Advice to our client, Boots, on draft regulations concerning the government’s proposals to implement new regulations

governing paternity leave

Key Aspects of Proposals

• The government has proposed to give greater choice and flexibility for parents in how they divide childcare responsibilities between them by providing additional paternity leave and pay (APL&P) to fathers.

• Additional paternity leave is the right to a maximum of 26 weeks leave which can be taken by fathers.

• A right to Additional Statutory Paternity Pay (ASPP) will be introduced which is paid at the lesser of the standard SMP rate, which is currently 90% of the father’s average earnings.

• Both the mother and father will be required to provide a signed declaration that the information they have provided is correct.

• It is expected that an estimated 10,000 to 20,000 fathers will take up this right each year (4-8% eligible father’s).

The impact this will have on our client

• The government has designed the administration of the scheme to be straight-forward and ‘light touch’

• As an employer, you will be under a duty to check the employee’s eligibility for APL&P and to calculate any payment due.

• Fathers seeking to take APL&P must inform you at least 8 weeks before they wish to start their leave. You must confirm entitlement within 4 weeks.

• Costs & Benefits:

• Costs to employers for covering absence - £0.5-£10.3m

• Employers’ staff time on setting up administration systems for APL&P - £1.7m to £5m

• Employers’ staff time spent on administration of APL&P - £0.14m to £0.5m

• No evidence is available to quantify benefits.

Key legislation concerning the new proposals

• Draft Regulations laid down before Parliament under s.236(3) of the Employment Rights Act 1996.

• Draft Regulations laid down before Parliament under s. 176(1) of the Social Security Contributions and Benefits Act 1992.

The legislation created from these proposals is somewhat lengthy and unclear and we will do our best to advise our clients in relation to all of their

concerns. We have a high reputation for giving sound and well-researched advise to all of our clients.