Confusing pay question

magickid

skintandscared wrote: »

So if your maternity pay ends on 26 September, but you extend your maternity to 31 October, you are effectively using up the 25 days holiday then, aren't you?

No, as October won't be holiday, it will be still be maternity (sorry, should have explained, I went on maternity in Dec 2011 so I am allowed to be off until Dec 2012 but the last 13 weeks are unpaid. 26 September is the end of the paid bit).

getmore4less

magickid wrote: »

Thanks all. I think I finally understand it after talking to my HR dept. They have agreed to option B and my work are pretty flexible about when I go back so still got a few months left with my little man!

As I said they should not be buying out statutory holidays

magickid

getmore4less wrote: »

As Isaid they should not be buying out statutory holidays

I don't understand why not?

ktothema

It's a legal issue. Employees have to be given 28 days min holidays a year FTE, and they have to be allowed to take them. They are legally allowed to pay out any days they offer in excess of them, but they aren't allowed to buy statutory holiday. When on maternity you accrue leave the same as if you're working, so these are at least mainly stat hols not excess.

skintandscared_2

Yes that's why I asked because I didn't think you were allowed to be "sold" statutory holiday. But, actually, if you are extending your maternity (unpaid) for a month then getting paid 25 days' holiday, doesn't it work out exactly the same as if you take a few extra days unpaid maternity and the rest of October as your unused holiday? That way you will get paid something and use up your holiday.

getmore4less

skintandscared wrote: »

Yes that's why I asked because I didn't think you were allowed to be "sold" statutory holiday. But, actually, if you are extending your maternity (unpaid) for a month then getting paid 25 days' holiday, doesn't it work out exactly the same as if you take a few extra days unpaid maternity and the rest of October as your unused holiday? That way you will get paid something and use up your holiday.

As long as you stop the maternity and take the holiday that is fine.

there are some other differences,

If you are sick you go onto sick pay and get the holiday back.

The holiday can be revoked and you can be called back in(there are rules for this).


The pay may be in lump sum so can effect tax and NI.

by the way you acrue holidays at 2.916... days a month not 2. so should have 26.25 for the 9 month maternity (depends on what was used before in the same holiday year may be more or less to cary over and take).

magickid

getmore4less wrote: »

As long as you stop the maternity and take the holiday that is fine.

there are some other differences,

If you are sick you go onto sick pay and get the holiday back.

The holiday can be revoked and you can be called back in(there are rules for this).


The pay may be in lump sum so can effect tax and NI.

by the way you acrue holidays at 2.916... days a month not 2. so should have 26.25 for the 9 month maternity (depends on what was used before in the same holiday year may be more or less to cary over and take).

But my HR department told me I would be paid the holiday?

If I were to leave a job and was owed holiday untaken that year they'd pay me for any days untaken.

getmore4less

magickid wrote: »

But my HR department told me I would be paid the holiday?

If I were to leave a job and was owed holiday untaken that year they'd pay me for any days untaken.

But you are not leaving you are stayings so you should be taking the holiday(statutory at least).

The exemption to not taking statutory holiday ONLY applies on leaving.


Bottom line is no one exept you can complain so there won't be an issue if they just pay you.

You could now say well since you are going buy out the holidays can I start back on 27th sept. (Then they have to pay you twice).

Try that and see what they say


One other very important point do not get into a habit of believing what HR tell you.

skintandscared_2

magickid wrote: »

But my HR department told me I would be paid the holiday?

If I were to leave a job and was owed holiday untaken that year they'd pay me for any days untaken.

Maybe your HR department don't know they are legally not allowed to do that

The ONLY time you can be paid for unused holiday is when you leave. You're not leaving.

As I said above, why don't you just take your holiday during October, so you don't have to work it but you still get paid at the end of October. I don't see why that is any different from the suggestion that you extend your maternity leave and have it unpaid, then get paid for the holiday. It has the same result but the first option is legal!

magickid

skintandscared wrote: »

Maybe your HR department don't know they are legally not allowed to do that

The ONLY time you can be paid for unused holiday is when you leave. You're not leaving.

As I said above, why don't you just take your holiday during October, so you don't have to work it but you still get paid at the end of October. I don't see why that is any different from the suggestion that you extend your maternity leave and have it unpaid, then get paid for the holiday. It has the same result but the first option is legal!

But if I take October as holiday having 'returned' to work at the end of September then I will be on my new hours/salary so I will be on a lower monthly salary for October and it will mean I'm off work for longer since a week for me is 3 days not 5.