Changing jobs while on maternity leave

You’re about to start maternity leave and want to know what your options are.

Maternity Leave - Bringing baby to work

 

Firstly, what maternity pay can you get and how is it calculated? Secondly, what would the impact be on your maternity pay if you start a new job or a new freelance role or business during your maternity leave?

Calculating SMP

If you are entitled to statutory maternity pay, it is paid for a period of up to 39 weeks as follows: –

The first 6 weeks are payable at the higher rate of SMP, which is 90% of your “normal weekly” earnings;

The remaining 33 weeks are paid at the lower rate of SMP (currently £145.18 per week) or 90% of your average weekly earnings, whichever is less.

The rate payable therefore depends on your “normal weekly” earnings. These are calculated as a weekly average of your total gross earnings from your employer (and associated employers) during a particular reference period (the “relevant period”).

As a rule of thumb, the earnings taken into account for monthly paid employees are those set out on the last two payslips before the Qualifying Week (which is the 15th week before your Expected Week of Confinement / Childbirth). For weekly paid employees, the last eight payslips before the Qualifying Week are taken into account.

Looking in more detail, the relevant period ends with the last normal pay day on or before the end of the Qualifying Week and begins after the last normal payday at least 8 weeks earlier (Regulation 21(3) of the SMP Regulations). Therefore, to calculate maternity pay, find the relevant period:-

  • Take the last normal payday on or before the end of the Qualifying Week. (If you have already given birth by then, take the last normal payday before the week of birth). That normal payday is the last day of the relevant period.
  • Count back 8 weeks from that day.
  • Take the last normal payday before that date. The day after that payday is the first day of the relevant period.

NB: if no “normal payday” is identifiable from your contract or from the employer’s normal practice, actual payment days are used.

What happens to SMP if I do other paid work on maternity leave?

The good news is that you can do self-employed work during maternity leave without any impact on your Statutory Maternity Pay.

However, if you do not qualify for SMP and are in receipt of Maternity Allowance you cannot do more than 10 paid Keeping in Touch Days during your maternity leave until your maternity pay is stopped.

>Many women who run their own businesses worry about the implications of taking leave for the continuity of their business. Workingmums.co.uk receives lots of questions from women who are worried about how to keep their business ticking over while they are on maternity leave. The advice is that your maternity pay will only end if you do paid work during your maternity leave. However, you can draw down profits from the business without maternity pay being affected.

If you start a new paid job during maternity leave you should inform HMRC and give your due notice. If you do not give in your notice, you will still be considered an employee of the first company.

Your SMP will stop the week you start the new job. You can get round this by starting the new job in the unpaid part of your maternity leave [after nine months].

If you have not given in and served your notice, you should also check your contract to see if you are required to inform your employer if you take up another job. For example, you may be required to obtain permission from your manager. Such permission should not be unreasonably withheld.

For enhanced maternity pay policies, you need to check your company’s policy as some include a clause about paying back the enhanced part of your pay if you do not return to work after maternity leave, usually for a specified period.




Comments [23]

  • Sarah says:

    Hello, I am 25 weeks pregnant and been offered a new job. However I have a 3 month notice perioid with my current company so would look to start my new job after maternity leave of about 7-8 months. Do i still qualify for SMP if i had in my notice at my current company now, or should i wait untill i am on maternity leave to hand in my notice to qualify for SMP? thanks

    • Mandy Garner

      Mandy Garner says:

      It’s worth waiting until the end of the 26th week of pregnancy to hand in your notice just to be on the safe side. After that you qualify for SMP no matter what happens afterwards if you meet all the other eligibility criteria.

  • kemi Amole says:

    Hi I’ve applied for a new job, but currently on maternity leave till May from my old job. If I was to get the new job am I able to finish my maternity before starting,?

  • Jennifer Heywood says:

    Hi, I’ve just been offered a new job whilst still on maternity leave. I only get Maternity allowance. Do I have tonwait until my notice period rundle out before starting my new job or can I hand in my resignation and then start my new job the following week?

