July 2003

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 » New maternity pay calculations  » When must you agree to flexible working » Repackaging of goods and exports
 

New maternity pay calculations

Pregnant employees must be treated with care for all sorts of health and safety reasons, but you also need to apply extra attention to maternity pay since complications were introduced this spring.

Expectant and new mothers on your payroll could now be due different weekly amounts for varying periods depending on the date their baby was due, and when their maternity leave started.

For babies due before 6 April 2003 maternity pay is due for 18 weeks. The first six weeks are paid at 90% of the average weekly pay with a minimum of £75, with the next 12 weeks paid at the flat rate of £75 per week for paydays before 6 April 2003. For paydays after 5 April 2003 the flat rate changes to the lower of 90% of the weekly earnings or £100. This could mean that a woman’s maternity pay would drop, but there is a safety net for such women that means the minimum of £75 still applies.

For babies due on or after 6 April 2003 maternity pay is due for 26 weeks. If the expectant mother started her maternity leave before 6 April 2003 the level of weekly maternity pay due is calculated as described above, for a mother with a baby due before 6 April 2003. Where maternity leave commences on or after 6 April 2003 the first six weeks of maternity pay are paid at 90% of average weekly pay but there is no minimum amount.

 
The remaining 20 weeks are paid at the lower of £100 and 90% of weekly earnings, still with no minimum.

Remember your employee must earn at least £75 per week, (or £77 per week for babies due after 19 July 2003), for you to be obliged to pay her maternity pay. Lower earners may be able to claim maternity allowance from the Benefits Agency.

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When must you agree to flexible working

Pregnant employees must be treated with care for all sorts of health and safety reasons, but you also need to apply extra attention to maternity pay since complications were introduced this spring.

Expectant and new mothers on your payroll could now be due different weekly amounts for varying periods depending on the date their baby was due, and when their maternity leave started.

For babies due before 6 April 2003 maternity pay is due for 18 weeks. The first six weeks are paid at 90% of the average weekly pay with a minimum of £75, with the next 12 weeks paid at the flat rate of £75 per week for paydays before 6 April 2003. For paydays after 5 April 2003 the flat rate changes to the lower of 90% of the weekly earnings or £100. This could mean that a woman’s maternity pay would drop, but there is a safety net for such women that means the minimum of £75 still applies.

For babies due on or after 6 April 2003 maternity pay is due for 26 weeks. If the expectant mother started her maternity leave before 6 April 2003 the level of weekly maternity pay due is calculated as described above, for a mother with a baby due before 6 April 2003. Where maternity leave commences on or after 6 April 2003 the first six weeks of maternity pay are paid at 90% of average weekly pay but there is no minimum amount. The remaining 20 weeks are paid at the lower of £100 and 90% of weekly earnings, still with no minimum.

Remember your employee must earn at least £75 per week, (or £77 per week for babies due after 19 July 2003), for you to be obliged to pay her maternity pay. Lower earners may be able to claim maternity allowance from the Benefits Agency.

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What not to ask …

Pregnant employees must be treated with care for all sorts of health and safety reasons, but you also need to apply extra attention to maternity pay since complications were introduced this spring.

Expectant and new mothers on your payroll could now be due different weekly amounts for varying periods depending on the date their baby was due, and when their maternity leave started.

For babies due before 6 April 2003 maternity pay is due for 18 weeks. The first six weeks are paid at 90% of the average weekly pay with a minimum of £75, with the next 12 weeks paid at the flat rate of £75 per week for paydays before 6 April 2003. For paydays after 5 April 2003 the flat rate changes to the lower of 90% of the weekly earnings or £100. This could mean that a woman’s maternity pay would drop, but there is a safety net for such women that means the minimum of £75 still applies.

For babies due on or after 6 April 2003 maternity pay is due for 26 weeks. If the expectant mother started her maternity leave before 6 April 2003 the level of weekly maternity pay due is calculated as described above, for a mother with a baby due before 6 April 2003. Where maternity leave commences on or after 6 April 2003 the first six weeks of maternity pay are paid at 90% of average weekly pay but there is no minimum amount. The remaining 20 weeks are paid at the lower of £100 and 90% of weekly earnings, still with no minimum.

Remember your employee must earn at least £75 per week, (or £77 per week for babies due after 19 July 2003), for you to be obliged to pay her maternity pay. Lower earners may be able to claim maternity allowance from the Benefits Agency.

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Lead Articles

Tax Issues

Business Matters

»  Law Lines

 In Brief

The newsletter has been prepared for general interest and it is important to obtain professional advice on specific issues. We believe the information contained in it to be correct at time of print. While all possible care is taken in the preparation of this newsletter, no responsibility for loss occasioned by any person acting or refraining from acting as a result of the material contained herein can be accepted by the firm, the authors or the publishers.