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On 3 October 2008, the European Commission published proposals that would amend the existing Directive by
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We have an answer to the question about pension contributions for employees who are not entitled to any paid maternity leave.   The contradictory legislation for adoption leave is not even mentioned and we still disagree with BERR’s interpretation of the term “remuneration”.

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This is a technical article, explaining a number of issues that require clarification from the Department for Business, Enterprise and Regulatory Reform (BERR) if employers are going to apply correctly the new maternity and adoption leave rules from October 2008. Unfortunately, BERR appears reluctant to help employers apply its own employment law correctly. The issues discussed in this article cover the ongoing provision of benefits during maternity and adoption leave, in particular, the payment of employer pension contributions, the accrual of pensionable service , and the treatment of car allowances and housing allowances.

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The Business Link website, operated by the Department for Business, Enterprise and Regulatory Reform, has been updated with guidance on the changes to maternity and adoption rights from October 2008.  It includes information about employees’ rights to receive contractual benefits during additional maternity or adoption leave and the restricted right to continued pension contributions during paid maternity or adoption leave.

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UK FlagAfter some delay, the Regulations that will change the rules governing the application of terms and conditions during maternity and adoption leave came into force on 23 July 2008. The new provisions, as they relate to
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UK flagIn a new detailed document entitled “Statutory maternity leave – salary sacrifice and non-cash benefits”, HMRC provides guidance for employers on their statutory obligation to maintain contractual benefits while employees are on maternity leave. Some of the guidance is practical, some is questionable and contentious. The document includes many worked examples and sections that clarify common misconceptions. The following notes are in three parts; first a summary of the current law and the changes that are being made during 2008, second a summary of the guidance in HMRC’s document, then some comments on the issues raised by some of the guidance.

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