Definition
Any employer-provided maternity pay that exceeds the Statutory Maternity Pay minimum. Enhanced schemes vary widely but commonly offer full or partial pay for a set period beyond the statutory entitlement, often conditional on the employee returning to work afterwards.
UK Context
There is no legal obligation for UK employers to offer enhanced maternity pay, but many do to attract and retain talent. Following case law including Ali v Capita and Hextall v Chief Constable of Leicestershire, employers who enhance maternity pay should consider whether they also enhance shared parental pay to avoid sex discrimination claims.
Best Practices
- Clearly document enhanced maternity pay terms in the employment contract or policy, including any clawback provisions
- Review whether your enhanced maternity pay is also offered for shared parental leave to reduce discrimination risk
- Consider benchmarking your scheme against competitors and industry standards to remain competitive
Frequently Asked Questions
Can an employer require employees to return to work after receiving enhanced maternity pay?
Employers can include a clawback clause requiring repayment of the enhanced element if the employee does not return for a specified period after maternity leave. The statutory element cannot be clawed back. Clawback terms must be clearly communicated in advance.
Do employers have to enhance shared parental pay if they enhance maternity pay?
There is no explicit legal requirement, but employment tribunals have considered whether failing to enhance shared parental pay constitutes sex discrimination. To reduce risk, many employers now align their enhanced pay policies across maternity, paternity, and shared parental leave.