The spring is the bearer of brighter weather, but
of course we all know it also means a raft of new legislation is introduced
that has us all doing a spring clean of our employment policies and procedures.
This year sees possibly one of the most far-reaching and
complex regulation changes to date: shared parental leave and pay rules which
offer greater flexibility for parents in how they share the care of their child
during its first year. There are also changes to adoption leave and pay,
extended rights for parents to take unpaid parental leave, new rates of various
types of statutory pay, changes to employer National Insurance contributions
and limits on tribunal awards will be introduced.
Here we take a brief look at each of the changes coming in
this month. For further information or advice you should speak either to your
bookkeepers or legal or HR advisers.
Shared Parental Leave and Pay
We wrote about this in detail at the beginning of this year
and you can refresh your memory of the new laws and how to prepare for them
here: Get
Ready for the New Shared Parental Leave and Pay Rules. In a nutshell, The
Shared Parental Leave Regulations 2014 permit employees to share up to a year’s
leave between mother and father. It is available to couples with a baby due or
placed for adoption on or after 5 April 2015. Mothers are still entitled to 52
weeks’ maternity leave and 39 weeks’ statutory maternity pay and fathers still
have their two weeks’ ordinary paternity leave and pay. However, parents will
now be able to share the mother’s maternity leave and pay as she will have the
right to end her maternity leave and pay early and share the untaken balance
with the father.
Adoption Leave and Pay
The
Paternity and Adoption Leave (Amendment) Regulations 2014 come into force on 5
April 2015, bringing in significant changes to adoption leave. These include
statutory adoption pay coming into line with statutory maternity pay at 90% of
average weekly earnings for the first size weeks. New rights will apply for
local authority foster parents who are intending to adopt. There is new
protection for employees against discrimination or dismissal due to taking time
off for adoption appointments. And parents who have a child through a surrogacy
arrangement will also become eligible for adoption leave. These are just a few
of the new rules under the banner of adoption leave and pay.
Unpaid Parental Leave
Parents
of children under the age of 5, or 18 if the child is disabled, currently have
the right to take unpaid parental leave. However, as of 5 April 2015, this
right is extended to all parents with children under the age of 18.
New Rates of Statutory Pay
Statutory
maternity, paternity pay and adoption pay increases from £138.18 per week to
£139.58 per week from 5 April 2015. Statutory shared parental pay will also be
set at the same rate of £139.58 per week. From 6 April 2015, the
standard rate of statutory sick pay will rise from £87.55 per week to £88.45
per week.
National Insurance Contributions
In
an aim to encourage the employment of younger people, from 6 April 2015, the
Government is abolishing National Insurance contributions for employees under
the age of 21 whose earnings stay below the upper earnings limit.
Tribunal Awards & Statutory Payments
The maximum award for unfair dismissal compensation will
rise from £76,574 to £78,335 as of 6 April 2015. When calculating statutory
redundancy pay and other awards, for example for unfair dismissal, the maximum amount
of a week’s pay will increase from £464 to £475.
Now is the time to update your policies and procedures, and
also to talk to your bookkeepers
about any effects the new regulations will have on your cashflow and bottom
line.
