Select Statutory Payments. The service was absolutely brilliant.Dean Morris is awesome he took on my case on a no win no fee basis in a time of despair in a legal matter against two giant cooperates and got me . You can recover some or all of your SMP payments from HMRC - the proportion you can recover depends on the size . This is seen in sectors such as banking, professional services and technology. The first 26 weeks is known as ordinary maternity leave, the next 26 weeks is additional maternity leave. Actual date of childbirth *If left blank, will calculate on EWC entered above. The legal minimum for maternity pay If your business does not offer enhanced maternity pay, it must pay Statutory Maternity Pay (SMP). Enhanced maternity pay If you wish, you can offer enhanced maternity pay arrangements to attract and retain employees. This was to aid recruitment and retention of female employees to meet a diversity target of employing 25% women. In Shuter v Ford Motor Company Ltd the Employment Tribunal considered whether an employer's failure to pay enhanced paternity pay during additional paternity leave (APL), when it paid enhanced . The basic right. Vote 0 0 Tags: While it's not a surprise that paid family leave is good for workers, we found that these policies deliver significant business rewards as well: Employee Retention. Yes it could technically be offered/negotiated on a case-by-case basis, but it's not particularly advisable to do that. The SMP pay period will start on the earlier of the following . It is compulsory to take two weeks' maternity leave from the date of childbirth (or, in the case of some factory workers, four weeks' leave). You must pay SMP for any full maternity weeks your employee does not work for that employer. In that case the employer paid 18 weeks' enhanced maternity pay to mothers on maternity leave but only paid the flat rate of statutory pay to mothers and fathers taking shared parental leave. The most common option for employers is to offer full pay for the first six weeks or more when the employee takes maternity leave, instead of 90% of their average weekly earnings (before tax) for the first six weeks. To have worked for long enough to get Statutory Maternity Pay (SMP), you need to have worked for the same employer continuously for 26 weeks by the end of the qualifying week. Since April 2007, all pregnant employees are entitled to 52 weeks' maternity leave regardless of the length of service with their company. The most common maternity pay enhancement, provided by 42.4% of employers, is full pay for more than six weeks followed by the standard statutory maternity pay rate. For free employment law advice and a free assessment of your case call 0800 612 9509. . In most cases this will simply be by reason of being on maternity leave. In April last year we posted a blog on the change in law on paternity leave focussing on the new right to Additional Paternity Leave (APL) which came into force on 6 April 2010. The Employment Appeal Tribunal (EAT) has now ruled that it is not discriminatory for an employer to pay enhanced maternity pay but only statutory pay for shared parental pay. If your employer still insists on you repaying your enhanced maternity pay, you could request that you pay this back in instalments rather than in a lump sum or that a repayment plan is set up. full pay for the first six weeks, half pay for the next ten weeks, SMP for the remaining 23 weeks; make a bonus payment on the employee's return to wor ProjectManager's free business case template. To date, there have been two employment tribunal decisions. Jane van Zyl, chief executive of Working Families, which intervened in both cases considered at the Court of Appeal, told People Management the ruling reflected the "distinct disadvantage that women face in the workplace having experienced pregnancy and childbirth".. She said: "Maternity leave is designed to protect women's health and wellbeing: it cannot simply be equated with . So, you'll need to include a clause with all the relevant information. (See The maternity policy ) Employers that follow good practice towards all parents increase the likelihood of achieving a gender-diverse workforce. This includes choosing an appropriate time and having done your research, Continue reading Building your business case for a pay rise The jury's still out on that one, but as a matter of good practice, we encourage our clients to consider offering the same package for all their family leaves. This was on the basis that paying enhanced maternity pay constituted special treatment afforded to a woman in connection with pregnancy or childbirth. 6th Oct 2016 An employment tribunal has ruled that an employer's failure to pay enhanced shared parental pay amounted to indirect sex discrimination. But we are not stupid. Of these organisations, three in 10 offer full pay for three months, although two in 10 offers full pay for six months. Talent retention is one of the primary reasons cited by employers to provide paid family leave. For the remaining 33 weeks, 151.97 per week or 90% of the employee's average weekly earnings, whichever is lower. We want to get new jobs for all the reasons men want to get a new job (new experiences, more progression, shorter commute etc.). During Shuter's additional paternity leave, Ford paid him the statutory rate of pay, which was the lesser of 136.78 per week or 90% of average earnings. All pregnant employees are entitled to take up to 52 weeks' maternity leave, regardless of their length of service. Until recently, there was case law to support the view that a failure to match enhanced maternity pay does not amount to direct sex discrimination. But it would seem very unlikely they'd pay you SMP on top of full pay.! ), she will be entitled to receive SMP. This payment is intended to reimburse the employee for the expense of running a car which they provide for the council's business purposes. An employer introduced a generous enhanced maternity package whereby women on maternity leave got 100% of their basic pay for 52 weeks. Other notable names on the list include Spotify, Twitter, Netflix and Etsy - who offer unlimited sick leave to look after unwell children. Alternatively, 45.9% of businesses offered financial benefits to those returning from maternity leave, such as a bonus. During the next 33 weeks of maternity leave Pay whichever of these is lower: 156.66 For a pregnant employee dismissed before she has begun maternity leave, provided she meets the qualifying conditions (26 weeks' continuous service in 15th week before etc. Maternity Leave. Meanwhile, Capita offered enhanced maternity pay to birth mothers, comprised