Resigning During Maternity Leave: What Happens to Your Pay & Rights

Can You Resign During Maternity Leave?

Yes — you have every right to resign from your job at any time during maternity leave. You don't need to give a reason, and your employer cannot penalise you for making this decision.

However, there are important financial and practical implications you should understand before handing in your notice.

What Happens to Your SMP If You Resign?

This is the most common concern, and the answer is reassuring:

You do NOT lose your SMP if you resign. Statutory Maternity Pay continues for the full 39 weeks regardless of whether you resign during maternity leave. SMP is a statutory entitlement — once you've qualified for it, you're entitled to it even if your employment ends.

Key Points:

•SMP is payable for up to 39 weeks from the date it started

•Your employer must continue paying your SMP even after you resign

•SMP continues through your notice period and beyond

•Your resignation does not affect the amount of SMP you receive

Your Notice Period

When you resign during maternity leave:

•You must give the contractual notice required in your employment contract (or statutory minimum of 1 week if your contract doesn't specify)

•Your notice period runs concurrently with your maternity leave — you don't need to return to work during your notice

•Your employer must continue paying your SMP throughout the notice period

•You're not entitled to normal salary during your notice if you're still on maternity leave (SMP continues instead)

Example

If you're on week 20 of SMP and give 4 weeks' notice:

•Weeks 20-24: You receive SMP as normal (you're on maternity leave and notice simultaneously)

•Week 24: Your employment ends

•Weeks 25-39: Your employer continues paying SMP until it finishes

Do You Have to Repay Enhanced Maternity Pay?

This depends entirely on your employer's maternity policy:

Statutory SMP

No — you never have to repay SMP. This is your statutory right regardless of whether you return to work.

Enhanced (Occupational) Maternity Pay

Possibly. Many employers include a clawback clause in their maternity policy requiring you to repay some or all of the enhanced portion if you don't return to work for a specified period (usually 3-6 months).

Before resigning, check:

•Your employment contract

•Your employer's maternity policy

•Any separate agreement you signed about enhanced pay

If there is a clawback clause, you'll need to repay the enhanced portion only (the amount above SMP). You can never be required to repay the statutory SMP element.

Use our Enhanced Maternity Pay Calculator to see the difference between your enhanced pay and SMP.

What Happens to Your Annual Leave?

Annual leave continues to accrue throughout your maternity leave (both paid and unpaid weeks). When you resign:

•Any untaken annual leave must be paid out in your final pay

•This can be a significant sum — you may have accrued 5-6 weeks of holiday

•Check with HR for your exact accrued leave balance

Calculation Example

If you accrue 28 days annual leave per year and take 52 weeks maternity leave:

•You accrue 28 days during maternity leave

•Plus any leave from before your maternity leave started

•Your employer must pay this as a lump sum when your employment ends

When Is the Best Time to Resign?

Consider these factors:

Financial Timing

•Wait until SMP finishes (week 39) if possible — this maximises your total pay

•Factor in annual leave payout — this could be paid as a lump sum

•Check clawback clauses — sometimes waiting a few extra months avoids repayment

New Job Timing

•Some women resign to start a new job — you can start a new job during maternity leave while still receiving SMP from your previous employer

•You cannot receive SMP from two employers simultaneously

•Working for a new employer during your SMP period ends your SMP entitlement with the old employer (unless it's KIT days)

Notice Period

•Give notice so your employment end date aligns with when you want it to

•Consider whether you want any accrued leave paid out or taken as time off

Other Options to Consider

Before deciding to resign, think about:

•Flexible working request — your employer must consider it

•Part-time hours — many employers will accommodate this

•Returning briefly then leaving — to avoid enhanced pay clawback

•Career break — some employers offer unpaid leave instead of resignation

Tax Implications

When you resign and receive final payments:

•SMP — taxed as normal through PAYE

•Annual leave payout — taxed as earnings

•Notice pay — taxed as earnings

•Enhanced pay clawback — if you repay enhanced pay, your employer should adjust your tax

•You may receive a P45 from your employer

Use our Take-Home Pay Calculator to estimate the after-tax value of your SMP and final payments. For a full breakdown of how maternity pay is taxed, see our dedicated guide.

Related Guides

•Enhanced Maternity Pay Calculator — check your clawback exposure

•Returning to Work After Maternity — alternative to resigning

•Flexible Working After Maternity — request different hours