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Getting to grips with shared parental leave Jo Broadbent 11 March 2015 Getting to grips with shared parental leave How will shared parental leave operate? Who is entitled to shared parental leave? The process for requesting leave


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Getting to grips with shared parental leave

Jo Broadbent

11 March 2015

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www.hoganlovells.com

Getting to grips with shared parental leave

  • How will shared parental leave operate?
  • Who is entitled to shared parental leave?
  • The process for requesting leave
  • An employer's rights and obligations
  • Top tips when preparing for and implementing the

new right

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What is shared parental leave?

Default position – 52 weeks' maternity leave for mum For babies due on or after 5 April 2015 Mum can bring her maternity leave/ pay to an end early Balance of leave and pay can be converted to Shared Parental Leave that either parent can take Promote shared caring responsibilities and reduced "motherhood penalty"

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How shared leave/ pay is expected to operate (1)

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Mum – OML (26 weeks) Dad – ShPL (26 weeks)

Dad - OPL

Child born 26 weeks' SMP 13 weeks' ShPP

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How shared leave/ pay is expected to operate (2)

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Mum – OML/ AML (46 weeks) Child born

Dad - OPL Dad – ShPL (6 weeks)

39 weeks' SMP

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How shared leave/ pay is expected to operate (3)

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Mum – OML (26 weeks)

Dad – ShPL (6 weeks)

Mum – ShPL (15 weeks)

Dad – ShPL (5 weeks) Dad - OPL Child born

26 weeks' SMP 6 weeks' ShPP 7 weeks' ShPP

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Basic rules applying to shared parental leave

Must be taken before child's first birthday Must be taken in periods of a complete week Minimum of

  • ne week can

be taken Can be taken while someone else

  • n maternity

leave Or while someone else on ShPL

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Overview of the process

Step 1: Establish eligibility Step 2: Bring maternity leave to an end (leave curtailment notice) Step 3A Notice of entitlement and intention to take leave Step 3B: Employer can request evidence (birth certificate/ details of other employer) Step 4: Notice of period of leave

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Eligibility – two stage test

Work and earnings Work and earnings Length of employment Length of employment Shared parental leave/ pay Shared parental leave/ pay

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Partner – the work and earnings test

Does employee's partner meet "work and earnings" criteria? Yes – employee may be eligible for shared parental leave/ pay If satisfies individual test No – employee not eligible for shared parental leave/ pay

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Work: 26 weeks employment/ self employment in 66 weeks before EWC/ matching Earnings: average weekly earnings of £30 over 13 weeks in 66 weeks before EWC/ matching

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The "individual" eligibility test – Mum

26 weeks employment at 15th week before EWC and remains in that employment Main responsibility for child's care with father Entitled to maternity leave Curtailed her maternity leave/ returned to work Given notice of entitlement/ intention to take leave Has provided any evidence required by employer Has given period of leave notice Mum entitled to Shared Parental Leave

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The "individual" eligibility test – Dad

26 weeks employment at 15th week before EWC and remains in that employment Mum entitled to SML/ SMP/ MA? Mum has curtailed the SML/ SMP/ MA period or returned to work Main responsibility for child's care with mother Given notice of entitlement/ intention to take Has provided any evidence required by employer Has given period of leave notice Dad entitled to Shared Parental Leave

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Key to accessing system – curtailing maternity leave

Mum must give a "leave curtailment notice" to bring maternity leave to an end early plus

Notice of entitlement and intention to take ShPL, or Declaration that Dad has given notice of entitlement and intention to take ShPL

Must be given

At least 9 weeks before child's first birthday

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Key to accessing system – curtailing maternity leave

Leave curtailment notice must specify when maternity leave will end

  • After end of compulsory maternity leave
  • At least eight weeks after date of

curtailment notice; and

  • At least one week before end of ML

Comes into effect after 8 weeks

  • Limited right to revoke if curtailment notice

given before birth

  • Or if parents no longer eligible for ShPL

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Mum's notice of entitlement and intention to take

At least 8 weeks before first period of Mum's ShPL

Declarations from Mum and Dad Name of Mum and Dad Start/ end of SML Child's EWC and DoB Amount of ShPL/ pay available How much ShPL/ pay Mum and Dad intend to take When Mum intends to take ShPL/ pay*

