One of our employees has gone on maternity leave two weeks early as she has given birth already. She is on a fixed term contract which ends on 31 March 08 whilst she is on leave. The intention is to continue with a new contract and she has indicated that when she returns to work she would like to drop down to three days a week and we have agreed this.

My related questions are:

1. Do we extend her current full time contract until her return and then issue a new contract for 3 days a week at that point?

2. I understand that she continues to accrue leave and can carry forward unused leave from the current year - presumably this would be calculated on the current full time basis?

3. Our leave entitlement is currently 20 days plus bank holidays - does she carry forward the bank holidays as well as leave entitlement to after her return?