Monday Motivation: are you ready for parental leave?

3 minute read time.

The new parental leave regulations came into place in December 2014 but as of 5th April parents of babies born on that date or after (or adopted) are eligible to opt into the shared parental leave scheme.  However, there’s reports that many businesses aren’t ready for the changes. We look at what needs to be done.

In other news, the Small Business Act is now law and new domains like .shop aren’t proving popular with consumers.

Top news stories

Small Business Act becomes law

The first ever Small Business, Enterprise and Employment Act 2015 has now become an official law after receiving Royal Assent. Find out more about what it means for your business.

Employers not ready for new parental leave regulations?

Parents have the right to share leave after having a baby, or adopting a child. But many businesses aren’t ready for the new legislation.

87% of consumers feel less secure with new domains

Research by global information assurance firm NCC Group showed that people are less comfortable visiting sites with domains like .shop, .bank and .london.

Twitter’s stock price rises after Google buyout rumours

Is it likely that Google would acquire Twitter?

UK interest rates kept at record low

The Bank of England held interest rates at 0.5% for another month, which now means it’s more than six years since the record low was introduced.

Key dates for your diary

After a number of changes over the last two weeks, there’s no new legislation coming into force this week.

How to manage shared parental leave

Over the past few weeks, there have been a number of news stories about the impact of new shared parental leave regulations. Firstly, there were reports that it may be more popular than originally anticipated, with 50% of parents welcoming the legislation and saying they would be better off.

This was followed by reports this week, that suggest that employers may not be ready. So what can you do to make sure you’re able to handle parental leave requests?

Understand the legislation

It’s really important that you know exactly what the regulations allow. Many HR professionals have expressed concern about the complexity of implementing the legislation, so if you’re in any doubt about how it applies to your business, you should seek legal help.

In brief, the legislation now allows parents to share up to 50 weeks of leave, if they meet the eligibility criteria. To qualify:

  • The mother or adopter must be entitled to maternity or adoption leave and let their employer know that they want to cut it short and exchange it for parental leave.
  • Parents must be working and must have been with an employer for at least 26 weeks by the end of the 15th week before the baby is due or when they are matched for adoption.
  • Parents must pass an earnings test.

Self-employed people may also be eligible, although they may not meet all of the criteria.

The rights apply to co-habiting couples, same-sex couples and couples bringing up a baby from a previous relationship. They also apply when parents adopt.

Eligible parents can share the leave, although the mother must take a minimum of two weeks leave. Shared parental leave can be taken from the date the child is born or the adoption starts to 52 weeks later and can be taken in up to three blocks.

For full details, check out the ACAS guide for employers and employees.

Update your policy documents

Make sure your policies are up to date and reflect the new legislation. This will help clarify what’s available and provide a formal document which you and your employees can refer to. There are some key things you will need to include:

  • If you will offer enhanced benefits to employees on shared parental leave. This is especially important if you already offer enhanced maternity pay. You need to be aware that if you offer one but not both, you may leave yourself open to claims of sex discrimination.
  • How you will handle requests for multiple short periods of leave
  • How you will manage requests from couples who work in the same department and wish to take leave at the same time
  • How mothers must provide notification
  • What evidence you will require for entitlement

Again, we recommend that you seek legal advice to ensure you comply with the new legislation.

Talk to employees

It’s important that all your employees know their rights. It’s also essential that HR staff, those in the payroll department and line managers know about the new regulations. Make sure all employees who will manage the processes have received appropriate training to understand the law and how your company will be implementing the legislation.