Questions and Answers
Holiday Entitlement When Returning From Maternity Leave
I have an employee who has recently returned from maternity leave. Previously she was working full-time, and is now returning to work from maternity leave on a part-time basis. How do I work out her holiday pay entitlement?
Employees continue to accrue both their full statutory annual leave entitlement of 5.6 weeks plus any additional contractual entitlement throughout both ordinary maternity leave and additional maternity leave. This also applies to employees who take paternity and adoption leave.
For full-time employees who wish to return to work on a part-time basis after such leave, the holiday is calculated at their original contractual agreement and then adjusted from the date they commence the part-time employment.
Here’s an example based on the holiday year beginning from the 1st of January:
A female staff member is considered to be a full-time employee from the 1st of January to the 31st of October, when she returns from maternity leave. However, from the 1st of November she wishes to work 2.5 days per week.
Her holiday entitlement from January to October will be 28 days / 12 months x 10 months = 23.33 days.
For November to December it will be 2.5 days x 5.6 weeks = 14 days / 12 months x 2 months = 2.33 days.
The total annual leave will be 23.33 days + 2.33 days = 25.66 days for the year.
Date published 5 Dec 2012
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.