Paternity leave – Now and in the future

Did you know, that only one-third of fathers take paternity leave (and pay)? Should this concern you as an employer?

We’ll explore the second question a little later; but first, let’s take a look at the thinking behind paternity leave, what the current rules are and how this may change.

While fathers do not need to physically recover after pregnancy in the same way that a mother does, it is a key moment within the family lifecycle when bonding, support and readjustment all need to take place (not playing golf and celebrating the birth down the boozer).

Currently, the statutory paternity allowance is two weeks of paid leave at a rate the lower of £187.18 or 90% of average earnings. To qualify they must be employed (not self-employed) and earning at least £125 per week, with continuous service of 26 weeks (see below). In effect, paternity leave applies to all second parents, regardless of gender and secondary adopters within adopting couples, too.

The £187.18/90%-of-average-earnings rate is actually less than 50% of the national living wage. This goes some way to explaining the low take-up of paternity leave – many cannot afford to take the financial hit, even if they are sacrificing that crucial bonding and support time.

Shared parental leave – where the two parents can co-ordinate a split of paid time off – sits alongside paternity, maternity and adoption leave, but also has a low take up. It is complicated and has the same payment thresholds, presenting the same financial constraints on would-be recipients.

Is the Employment Rights Bill going to change paternity?

Yes, the Employment Rights Bill will make paternity leave and pay a day one right. Currently, as touched on above, an employee must have been working with you for 26 weeks up to any day in the “qualifying week”. The qualifying week is the 15th week before the baby is due.

This will come into force in 2026.

Are any further changes planned for paternity leave?

No further changes are set in stone, but the Women and Equalities Committee (of MPs) has recently declared the whole statutory parental leave system is flawed and among the worst in the developed world.

This has sparked the government to launch a landmark review, due to take a year and a half. Further down the line, this could lead to more fundamental change. But that is for later, if at all.

Paternity leave and your business

Working with SMEs up and down the country, we know the tight margins that many work to, and how difficult additional pressures are.

Some SMEs, as well as some larger businesses, choose to offer more generous family policies like paternity leave rather than the statutory minimums.

Doing the maths, they calculate that the value they get from this gesture is worth it – in terms of better recruitment and retention, perhaps lower sickness absence, enhanced workplace culture, and what things like this add up to: higher productivity. They may also feel it is “doing the right thing”, a contribution towards employee well-being and a better society.

It is a balancing act and every business needs to work out what is possible for themselves.

By your side

You can rely on us to keep you abreast of employment law changes, both in the near term and what may be in store over the long term. If you would like specific help complying with statutory paternity leave, or help crafting a bespoke policy that supports your staff and adds value to your business, please get in touch.