Salary Sacrifice and SMP

[rlw]

Given that I got the answer to an earlier query on this here, I thought that I would try again.

Scenario.

Employee is on SS scheme and gets vouchers for childcare.
Employee becomes pregnant and takes SMP. SMP is reduced in value due to the SS scheme in place.
While employee is on SMP she takes first child out of nursery and does not need or want vouchers.
We continue to pay her the cash (through payroll) to the value of the SS scheme.

Question.

When do we stop paying her the cash value of the SS scheme? After the first six weeks at 90% of (reduced)salary or at the end of the paid SMP period?

Common sense says after the first six weeks but I can find nothing to confirm that this is correct, nor anyone wishing to venture an opinion within the fine service provided by HMG.

Any thoughts?

[edc]

Tired on a Sunday so can't answer the question as such yet but most schemes should allow and even advise that the expectant mother come out of the scheme prior to going on mat leave so her salary returns to the former figure.

[Eric Mc]

People should always be aware of these types of ramifications before they readilly agree to Salary Sacrifice.

[rlw]

Eric Mc said:

People should always be aware of these types of ramifications before they readilly agree to Salary Sacrifice.

That is as maybe Eric but do you have an answer. Clearly her CoE doesn't mention this possibility and my take on it is as soon as the 90% pay period finishes we are in the clear as all she is then entitled to is SMP and not salary but no-one will say yes or no. I have a month now to resolve this but may have to take counsel's opinion if I get no further.

[rlw]

edc said:

Tired on a Sunday so can't answer the question as such yet but most schemes should allow and even advise that the expectant mother come out of the scheme prior to going on mat leave so her salary returns to the former figure.

But what if she wanted to keep other children at nursery until the birth for economic reasons. I agree with you but we are talking imponderables and last minutes decisions here...........

[GeraldSmith]

During maternity the contractual rights remain so it is probably a question of how it is worded in the contract. Definitely a danger that she is entitled to it continuing, some advice from a more reliable source than you will get here is needed I think.

[Eric Mc]

rlw said:

Eric Mc said:

People should always be aware of these types of ramifications before they readilly agree to Salary Sacrifice.

That is as maybe Eric but do you have an answer. Clearly her CoE doesn't mention this possibility and my take on it is as soon as the 90% pay period finishes we are in the clear as all she is then entitled to is SMP and not salary but no-one will say yes or no. I have a month now to resolve this but may have to take counsel's opinion if I get no further.

I am not an employment law expert so I cannot offer specific advice on this situation.

All I know is that Salary Sacrifice schemes are not always the "win, win" situation put forward by their promoters.
People need to agree to them with their eyes fully open.

[rlw]

Eric Mc said:

All I know is that Salary Sacrifice schemes are not always the "win, win" situation put forward by their promoters.
People need to agree to them with their eyes fully open.

I couldn't agree more - they can turn into a total nightmare (and usually do it seems)