff out there?!

seraphin_2

Id ask them to explain how they get to this figure, and also check it out with inland revenue etc, the last thing you want is to find is some needs to be paid back, if your wife returns to work early. Also the fact they are paying a lump sum will effect the amount you are able to claim of tax credit etc.

Good luck with the baby, I too am due next month

sarah

Bollards

The same thing happened to me as happened to your wife. I was paid all my maternity pay in a lump sum when I was made redundant and the HR dept claimed it back off the government, so I was not eligible to claim any more.
HTH

samcantcope

Did that figure include holiday pay, as you are entitled to holiday whilst you are on maternity leave, I just found this out, and I am trying to get my holiday pay off my employers which should have been paid june last year (at the end of my maternity leave):cool: .

the_mountaineer_2

Hi I work for the revenue as an adviser on the employer unit and deal with SMP enquiries. I assume you were paid at £108.85 for the 33 week duration of standard SMP. The employer can pay as a lump sum and the responsibility would be with the individual to tell the employer this would then be classed as an overpayment of wages if they take another job during the SMP pay period (this is why the revenue does not recommend lump sum payments). Information can be found on the revenue website https://www.hmrc.gov.uk and the guide book is the E15 & E15 Supplement.