The Data Gals

Maternity leave is a crucial time for new mothers to bond with their babies and recover from childbirth. But what happens if you decide not to return to work after your maternity leave? Do you have to pay back your maternity pay? The answer depends on the type of maternity pay you received and whether your employer included a clawback clause in your policy.

Statutory Maternity Pay & Maternity Allowance

If you only ever received Statutory Maternity Pay (SMP) or Maternity Allowance (MA) and did not receive any enhanced maternity pay from your employer, then you do not have to pay anything back. These are government-provided benefits, and there is no requirement to repay them if you choose not to return to work.

Enhanced Maternity Pay & Clawback Clauses

If your employer offered enhanced maternity pay, they may have included a clawback clause in their policy. This clause states the amount of time you must return to work after your maternity leave to avoid repaying the enhanced portion of your maternity pay.

How Long Do You Have to Stay?

The most common clawback clauses require you to return to work for a period of three to six months. However, some employers may extend this requirement to one or two years.

Some clawback clauses are staggered, meaning the repayment amount decreases the longer you stay. For example:

• If you return for three months, you may only have to pay back 50% of the enhanced pay.
• If you return for six months, you may not have to repay anything at all.

How to Check If You Have a Clawback Clause

If you’re unsure whether your employer has a clawback clause, here’s how you can find out:

• Check your staff handbook.
• Review your employment contract.
• Look at your maternity policy documents.
• Consider whether you signed an agreement acknowledging the clawback clause.

If you cannot find any mention of a clawback clause in these documents and have not signed anything agreeing to it, then it is safe to assume you do not have one. Companies cannot enforce a clawback clause unless it is clearly stated in your policy and you have agreed to it in writing.

What Do You Actually Have to Pay Back?

If you do have to repay maternity pay, you only need to return the enhanced portion—never the Statutory Maternity Pay (SMP) or Maternity Allowance (MA).

Final Thoughts

Leaving your company after maternity leave is a personal decision, and it’s important to understand your financial obligations before making a choice. If your employer offers enhanced maternity pay, always check for a clawback clause so you’re not caught off guard. If in doubt, speak to your HR department for clarification.

Have you experienced a clawback clause in your maternity leave policy? Share your thoughts and experiences in the comments below!