of 14 weeks' basic pay and 25 weeks' statutory maternity pay. There has been some case law recently about whether businesses who offer enhanced maternity pay should also offer enhanced shared parental pay as well, to avoid discriminating against men. Statutory Maternity Pay (SMP) is paid for employees that are on maternity leave for up to 39 weeks. All employees with a contract of employment are entitled to take maternity leave, it . For example, you could: pay more than SMP over a certain period, e.g. Enhanced maternity pay More than half of the employers XpertHR surveyed in its last maternity pay survey (from 2014) offered maternity pay in excess of the statutory minimum. . The second found that this practice was discriminatory. The employer paid 18 weeks' enhanced maternity pay to mothers on maternity leave but only paid the flat rate of statutory pay to mothers and fathers taking shared parental leave. It is paid on the same schedule as your employees wages, whether weekly or monthly. If an employer pays enhanced pay to employees on maternity leave, but not to employees on shared parental leave, there is a risk of sex discrimination claims from male employees who take shared parental leave and consider that they are being treated less favourably than female employees on maternity leave. The percentage of private sector organisations offering EMP was 65.5% in 2021 but new data from February 2022 shows this has increased to 74.1%. For the next 33 weeks you must pay them the lower of the following: 156.66. While there is doubt as to whether such claims would be successful, the risk of claims will nonetheless be of concern for employers. You can speak to our expert team on 0145 585 8132 for assistance. Vodafone. Payroll automatically off-sets any SMP you pay to an employee within a period, against your liabilities to HMRC. The findings, from a report by XpertHR, show encouraging signs that employers are taking support for their working parents more seriously. The figures tail off between weeks 13 and 26, but there are still a significant number continuing to pay either 100% or 50% of salary during this period. In this scenario, it makes your P32 values wrong. A male employee took 14 weeks' shared parental leave in circumstances where, had he been female and on maternity leave, he would have received full pay. The safest course for employers that wish to avoid a potential discrimination claim is to formulate their family-friendly policies so that there is a level playing field. If HMRC give you an advanced payment for an employee's Statutory Maternity Pay (SMP), you need to account for the payment in your payroll and accounting software. Enhanced Maternity Pay is offered by almost two thirds of UK Organisations. Women who work in an unpaid capacity in the business of a self-employed spouse or civil partner can receive a weekly maternity allowance. We don't want to be penalised for taking a new role should we (at some point) fall pregnant. A number of large organisations most notably PwC, Shell and the Civil Service have said they will extend enhanced maternity pay to parents taking shared parental leave, but the additional costs and administrative burden will simply be too great for many smaller . For the first six weeks you must pay your employee SMP a weekly rate equal to 90 per cent of their average weekly earnings (AWE). Furthermore, the most frequent maternity and adoption pay enhancement is now 26 weeks' full pay in sectors such as banking, professional services and technology. According to one study, women who take paid . Whatever reservations and anxieties you may harbour, your boss can't fire you for asking for a pay rise. It's simply a case of, if you don't ask then you won't get. It risks accusations of unfairness, or, if the employer without fail pays x and suddenly decides to pay only y to one employee, there is the risk of a claim that always paying x has become contractual by custom and practice. To be eligible for enhanced maternity pay you will often need to have worked for your employer for a specified period of time. For the first six weeks, 90% of an employee's average weekly earnings. Thanks Virgo1, you can follow the steps below to create the additional pay category to keep track of any enhanced maternity pay: Go to Payroll Settings and select Pay Categories. Statutory paid maternity leave is 39 weeks, with only the first six weeks paid at 90% of the employee's average weekly earnings, and the remaining 33 weeks at a 'prescribed rate' of 117.18 per week. Under this, eligible employees whose children are due to be born on or after 3 April 2011 will have the right to take up to 6 months' APL. Such leave may commence eleven (11) weeks prior to the week in which her predicted week of confinement occurs or any time thereafter at the request of the employee. The first thing to point out is that when you return to work after a period of Maternity Leave which is 26 weeks or less, you are entitled to return to the job in which you were employed before your absence with your seniority, pension rights and similar rights as they would have been had you not gone on ML and on terms and conditions no less . Enhanced maternity pay is often/normally an added benefit paid by some employers after the initial 6 weeks for a set amount of time. Also, if the same employer goes on to enhance pay for ShPL as a "pot per couple" but only makes available what is left of the 'pot' of enhanced pay from the maternity or adoption leave (as . Published: 24 May 2021 Nearly two thirds (63.5%) of businesses offer maternity pay above the statuary minimum in the UK, and three-fifths (60.8%) offer enhanced paternity pay. A practice note dealing with pay and benefits during maternity leave, including statutory maternity pay (SMP), contractual maternity pay, pay rises, bonuses, pensions and other contractual entitlements. For maternity leave, a contract of employment must explain the rights your employees have. It has 9 key business case areas you can customize as needed. 90 per cent of their AWE. The maternity leave shall commence immediately upon the birth if it . Your employer pays your SMP in the same way as your salary is paid. During the first 6 weeks of maternity leave Pay them 90% of their average weekly earnings (before tax). You can delete these and create new ones that match your business needs. Enhanced Paternity Pay. The Claimant felt this was unfair as it meant fathers were at a disadvantage to mothers because they were allowed 14 weeks' enhanced . The earliest that leave can start is 11 weeks before the due date - unless the baby is born early. 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