I know holidays accrue while an employee is on Stat Maternity Leave, however a little confused as to the rate of holiday pay. We pay standard holiday pay based on the average pay of the last 12 weeks worked. Does this mean that the accrued holiday whilst on Maternity Leave is paid on the SMP rate currently £136.78. The employee intends to take 52 weeks off and seems to think she will be paid holiday at the rate of her last worked 12 weeks prior to SML.
As you say yourself its on the rate of pay on the last 12 weeks WORKED. So whatever her pay was when she last worked should be how the holiday pay is worked out, not on her SMP.
