Maternity rights are set to change for employees whose babies are born on or after 5 October. After this date staff will be entitled to non-paid benefits such as the use of a company car or discounted gym membership.
However the new regulations do not specify if an occupational pension constitutes a non-paid benefit and employers could end up unsure as to whether to continue to make contributions during additional maternity leave.
Ingrid Everson, partner at Eversheds, says there is conflicting advice that is confusing employers. "HM Revenue and Customs says employers should continue to pay pension benefits yet the Department for Business Enterprise and Regulatory Reform does not agree, saying employers do not need to contribute into pensions after a woman has been off work for 26 weeks on maternity leave."
She added: "There is definitely a bit of confusion here. Employers might unnecessarily be paying pension benefits. However, if they do not, an employee might take a claim to a tribunal and, if they win, their employer might end up having to pay back contributions."
Maternity benefits changes cause confusion
Employers will not understand changes in maternity pension benefits, and they could also end up out of pocket, according to legal experts.
