DANSP36300 - Notices of decision: Wording of statutory payments decisions: Period covered by entitlement to statutory maternity pay decisions
DANSP36100 explains the general principles to apply when wording decisions about entitlement to statutory payments.
Statutory maternity pay (SMP) can be paid from the start of the maternity pay period (MPP) which can start any day of the week. Where a decision is about a person’s entitlement to SMP and the dispute:
- affects the whole of the MPP - the period should start with the first day of the MPP and end with the last day of the MPP, or
- is about part of the MPP - show the disputed period, not the whole MPP.
You should only show past periods, do not include future periods.
You should explain in a covering letter how the amounts have been calculated. DANSP36700 provides guidance about how to show the amount of SMP a person is entitled to.
The decision should show who is liable to pay the SMP. For guidance about liability to pay decisions see DANSP36900.
Example 1 - Decision issued after entitlement ends, whole period of entitlement disputed
On 14 April 2021 the following decision is issued:
My decision is that:
Angela Jones is entitled to statutory maternity pay of £405.00 per week for six weeks from 1 July 2020 to 11 August 2020 and £151.97 per week for thirty three weeks from 12 August 2020 to 30 March 2021.
ABC Limited is liable to pay statutory maternity pay of £405.00 per week for six weeks from 1 July 2020 to 11 August 2020 and £151.97 per week for thirty three weeks from 12 August 2020 to 30 March 2021.
Example 2 - Decision issued after entitlement ends, part of period of entitlement dispute
In this example, the MPP ends 30 March 2021 but the facts show that the employer paid the right amount of SMP for the 33 weeks from 12 August 2020, so the period in dispute is the first six weeks of the MPP. The decision has been restricted to the first six weeks.
On 14 May 2021 the following decision is issued:
My decision is that:
Angela Jones is entitled to statutory maternity pay of £405.00 per week for six weeks from 1 July 2020 to 11 August 2020.
ABC Limited is liable to pay statutory maternity pay of £405.00 per week for six weeks from 1 July 2020 to 11 August 2020.
Example 3 - Decision issued during the period of entitlement
Where a decision is issued before it is known that entitlement to SMP has ended, for example, during a MPP, do not issue an open ended decision. Instead, the decision should show that entitlement may continue.
In this example, Angela Jones will be entitled to the higher rate until 11 August 2021 and the standard rate from 12 August 2021 for a maximum of 33 weeks or until she no longer satisfies the qualifying conditions. This should be explained in a covering letter.
On 7 August 2021 the following decision is issued:
My decision is that:
Angela Jones is entitled to statutory maternity pay of £405.00 per week for five weeks from 1 July 2021 to 4 August 2021, which ABC Limited is liable to pay.
Angela Jones’ entitlement to statutory maternity pay and the liability of ABC Limited to pay it, will continue until the maximum amount of statutory maternity pay has been paid or until Angela Jones no longer satisfies the conditions for entitlement.
Employer declared bankrupt or in liquidation during disputed period of entitlement
If an employer is declared bankrupt or in liquidation during a disputed period of entitlement to SMP, the period covered by the decision should end with the last day of the week before the employer was declared bankrupt or date of liquidation. Do not include the week that included the date of bankruptcy or the date of liquidation. SPM181200 explains that HMRC is liable to pay any SMP payable from the start of the week following the date of bankruptcy or date of liquidation, whichever is appropriate.