Maternity pay

Q: Our employer pays contractual maternity pay at full pay for 26 weeks. Now that statutory maternity pay is paid for 39 weeks, is this unlawful?

A: For a contractual term to be lawful, it has to be at least as good as the statutory minimum. Although the duration of your employer’s maternity pay is less than the statutory minimum, it may still be lawful if the total amount is greater; the regulations on statutory maternity pay (SMP) allow it to be paid as a lump sum at the beginning of the leave, so there is no legal requirement for it to be spread over 39 weeks.

Whether the total amount received is at least the same as SMP will depend on the individual’s salary. A woman on £20,000 a year will get more under your employer’s scheme than she would under the statutory scheme (90% of full pay for six weeks followed by 33 weeks at £112.75 per week), but someone nearer the minimum wage may be worse off. This may be enough to persuade your employer to increase its maternity pay entitlement to 39 weeks.