We do not currently pro-rate annual discretionary bonuses for employees who have had maternity or shared parental leave. What do other organisations do? Thank you in advance.
Comments (8)
Anna Findlay (United Utilities)
07:23AM 13 Jan 2020
We pro rata based on actual pay earned, this includes any statutory maternity pay. Its the same for those on sick leave. Bonus is paid on actual pay for all.
I should also add that if you're pro-rating for mat. leave, you should also be pro-rating for long-term sickness absence in order not to be treating mat. leavers differently. Though the guidance I have received suggests that we can interpret ourselves what constitutes 'long-term sick', provided it's published in our bonus guidance.
We also pro-rate bonus for maternity leave. You should only be doing this if it's an individual contribution based bonus (i.e. performance related) - if it's the equivalent of a Christmas bonus or flat cash amount irrespective of individual contribution, then you would be discriminating if you pro-rate for mat. leave. Also remember if in the UK be sure to still allow for 2 weeks of mandatory maternity leave (think it's 4 weeks if the employee a factory worker) don't fall into the trap of pro-rating the full period of leave!
Iain Barton (Aegon Asset Management)
06:00PM 09 Jan 2020
We allow accrual for first 4 weeks of any absence, and pro-rate thereafter.
We pro rata based on actual pay earned, this includes any statutory maternity pay. Its the same for those on sick leave. Bonus is paid on actual pay for all.
I should also add that if you're pro-rating for mat. leave, you should also be pro-rating for long-term sickness absence in order not to be treating mat. leavers differently. Though the guidance I have received suggests that we can interpret ourselves what constitutes 'long-term sick', provided it's published in our bonus guidance.
We also pro-rate bonus for maternity leave. You should only be doing this if it's an individual contribution based bonus (i.e. performance related) - if it's the equivalent of a Christmas bonus or flat cash amount irrespective of individual contribution, then you would be discriminating if you pro-rate for mat. leave. Also remember if in the UK be sure to still allow for 2 weeks of mandatory maternity leave (think it's 4 weeks if the employee a factory worker) don't fall into the trap of pro-rating the full period of leave!
We allow accrual for first 4 weeks of any absence, and pro-rate thereafter.