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If, however, the contract stipulates your employee will earn two weeks of paid vacation on an annual basis, then she will earn two weeks of paid vacation while away on a one year maternity/parental leave, regardless of the hours worked that year. Then you will owe both vacation time and pay in that instance.
Paid leave is any time when the employee is receiving SMP or other pay. If the employee qualifies for SMP, this will be 39 weeks unless your policy is to pay company maternity pay extending beyond this period.In a final-salary (defined benefit) scheme, you must treat any period of paid maternity leave as pensionable service.hen the law on benefits during AML changes later this year, the employee will be entitled to her full contractual holiday entitlement for the holiday year even if she is on maternity leave for some or all of it.