The government is in the process of changing the law so that employees are entitled to retain their full benefit package (apart from pension contributions) throughout maternity leave, rather than for just the first six months of maternity leave as is the case now. The new law affects women whose expected week of childbirth (EWC) is on or after 5 October 2008.
The government has just published amendments to the Sex Discrimination Act 1975 which pave the way for these changes. More detailed regulations will follow shortly.
The practical consequences of the regulations will not be seen until the affected employees enter the second six months of their maternity leave, which will not be until 2009. However, you will need to review your policies and discuss the new rules with these employees before their leave starts, which could be as early as July 2008.
We have published a full feature article for member companies looking at pay and benefits during maternity leave, and how it is about to change here.