Employees to be entitled to non-cash benefits during additional maternity leave - 06/06/2008
Previously, an employee on ordinary maternity leave (ie taking her first 26 weeks' entitlement to maternity leave) continued to be entitled to all non-cash benefits provided for by her contract of employment, for example:
- company car;
- home PC;
- gym membership;
- health benefits; or
- any contractual entitlement to holiday above the statutory minimum.
However, the employer did not have to provide these benefits while she was on additional maternity leave (ie the second 26 weeks of maternity leave that she may also opt to take if she has the requisite period of employment).
Under new Regulations that came into force from April, however, the distinction between ordinary and additional maternity leave is removed for this purpose. Employers will have to provide non-cash contractual benefits during periods of additional maternity leave as well as during ordinary maternity leave. The new rules apply where the employee's expected week of childbirth begins on or after 5 October 2008.
In addition, the new rules make it clear that employees are eligible for remuneration by way of bonus while on compulsory maternity leave (ie the two-week period immediately after childbirth).
Recommendations
Employers should:
- review their policies on maternity leave and pay
- make provision for extra expenditure where appropriate, to avoid potential discrimination claims.
