Contractual salary benefits and maternity leave?

MrINeedOfHelp

Hi all,

Asking this more out curiosity, but when a company gives you maternity pay do you temporarily forfeit stuff like any weighting allowances given to you?

TELLIT01

I would assume that would depend on the contract of employment. As weighting allowances are generally there to cover the additional costs of working in the area there would certainly be grounds for arguing that they shouldn't be paid when the person isn't working. On that basis though it could also be argued they shouldn't be paid when the person is on leave or off sick.

ReadingTim

Statutory Maternity Pay is paid by the government (ie the taxpayer) not the company. The company may chose to supplement this, but it really depends on the company and the contract of employment. Weightings may still be payable - they're to help with the cost of living in an area, not working in. Shift allowances, anti-social hours etc probably won't be, as the employee isn't actually working. But again, it depends on the contract.

I've heard of some law firms having quite generous maternity pay packages, but payment of them is deferred until the employee returns to work and has been there for a set period time after mat leave. Which works out well in the end, but means things can be pretty tight when they person is actually off, as SMP isn't that generous!

clairec79

Mine was based on average earnings in a certain time period (I think it was about 15/16 weeks pregnant) - needless to say I did a lot of night shifts in that period to bump my average wage up - which then meant that was what my maternity pay was based on

sangie595

ReadingTim wrote: »

Statutory Maternity Pay is paid by the government (ie the taxpayer) not the company. The company may chose to supplement this, but it really depends on the company and the contract of employment. Weightings may still be payable - they're to help with the cost of living in an area, not working in. Shift allowances, anti-social hours etc probably won't be, as the employee isn't actually working. But again, it depends on the contract.

I've heard of some law firms having quite generous maternity pay packages, but payment of them is deferred until the employee returns to work and has been there for a set period time after mat leave. Which works out well in the end, but means things can be pretty tight when they person is actually off, as SMP isn't that generous!

Not all of it - unless you are a small employer the employer only gets 92% of SMP back.
And for SMP, then yes - as someone else pointed out, it does friend to an extent on the average earnings regardless of how those are earned or what they are called, so allowances etc count. But an employers scheme - that is voluntary, and it depends on what the scheme rules are.

A number of employers have enhanced schemes, both public and private sector, with conditionality - so you must return to work and work for a set period of time or repay the enhanced rates. This is fair enough - a balance needs to be achieved between not leaving people in poverty after childbirth (or addition), rationing skills and experience, and business requirements. Employers don't give enhanced pay because they are nice - they do it because it is good business sense.