Statutory Maternity Pay Settlement Agreement

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This case serves as a reminder to employers that if the right to SMP is to be included in a settlement agreement and effectively removed, it must be expressly stated. In addition, significant employment should be identified in a breakdown of compensation, which indicates how it was calculated and is subject to appropriate tax and social security deductions. Although his employer has provided that the £60k will be used to settle all their claims, including SMP, in full and definitively, the agreement does not explicitly mention SMP. After entering into the settlement agreement, it complained to HM Revenue and Customs (HMRC) that it had not received SMP, arguing that the settlement agreement did not do so because it was not explicitly mentioned in the agreement Regardless of the date on which you wanted to start your maternity leave if you leave before the start of your maternity leave, It starts automatically on the day when, when the baby is born. If you are absent from work for a «pregnancy-related reason» from the fourth week before the week your baby is due, your maternity leave starts automatically. At the end of maternity leave, you have the right to return to your original position. In the event of a dismissal situation, this is one of the few legal areas in which an employer can «discriminate positively». You have the right to be offered any other suitable position, if any, without a job interview. This right goes beyond what goes to your colleagues who are not on maternity leave, so you can effectively «skip the line» when it comes to a new role. However, the reality is that employers don`t always proactively secure new jobs as often as they should, requiring careful monitoring.

If your employer is unable to offer you suitable alternative work or if you refuse another suitable position that will be offered to you, you may be entitled to severance pay. Take a copy of form MATB1 maternity certificate and return the original to your employee. Workers on maternity leave are not excluded from dismissal or dismissal in the absence of an appropriate alternative vacancy. All unpaid contractual benefits must be maintained during statutory maternity leave. These may be any on-call vouchers, company cars or mobile phones made available to the employee as part of his employment contract. You can normally start maternity leave at a time of your choice, under certain conditions. You can start your maternity leave at least 11 weeks before the week in which your baby is due. If you are dismissed during your maternity leave, your leave ends. However, if you are entitled to a statutory maternity allowance, you should continue to receive it for the remainder of the 39-week period.

The Financial Court then had to decide whether the claimant could recover SMP after signing a COT3 agreement. The court confirmed that a worker has an absolute right to the SMP, which cannot be the subject of a contractual agreement. One of the factors that has been taken into consideration here is that not all payments made under the COT3 agreement would attract social security, while SMPs are subject to both tax and social security. This enabled the Court to conclude that SMP had not been paid under the COT3 agreement. Women who meet the qualification requirements have the absolute right to pay SMP. Under section 164(6) of the Social Security Act 1992, a woman is not in a position to discharge this right. Any agreement purporting to exclude SMP`s right is, to this extent, unen enforceable. However, nothing in the legislation prevents an employer from paying the worker`s potential right to the SMP in full up to a lump sum – see the settlement agreements and SMP points that must be met below. . .