The BCC said there is confusion among employers about whether they areliable to pay for childcare vouchers during unpaid maternity leave,after a ruling in Europe last year resulted in changes to the rules oncontractual benefits.
Employees whose babies were born on or after 5 October 2008 are nowentitled to receive contractual benefits throughout their entire periodof maternity leave whether they are being paid or not. This means theemployer should make monthly payments for childcare vouchers, which theemployee would normally make herself through salary sacrifice, until shereturns to work.
But employers are unsure whether to treat vouchers as remuneration or acontractual benefit.
Policy adviser at the BCC Abigail Morris warned that if they are liable,it could put off smaller businesses from offering vouchers.
She said, 'We're very supportive of flexible working, but it's unfairfor an employer to pay for the employee portion of childcare vouchers.It would be easy for the Government to compensate employers.'
A spokesperson for the Daycare Trust said it has received a number ofcalls about the ruling. 'It's clear there is confusion about theregulations and we urge the Government to clarify the situation. It'simportant that there is no scaremongering. There is no evidence thatemployers are abandoning childcare vouchers en masse.'
The Department for Business, Enterprise and Regulatory Reform said itexpected to publish guidance over the summer.
A spokesman said, 'We believe that providing contractual benefits viasalary sacrifice can have real benefits for businesses.'