In order to work out an employee’s statutory maternity pay (SMP) entitlement,
it is necessary to calculate her average total earnings over a specified period.
However, under legislation, employers must recalculate an employee’s SMP if
she is subsequently awarded a pay increase during her pregnancy or maternity
leave, and must backdate the new rate of SMP to the start of the maternity pay
period. A failure to do so could result in a claim under the Equality Act 2010.
This XpertHR “how to” guide steers employers through the process of dealing
with a pay rise that coincides with an employee’s pregnancy or maternity leave.