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No statutory obligation to continue childcare vouchers under salary sacrifice scheme during maternity leave

March 18, 2016

The EAT has held that childcare vouchers provided under a salary sacrifice scheme are part of the employee's "remuneration" under regulation 9 of the Maternity and Parental Leave etc Regulations 1999, and therefore do not have to be provided during maternity leave. 


Accordingly, it is not an unlawful detriment, nor discriminatory, for the employer to cease to provide them during a period of maternity leave, as the obligation to maintain terms and conditions during maternity leave does not extend to remuneration. However, where the vouchers are provided on top of salary, without a salary sacrifice, they are not part of the employee's remuneration and must therefore be continued.


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