Mastering the basics: Statutory Maternity and Paternity Leave and Pay

By Anthony Wolny | 7th August 2024 | 10 min read

The newborn stage is such an exciting time! During this period, new parents don’t want to be bogged down with the administrative burdens of Parental Leave.

Maternity and paternity leave and pay both fall under Parental Leave, and it is up to the business to correctly support its employees during this new and exciting period of their lives.

Are your Parental Leave policies up to scratch? What benefits should you be offering employees? Do you need help ensuring compliance? Fancy a recap?

Read on! We've covered everything you need to know about maternity and paternity leave and pay.

What is Statutory Maternity Leave?

Statutory Maternity Leave (SML) is a category of leave, setting out the legal requirement businesses must provide to new mothers.

It offers new mothers a break from their professional obligations, giving them time to care for their newborn during their formative stages.

How long does Statutory Maternity Leave last?

Statutory Maternity Leave is 52 weeks (1 year), featuring:

Ordinary Maternity Leave (OML) - initial 26 weeks
Additional Maternity Leave (AML) - following 26 weeks

OML is often viewed as the standard for leave and AML is for those wanting a longer period of leave.

While employees don't need to utilise the full 52 weeks, a minimum of 2 weeks' leave post-birth is required (or 4 weeks for those in a factory).

So, when can staff start taking their Statutory Maternity Leave? Ordinarily, the earliest an employee can start Maternity Leave is 11 weeks prior to the projected week of childbirth.

However, leave may also commence:

The day after birth if the childbirth is premature
In the 4 weeks leading up to the birth week (Sunday to Saturday) if an employee goes off work due to pregnancy-related sickness

Should there be a need to modify your employee's return-to-work date, a minimum of 8 weeks' notice is required.

Who is eligible for Statutory Maternity Leave

Duration of employment, hours worked or salary are not factors for Statutory Maternity Leave eligibility.

All staff need to qualify for SML is to:

Be classed as an employee, not a “worker”
Give the employer the correct notice

Note: in cases of surrogacy, Statutory Maternity Leave does not apply. Instead, the person can apply for Statutory Adoption Leave and Pay, which you can learn more about here.

What is Statutory Maternity Pay?

Statutory Maternity Pay (SMP) is the compensation employers provide while a worker is off on Statutory Maternity Leave.

In the United Kingdom, for the first 6 weeks, you should provide an employee 90% of their average weekly earnings (pre-tax).

Then for the next 33 weeks, you should provide employees £184.03 or 90% of their average weekly earnings (whichever is lowest).

SMP should be provided in the same manner as your regular salary; for example, monthly or weekly payments, subject to tax and National Insurance deductions.

Typically, Maternity Pay begins when the employee goes on Maternity Leave.

However, if the employee is absent from work because of an illness related to pregnancy in the 4 weeks leading up to the expected childbirth, Statutory Maternity Pay begins automatically.

Who is eligible for Statutory Maternity Pay

Eligibility for Statutory Maternity Pay requires an employee to:

On average, earn at least £123 a week
Give the employer the correct notice and proof they're pregnant
Be in uninterrupted employment with the company for a minimum of 26 weeks, extending into what is termed the 'qualifying week' (this is the 15th week before the expected week of childbirth)

Note: an employee can't receive SMP if they go into police custody during the Maternity Pay period + it will not restart once they are discharged.

Those not eligible for Statutory Maternity Pay may instead be eligible for Maternity Allowance, which you can learn more about here.

What is Statutory Paternity Leave?

The equivalent of Statutory Maternity Leave for new fathers is known as Statutory Paternity Leave (SPL).

The duration of Paternity Leave typically varies when compared to Maternity Leave due to the legal entitlements on offer.

How long does Statutory Paternity Leave last?

Following recent changes, children born after 6^th April 2024, or adopted on/after 6^th April 2024, now have slightly different Paternity Leave rules.

Previously, employees could choose to take either 1 or 2 weeks’ leave in one go.

Now, employees can still opt for 1 or 2 weeks of leave, but they have the flexibility to split the 2 weeks of leave, should they wish.

