Maternity Leave Part 2

Gillian Reid continues to answer some tricky questions from employers regarding employment procedures and maternity leave: What do I do about bonuses during an employee's maternity leave? This is a difficult area and the answer depends on the reason for the bonus. If it is to reward work done, payment only has to be made on a pro rata basis for the weeks when the employee was at work plus the two week compulsory maternity leave period immediately after the birth. Other types of bonus - such as a loyalty bonus or a Christmas bonus - will be payable in full. What happens if I need to make a woman on maternity leave redundant? This is permitted but an employee who is at risk of redundancy while on maternity leave has the right to be…

Maternity Leave Part I

The rules regarding maternity leave and pay are complex and employees are increasingly knowledgeable about their rights.  In addition, the rules change on a regular basis, all of which means that it is easy for employers to get it wrong.  This month and next month, we look at some common questions employers ask and provide the answers: What happens to holiday entitlement during maternity leave? Both statutory and contractual annual leave entitlement accrue during maternity leave.  A woman cannot take holiday while on maternity leave but can take it immediately before her maternity leave starts and after it ends.  If holiday cannot be taken in the current holiday year, an employee should be allowed to carry it forward to the next leave year. Can an annual pay rise wait until an employee returns from maternity…

Unlawful Deductions From Pay

Last year 71,300 claims for unauthorised deductions were brought in front of the employment tribunal, the second most common claim brought by employees. The most common examples of unlawful deductions made by employers are: Bonuses - many of the reported cases relate to the payment of bonuses.  The employment tribunals have decided that, if the amount of the unpaid bonus can be quantified, the employee can claim it as an unlawful deduction. Underpayment of commission - if the employee is paid less commission than is due, this may be an unlawful deduction. Tips - if a worker is entitled to tips (or part of a "tronc"), which are not paid, he can bring a claim. Holiday pay - a failure to pay outstanding holiday pay when the employment terminates has been held to be…

Employment Law Changes April 2012

The main change made this month was to increase the qualifying period for employees to claim unfair dismissal from one year to two years. This only applies to new employees who started work on or after 6 April, which means that it is fairly straightforward - anyone already employed before then will retain the one-year qualifying period. Employers will need to check an employee's start date carefully before dismissing him or her to establish whether they have the right to bring a claim or not. The change in the period of qualifying service also applies to the right to a written statement for the reasons for dismissal. The Government has estimated that the number of claims will drop by around 2,000 per year, saving employers around £4.7 million per year. This change was made to…