04/11/2009
Daddy Day care
The Government have announced its plans to further extend the existing family friendly rights by introducing Additional Paternity .At the same time it has shelved plans to extend Statutory Maternity Pay from 9 months to one year.
Presently for individual workers who qualify, there is a for a right to two weeks’ paternity leave paid at the lower of 90% of earnings or a flat rate of £123.06 per week (2009/10 tax year), whichever is lower. Although employers may provide for more generous terms in the contract if they so wish. There is also a separate right to 13 unpaid parental leave for employees who have completed one year’s service to care for their child. There is also a statutory entitlement to unpaid time off for dependants.
The Government's proposals are that families may choose to transfer up to six months leave from the mother to the father, which can be taken once the mother has returned to work. It will allows a father to have three months paid leave if the mother returns to work after the first six months of maternity leave, with another three months of unpaid leave,amounting to six months paternity leave in total.
The news has been welcomed by the Trade Unions but has been has been met with concern by the employers groups. The British Chamber of Commerce and the Federation of Small Businesses beleive that such additional legislation will result in a costly administrative burden at a time when busineses can least afford it during a recession.However the Department for Business, Innovation and Skills (BIS) figures suggest that it is unlikely to have a large effect as the current take-up of Additional Paternity Leave is less than 6% and they estimate that the additional rights will affect 0.7%, or 1 in every 137, of all small businesses.
The Government's goal is to introduce Additional Paternity Leave and Pay before the end of this Parliament. A consultation on the draft regulations will be launched soon. The Government intends that the law be in force by April 2010 and have effect for parents of children due on or after 3 April 2011.Employers will need to be mindful of the eefects of the new.
So despite the objections from the business community the Government seem determined to proceed with the new legislation.With an estimated 400,000 men every year likely to be eligible for the new rights employers will need to carefully monitor the situation and it's likely effect on their businesses.
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