Bonuses during maternity leave

Employers can reduce the size of a bonus to take account of maternity leave, if the bonus is dependent on the employee attending work.

The Employment Appeal Tribunal has held that, in such cases, the amount paid to a woman on maternity leave can be reduced on a pro-rata basis to account for the time she was not at work. However, the bonus cannot be reduced for the two-week period of compulsory maternity leave.

Furthermore, the reduction may not be justified if the bonus is based on performance rather than attendance.

Hoyland v Asda Stores EATS/0058/04