During ordinary maternity leave (OML), you must continue all benefits. This is the case even if the employee has no contractual right to the benefit and you have provided it only as a matter of discretion. Although you might have a general right to withdraw discretionary benefits from all employees, it would be an unlawful exercise of your discretion to withdraw it from an employee just because she is on maternity leave.
In our view, you can currently discontinue benefits during additional maternity leave (AML) unless:
- this is out of line with your past practice; or
- the benefit relates to statutory holiday entitlement, pensions, life assurance, PHI or medical cover where the law is particularly complex.
The new rules, affecting women whose EWC falls on or after 5 October 2008, will mean that employees will be entitled to their full benefit package throughout both OML and AML, except in relation to pensions.
Next page