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06 April 2016

Childcare vouchers during maternity leave

The Employment Appeal Tribunal (EAT) has held that it is not discriminatory for an employer to stop providing childcare vouchers to a woman who was on maternity leave.

Peninsula Business Services v Donaldson

The Employment Appeal Tribunal (EAT) has held that it is not discriminatory for an employer to stop providing childcare vouchers to a woman who was on maternity leave.

In Peninsula Business Services v Donaldson, the EAT said that the vouchers counted as salary because they had replaced pay under a salary sacrifice scheme. As women on maternity leave are entitled to the benefits of their terms and conditions of employment – but, crucially, that doesn’t extend to remuneration – the employer was entitled to withhold the vouchers.

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