Statutory Maternity Pay (SMP) Calculations for Backdated Pay Awards on Maternity Leave (Alabaster Ruling)
(Doc ID 2904649.1)
Last updated on NOVEMBER 11, 2023
Applies to:
Oracle HRMS (UK) - Version 12.1 to 12.2 [Release 12.0 to 12.2]Information in this document applies to any platform.
Goal
How to recalculate the Statutory Maternity Pay(SMP) when employee's earnings are affected by a backdated pay rise between the start of the relevant period for calculating SMP and the end of her statutory maternity leave (Alabaster Ruling)?
"Following the European Court of Justice Decision in the case of Alabaster, the Statutory Maternity Pay (General) Regulations 1986 were amended from 6 April 2005.
As a result, the SMP AWE calculation must now take into account pay rises awarded, or which would have been awarded, to an employee had she not been on maternity leave. That is, if the pay rise falls between the start of the relevant period for calculating SMP and the end of her statutory maternity leave." - Source: GOV.UK
As a result, the SMP AWE calculation must now take into account pay rises awarded, or which would have been awarded, to an employee had she not been on maternity leave. That is, if the pay rise falls between the start of the relevant period for calculating SMP and the end of her statutory maternity leave." - Source: GOV.UK
Solution
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