I work with an organisation that has an enhanced maternity pay policy. In other words it offers something better than SMP. An employee eligible for the enhanced package has to provide a written commitment that they will return to work for at least 12 months after maternity leave. In the event that they do not complete the 12 months, for any reason, then the company can ask the employee to repay the enhanced element of the maternity pay.
In the event that an employee has to repay the enhanced element, should she repay it gross or net (the policy does not say)? Is there a way of recovering the PAYE elements of the salary paid (for both the er and ee)? In which case the employee only has to repay net. In a nutshell, is there any way of processing a salary repayment, either though RTI or otherwise? Thanks.
Replies (4)
Please login or register to join the discussion.
Unless ...
The thought occurs that as her entitlement to holiday pay continues to accrue while she is on maternity leave, you might owe her some accrued holiday pay. If so, you could net off at least some of her enhanced maternity pay element. I was assuming that she does not return to work after maternity leave, but if she does return to work, but leaves before 12 months, you would have a final month's pay against which to set off the enhanced pay element. In that case, the three answers would be:
GrossYesYes, through RTI