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Equal pay: Pro-rata reduction of annual bonus while on ordinary maternity leave

This report relates to 1 case(s)

Key points

In Hoyland v Asda Stores Ltd, the EAT holds:

  • The tribunal had been correct to hold that, where an annual bonus scheme provides for the pro-rata reduction in the bonus payable to an individual for absence for any reason over a specified period during the year to which the bonus relates, a pro-rata reduction of an employee's annual bonus whilst she was on ordinary maternity leave was neither sex discrimination or a pregnancy related detriment.
  • Such a bonus constituted "wages or salary" for the purposes of reg.9 of the Maternity and Parental Leave etc Regulations 1999, and therefore was not payable during maternity leave (with the exception of the period of two weeks' compulsory leave), pursuant to s.71(5) of the ERA.