The leave can't start before the birth and must end within 52 weeks post-birth (or expected date, if the baby comes early).

As for adoption, employees can provide a general timeline for taking their leave instead of a precise date, which you can learn more about here.

Who is eligible for Statutory Paternity Leave?

Employees are eligible for SPL if they fit into one of these categories:

They are the biological father
They are the mother's spouse or life partner (inclusive of same-sex relationships)
They are the person who has adopted the child
They are the planned parent in a surrogacy arrangement

Be aware that the following additional requirements must also be met to be eligible:

Be classed as an employee
Give the employer the correct notice
Be employed, without interruption, for a minimum of 26 weeks, up to any day within the 'qualifying week'

Note: the 'qualifying week' is defined as the 15th week prior to the child's estimated arrival. For those adopting, this is different – learn more here.

What is Statutory Paternity Pay?

Like with Statutory Maternity Leave, Statutory Paternity Leave also requires employers to provide compensation, known as Statutory Paternity Pay (SPP).

The legally mandated weekly rate for Statutory Paternity Pay is £184.03 or 90% of the average weekly income (the lesser amount applies).

SPP should be processed in the same manner as the employee's regular salary, be it monthly or weekly, and is applicable to deductions for tax and National Insurance.

Funds are typically provided while the employee is on leave.

If an employee wants to change their start date, they need to give you at least 28 days’ notice before the block of paid leave begins.

Who is eligible for Statutory Paternity Pay?

To qualify for Statutory Paternity Pay, employees must:

Be employed up to the date of birth
On average, earn at least £123 per week (pre-tax)
Give the employer the correct notice
Maintain uninterrupted employment with the company for a minimum of 26 weeks until any day in the 'qualifying week'

Note: the 'qualifying week' is defined as the 15th week prior to the child's estimated arrival. For those adopting, this is different – learn more here.

Other types of leave and pay

A few other types of leave businesses should be aware of are Shared Parental Leave and Pay and Adoption Leave and Pay.

Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) enable parents to share up to 50 weeks of leave and up to 37 weeks of pay – learn more about it here.

Adoption Leave and Pay offer similar parental benefits for those taking time off to adopt a child or having a child through surrogacy – learn more about it here.

Additional employee benefits to offer new parents

Statutory Parental Leave is in place to ensure employees receive a baseline level of support when becoming new parents.

However, offering additional perks can prove fruitful.

Offering more than the bare minimum is often viewed as a great employment perk, not only making you an attractive employer but also helping you win the trust and appreciation of staff.

If you want employees to go the extra mile, you also have to.

Consider the following perks.

Offer enhanced parental pay

Providing more pay during Parental Leave than what is provided by the statutory offering can significantly benefit the lives of your staff.

Given that the Statutory Parental Pay is limited, implementing a dedicated parental leave pay policy can boost your team's morale, quality of life and trust in your business.

For example, you could offer staff who have met a certain level of service, perhaps 5+ years, with something along the lines of 32 weeks of enhanced maternity/adoption pay made up of 16 weeks full pay and 16 weeks half pay.

Flexible working

Introducing flexibility regarding the return-to-work timeline can help minimise the stress of juggling parenthood with work.

Numerous businesses are offering flexible hours and remote working to help staff cater to a wide range of personal commitments.

Childcare assistance

Businesses can offer perks like a childcare allowance or, in some cases, set up daycare facilities at the workplace.

Often, these kinds of benefits fall under salary sacrifice schemes and are deducted from the employee's gross income (pre-tax).

So, the employee is still responsible for the childcare expenses, but the overall cost is substantially reduced.

Easing the associated payroll burden

It's crucial to comprehend and assist your staff during their Parental Leave.

As such, you must ensure the associated Maternity and Paternity Pay is provided, error-free and on time.

For those requiring assistance with the pay element, look no further.

IRIS Fully Managed Payroll (FMP) offers an award-winning service that guarantees your payroll goes off without a hitch.

To learn more about IRIS Fully Managed Payroll and how it can support your business, click here.

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