Pension Contributions and Maternity Leave

by | Nov 29, 2017

The Pensions Regulator, plan to prosecute a bus company, for wilfully failing to comply with their legal obligations under automatic enrolment. It is alleged that Stotts Tours (Oldham) Limited, deliberately failed to enrol its 36 staff into a pension scheme. This is the first time they have decided to prosecute for a failure of this nature but we doubt it will be the last time.

What happens when an employee goes on Maternity Leave?

Guidance from the Pension Advisory Service provides that if employers’ paid contributions into an employee’s pension scheme before they began their maternity leave; the employer will still be required to continue making payments. However, the length of time that the employer will make these payments may vary, based on the employment contract terms and the type of pension scheme held by the employee. 

Even where an employee does not qualify for maternity pay, there are still circumstances where the employer may be required to make pension contributions:
  • during the period of Ordinary Maternity Leave (the first 26 weeks of the maternity leave),
  • if the contract of employment makes provision for the payments to be made during periods of unpaid leave.

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