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What's the law about maternity and paternity pay?

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Statutory maternity leave consists of 26 weeks ordinary maternity leave (OML), followed by 26 weeks additional maternity leave (AML). There’s no real difference between OML and AML, as your employee will have the same rights under her contract of employment as if she were still at work.  

Any female employee is entitled to statutory maternity leave, regardless of how long she’s been working for you. However, guidance suggests that your employee should tell you that she wants to take statutory maternity leave at least 15 weeks before the beginning of the week the baby is due.

What is statutory maternity pay?

If your employee has been working for you for at least 26 consecutive weeks by the 15th week before her baby is due, she is entitled to statutory maternity pay for up to 39 weeks.

Statutory maternity pay is 90% of her average gross weekly earnings for the first six weeks. After that, you will continue paying her either that amount or £128.73 per week – whichever is lower – up to the 39th week. After that, you do not have to pay your employee up to the 52nd week.

What is paternity leave and how much is statutory paternity pay?

Ordinary paternity leave is two weeks. To qualify for paternity leave, your employee must:

  • be the biological father or adopter of the child, or be the mother’s husband or partner;
  • have been working for you for at least 26 consecutive weeks by the 15th week before the baby is due;
  • continue to work for you up to the date the child is born; and
  • be earning at least £102 a week on average (in 2011/2012).

Statutory paternity pay lasts for two weeks, and is either 90% of your employee’s average weekly earnings or £128.73 – the lower of the two.

What are the new rules around paternity pay?

As of April 2011, the minimum amount for weekly ordinary paternity pay rose from £124.88 to £128.73. Also, fathers are entitled to 26 weeks additional paternity leave. For every week of paternity leave your employee takes, the mother of the child has her maternity leave allowance reduced by a week.

It’s important to note that additional paternity can only be taken 20 weeks or more after the baby is born. If your employee chooses to take additional paternity leave, he may be entitled to additional statutory paternity pay – which is the same rate of pay he received during ordinary paternity leave.

However, he can only qualify for additional statutory paternity pay if the child’s mother has started working again and is no longer receiving statutory maternity pay.

 

Find more useful business advice in the new Business Fit section of the website at Make It Cheaper.

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