31 July 2024
Paternity Leave: the employer’s responsibilities
We all think we all know the details surrounding paternity leave. But what does it mean for the employer – and what are the responsibilities for payroll?
Let’s start with the basics: What is paternity leave?
Paternity leave is a period that a father is legally allowed to be away from work, following the birth or adoption of a child. This leave is intended to allow the father to support and care for the new child and the mother. The duration and compensation for paternity leave can vary widely depending on the employer's policies.
What is the difference between statutory and company paternity leave policies?
The key differences between statutory and company paternity leave policies lie in their origin, scope, and specifics of the benefits they provide.
Statutory Paternity Leave Policies are mandated by the government or legal framework of a country. They apply universally to all eligible employees, ensuring a minimum standard of leave and benefits.
For example, the duration of paternity leave is specified by law. Criteria such as employment duration or family relationship are defined by the statute. The government usually outlines the level of pay or financial support provided during the leave.
Company Paternity Leave Policies are provided at the discretion of the employer and outlined in the company’s own policies. They apply only to employees of that specific company and may vary between different employers.
In the case of the duration of paternity leave, the company may offer longer or more flexible paternity leave than the statutory minimum. The company can define its own eligibility criteria, which may be more inclusive or exclusive compared to statutory requirements.
What pay can fathers expect on paternity leave?
As of July 2023, the statutory paternity pay (SPP) rates in the UK are as follows:
£172.48 per week (this rate applies from April 2023), or 90% of the employee's average weekly earnings. SPP is paid for up to 2 weeks.
Eligibility: To qualify for SPP, the employee must:
Have worked for their employer continuously for at least 26 weeks up to any day in the ‘qualifying week’. The qualifying week is the 15th week before the baby is due.
Earn at least the lower earnings limit (LEL) for National Insurance contributions, which is £123 per week as of the 2023/24 tax year.
What are the employer’s obligations, and how should employers support employees during paternity leave?
In the UK, employers have several legal obligations regarding paternity leave. These are the key legal obligations of employers concerning paternity leave:
- Employers must ensure employees meet criteria for continuous employment and relationship to the child.
- Employers must provide up to two weeks of paternity leave within 56 days of the child's birth or adoption.
- Statutory Paternity Pay (SPP): Employers must pay eligible employees the lower of £172.48 per week or 90% of average weekly earnings.
- Employees must give at least 15 weeks' notice before the baby's due date or within seven days of adoption notification.
- Employers must allow employees to return to the same job after paternity leave and protect them from unfair treatment.
- Employers must keep detailed records of paternity leave and SPP paid.
- Employers should have clear paternity leave policies and ensure employees are aware of their rights.
- Employers must treat all employees equally regarding paternity leave, without discrimination.
Employers can support employees in several ways during their paternity leave:
By offering flexibility in the timing and duration of paternity leave to accommodate individual needs. In SSIRION, Providing enhanced paternity pay above the statutory rate to alleviate financial concerns.
It’s important to ensure employees are well-informed about their paternity leave rights and company policies. By developing a culture that supports and encourages fathers to take paternity leave without fear of negative career impact, you can ensure they are much less stressed, financially and mentally.
Don’t forget to provide a smooth transition back to work with options for flexible working arrangements if needed. You’ll also want to consider offering access to resources and support groups for new fathers to help them navigate parenthood. Mental health services to support the wellbeing of new fathers is vital.
Train managers to understand and support paternity leave policies and the importance of work-life balance.
By providing this extra support, employees will feel a lot safer and more secure. Good paternity policies have a lot of appeal for employees who are thinking of becoming parents. It’s well worth looking at your entire benefits packets and figuring out if the cost of an enhanced paternity policy is worth it for your team.
