To qualify for any of the above payments an employee must have worked continuously for their employer for at least 26 weeks by the 15th week before the expected week of childbirth or, in the case of adoption, by the date on which the couple are notified that they have been matched with a child for adoption. In addition, the employee must earn more than the lower earnings limit for National Insurance Contributions (NICs) which is £84 a week for the tax year 2006 to 2007.
Statutory Maternity Pay
SMP is payable at a rate of 90 per cent of average earnings for the first six weeks. The remaining 20 weeks are paid at the standard rate set by the Government, which is the lower of £108.85 per week for the current tax year or 90 per cent of the woman's average weekly earnings. The payments are subject to normal deductions.The employer must pay 26 weeks' SMP even if the employee leaves work after the start of the 15th week before the expected week of childbirth.
Statutory Paternity Pay
Working fathers are entitled to up to two weeks' paternity leave within 56 days of the birth of their child if they:- have a responsibility for the child's upbringing;
- are the child's biological father, or the mother's husband or partner;
- have worked continuously for you for at least 26 weeks by the 15th week before the expected week of childbirth - or by the date they are notified they have been matched with a child for adoption;
- earn more than the lower earnings limit - £84 for the 2006/07 tax year; and
- have continued working for you until the birth of the child.
Paternity leave must be taken in periods of either one week or two continuous weeks. The rate of SPP is the same as the standard rate of SMP, currently £108.85 per week.
Statutory Adoption Pay
Employees who adopt a child are entitled to adoption leave for up to 52 weeks. SAP is paid for a maximum of 26 weeks at a flat rate of £108.85 for current tax year or 90 per cent of the adopter's average weekly earnings if that is less than the flat rate.Employees who adopt individually are entitled to adoption leave and pay. If a couple adopt together, only one of them is entitled to adoption leave and pay. The couple can decide which partner will take the adoption leave. Paternity leave and pay may be available to the other partner.
In all cases of Statutory Maternity, Paternity and Adoption pay, the employer can claim most or all of this money back from the income tax and NICs paid to HM Revenue & Customs.
Detailed records must be kept of all payments and leave periods.
The Work and Families Bill
Changes to the current regime are proposed by the Work and Families Bill currently before Parliament. These include:- extending maternity and adoption pay from six to nine months with effect from April 2007 towards the goal of a year’s paid leave before the end of this Parliament;
- the introduction of new paternity leave for fathers, enabling them to benefit from leave and statutory pay if the mother returns to work after six months but before the end of her maternity leave period;
- extending the right to request flexible working to carers from April 2007.
- measures to help businesses manage the administration of statutory maternity, paternity and adoption pay;
- the introduction of ‘keeping in touch days’ so that where employees and employers agree, a women on maternity leave can go into work for a few days without losing her right to maternity leave or a week's statutory pay;
- extending the period of notice for return from maternity leave to two months enabling employees and employers to plan more effectively for return to work; and
- making it clear in the regulations that an employer can make reasonable contact with an employee who is on maternity leave in order to help the employer plan the mother's return to work.
The Government has admitted that there are problems surrounding the paternity leave proposals that need sorting out. It will be difficult for employers to be certain that an employee claiming paternity leave is a new parent. The minister for women and equality, Meg Munn, has described the problem as ‘technical’ and is confident that a solution can be found. Those who represent businesses fear that this will entail extra work for employers.
