What is Statutory Maternity Pay (SMP)?

The US has no federal law granting paid maternity and family leave, though some states have enacted paid leave for family members. These states include California, New Jersey, and New York.

Other countries have enacted Statutory Maternity Pay. In the UK, SMP is paid for up to 39 weeks. Mothers earn 90% of their average weekly earnings (before tax) for the first 6 weeks.

To qualify for SMP in the UK, employees must:

• Be on payroll in the ‘qualifying week’ (the15th week before the due date)
• Provide notice
• Prove that they’re pregnant via a doctor’s note
• Have been continuously employed by the company for at least 26 weeks up to any day in the qualifying week
• Earn at least £123 a week (gross) in an 8-week ‘relevant period’

How do employees claim SMP?

Employees must provide employers with an MATB1 form (medical evidence of the date the baby is due) at least 28 days before they start their paid leave. Many women give written notice for paid maternity leave by the 15th week before the baby’s due date.

What if the employee leaves the company before maternity leave begins?

Employees are granted SMP even if they leave employment as long as they were employed in the 15th week before the baby’s due date and the mother meets certain criteria.

SMP is not repayable, so if the mother decides not to return to the company following the birth of her child, she does not need to pay back SMP. Employers can take a few approaches when paying SMP:

• Employers can continue paying SMP weekly or monthly for the entire 39-week SMP period (or until the mother starts a new job, whichever is sooner)
• Employers can give mothers the total remaining SMP entitlement as a lump sum upon her termination as part of her redundancy package.

Can self-employed workers earn SMP?

Contract workers cannot get Statutory Maternity Pay unless they’re self-employed with their own limited company. The company could pay for statutory maternity pay and the employee could reclaim it from HMRC.