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Statutory Maternity Pay

 
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shiva
PayPerShop Newbie


Joined: 13 Feb 2008
Posts: 5

PostPosted: Wed Feb 13, 2008 6:26 pm    Post subject: Statutory Maternity Pay Reply with quote

We had an employee who was entitled to SMP.
This employee's Expected Date of Confinement was 10th Feb 2008 & she was going to start the maternity leave on 10th Feb 2008.
On 31st Dec 2007, she left our company to start a new job with another company sometime in Jan 2008.
ARE WE LIABLE TO PAY THIS EMPLOYEE ANY SMP ?
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Ian Congreave
PayPerShop Guru


Joined: 14 Mar 2004
Posts: 483
Location: UK

PostPosted: Fri Feb 15, 2008 9:32 am    Post subject: Statutory Maternity Pay for leavers Reply with quote

Once an employee has become entitled to SMP with her employer, i.e. she meets all of the qualifying conditions in the "qualifying week" (in this case week commencing 28 October 2007), she does not lose that entitlement if she leaves that employment.

If, having qualified, she leaves before the 11th week before the expected week of confinement, her maternity pay period starts on the Sunday at the beginning of the 11th week, 25 November in your case. If she leaves after the 11th week, as in your case, the maternity pay period starts on the Sunday after she leaves, i.e. 6 January 2008.

You can consider paying all of the 39 weeks of SMP in one lump sum, but that is not always wise as it is possible for a woman in this situation to lose her entitlement with an employer by taking a new job with another employer. That situation arises in two situations:
    (1) she started a new job after leaving you (i.e. a job that she was not employed in during the qualifying week) and before the baby is born - in which case she loses her entitlement to SMP with you altogether, or
    (2) she starts a new job after her baby is born - in which case she loses entitlement to SMP with you from when she starts the job.
When either of these situations arises, you should issue a form SMP1, ticking the 7th reason on page 2.
You will find information about this situation at http://www.dwp.gov.uk/lifeevent/benefits/statutory_maternity_pay.asp#alreadygetting and in the new E15 booklet at http://www.hmrc.gov.uk/helpsheets/2008/e15.pdf, on page 33
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Jennym254
PayPerShop Regular


Joined: 22 Nov 2004
Posts: 72

PostPosted: Tue Feb 19, 2008 11:00 am    Post subject: Reply with quote

Hi Ian

Could you please review Neiltonks reply to this issue that was also posted in UK Specific Issues.

Am I missing something or are you not contradicting each other?
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Ian Congreave
PayPerShop Guru


Joined: 14 Mar 2004
Posts: 483
Location: UK

PostPosted: Wed Feb 20, 2008 7:29 am    Post subject: Statutory Maternity Pay for leavers Reply with quote

I have now added a note after Neil's reply to direct readers to my additional comments on the subject - although I felt sure that I did that when I first posted by additional comments. There is nothing wrong with Neil's reply in respect of the aspect of the question he was addressing. If a woman leaves her employment after qualifying for SMP, she does not lose her entitlement. My comments also confirm that.

However, it was the enquirer's comment that the employee in question had taken another job that prompted my further comments that a woman can lose her entitlement by taking a job that she did not already have in the qualifying week.
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Jennym254
PayPerShop Regular


Joined: 22 Nov 2004
Posts: 72

PostPosted: Wed Feb 20, 2008 12:09 pm    Post subject: Re: Statutory Maternity Pay for leavers Reply with quote

Ian Congreave wrote:

However, it was the enquirer's comment that the employee in question had taken another job that prompted my further comments that a woman can lose her entitlement by taking a job that she did not already have in the qualifying week.

Thanks Ian, it was that point in particular that I felt Neil had not picked up on (or at least had not made clear) and I was imagining the woman being paid SMP from her old employer while receiving full pay for working at the new one!
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