Proposed changes to maternity leave benefits

It has been recently announced that the UK Law on maternity benefits does not comply with EU requirements.  Therefore, the Maternity and Paternity Leave etc Regulations 1999 are being amended to ensure equal opportunities for women through out their whole period of maternity leave. 

Currently, during the ordinary maternity leave period, employees are entitled to all their contractual and discretionary benefits as if they were working.  The new regulations extend the provision of these benefits to the additional maternity leave period, ultimately meaning that employees will be entitled to all of their benefits for their full statutory entitlement of maternity leave.

These new regulations will apply to all employees whose expected week of childbirth occurs from 5 October 2008. Therefore, women will be entitled to their contractual or discretionary benefits on the same terms during their additional maternity leave period as they are currently entitled to during their ordinary maternity leave period.

Benefits that will need to be continued, whether you provide them contractually or on a discretionary basis, can include:

• Private use of company car
• Holiday Pay
• Sick Pay
• Health club membership

You will note that pensions are not listed as a benefit above.  This is because it appears that the current terms on pension payments during maternity leave remain unaffected i.e. the employer only needs to maintain pension benefits during the period in which they are paying the employee maternity pay. 

Currently you must pay the employee Statutory Maternity Pay for 39 weeks, which incorporates the employees full ordinary maternity leave period and 13 weeks of their additional maternity leave period and therefore must maintain pension benefits for this time.  You do not need to maintain pension benefits for the remaining 13 weeks of the unpaid additional maternity leave period. 

Section 6A of the Sex Discrimination Act 1975 has also been amended to enforce the above changes in the law.  Any employee who is deprived of any contractual or discretionary benefits during their ordinary maternity leave period, and after 5 October 2008, their additional maternity leave period, will be entitled to pursue a discrimination claim against their employer.

On an additional note, statutory maternity, paternity and adoption pay will increase from £112.75 to £117.18 from 6 April 2008, so please do not forget to amend your payments accordingly.

We will provide you will a further update when the amendments to the regulations have been implemented.  If you would like any further information about how you can minimise the effect on your business, please do not hesitate to contact any of us in the Follett Stock Employment Team.