Pay and benefits during maternity leave – the current law and how it is all about to change

Do women on maternity leave accrue holidays? Can they keep their company cars? What about bonuses, PHI and pension contributions? The law on this topic is uncertain and employers often face conflicting advice.

With further legislative changes taking place in October 2008, we give concrete guidance on the current position and explain how it is all about to change…

Last year, the Equal Opportunities Commission secured a landmark High Court ruling that UK law on pay and benefits during maternity leave was out of line with EU requirements. As a result, new regulations are being brought in to remedy this situation. The new regulations will affect women whose expected week of childbirth (EWC) falls on or after 5 October 2008.

Although the practical consequences of the new regulations will not be seen until these women start their additional maternity leave early next year, you will need to be able to discuss the new rules with them before their leave starts, which could be as early as July 2008, and review your policies.

Read about the key issues by clicking on any of the links below. These tell you how to deal with pay and benefits under the current law and how to prepare for changes.

Our new guide Work and Families – an employer’s guide to the law ) from which this feature is drawn will be available within the coming weeks.  

What happens to pay during maternity leave?

How should we deal with benefits during maternity leave?

Company cars – can we take them back?

What if the employee has a car allowance rather than a car?

What do we do about pension contributions?

What about life insurance, PHI and medical cover?

Can the employee take her holiday whilst on maternity leave?

What about bank holidays which occur during maternity leave?

Does holiday entitlement accrue during maternity leave?

Can an employee on maternity leave carry forward untaken holiday from one year to the next?

Can the employee take a payment in lieu of untaken holiday?

What about bonus payments?

What if we want to change our approach to maternity pay and benefits?

At a glance summary – pay and benefits during maternity leave


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