Navigating the complexities of bonus entitlements during maternity leave is essential for HR professionals aiming to ensure compliance and foster an inclusive workplace. As of 2025, UK employment law provides clear guidelines on how bonuses should be treated when an employee is on maternity leave.
Understanding bonus types
1. Contractual bonuses
These are bonuses explicitly stated in the employment contract. Employees on maternity leave are entitled to receive:
Bonuses accrued before the start of maternity leave.
Bonuses during the compulsory maternity leave period (the first two weeks post-birth, or four weeks for factory workers).
Bonuses after returning to work.
Employers may pro-rate bonuses to reflect the period the employee was actively working, excluding the compulsory leave period.
2. Discretionary bonuses
These bonuses are awarded at the employer's discretion and are not guaranteed. While employers have flexibility, they must ensure that:
The criteria for awarding discretionary bonuses are applied consistently.
Employees on maternity leave are not unfairly disadvantaged.
Any pro-rating of bonuses is justified and based on clear, objective criteria.
Legal framework
The Equality Act 2010 prohibits discrimination based on pregnancy or maternity. Failing to pay bonuses that an employee is entitled to, or unjustly reducing them due to maternity leave, can constitute unlawful discrimination.
Best practices for HR professionals
Review bonus policies: Ensure that all bonus schemes clearly define eligibility criteria and how maternity leave affects bonus calculations.
Communicate transparently: Inform employees about how their bonuses will be calculated during maternity leave, including any pro-rata considerations.
Document decisions: Keep detailed records of how bonus decisions are made, especially when pro-rating bonuses for employees on maternity leave.
Seek legal advice: Given the complexities, consult with legal experts to ensure compliance with current laws and regulations.
By adhering to these guidelines, HR professionals can ensure fair treatment of employees on maternity leave, maintain compliance with UK employment law, and promote a supportive work environment.
This article was created with insights from Lex HR - your always-on HR legal assistant. Lex HR helps HR professionals navigate complex employment law with confidence, providing real-time, reliable advice tailored to your needs. Try it free today and see how much easier compliance can be.
