News
Childcare Vouchers Regarded as Part of Remuneration
11 Mar 2016
What is Tribunal Decision on Childcare Vouchers
The Employment Appeal Tribunal (EAT) has overturned a tribunal decision that it was discriminatory for an employer to suspend during maternity leave a childcare voucher scheme provided through salary-sacrifice.
The EAT said the colloquially referred to term as salary-sacrifice should more properly be categorised as a ‘salary diversion’ and distinguished this process from a scheme whereby vouchers are provided as an additional perk or benefit.
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The EAT discounted HMRC’s guidance that salary-sacrifice childcare vouchers should continue to be provided throughout maternity leave. It found that as the salary was being diverted into the childcare vouchers, the vouchers constituted remuneration and therefore they did not need to be continued during maternity leave. |
For any questions on maternity leave, childcare vouchers or discrimination, please contact our employment law specialist Victoria Wright at 01273 249277 or via email: vjw@deanwilson.co.uk
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