New maternity law sparks pension fears
21 April 2008 17:57
The definition of 'renumeration' in new legislation on maternity payments has caused confusion among businesses as to the pension rights of women on leave.
An amendment to the Sex Discrimination Act (SDA) made on April 6th, 2008 - which may affect some women in finance jobs - states that women on maternity leave are entitled to a total of 39 weeks' pension payments.
However, a lawyer has asserted that pensions could be argued to be a 'non-paid right' under the revised law, placing them in the same category as benefits such as company cars, which are granted for the entire period of leave, Personnel Today reports.
Berwin Leighton Paisner's Kate Gate tells the website: "Because the definition states 'payments' to the employee as meaning wages or salary […] an employer would have to continue [pension] contributions for both ordinary and additional maternity leave."
Currently, employees are entitled to 26 weeks maternity leave, with those who have served 26 weeks of continuous service at their present employment able to opt for the additional time off.
An amendment to the Sex Discrimination Act (SDA) made on April 6th, 2008 - which may affect some women in finance jobs - states that women on maternity leave are entitled to a total of 39 weeks' pension payments.
However, a lawyer has asserted that pensions could be argued to be a 'non-paid right' under the revised law, placing them in the same category as benefits such as company cars, which are granted for the entire period of leave, Personnel Today reports.
Berwin Leighton Paisner's Kate Gate tells the website: "Because the definition states 'payments' to the employee as meaning wages or salary […] an employer would have to continue [pension] contributions for both ordinary and additional maternity leave."
Currently, employees are entitled to 26 weeks maternity leave, with those who have served 26 weeks of continuous service at their present employment able to opt for the additional time off.
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