5 January 2007

Changes to Statutory Maternity Rights

Statutory maternity rights are changing in the new tax year and even though April is still three months away these changes could affect you much sooner. Because a pregnant woman is entitled to begin her maternity leave already 11 weeks before the expected due date, this means that if your nanny’s due date is on or shortly after April 6th, she could start her maternity leave as early as January 19th.

So what is changing? First of all your nanny will be entitled to 39 weeks of statutory maternity pay (SMP), an increase from 26 weeks. The first six weeks are still at 90% of her average gross weekly earnings, and the remaining 33 weeks at £112.75 gross (unless her average salary is less than that, in which case it will remain at 90%). However, if your nanny begins her maternity leave before April 6th she will only be entitled to £108.85 gross per week (or 90%, whichever is lower) until the beginning of the new tax year, for her lower paid weeks.

Notice of intention to return early from maternity leave will also change. Currently your nanny only needs to give 28 days notice; under the new rules this will increase and she will be expected to notify you 56 days before wishing to return.

On the other hand, if she would like to extend her maternity leave, she is entitled to an additional 3 months unpaid leave. If a return date has previously been agreed she is free to change her mind, providing she gives you at least 56 days notice (the period of notice should end on the date she was due to return).

A new concept, Keeping in Touch Days, will also be introduced in the new tax year. A total of 10 days can be agreed between employer and employee when the nanny would simply come and visit to catch up, or even to work. These days are entirely voluntary, you are not required to offer them, nor can a nanny be penalized if she chooses not to come in.

We will offer more in-depth information on these and other changes closer to the beginning of the new tax year.

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