Q&As

A woman on maternity leave who is made redundant remains entitled to statutory maternity pay (SMP). (1) Can the SMP that is due be paid as a lump sum on redundancy or must it continue to be paid monthly? (2) Is the employee entitled to the company enhanced redundancy pay if the policy is silent on whether it stops if employment ends?

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Published on LexisPSL on 15/07/2021

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • A woman on maternity leave who is made redundant remains entitled to statutory maternity pay (SMP). (1) Can the SMP that is due be paid as a lump sum on redundancy or must it continue to be paid monthly? (2) Is the employee entitled to the company enhanced redundancy pay if the policy is silent on whether it stops if employment ends?
  • Can statutory maternity pay (SMP) be paid as a lump sum?
  • Is the employee entitled to company enhanced redundancy pay?

A woman on maternity leave who is made redundant remains entitled to statutory maternity pay (SMP). (1) Can the SMP that is due be paid as a lump sum on redundancy or must it continue to be paid monthly? (2) Is the employee entitled to the company enhanced redundancy pay if the policy is silent on whether it stops if employment ends?

For information generally:

  1. on contractual redundancy payments, see Practice Note: Contractual redundancy payments

  2. on maternity leave and pay, see Practice Notes: Maternity leave and Maternity pay

  3. on the special protection available to an employee under the Maternity and Parental Leave etc Regulations 1999 (MAPLE 1999), SI 1999/3312, reg 10 where a redundancy situation arises during her maternity leave, see Practice Note: The right to return to work after maternity leave, in particular section: Redundancy during maternity leave

Can statutory maternity pay (SMP) be paid as a lump sum?

The entitlement to SMP is not dependent on the employee remaining in employment for the whole maternity pay period (see Practice Note: Maternity pay, in particular section: SMP—entitlement).

There is nothing in the legislation to prevent the employer paying SMP in a lump sum on the termination of employment, provided the rules for paying NICs are obeyed (see the HMRC Statutory Payments Manual: SPM182500); SMP is regarded as earnings for social security

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