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21-Apr-08 10:15 [Legal]
Maternity law change 'could affect pension payments' Changes in maternity laws which were introduced earlier this month could see companies forced to pay pensions payments for women while they are on maternity leave.
The introduction of the Sex Discrimination Act means that employers may have to make unforeseen pension payments for as long as employees are on leave which can be up to a year, reports Personnel Today.
Kate Gater, partner at law firm Berwin Leighton Paisner, told the magazine: "Potentially, employers are open to claims by employees for pension payments during the whole of their maternity leave."
She added that because the definition in the act describes payments to employees as wages or salary, it can be argued that pensions are outside this definition so an employer would need to "continue contributions for both ordinary and additional maternity leave, whether or not the employee is getting statutory pay".
Berwin Leighton Paisner employs around 650 lawyers and has offices in London, Brussels and Singapore.
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