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*but not a binding notification – merely indicative

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Content of declarations

  • Eligible to take ShPL/ pay
  • Information in notice accurate
  • Notify if no longer eligible for ShPL/ pay
  • When maternity pay started and period

by which pay reduced

Mum's declaration

  • Name, address and NI number
  • Meets employment and earnings criteria
  • Consents to Mum taking amount of

ShPL/ pay

  • Notify Mum if no longer eligible for ShPL/

pay

Dad's declaration

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Dad's notice of entitlement and intention to take

At least 8 weeks before first period of D's ShPL

Declarations from Mum and Dad Name of Mum and Dad Start and end dates of Mum's SML/ SMP/ MA Child's EWC and DoB Amount of ShPL/ pay available How much ShPL/ pay Mum and Dad intend to take When Dad intends to take ShPL/ pay*

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*again, indicative not binding

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Content of declarations

  • Name, address and NI number
  • Meets employment and earnings criteria
  • Has/ will curtail maternity leave/ pay period
  • Number of weeks pay period reduced
  • Consents to Dad taking amount of ShPL/ pay
  • Notify Dad if no longer eligible for ShPL/ pay

Mum's declaration

  • Eligible to take ShPL/ pay
  • Information in the written notice is accurate
  • Child's father or mother's spouse or partner
  • Notify if no longer eligible for ShPL/ pay

Dad's declaration

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Employer's options – asking for evidence

Employer can ask for birth certificate/ employer information Request must be made within 14 days

  • f notice

Employee must respond within 14 days of request

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Giving notice of period of shared parental leave

At least 8 weeks before start date

Start and finish dates Can request >1 period Can be given with notice of entitlement

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What is employee asking for?

Employee requests single period of leave Eg four weeks starting on 1 August Employee is entitled to take the leave requested

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No right to refuse a request for a continuous period of leave

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What is the employee asking for?

  • Employee

requests discontinuous period of leave

Discontinuous

  • Eg four weeks

from 3 August

  • Another period of

four weeks from 5 October

Employer has a choice

  • Accept
  • Refuse
  • Negotiate

alternative dates

Right to refuse discontinuous request

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Responding to discontinuous requests for leave Agree changed dates

  • Employee can take on

those dates

Unable to agree dates

  • Employee can withdraw

notice

  • Or take single continuous

period of leave, from date employee chooses

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Responding to discontinuous requests for leave

Risk of direct discrimination claims if allow some requests but not others?

Or indirect discrimination claims if one sex more likely to request discontinuous leave?

No set list of reasons for refusal

Employer has complete flexibility

No formal process for considering requests

In contrast to flexible working procedures

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Limits on requests for leave

Limit of three requests for leave Withdrawn notices do not count towards limit Requests to vary generally do count towards limit Employer can allow more than three requests

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Rights during shared parental leave

Up to 20 "SPLIT" days per parent Preferential redeployment rights in event of redundancy

Terms and conditions that would have applied – except pay Normal dismissal/ detriment rights

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Returning from shared parental leave/ shared parental leave + other statutory leave

26 weeks or less

Same job

More than 26 weeks

Same job Unless not reasonably practicable In which case to suitable alternative

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Same job unless not reasonably practicable if ShPL consecutive with more than four weeks "ordinary" parental leave

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Preparing for shared parental leave

Preliminary considerations Likely take up? What do your demographics look like? How many people currently take full paternity leave entitlement?

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The pay proposition

What's it going to cost? Statutory shared parental pay only Some shared parental pay Match existing maternity pay offering

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Drafting the policy – key issues

Who's eligible?

Statutory scheme or wider? (eg all employees)

Approach to supplemental evidence

Require employees to provide or take it on trust? Do you really need it/ want it?

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Drafting the policy – key issues

Discontinuous leave requests

  • Embrace the flexibility?
  • Or discourage the

disruption?

Ask employees to discuss possible patterns of leave informally first? How will you decide whether to allow or refuse?

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Drafting the policy – key issues Holiday

  • Deal with carry

forward provisions expressly? Pay (if enhanced)

  • Service

requirement?

  • Is a return to

work required?

  • Clawback if

leave within certain period?