19 January 2015

New shared parental leave and pay requests on the way

Regulations came into force on 1 December 2014 for qualifying parents of babies born on or after 5 April 2015, and adoptive parents with the equivalent adoption date, to give more flexibility to parents in caring for their new child in the first year of its life.

The existing entitlement to 52 weeks' maternity leave, and 39 weeks' maternity pay will continue to apply as the default arrangement, but new parents and adopters can choose to opt out of that arrangement and into the Shared Parental Leave scheme, provided they qualify. 

Under the scheme, parents can choose how to split the Parental Leave between them by issuing a formal 'curtailment notice' to their employer/s opting out of Maternity and into Shared Parental Leave. The balance of the available maternity leave is then converted to Shared Parental Leave. Parents can decide to be off work at the same time or to alternate the periods they each stay at home with the child. 

Where parents intend a straight split of two continuous blocks of leave between them, regardless of the length of each block, employers have no choice but to agree to the leave. The parents can also request to mix and match the Shared Parental Leave in a more disjointed way - perhaps alternate months or even weeks - and although employers do not have to agree in these situations, the parents each have the right to make three separate requests to take or vary the leave, potentially leaving employers in uncertainty for several months. 

It should be noted that the two weeks immediately following the birth remain available for the birth mother only, and that while two weeks' paid Paternity Leave is still available to new fathers/adopters, Paid Additional Paternity Leave is no longer available, as it is replaced by the new Shared Parental Leave.

Who qualifies? 

Employees with 26 weeks' continuity of service at the end of the 15th week before child is due or notified as matched for adoption, provided they meet minimum earnings criteria. Partners who are not necessarily the child's biological father, and some surrogate parents, may also qualify.

How much notice must the parents give?

Eight weeks' notice of the intention to opt into the scheme, with each request to take or vary leave to be received at least eight weeks before the leave is due to start.

What should employers do?

• Engage early in dialogue about the intentions of parents-to-be in respect of their parental leave 
• Update parental leave policies in company handbooks 
• Consider early whether requests for discontinuous blocks of leave can be accommodated 
• Decide whether company enhanced maternity pay should be extended to fathers/partners taking Shared Parental Leave 

Contact your BPIF HR Adviser for more information and guidance.