Are Small Companies Expected to Pay Statutory Maternity Pay?
Yes! Under the Social Security Contributions and Benefits Act 1992 all employers in the UK who pay employees that meet the eligibility criteria outlined by the Advisory, Conciliation and Arbitration Service (ACAS) are legally required to pay Statutory Maternity Pay.
What is Statutory Maternity Pay?
In the UK pregnant women are paid statutory maternity pay during the time that they are legally allowed to be absent from their employment. This includes the weeks leading up to having their child as well as those after having their child. If the individual finds themselves off work due to pregnancy-related illness in the 4 weeks leading up to their due date then their statutory maternity pay would automatically start.
The aim of statutory maternity pay is that it eases any possible financial burdens associated with taking time off work before and after childbirth for families in the hope that it can help reduce the stresses of those all important first months raising a new-born.
How much is Statutory Maternity Pay?
The statutory maternity pay is paid for up to 39 weeks. Throughout this time an employee who is eligible would receive:
- For the first 6 weeks 90% of their average weekly earnings (before tax)
- For the remaining 33 weeks whichever is lower between either £187.18 or 90% of your weekly earnings (before tax)
Statutory Maternity Pay is paid in the same way that wages are paid meaning that both Income Tax and National Insurance will be deducted from the individual’s statutory maternity pay but these deductions are already deducted for you by your employer.
Employers must also give the expectant mother paid time off to attend antenatal appointments. This is in addition to their usual holiday entitlement.
Qualifying for Statutory Maternity Pay?
For an individual to qualify for statutory maternity pay they would need to follow the criteria set out by HM Revenue and Customs (HMRC) on behalf of the UK Government. The specific criteria that must be met are:
- The individual earns on average of at least £125 a week
- The individual has given the correct notice – at least 28 day's notice before the date they intend to start their statutory maternity pay
- The individual has given proof they are pregnant – providing a MATB1 certificate
- The individual has worked for the employer continuously for at least 26 weeks continuing into the ‘qualifying week’ – the 15th week before the expected week of child birth
Government guidance also states that an individual cannot get statutory monetary pay if they go into police custody during their maternity pay period and it will not restart after being discharged.
Employers Responsibilities with regards to Statutory Maternity Pay?
The key responsibility of the employer is to ensure that they provide statutory maternity pay to eligible employees. This includes their duty to calculate and pay the correct amount and manage related aspects such as the notice periods, start and end dates and record keeping of the statutory maternity payments made.
In the instance when an employee is not eligible for statutory maternity pay then as the employer you must provide a completed SMP1 form explaining why the employee is not able to get statutory maternity pay. This should be provided to the employee within 7 days of the decision being made.
Employers are also responsible for assessing and managing the workplace’s risks to pregnant employees and new mothers, such as ensuring that there are ample fire escape routes and completing risk assessments that include specific considerations for pregnancy and breastfeeding.
Employees Rights and Responsibilities Whilst on Leave
At least 15 weeks before the individual’s due date they must inform the employer of when the baby is due as well as when they wish to start their maternity leave. Upon your employer agreeing to the start and end dates of your maternity leave, the statutory maternity pay would start on the day that the maternity leave begins.
Employees are also responsible for giving their employer at least 8 weeks’ notice if they wish to change the date that they return back to work from their maternity leave.
Whilst an individual is on statutory maternity leave their employment rights are also protected meaning that they are entitled to their rights to:
- Applicable pay rises
- Build up (accrue) holiday
- Return to their role upon the end of their statutory maternity leave
They are also legal protection against dismissal and discrimination for being pregnant or whilst on maternity leave. This is even applies if their post is made redundant.
