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Hmrc childcare vouchers maternity leave
Salary was diverted from earnings to purchase vouchers under a salary sacrifice scheme that amounted to remuneration.
Taking maternity leave, the personalized gifts houston Maternity and Parental Leave Regulations 1999 (MPL Regulations) provide that an employer is under no obligation to continue an employees normal remuneration (defined as sums payable to the employee by way of wages or salary) during maternity leave.
Hmrc mentions in its letter that the judgement has implications for all non-cash benefits delivered total rewards tier levels through salary sacrifice arrangements during any type of absence for which statutory pay is available, and goes on to say that the issues therefore need careful consideration but the intention.She argued that childcare vouchers were required to be provided during maternity leave as a benefit and so should be maintained during maternity leave.Some scheme providers have questioned the hmrc interpretation, for which there has not been any authoritative judicial guidance until recently.Neither could it have been Parliaments intention to require employers to incur the cost of providing vouchers when there was no salary that could be sacrificed nor to provide a windfall benefit for the employee.If the baby dies, employees still qualify for leave or pay if the baby: is stillborn after the start of the 24th week of pregnancy dies after being born, employment rights.It is not, and should not be taken as, legal advice.The helpbook says that employer provided benefits provided under a contract of employment must continue to be provided whilst an employee is absent from work on maternity leave.If an employer offers childcare vouchers as a benefit additional to salary then the employer would need to supply the vouchers during maternity leave.Eligible employees can take up to 52 weeks maternity leave.By offering participation in childcare voucher schemes, employers also benefit from certain tax and NIC savings.Its employee, Donaldson, refused to join the scheme on these terms, believing they were discriminatory, and brought a tribunal claim.Employers have reflected this approach in periods of adoption leave and shared parental leave where normal remuneration is likewise similarly suspended.The lack of any judicial guidance on the "remuneration" v "non-cash benefit" debate has made this a 'grey' area for years.The Employment Appeal Tribunal (EAT) has recently raised doubts on HM Revenue and Customs (hmrc) guidance on the use of childcare vouchers while on maternity leave in the case of, peninsula Business Services v Donaldson.Such a condition could therefore be imposed.Is an employer under an obligation to continue providing the vouchers?
Pay which was being substituted with vouchers under a salary sacrifice scheme.
Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website.
You must write to them confirming the new end date for their leave.
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