Bigger pension costs from changes to maternity law?
Posted on: 21st April 2008
Changes to maternity law introduced earlier this month in the UK could see employers lumbered with huge costs in forking out for unforeseen pension payments for women on maternity leave.
Employment experts have warned that under amendments to the Sex Discrimination Act (SDA) introduced on 6 April, employers could now be liable for pension contributions for as long as a female employee takes maternity leave - up to a year in some cases.
The legislation states that an employer only needs to pay pension contributions for a maximum of 39 weeks. But Kate Gater, partner at law firm Berwin Leighton Paisner, warned that even employees who are not eligible for statutory maternity pay because they have insufficient service could now be entitled to extended pension payments.
Read more at Personnel Today.