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Stuart Gentle Publisher at Onrec

The Work and Families Act received Royal Assent on 21 June 2006

Work and Families Act likely to have major implications for small to medium sized businesses

The Work and Families Act received Royal Assent on 21 June 2006. The main provisions of the Act are due to come into force in April 2007. Employment law specialists, Empire HR, are warning employers that they need to be aware of the Act as when it comes into force it is likely to have major implications for small to medium sized businesses.

ìThe main aim of the Work and Families Act is to ensure that all children have the best start in life. Under the Act, which comes into effect from April 2007, the maximum period of Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP) will be extended to nine months and an additional 26 weeks Statutory Paternity Leave will be available to employed fathers. This will be applicable if the mother returns to work after six months but before the end of the maternity leave period.î

Peter-Jon Chalmers, director of employment law specialists continues, ìHow this will work in practice is likely to be of concern to employers, in particular how the paternity leave scheme will be introduced and administered. The Government has already announced that measures to help companies implement the changes will be introduced. However, the responsibility for the additional paternity leave will rest with the mother and fatherís employers. The administrative burden from this is likely to be considerable and potentially open to abuse. It is important that effective measures are put into place to enable businesses to introduce and manage the scheme without creating an onerous administrative burden.î

Peter-Jon summarises the main provisions of the Work and Families Act as follows:

Statutory Maternity Pay and Statutory Adoption Pay
Under the Act it is proposed that Statutory Maternity Pay (SMP) and Statutory Adoption Pay will be extended from six months to nine months from April 2007. The Act also contains a further intention to extend this to a yearís paid leave.

Statutory Paternity Leave
The Act also provides the right to take up to 26 weeks additional paternity leave to employed fathers some of which could be paid if the mother returns to work after six months, but before the end of the maternity leave period. It is also intended that this will be extended to a year.

Flexible working
Additionally, in April 2007, the right to request flexible working will also be extended to other groups with caring responsibilities.

Empire HR provide commercially focused employment law and HR support service including a telephone advice line, HR Consultancy, employment tribunal insurance and health and safety support for businesses across Scotland. Empire HR can be contacted on 01224 701383 or at www.empirehr.com.