What happened?

The Shared Parental Leave Regulations 2014 came into force on 1 December 2014 and will apply to children whose expected week of birth or placement for adoption is on or after 5 April 2015. The entitlement is intended to offer parents flexibility in how they choose to structure their childcare arrangements.

What does this mean?

Shared Parental Leave (SPL) overlaps with the mother’s right to take maternity/adoption leave. It exists alongside her partner’s right to paternity leave and replaces his right to additional paternity leave. Employees may also be eligible to receive shared parental pay whilst on SPL.

In general terms SPL allows the parents of a child (including adoptive parents) to decide how to divide a total of 52 weeks’ leave between themselves. The periods of leave do not need to be consecutive and with an employer’s agreement an individual can take discontinuous periods of leave. Parents could also take leave at the same time if the total period of leave does not exceed the 52 week limit.

Not everyone will qualify for SPL; both parents must satisfy an employment and earnings test. They need at least 26 weeks’ service with their current employer to take leave and the partner must meet the minimum earnings threshold required to qualify for maternity allowance. The employment and earnings can arise from being self-employed, a worker or agency worker or an employee. In addition to these requirements the Regulations require employees to give carefully timed notices and declarations in order to qualify for a period of leave.

What should we do?

Although the Regulations are complicated, most issues can be avoided by developing a clearly worded policy that helps employees negotiate the process of taking SPL. The policy should emphasise early communication between the employer and employee as this will assist both parties in planning for any period of leave. Companies should also focus on communication between departments, especially regarding dates and notifications for SPL to ensure that sufficient cover is available for absent employees.

While companies are not legally obliged to offer enhanced shared parental pay schemes, some employers may wish to consider offering enhanced pay as part of their benefits package. Considering the demographic (age and gender) of the workforce will be useful when forecasting the potential costs of any such policy.