01/07/2026
A simple, well-earned pay rise for someone on maternity leave can quietly put your business on the wrong side of UK law. Under the Alabaster Rule (Alabaster v Woolwich plc), any pay rise awarded at any point during maternity leave means you must recalculate their Average Weekly Earnings and pay backdated maternity arrears. Miss that step, and you risk unlawful underpayments, equality issues, and overpayments you may never recover. ⚖️
The big problem? Many legacy payroll systems treat long-term absences as a basic “salary override” on a normal monthly record. That wipes out the timeline the system needs to spot when a backdated pay rise affects past maternity pay. So someone like Hannah gets a 10% pay rise backdated to June, but her system still pays a flat rate, with £0.00 in arrears, when a compliant engine would recalc Weeks 5 and 6, pay £124.62 in arrears, and reclaim 92% of it from HMRC on the EPS.
Want to see how this works in practice and check if your setup is exposed? Take a look at the full breakdown here: Alabaster Pay Rise Trap: Maternity Pay Compliance | DuraSuite https://durasuite.co.uk/blog/alabaster-pay-rise-trap and a wider look at the legal side here: https://reveela.com/2026/06/27/are-you-unknowingly-breaking-uk-law/ 🙂
Tag your HR, payroll or finance colleagues and tell us: do you know how your current payroll engine handles Alabaster events and multi-period absences?