    • Mandy Garner

      Mandy Garner says:

      Hi, You should serve your notice period, but many employers would not apply it in these circumstances. Just check with your employer that it is okay. Your MA will stop the week you start any new job.

  • Laura says:

    I have part time jobs and have already done and been paid for 10 kit days with one. If I were to do some more hours (home working) during the paid period of mat leave but not claim the pay until after smp finishes is that a way around losing my pay? I have the option to do some online training so its hours here and there but will add up to a week in the end and have a year to do it but the way I will claim it then my pay slip will detail dates that will be during my smp period. So I think my short question is do the kit days count for when you work or when the payment is made?

    • Mandy Garner

      Mandy Garner says:

      The KIT days count for when you work during the maternity leave period. Outside of the KIT days you should not be doing any paid work during your maternity leave unless it is self employed work.

  • Kayleigh Anderson says:

    Hi my paid maternity leave is over with my job I’m now on unpaid leave till october.. can I go to work for a different company now ? As I’m still classed as on maternity leave as the job I applied for starts before my leave ends.. I want to go back to this job also but not until October until my unpaid leave has finished..

    • Mandy Garner

      Mandy Garner says:

      Hi, Your SMP would not be affected, but you should check in your contract if you are allowed to do a second job as you are still under contract to your initial employer. You can do self-employed work during maternity leave without any impact on your SMP.

  • Jenifer Moordown says:

    If you want to start a new job at the end of your maternity leave, not return to the old one do you have to pay back the SMP to the place you leave?

    They said that you have to give 8 weeks to go back and then work for 13 or else pay it back? Is that right?

    Thanks

    • Mandy Garner

      Mandy Garner says:

      Hi, You don’t have to pay back SMP if you don’t return. It is only included in some enhanced maternity leave contracts. SMP is six weeks at 90% pay followed by 33 weeks at the statutory rate.

  • Michelle Gray says:

    I’ve just started a new job 17.1.2020. My maternity leave didn’t finish till February 17th so I’ve been paid from old job even though I told beginning of January I would not be returning, is this correct or have I got to pay this back.

  • Amy says:

    Hi, I’m currently on maternity leave but quit my job 6 weeks ago giving my 4 weeks notice. He’s still paying my maternity but I want to start a new job, do I have to tell him or will HMRC just stop him from claiming it?

  • Amanda says:

    Hi there I’m currently on maternity leave from my full time job and this finishes in may 2020, If i accept a job and start at the end of April I was woundering if I would still get my last maternity payment and my 2 weeks holidays that I’m due from work. This would be a week before my maternity stops.

    • Mandy Garner

      Mandy Garner says:

      Hi, Your SMP would stop the week you start a new paid job. You would accrue holiday up to the final day of employment at your old employer after serving your notice.

    • Sara Kelly says:

      I have been offended a new job while on maternity as it ends in april. What way will it work if I have to do 5 weeks training and dont get paid for 4 weeks.

      • Mandy Garner

        Mandy Garner says:

        Hi Sara,
        Will you still be in the paid part of your SMP at this point?

        • Michelle Gray says:

          I’ve just started a new job 17.1.2020. My maternity leave didn’t finish till February 17th so I’ve been paid from old job even though I told beginning of January I would not be returning, is this correct or have I got to pay this back.

          • Mandy Garner

            Mandy Garner says:

            Hi Michelle,
            Your maternity pay should stop the week you start a new job so you will need to inform HMRC and repay any maternity pay paid after you started work.

        • Ola says:

          Hi my maternity finish in the end of September. Till now I got payd SMP (9months) so next three months without payment. My question is:
          Can I go back to the same job earlier than after my year maternity, for part time? Do I have the same rights to holidays etc

          • Mandy Garner

            Mandy Garner says:

            Hi, If you want to return early from maternity leave you need to give at least eight weeks’ notice. If you were to return part time tour holidays would be pro rata’d ie if you worked three days instead of five and you got 28 days holiday in the past, you would be entitled to three fifths of 28 days.


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