Shared parental leave: pros and cons for businesses

The proposals for shared parental leave and flexible working are included in the Children and Families Bill 2013 which is currently going through Parliament.

The issue has proven to be contentious, it appears that the Government has stepped in line with their proposed commitment to support working families, but how the new system will work and fit together with current arrangements for maternity/paternity leave and adopters?

What has changed?

• Shared parental leave will allow eligible mothers and their partners to be absent from work to care for a child for a maximum of 52 weeks.
• Eligible couples could also take up to 39 weeks of shared parental pay.
• Employees will have to give notice to their employers of their intention to opt into the shared parental system.
• Employees will have to provide eight weeks of notice of their intention to take any period of leave. This will include a two week discussion period with their employer.
• A notice to start shared parental leave will be binding when given prior to birth. A mother will have six weeks from birth to revoke this binding notice.
• Each person in a couple will have up to 20 ‘Keeping in Touch Days’ while on shared parental leave.

In a statement on the government website here, Deputy Prime Minister Nick Clegg said: “We need to challenge the old-fashioned assumption that women will always be the parent that stays at home – many fathers want that option too.

“We’re introducing shared parental leave to allow couples to make that decision jointly ensuring all career options remain open to women after pregnancy.

“Women deserve the right to pursue their goals and not feel they have to choose between having a successful career or having a baby. They should be supported by their employers, rather than being made to feel less employable or under pressure to take unchallenging jobs.”

Businesses may also benefit from being able to have more open discussions about patterns of leave with their employees.

However, the new reforms could be an administrative nightmare for employers who will need to ensure they have a good working relationship with the parents coming and going from work.

Euan Lawrence of Blacks Solicitors of Leeds, a specialist in Employment law said: “We have yet to see the wording of the Regulations that the government proposes to enact in order to bring this new regime into force.

“However, one thing that it is clear from what is contained within the Response is that, notwithstanding the laudable aims behind this new system, it will inevitably mean a significant additional administrative burden for employers. This is likely to be felt most keenly by smaller companies and organisations.”

Employees will have to give notice to their employers of their intention to opt into the shared parental system. In doing so, employees will have to provide a non-binding indication of their expected pattern of leave.

An employee can only change their leave plans three times - the original notification and two further notifications or changes.

The Government has asked ACAS to produce a code of practice to help businesses manage this new extended right. ACAS will also produce a guide with practical examples of managing this in the workplace.

This will be published alongside the final Code early next year. The balance between new parent’s rights and running a business may prove difficult, but if the new provisions work, their success should be well worth the effort for new families and happy employees.

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