If the employee is absent from work during the period covered by the Hire Agreement, their salary reduction will remain in place and will apply to any pay received (including sick pay or maternity pay). By entering into the Hire Agreement, the employee agrees that the amount of the monthly salary reduction may be deducted from any such payments. However, this will not include statutory maternity or sick pay.
Statutory maternity pay is paid for the first 39 weeks of the employee's maternity leave. When an employee is on leave due to sickness, their normal pay ceases and is replaced by a sickness allowance. This allowance is made up of money from the employer, called Occupational Sick Pay (OSP) and money paid on behalf of the Inland Revenue/Government called Statutory Sick Pay (SSP). Deductions for Cycle to Work would still be made from the OSP but not from SSP.
If the employee is temporarily not in receipt of salary payments for any reason, but remain an employee of the client, their Hire Agreement will remain in place and monthly reductions suspended until the earliest of the following events: the employee reverts to receiving salary payments or they leave employment with the Employer.
If monthly reductions are suspended, the hire period will be extended by a period equivalent to the period during which monthly reductions were suspended.
More information can be found on the HMRC website and in this HMRC Cycle to Work guidance document.