As an employer, understanding maternity leave laws in the UK is important when managing employee rights. We have put together an employers guide to breakdown the laws, processes, and your responsibilities when an employee is pregnant or on maternity leave.
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In the UK, employees are entitled to up to 52 weeks of maternity leave, split into Ordinary Maternity Leave (26 weeks) and Additional Maternity Leave (an extra 26 weeks). The first 26 weeks are mandatory if the employee chooses to take it, while the additional 26 weeks are optional. Statutory Maternity Pay (SMP) is the legal minimum that you, as an employer, must pay to eligible employees. To qualify for SMP, an employee must:
SMP is paid for up to 39 weeks, but maternity leave itself can last up to 52 weeks. The employee can choose to return to work after 39 weeks or take the full year off, with the final 13 weeks being unpaid unless your company offers enhanced maternity benefits. As mentioned, employees are entitled to 39 weeks of statutory maternity pay. Of these:
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It’s vital to understand your employees’ rights while on maternity leave to avoid legal issues, find out more below:
Generally, employees cannot work while on maternity leave. However, Keeping in Touch (KIT) days allow employees to work for up to 10 days during their maternity leave without affecting their SMP. KIT days are voluntary and must be agreed upon between the employer and employee. They can be used for training, meetings, or other work-related activities.
It is illegal to dismiss an employee solely because they are pregnant or on maternity leave. However, if there are valid reasons (e.g. redundancy) unrelated to their pregnancy, and you follow the correct procedures, termination may be possible. Any dismissal related to pregnancy or maternity leave is automatically considered unfair, and the employee could bring a claim against your company.
SMP is paid for up to 39 weeks. It consists of:
To calculate maternity pay:
Maternity pay is subject to tax and National Insurance contributions, just like normal earnings. If you want to estimate the amount an employee will take home, you can use a maternity pay after tax calculator, which will deduct tax, National Insurance, and any other deductions from the gross SMP.
While on maternity leave, employees are entitled to continue receiving the same benefits they would if they were working. This includes:
When an employee informs you of their pregnancy, managing the associated leave and pay can be a complex process. Payroll services like PayEscape can help this process using software to ensure compliance and reduce administrative burdens. Here’s how PayEscape can help:
During paid maternity leave, pension contributions should be maintained. Your contributions must be based on the employee’s usual salary, while the employee’s contributions are based on the SMP they receive.
Employees continue to accrue holiday entitlement while on maternity leave. This includes statutory holiday entitlement, which they can take before or after maternity leave.
If an employee returns to work after 26 weeks or less (Ordinary Maternity Leave), they have the right to return to the same job with the same terms and conditions. If they take Additional Maternity Leave (more than 26 weeks), they still have the right to return to the same job unless it’s not reasonably practicable, in which case a similar role must be offered.
Employees returning from maternity leave often request flexible working arrangements. Under UK law, employees with 26 weeks’ continuous service have the right to request flexible working, and employers must handle such requests in a reasonable manner. You are not obliged to agree to every request, but you must provide a valid business reason for any refusals.
Employee maternity leave can be a challenging process that requires careful planning and adherence to legal requirements. Let PayEscape help you manage maternity leave, pay, and other HR needs with ease, ensuring your business stays on track and fully compliant.
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