Tax & Accounting News

Extension To Paternity Leave Proposed

29/09/2009

The government has announced plans to give new fathers the right to take up to six months of paternity leave.

At present fathers are entitled to two weeks’ paid paternity leave, while mothers can take up to 52 weeks, of which up to 39 are paid. Under the proposed changes, families can choose to transfer the last six months of maternity leave to the father, which can be taken by the father once the mother returns to work. Of those six months, three months will be paid leave at the normal maternity rate of £123.06 per week.

This is in addition to the existing right of parents to take a further 13 weeks of unpaid leave at any time until their child’s fifth birthday.

The current timetable is for the changes to be brought in by April 2010, following a period of consultation, with the new rules applying to parents whose children are due on or after 3 April 2011.

The government has argued the impact will be minimal, with only six per cent of fathers expected to take up the offer, affecting about 0.7 per cent of all small businesses.

Business minister Pat McFadden said: “The number of businesses affected is expected to be small, and we will work with businesses to make sure any changes are introduced in a way that minimises burdens and gives them predictability in the provision of leave.”

However, business organisations including the British Chambers of Commerce and the Chartered Institute of Personnel and Development have expressed concern about the timing of the changes, claiming the administrative burdens could prove difficult for small firms at a time when many may still be recovering from the economic downturn.