An employee has just been paid 26 weeks SMP. She has now taken a week's holiday before coming back to work. How is the holiday pay calculated? Is it the average of the last 12 weeks ie one week's SMP or is it the average of the last 12 weeks prior to her been paid SMP? Any comments would be appreciated.
Robert
Replies (3)
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Normal pay?
I believe she needs to be paid whatever her holiday pay would have been had the maternity absence not existed.
Basing her holiday pay on the SMP rate would mean she'd been disadvantaged because of the maternity absence and this might lead to a sex discrimination claim.
Neil.
Back to normal
The holiday pay will be based on her standard rate of pay.
She will be taking leave from her annual entitlement. Any holiday not taken or paid prior to her going on maternity leave will still be owing.
Nick