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Parental pay while on furlough to be calculated on usual earnings

Makbool Javaid, Partner - Simons Muirhead & Burton

The Maternity Allowance, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay (Normal Weekly Earnings etc.) (Coronavirus) (Amendment) Regulations 2020 came into force on 25 April 2020. These Regs amend the Regulations for the following family-related payments and benefit: Statutory Maternity Pay; Statutory Adoption Pay; Statutory Paternity Pay; Statutory Shared Parental Pay; Statutory Parental Bereavement Pay; and Maternity Allowance.  The purpose is to prevent an employee from experiencing disadvantage in relation to the aforementioned family-related statutory payments and Maternity Allowance as a result of their being placed on temporary leave under the Coronavirus Job Retention Scheme (CRJS). The amendments ensure that an employee’s eligibility for family-related statutory pay and their earnings-related rate of SMP, MA or SAP is the same as it would have been had they not been furloughed.  The Government is updating guidance for employers via the BEIS website as soon as practicable and the changes will be reflected in guidance on the Coronavirus Job Retention Scheme.

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