If an employee is absent from work during the period covered by their Cycle to Work 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, they agree that the amount of the monthly salary reduction may be deducted from any such payments. 

For the avoidance of doubt, this will not include statutory maternity or sick pay.

Statutory maternity pay is paid for the first 39 weeks of maternity leave. If the employee is absent due to sickness, their normal pay ceases and is replaced by a sickness allowance. This allowance is made up of money from their 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 remains employed by the organization, their Hire Agreement will continue and monthly reductions suspended until the earliest of the following events: 1) reverting to receiving salary payments, or 2) terminated employment from the organization.

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.