The BCC said there is confusion among employers about whether they areliable to pay for childcare vouchers during unpaid maternity leave,after a ruling in Europe last year resulted in changes to the rules oncontractual benefits.
Employees whose babies were born on or after 5 October 2008 are nowentitled to receive contractual benefits throughout their entire periodof maternity leave whether they are being paid or not. This means theemployer should make monthly payments for childcare vouchers, which theemployee would normally make herself through salary sacrifice, until shereturns to work.
But employers are unsure whether to treat vouchers as remuneration or acontractual benefit.
Policy adviser at the BCC Abigail Morris warned that if they are liable,it could put off smaller businesses from offering vouchers.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here
