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TPT Retirement Solutions
FAQs

What do I do if an employee is absent from work?

CATEGORIES:

  • Employers
  • General

An employee may need to be absent from work for various reasons, including maternity leave, paternity leave, adoption leave, parental  leave or sickness. The sections below explain what will happen in terms of making pension contributions during this time.

Family Leave (Maternity Leave/Adoption Leave/Paternity Leave/Additional Paternity Leave)

Adoption leave, paternity leave or additional paternity leave will be treated in the same way as a woman taking maternity leave.

For the first 39 weeks of maternity leave:

  • your employee will pay their normal rate of contributions but only on the pay they actually receive during maternity leave, this includes Statutory Maternity Pay.
  • you will be expected to pay your normal employer contributions based on the pay they would have been receiving if they were not on maternity leave, plus any shortfall in their employee contributions.
  • their membership will continue as normal, based on the salary they would have been receiving if they were not on maternity leave.
  • If the member returns to work before the end of this period, contributions must start up again immediately.
  • If the member is receiving maternity allowance, as their employer you are still liable to pay pension contributions even though they are receiving pay direct from the State and not from you. Member and employer contributions should be paid by you for the first 39 weeks based on the pay the member would have been receiving if they had not gone on maternity leave.

After the first 39 weeks:

  • we would not expect any contributions unless the member is receiving pay.
  • on the member’s return, they can choose whether to make extra contributions to cover the period that they have been absent. It is then at your discretion whether to pay the employer’s share. If you decline to pay, the member can choose to also pay the employer’s share. You would need to ensure that any additional contributions are paid across in your normal monthly contribution submission. 

Other absence

If the member is absent for any other reason, for example, sick leave, parental leave or a temporary absence and pay continues during the absence, contributions can be based on the actual salary paid, or on the pay received prior to the absence, as agreed between the member and employer. If the absence is without pay, contributions should not be paid for the period of unpaid leave.  

When the member returns to work they will have the option to pay the contributions missed or any shortfall in contributions. It is then at your discretion whether to pay the employer’s share. If you decline to pay, the member can choose to also pay the employer’s share. You would need to ensure that any additional contributions are paid across in your normal monthly contribution submission. Where no contributions are being made to the scheme, there will be a maximum period of absence that will apply before the member becomes a leaver in the scheme. This period of time varies dependent on the scheme that the member is contributing to.