Pay and leave entitlements will change from 2015
Statutory pay and leave entitlements for working parents will change on April 5, 2015, to enable fathers to take a greater role in childcare and to help parents manage childcare whilst staying in work.
For businesses, this means they can hold on to their best members of staff, as female employees will in theory be less likely to drop out of the workplace when they start a family.
Parents of babies due (or adopted children placed) on or after April 5, 2015, may be eligible for Shared Parental Leave (SPL) or Shared Parental Pay (ShPP). This will replace the current system of Additional Paternity Leave and Pay.
SPL gives working mothers the option to end their maternity pay and leave early - any time from two weeks after the birth or placement. They can then share their untaken leave and pay with their partner. Similarly, adopters will be able to end their adoption leave and pay early and opt into ShPP.
SPL can be stopped and started and parents can be off at the same time if they wish.
Parents are also able to take leave in phases, e.g 20 weeks off for the mother, followed by 20 weeks for the father, then another 10 weeks of for the mother. Parents must notify their employer of their plans eight weeks before they become eligible for SPL.
All shared leave and pay must be taken between the birth or placement and the child's first birthday.
The current entitlement to 52 weeks statutory maternity or adoption leave, 39 of which is paid, and two weeks statutory paternity leave and pay, remain unchanged.
The first six weeks of Statutory Adoption Pay is set to rise to 90 per cent of average weekly earnings.
The first notifications of intention to take SPL are expected to arrive with employers from February 2015. Parents will be able to use a Government online form, but employers may wish to create their own method for employees to notify them.
Employers may need to update payroll systems to allow for providing Statutory Parental Pay.
Information supplied by permission of Ballams Chartered Accountants, Ipswich
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