If an employee goes on maternity leave during the salary sacrifice period and their salary falls below National Minimum Wage the employer has the option to initiate a repayment holiday or to continue with payments.
Employers would need to supply the employee with an amendment to the Salary Sacrifice agreement for signature.
The Office of Fair Trading rules state that if the hire agreement term runs over 18 months the employee has a right to cancel the contract and therefore employers need to keep this in mind when extending the term of the salary sacrifice.
If you'd like to elaborate further on how we can improve this content, you could share some specific feedback with the article author below. This feedback form does not connect you to Customer Service.
If you need to get in touch with the Customer Service team, press the 'Contact Us' button instead.
