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Shared parental leave: Are employers the problem?

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5th May 2016
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Recent research about the impact of shared parental leave one year after its implementation in April 2015 offer a conflicting picture of take-up by new parents.

As ever with statistics it’s as much about the sample and the questions asked that dictates the validity of the results. But with the range of take-up being quoted as anything from 1% to 30% what firm conclusions can we draw from the first year of the new policy and re your clients seeing the bigger picture?

What is clear when talking to payroll agents is that there is still a lack of knowledge about the complexity of the legislation and this has translated into a ‘We’ll work this policy out with clients when somebody asks for the first time’. This can be a very short-sighted approach, as a well crafted parental leave policy can offer advantages to the employer as well as employees.

One common theme that has emerged from the recent research is the impact of financial support in making the policy attractive.

Even where employers enhance maternity pay there is no obligation to enhance shared parental pay, so it only needs to be paid at £139.58 a week. Naturally, employers who have taken the decision to enhance pay to the same level as maternity and adoption support have seen increased take-up.

Of course it’s a balancing act, if enhancement is too generous there is the possibility that the client’s employees will always be the ones within the couple to take shared parental leave if the other party’s employer is not as generous.

The savvy client though has worked out that the flexibility that shared parental leave offers can pay dividends, particularly for a smaller employer where losing a key person for a number of months has a very significant impact.

There still appears to be a misconception that both parents have to participate in sharing the leave. This is not the case. The parents both have to be eligible to take the leave (both in terms of having parental responsibility of the child and being employed or self-employed) but there is no requirement that both participate. Many women may find that it works well for them, and their employer, to curtail their maternity leave and SMP after the six weeks of higher rate and use the 33 weeks that remain to take separate blocks of shared parental leave and pay so allowing them to come in and out of the workplace to supplement the £139.58 a week of statutory payment with full pay.

When they are at work other family members or childcare options can be used, including the possibility of a self-employed partner being able to share the care even though they are not an employee so have no entitlement to ShPP.

Many women cannot financially afford to take 39 weeks of SMP in one solid block but would like the option still to take that amount of time during the child’s first year.

For the employer utilising the option of shared parental leave can mean the difference between having to recruit fixed term maternity cover or being able to manage with the existing employee coming in and out of the workplace, with perhaps some duties being shared amongst the rest of the workforce.

With the option for the mother to add 20 shared parental leave in touch (SPLIT) days plus 10 KIT days, an attractive and mutually beneficial shared parental leave policy is possible. This can work equally well for fathers within the workplace. The combination of two weeks of paternity leave, several blocks of shared parental leave and 20 SPLIT days can also offer them the opportunity to spend time with the new family member, without compromising financial security or career prospects.

This month we’re expecting the government to announce their proposals to include grandparents within the shared parental leave framework. Rather than employers (and agents!) being afraid of even further complexity, perhaps it’s time to embrace the opportunities this new policy offers rather than putting it in the ‘too difficult’ pile.

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By Democratus
06th May 2016 12:11

"This month we’re expecting the government to announce their proposals to include grandparents within the shared parental leave framework."

Seriously - is this correct? Grandparents! When will it stop; uncles, nieces, neighbours, the bridesmaid at the wedding.....really this is getting stupid.

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By Ian McTernan CTA
06th May 2016 12:14

As an employer, it's just another cost imposed by Govt, then complicated, and makes trying to actually run a business even more difficult.
Not getting maternity cover means imposing more work on others who are already doing one job, and will rightly feel imposed upon when asked to do extra to cover while they watch someone swan in and out of work as they please and get paid for not working.
Including grand parents will just add to the worries of running a business.
Whatever happened to making things simple and clear and straightforward and allowing businesses to actually concentrate on doing business rather than being a creche, a support network, paying enormous taxes and then being vilified by Labour supporters for daring to make a profit?

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By rememberscarborough
06th May 2016 12:32

Most people go to work for the money to meet their financial obligations. These obligations don't go away on the birth of a child so trying to blame employers for the lack of take up shows a total lack of thought.

Give us all 39 weeks "holiday" at full pay and I suspect there'd by a 99.9% take up....

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Replying to rememberscarborough:
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By Ian McTernan CTA
06th May 2016 13:00

I think the system has been made too complex- and employers have better things to do than try and explain Govt rules imposed on them. Like spending a few minutes trying to ensure the business is still there next week!

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By keithas
06th May 2016 16:07

If you are going to do an article like this, then you should properly research it (or, if you have, be honest about the validity of the figures you quote) rather than say, "take-up being quoted as anything from 1% to 30%".
The 1% figure was taken from a poll of ALL men, including those who have no children, or haven't had children since the introduction of this benefit.
It was quoted on Radio 4's "More or Less" as being the worst "statistic" they had ever come across.
The 30% figure has been accepted as a realistic reflection of the take up.

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By buttercup books
06th May 2016 16:27

An overview of the obligations on an employer would have enhanced the usefulness of the article

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