Statutory Maternity Pay

Women are entitled to Statutory Maternity Pay (SMP) if they have been employed by their employer for a continuous period of 26 weeks or more, ending with the 15th week before the expected week of childbirth. (To qualify, she must have average weekly earnings at least equal to the lower earnings limit for National Insurance contributions.) As an employer, you are responsible for making SMP payments, which are then reimbursed by the state. Payment levels and duration (as at 2007) are as follows:

• Paid for a maximum of 39 weeks.
• Six weeks at 90% of her average weekly earnings (with no upper limit).
• 33 weeks at a flat rate of £ 112.75 or 90% of her average weekly earnings if that is less than the flat rate.

Small employers (those whose total NI liability is £ 45,000 or less in the previous tax year) may recover 104.5% (from April 2004) of the SMP they pay. This money can be claimed in advance to help with your cash flow.

Women who do not qualify for SMP may qualify for Maternity Allowance (MA). This is paid by Job Centre Plus and is based on the woman’s recent employment and earnings record.

Maternity Leave

Pregnant employees are entitled to 26 weeks ordinary maternity leave, regardless of how long they have worked for you. Women who have completed 26 weeks’ continuous service with you by the beginning of the 14th week before the expected week of childbirth can take ‘additional’ maternity leave. Additional maternity leave starts immediately after ordinary maternity leave and continues for up to a further 26 weeks. Additional maternity leave is usually unpaid unless a woman has contractual rights to pay during her period of additional maternity leave.

A pregnant employee must notify you of her intention to take maternity leave by the end of the 15th week before the expected week of childbirth, unless this is not reasonably practicable. She must tell you:

• that she is pregnant;
• the week her baby is expected to be born;
• when she wants her maternity leave to start.

A woman can change the date when she wants to start her leave providing she tells you at least 28 days in advance (unless this is not reasonably practicable).You must respond to a woman’s notification of her leave plans within 28 days unless the woman has varied that date. You should write to your employee, setting out the date on which you expect her to return to work if she takes her full entitlement to maternity leave. The earliest date a woman is able to start her maternity leave is the beginning of the 11th week before her baby is due.

Statutory Paternity Pay

To qualify for Statutory Paternity Pay (SPP), male employees must:

• Have, or expect to have, responsibility for the child’s upbringing.
• Be the biological father of the child or the mother’s husband or partner.
• Have worked continuously for their employer for 26 weeks ending with the 15th week before the baby is due.

Statutory Paternity Pay is paid by you for either 1 or 2 consecutive weeks that the employee has chosen. SPP (at 2007), is the same as the standard rate of Statutory Maternity Pay – £ 112.75 a week or 90% of average weekly earnings if less than £ 112.75. Employees who have average weekly earnings below the Lower Earnings Limit for National Insurance purposes (£ 87 a week from April 2007) do not qualify for SPP. Employees who do not qualify for SPP, or who are normally low paid, may be able to claim Income Support and other benefits while on paternity leave.

Paternity Leave

Employees who are eligible can choose to take either 1 week or 2 consecutive weeks paternity leave (not odd days), which normally needs to be taken within 56 days of the child’s birth. Employees must inform you of their intention to take paternity leave by the end of the 15th week before the baby is expected, unless this is not reasonably practicable. They must tell you:

• the week the baby is due;
• whether they wish to take one or two weeks’ leave;
• when they want their leave to start.

Paternity leave and maternity leave have the same procedures for varying leave dates and required responses from employers.

Statutory Adoption Pay And Leave

Holiday Pay