Zero Hours Contract and Maternity Pay: Understanding Obligations
If you utilise zero hours contracts in your organisation, there are many employer obligations to consider on employee rights in the workplace before making any decisions on statutory pay. If a zero hour contract worker is expecting a baby, you might be wondering about their maternity pay entitlements. Navigating maternity rights can be challenging, so this is your go-to guide to help you understand what obligations are on maternity pay eligibility for workers on zero-hour contracts.
Qualifying for Maternity Pay on a Zero Hours Contract
Zero hour contract rights for employees: To qualify for Statutory Maternity Pay (SMP) on a zero hours contract, an employee must:
- Have 26 weeks’ continuous employment by the 15th week before
their expected due date, otherwise known as the Expected Week of Confinement/Childbirth (EWC) - Earn at least £123 per week on average
- Give correct notice and proof of pregnancy. Proof of pregnancy may be a doctor’s letter or a maternity certificate known as a MATB1 form
If an employee meets these conditions, they are eligible to receive Statutory Maternity Pay (SMP) for 39 weeks – 90% of average earnings for the first 6 weeks, then £184.03 or 90% of earnings (whichever is lower) for 33 weeks (rates apply from 7th April 2024, subject to change annually).
Maternity Allowance: An Alternative to SMP
If an employee does not qualify for SMP on a zero hours contract, they may be eligible for Maternity Allowance. To get this, the person must have:
- Been employed or self-employed for at least 26 weeks in the 66 weeks before their due date
- Earned at least £30 per week on average in 13 of those weeks
Maternity Allowance is paid at a standard rate of £184.03 per week or 90% of average earnings, whichever is less (April 2024 figures)
Taking Time Off: Maternity Leave on a Zero Hours Contract
The employment status affects right to maternity leave when on a zero hours contracts. Employees are entitled to 52 weeks’ Statutory Maternity Leave, regardless of length of service. However, workers do not have this automatic right and will need to arrange time off with their employer.
Keeping in Touch Days and Maternity Pay
Employees can work up to 10 “Keeping in Touch” days (aka KIT days) during their maternity leave without it affecting maternity pay on a zero hours contract. This helps businesses stay connected with the employee ensuring to offer updates that are relevant to their role. The employee also has a right to be made aware of any vacant job opportunities and should be considered fairly for any available internal promotions.
Fathers and Partners: Paternity Rights on Zero Hours Contracts
Fathers or partners on zero hours contracts may qualify for 1-2 weeks’ paternity leave and pay if they meet similar conditions to SMP. This can provide valuable support during those early days with a new baby.
Shared Parental Leave and Zero Hours Contracts
Shared Parental Leave (SPL) allows eligible parents to split up to 50 weeks of leave and 37 weeks of pay. However, workers on zero hours contracts cannot take SPL, although they may still qualify for Shared Parental Pay (ShPP) if they meet the criteria.
Dealing with Maternity Discrimination
It is seemingly easy to fall into the trap of discriminating against an employee on grounds of pregnancy/maternity due to the gap in employer abilities and knowledge on how to navigate maternity leave rights. Despite the length of service, any dismissals based on these grounds are classed as ‘automatically unfair’ and any unfavourable treatment on these grounds is unlawful. We encourage employers to manage any disputes informally at first instance, however, due to the nature of the matter, we do see these issues quickly find its way into the Tribunal courts.
Conclusion
Understanding employee rights around maternity pay in zero hours contracts is essential for planning talent/labour ahead of time. It allows employers to focus on ensuring a smooth transition of new cover staff and allows for scope to maximise the skills and talent of the existing workforce.
While navigating the processes of zero hours contracts and maternity pay can be complex, this guide should provide clarity on employee entitlements as well as employer obligations.
Remember, if you have any doubts, you should seek out-sourced professional HR advice. You can call us on 0330 133 5088 or email info@hrhabitat.co.uk for further information/advice on the matter.
