This is a preview. To continue reading please log in or Register to read this article

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. It was clear from the ECJ's judgments in Gillespie and Alabaster, that women are not entitled to receive full pay while on maternity leave as if they had not been absent, and there was therefore no pregnancy-related detriment suffered under s.47C of the ERA in not receiving an attendance-related bonus in respect of the period of ordinary maternity leave.