Biggart Baillie Solicitors

Company sick pay not payable during maternity leave

27th February 2008

It has been held that a woman is not entitled to contractual sick pay during any period of maternity leave.  In the case of Sutcliffe v Department of Work and Pensions, it was decided that sick pay was part of a woman's 'remuneration'. 

In this case, the employee was certified sick before the commencement of her maternity leave.  She received contractual sick pay until she started her maternity leave, from which point she received Statutory Maternity Allowance.

During a period of maternity leave, a woman's employment contract remains in full force and effect relating to certain terms and conditions of employment.  However, the terms and conditions relating to 'remuneration' do not apply during any period of maternity leave.  The Employment Rights Act 1996 specifies that only a woman's wages or salary should count as 'remuneration'.  Ms Sutcliffe claimed she was entitled to Company Sick Pay as this was a contractual benefit and not part of her wages or salary. The Employment Appeal Tribunal disagreed.

Employers will, therefore, have some comfort that sick pay need not be paid to female employees on maternity leave.  However, you still need to be mindful that other financial benefits, such as bonuses, are not 'remuneration' and may still need to be paid to these employees.

Link to case:- http://www.employmentappeals.gov.uk/Public/Upload/07_0319fhLBZT.doc

The information contained in this article is given for general information only and does not constitute legal advice on any specific matter.