Bonus when on maternity leave?

C

chrismc1

Guest
Does anyone know what way bonuses are calculated if you are on Maternity Leave. I commenced maternity leave, on full pay, in June of 07 and my bonus for 07 is due to be paid in April 08. I have heard conflicting reports that this will be prorated for the time I was physically in the office (50% of the year) or paid in full as when you are on Maternity Leave you must be treated as if you are in full employment as per the Maternity Pretection Act....... Can anyone clarify............. it will make a big difference to me as to whether I get a 20% or 10% bonus payment in April.
 
What are the terms in your contract under which bonuses are issued?
 
For most or all purposes maternity leave is treated as normal working time. Does your contract of employment say much about (a) how bonuses are calculated etc. and (b) how maternity or other leave might affect them?

Post crossed with Purple's.
 
Contract states that i will ''qualify for an annual Performace Bonus of up to 20% of your gross annual salaey payable on achievement of specific targets'' - targets which were set for the period have been achieved......
 
chrismc1 said:
Contract states that i will ''qualify for an annual Performace Bonus of up to 20% of your gross annual salaey payable on achievement of specific targets'' - targets which were set for the period have been achieved......
Click to expand...
Then it sounds like you should get it.
 
My boss bot au fait with all this at all. Tried to tell me that my annual leave was prorated for last year and that bonus is prorated also. Have sent a query to hr department for clarification. Have done my own research and it looks like full bonus should be paid. Just wanted an independant point of view....
 
Chris,

All of your rights, bar the right to remuneration, must be maintained throughout the duration of your maternity leave. Under European law, "remuneration" is limited to the payment of wages or salary.

In others words, you will not have an entitlement to a bonus payment in relation to your period of absence on maternity leave, if the bonus payment is in the nature of wages - i.e. it is a monetary amount based on personal performance / performance targets.

If that is the case, and your bonus is based on meeting performance targets - your employer may reduce your total bonus on a pro-rata basis. It should be noted that your period of COMPULSORY maternity leave (i.e. the two-week period around your confinement that you are not legally permitted to work) cannot be taken into account in any pro-rata reduction.
e.g. If you are absent for 4 months on maternity leave, your entitlement to an annual performance bonus may be reduced by one third - but your employer must also give a credit for the period of compulsory materntiy leave. In effect your entitlement will be reduced by 3months 2 weeks.

Alternatively, if the bonus payment is not linked to performance targets, you will be entitled to 100% of the bonus as it is not in that nature of payment of wages or salary.

Thus, if your company offers a bonus for people who stay for a certain amount of time, your qualifying length of service for such a bonnus cannot be reduced by reference to any periods of absence due to maternity leave.
 
In fact it is not 2 weeks mandatory leave but 6. at least 2 weeks before and 4 weeks after expected date of confinement.

to quote relevant section on citizens information site "At present, at least 2 weeks have to be taken before the end of the week of your baby's expected birth and at least 4 weeks after."
 
chrismc1 said:
Contract states that i will ''qualify for an annual Performace Bonus of up to 20% of your gross annual salaey payable on achievement of specific targets'' - targets which were set for the period have been achieved......
Click to expand...

When you say that targets were achieved, which period are you referring to? The period prior to going on leave, or the period of the leave itself? It would seem very unusual that someone could have achieved the targets set for the leave period before going on leave.
 
I had the very same issue a few years ago, The first time I went on maternity leave my bonus was unaffected, however the 2nd time around the company changed its policy on this ( just forgot to tell us). Bonuses are now paid for the year i.e in your case 20% but are prorated for any unpaid leave taken as part of your maternity leave
 
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