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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 44880
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I have started a small company, currently 3 employees including

Customer Question

I have started a small company, currently 3 employees including myself. I want to introduce a performance related bonus based on number of consulting hours provided and % of income on projects in-hand. If an employee takes maternity / paternity leave will they still be eligible?
Submitted: 2 years ago.
Category: Employment Law
Expert:  Ben Jones replied 2 years ago.

Ben Jones :

Hello, my name is Ben and it is my pleasure to assist you with your question today.

JACUSTOMER-jbijix7q- :

Hi Ben

Ben Jones :

Let me just get my response ready for you please

Ben Jones :

By the wy would these be discretionary bonuses or contractual bonuses guaranteed once the triggers have been satisfied?

JACUSTOMER-jbijix7q- :

Haven't decided but your answer may help that decision.

Ben Jones :

This is a rather complex area of law actually and one that does not have a definitive answer, rather it relies on various interpretations from a selection of legislative texts that apply to maternity and paternity rights, discrimination and equal pay.

During statutory maternity leave, all terms and conditions are preserved, including all matters connected with the contract of employment, except those related to "remuneration", defined for this purpose as sums payable "by way of wages or salary". There is still no formal definition as to whether bonuses would be covered by that.

If you were paying a bonus for work already done then you would need to pay this even if the employee was off on leave at the time the bonus becomes payable. If the qualifying period covers a time when the person was off then you need to ensure that you calculate a pro rata entitlement to the bonus for any time during which the person was

  • Working
  • on compulsory maternity leave the period immediately following the birth
  • suspended on pregnancy or maternity grounds.

So there are still periods during the leave period which you should include in your calculations but essentially it is a matter of applying a pro rate calculation to calculate what bonus they may be due and it could mean appraising their performance over a shorter period of time.

Ben Jones :

Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? Thanks

Expert:  Ben Jones replied 2 years ago.
Hello, please let me know if I have answered your original question or if you need me to clarify anything else for you in relation to this? Thank you

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