Maternity allowance backdating

This applies if the pay rise was effective from anytime between the start of the 8 week relevant period for Statutory Maternity Pay ( She should still benefit from a pay rise even if she doesn’t intend to return to work with you after her maternity leave has ended.If a pay award is made after she has terminated her employment and the pay rise is backdated into a time when she was working for you or was on maternity leave with you, she may be entitled to benefit from the pay rise.Self-employed mums need to be aware of the financial implications of holding a Small Earnings Exception Certificate if there is any chance they might become pregnant in the future.And if anyone reading this is pregnant but holds a Small Earnings Exception Certificate, act fast to extinguish it!This must all be done within 28 days from the date the employee gave notice of absence (or the date she gave birth if this had occurred earlier).It is your employee’s responsibility to tell you if she is detained in legal custody usually this means if she is arrested or in prison.

There is a great deal of mis-information on the internet – I’ve seen articles on mumpreneur websites recommending that start-up business mums opt for the Small Earnings Exception Certificate without any discussion of the impact it has on maternity benefits.As a comparison, 13 weeks of Class 2 contributions costs £35.75 – go do the maths!And here’s the important small print: for any week you have held a Small Earnings Exception Certificate, you’ll only ever qualify for the minimum MA, even if you have been voluntarily paying Class 2 contributions as well (this is to stop you getting pregnant and then paying Class 2 contributions in order to get maternity allowance! If you want to work the system in this way, you must get your Small Earnings Exception Certificate cancelled first.If you have paid Class 2 contributions for at least 13 weeks in your test period, you’ll get the maximum rate (£138.18 a week for 39 weeks).But if you have held a Small Earnings Exception Certificate you’ll only get the minimum rate (£27 a week for 39 weeks); a huge £4,336.02 difference over the maternity period.

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