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A Payroll Solution For Maternity Leave Complexities

A Payroll Solution For Maternity Leave Complexities
Alison Clynes
Written by Alison Clynes
Tuesday, 04 May 2010 23:00

Nowadays working mothers are the norm. New mums usually return after paid maternity leave, to the posts retained for them. There is flexibility in how much maternity leave a mother chooses to take. Part-way through, they can decide to return earlier than planned, or not at all. This is great for modern mothers, but for businesses - especially those with a high proportion of female employees - coming up with payroll solutions is very complicated.

Rules for maternity leave and pay entitlement are complex. There is Statutory Maternity Leave, Ordinary Maternity Leave and Additional Maternity Leave. Who qualifies for what depends on several factors, including length of service, chosen length of leave and the amount of normal wage. The employee may be granted extra leave or a higher rate of maternity pay than the legal minimum through her individual employment contract. A small business may struggle to administer effective payroll solutions in this respect. A larger business may be more practiced at the calculations, but have many more of them to deal with. Add to this the complication of administering pay for maternity leave cover workers and the legal and financial penalties for getting it wrong, and the idea of outsourcing payroll services can look very attractive to hard pressed businesses.

Using payroll processing services, such as those we provide at Dataplan Payroll, means no more worrying about the complexities of maternity leave payments. Businesses, and mothers-to-be, can be confident our expertise will get the calculations right - leaving them to concentrate on more important things.

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