How to deal with the holiday entitlement of an employee taking maternity leave

Author: Tina Elliott

Summary

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• Recognise that annual leave rights are in addition to maternity leave and that maternity leave cannot be treated as annual leave.
• Be aware that you cannot pay employees in lieu of their statutory annual leave entitlement except on termination of the employment.
• Be aware that you have more freedom to deal with contractual annual leave in excess of the minimum statutory entitlement, with regard to, for example, paying in lieu.
• Ensure that employees do not lose out on their holiday entitlement if their maternity leave coincides with the workplace annual shutdown.
• Remember that statutory annual leave under the Working Time Regulations 1998 accrues during both ordinary maternity leave and additional maternity leave.
• Take into account that employees are entitled to the benefit of all their non-remuneration terms and conditions throughout additional maternity leave as well as ordinary maternity leave. This includes accrual of contractual holiday above the statutory minimum.
• Consider the allocation of annual leave as part of planning for maternity absences.
• Allow employees to carry forward their statutory holiday from one year to the next where they have been unable to take it due to being on maternity leave.