- Appreciate that salary sacrifice is a contractual arrangement between employer and employee.
- Remember that a salary sacrifice arrangement must be effective in achieving its intended purpose.
- Remember that HM Revenue and Customs will not provide advice on setting up, drafting, operating or varying salary sacrifice arrangements.
- Be aware of the impact that a salary sacrifice arrangement may have on statutory maternity pay.
- Be aware of the relationship between statutory maternity pay, salary sacrifice and childcare vouchers.
- Take into account that a “lifestyle change” such as expecting a baby may justify changing a salary sacrifice arrangement before the intended period has elapsed.
- Remember that a salary sacrifice arrangement may reduce an employee’s entitlement to contractual maternity pay.
- Ensure that any non-cash benefits, such as childcare vouchers, provided as a term of the contract continue during additional maternity leave where the expected week of childbirth is on or after 5 October 2008.
More resources from XpertHR on this topic include:
- How to manage pregnant employees and handle maternity leave
- How to respond to an employee’s notification that she is pregnant
- How to deal with requests for time off for antenatal care
- How to deal with maternity suspensions
- How to deal with an employee who has a miscarriage or stillbirth or whose baby dies after birth
- How to deal with the holiday entitlement of an employee taking maternity leave
- How to take disciplinary action against an employee during pregnancy or maternity leave
- How to deal with keeping-in-touch days during maternity leave
- How to stay in touch with employees on maternity leave
- How to ensure employees’ smooth reintroduction to the workplace on their return from maternity leave
- How to deal with requests to return from maternity leave on a part-time basis
- How to deal with the situation where an employee becomes pregnant again while on maternity leave
Practical Guidance for all HR Professionals
Pregnancy and maternity rights content on XpertHR
- Line manager briefing on basic maternity rights
- Model company maternity policy
- Worked examples on calculating statutory maternity pay with salary sacrifice and childcare vouchers
- Worked examples on calculating statutory maternity pay with salary sacrifice and childcare vouchers, and occupational maternity pay
- Model salary sacrifice form
- Model letter explaining the right to statutory maternity pay
- Model letter informing an employee of ineligibility for statutory maternity pay
