Almost a year has passed since the introduction of paid paternity leave - yet many businesses are still confused as to how to administer requests for extra leave and pay by fathers. In January 2003, the Government presented its document, which aimed to balance work and family life - and thereby introduced paid paternity leave and extended the right to paternal leave. As businesses work towards a more family-friendly culture, payroll staff fear they may drown in a sea of legislation.
Alison Smith of activpayroll, the outsourcing payroll expert, says businesses today need to be aware of employeesí rights as parents, Family-friendly policies enable a business to recruit from a wider pool of expertise - yet the complexities involved in payroll changes may deter some from welcoming this new culture.
Alison says that there are calls for paternity pay to match maternity pay - so it cannot be underestimated, The practical details of fathers asking for leave should be treated in the same way as maternity leave. The employee should advise his employer he will be requesting paternity leave and pay, and he should be advised to complete a self-certification form SC3 four weeks before leave is required.
Unlike mothers, who receive a form Mat B1 from their GP, fathers have no statutory document to hand to an employer to prove their impending fatherhood. Alison says that whilst the SC3 form is not statutory, it can be beneficial to avoid any abuse of the system. Fathers are not automatically entitled to Paternity Paid Leave (PPP). They need to have worked for the qualifying period, be paid above the Lower Earnings Level (the level at which an employee begins to pay national insurance contributions), and certify that they are the father of the unborn child, or living with the mother in an enduring relationship. Paternity leave can be taken any time up to 8 weeks after the birth of the child - although Alison warns the legislation does not provide for the very start of the new life. PPP only applies from the date of birth - there is no provision for being present at the birth - this is still at the discretion of the employer
Alison says that men adopting a child should be treated in the same way. In the case of adoption, a father completes an SC4 form requesting PPP - and this operates in the same way as a SC3 request. Employers should be aware that there are special cases which may cause complexities in payroll. Alison says, Should the child be born early, or the father become ill, an employer would have to make some last minute changes to the payroll. Alison reminds employers that consideration should be given to partners as well as fathers Should the prospective parents be of the same sex, then maternity leave and paternity leave apply in the same way.
The Governmentís legislation also provided an extension to the existing unpaid parental leave option, with officials estimating that up to 270,000 employed parents would take on average 2 weeks parental leave each year. Alison says more and more parents are requesting parental leave and it should be incorporated into payroll planning. Parental leave is not paid - and so employers are not required to keep records - but they should be aware of the costs of reallocating workload when an employed parent is away.
Should employees request leave to deal with any of their dependants - including elderly parents - employers are obliged to offer that time. Alison advises however that they are not necessarily entitled to be paid for that time An employeeís right to paid emergency leave is dependent upon their contract of employment.
As more and more fathers request PPP, Alison advises businesses to ensure the SC3 self-certification form is completed to avoid abuse - and to help in payroll planning and implementation. Unexpected leave and changes in pay can cause huge problems to payroll systems - employers and employees should work together to ensure the needs of the business and the new father are fully met.
activpayroll provides payroll and workforce accounting solutions to employers throughout the UK and Europe. activpayroll can be contacted on 01224 860800 or visit
Payroll Planning for Paid Paternity Leave
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