Monday, 13 April 2015

Understand the new rules on Parental Leave



The new rights allowing UK parents to share leave after the birth or adoption of their child came into effect last week.If your child is born or placed for adoption after 5 April 2015, you will benefit from the new rules.

Parents can share 50 weeks of leave which 37 weeks is paid leave at the statutory rate of £139.58 per week as long as the parents meet the eligibility criteria.

Parents can share leave following the birth or adoption of their child.  They can take leave in their child’s first year at different times or double up by taking the leave at the same time.

Does this change regular maternity and paternity leave?

No.  Fathers are still entitled to take two weeks paid paternity leave. 

Mothers maternity still exist under maternity rules and the mother can take ordinary and additional maternity leave. 

Mothers must still take the initial two weeks after birth, but they can exchange their maternity leave for shared parental leave.

Both parents have the choice of how to split the rest of the leave entitlement between them and have up to 50 weeks leave.

For example, if a mother ends her maternity leave after 10 weeks following the child’s birth, that leaves 42 weeks of leave, as the mother has to take the first two weeks after the child has been born.  The mother chooses to take 30 weeks and her partner can choose to take the other 12 weeks.  Alternatively, both parents can choose to take the 21 weeks of leave together or split the 42 weeks and take the leave equally or at separate times. 

Can parents take leave when they want?

Shared parental leave does not have to be taken all in one go which is different to the current maternity and paternity leave rules.

A parent can book up to three blocks of leave in the course of the child’s first year.  They must give their employer at least 8 weeks’ notice before taking leave.

It is up to the employer to agree to shorter blocks of leave, of just a week or more, but that is up to the employer.

The mother can take her leave as shared parental leave which will allow her more flexibility rather than take it as maternity leave – even if the father does not take any parental leave.

A mother can inform her employer before her baby is born that she doesn’t plan to use all of her 52 weeks’ maternity leave and wants to convert some of it into shared parental leave.  The father could then use this leave to help out in the first few weeks after birth while she is still on maternity leave.

Why aren’t all parents eligible?

To take shared parental leave, one parent must have been an employee with at least 26 weeks of service with the same employer by the end of the 15th week before the baby is due, or when matched with an adopted child.

The other parent must have worked for at least 26 weeks in the 66 weeks leading up to the due date and have earned at least £30 per week in 13 of the 66 weeks.

There are exemptions to this rule.  For example, self-employed and a parent not in work at the time of the birth can still qualify.

How much will parents be paid?

Shared parental leave is £139.58 a week or 90% of an employee’s average weekly earnings, whichever is lower. 

This is the same as maternity pay, except during the first 6 weeks statutory maternity pay amounts to 90% of the employee’s normally earns and there is no maximum.

Shared parental pay is only given for 37 weeks.  The remaining 13 weeks of leave if taken is unpaid.

Monday, 23 March 2015

National Minimum Wage



The Government has announced that the National Minimum Wage will rise by 3% for most employees from 1st October 2015.  The Apprenticeship rate will rise by 21%, considerably more than recommended by the Low Pay Commission.  

Fit for Work service



The Fit for Work service is scheduled to be introduced throughout England and Wales in 2015 aimed at helping employers and employees manage sickness absence.  This new service provides access to free occupational health assistance for employees who have been absent from work due to illness for a period of four weeks or more.  Employers will be entitled to claim up to £500 tax relief on payments for medical treatment where the employee’s treatment has been recommended under the new service.

Employment Tribunal Awards




On or after the 6 April 2015 the maximum amount of a week’s pay for calculating the basic award of compensation for unfair dismissal will rise to £475.  The maximum compensation award will be capped at £78,335.

Child Age Limit for Parental Leave increases to 18




Parental Leave is the right a parent may exercise to take unpaid leave from work.  Currently open to parents of children under the age of 5, from 5 April 2015 parents of children under the age of 18 and sufficient qualifying service will be eligible.

Time off for Adoption Appointments



The Children and Families Act 2013 will grant a new right to attend adoption appointments.  The primary adoptive parent will be permitted to take time off work to attend up to 5 appointments whilst the secondary adopter will be entitled to take time off for up to 2 appointments.