4. What is Shared Parental Leave?
• Employees who are parents (birth or adoption)
• Opt to share parental leave during the first 52
weeks of their child’s life or after placement for
adoption
• Not obligatory
• Default will continue to be maternity or adoption
leave
5. When did it come into force?
• Shared Parental Leave Regulations came into
force 1 December 2014
• Apply where:
− EWC begins on or after 5 April 2015
− A child is placed for adoption on or after 5 April
2015
6. What has changed?
• Maternity and adoption will remain default
• Additional paternity leave no longer available
− If parents don’t qualify for Shared Parental Leave
only Ordinary Paternity Leave will be available
− Remain in operation until April 2016
7. How does Shared Parental Leave work?
• Mother or primary adopter:
− Opt to end maternity or adoption leave
− Commit to ending it at a future date
• Makes up to 50 weeks Shared Parental Leave and
37 weeks of Share Parental Pay available to
either parent (subject to eligibility)
• Must be taken between the date of the baby’s
birth and 1st
birthday (within 1 year of adoption)
8. How does Shared Parental Leave work?
• Eligibility requirements
• Return to work or Leave Curtailment Notice
• Notice of entitlement and intention to take
Shared Parental Leave
• Period of Leave Notice
• Regime for revoking and varying notices
9. Eligibility – who are the parents?
• Birth
− Mother - child’s mother
− Partner - child’s father, the mother’s spouse on
the child’s date of birth, civil partner or partner
• Adoption
− Main adopter – person with whom the child is
placed
− Adoptive partner – spouse, civil partner or partner
10. Eligibility – who are the parents?
• Partner
− Person (whether the same sex or different sex)
who lives with the mother/main adopter and child
in an enduring family relationship
− Not a child, parent, grandchild, grandparent,
sibling, aunt, uncle, niece or nephew
11. Eligibility requirements - Mother
• Satisfy the “continuity of employment” test
• At the date of the child’s birth have the main
responsibility for the care of the child (apart from
any responsibility of her partner)
• Be entitled to statutory maternity leave in
respect of the child
• Curtail her maternity leave
12. Eligibility requirements - Mother
• The mother’s partner must also
− Satisfy the “employment and earnings test”
− At the date of the child’s birth have the main
responsibility for the care of the child (apart from
any responsibility of the mother)
• Comply with the notification requirements
13. Eligibility requirements - Partner
• Satisfy the “continuity of employment” test
• At the date of the child’s birth have the main
responsibility for the care of the child (apart from
any responsibility of the mother)
14. Eligibility requirements - Partner
• The mother must also:
− Satisfy the employment and earnings test
− At the date of the Child’s birth, have the main
responsibility for the care of the child (apart from
any responsibility of the partner)
− Be entitled to statutory maternity leave, statutory
maternity pay or maternity allowance in respect
of the child;
− Have curtailed the statutory maternity leave,
statutory maternity pay period or maternity
allowance period
15. What is the continuity of employment
test?
• Employee must have:
− Been continuously employed with an employer for
a period of not less then 26 weeks
− Ending with the 15th
week before the expected
week of childbirth
− Remain in continuous employment with that
employer until the week before any period of
shared parental leave
16. Do both parents need to be employees?
• No
• Partner must satisfy the employment earnings
test
• Must have worked in an employed or self-
employed capacity in at least 26 weeks of the 66
weeks immediately before the Expected Week of
Childbirth earning on average at least £30 a week
based on any 13 of those weeks
17. How much Shared Parental Leave is
available per parent?
• Start with 52 weeks
• Deduct the amount of maternity leave (inc.
compulsory 2 weeks)
• Reduce the remaining weeks by any amount of
Shared Parental Leave notified or taken by the
other parent
• A part of a week’s leave taken is treated as a
whole
18. How much Shared Parental Leave is
available?
• Ordinary Paternity Leave has no effect
• Once a period of Shared Parental Leave is taken
any untaken paternity leave entitlement is lost
19. Concurrent periods of leave
• Both parents can be on Shared Parental Leave at
the same time
• Shared Parental Leave and Parental Leave
• Shared Parental Leave and Maternity Leave
20. Periods of Leave
• At least 8 weeks before the start date of a period
of Shared Parental Leave
• Written notice
• Sets out start and end dates of each period of
Shared Parental Leave
• Three blocks or more if agreed
• Can be at the same time as notice of entitlement
and intention and Leave Curtailment Notice
• Binding
21. Periods of Leave
• Cannot request leave with a start or end date
outside the Shared Parental Leave period i.e.
over 52 weeks after the baby is born
22. Periods of Leave
• Continuous Leave
− Employee will automatically be entitled to that
period
• Discontinuous Leave
− Split a block of leave into short periods e.g.
working every other week during a 12 week
period
23. Discontinuous Leave
• Employer has 14 days from date notice given
− Consent to the periods requested
− Propose alternative dates
− Refuse the periods requested
• If parties agree to the periods requested or
alternative dates then the agreement is binding
and Shared Parental Leave can be taken
24. Discontinuous Leave
• If refused employee can:
− Take the total amount of leave requested in a
continuous block
• Employee must chose a new start date within 5 days
of the end of the two week consideration period
• 8 weeks after the date the Period of Leave Notice
was given
• If no new start date given then Shared Parental
Leave will start on the first period of leave requested
− Withdraw Notice (15th
day after notice given)
26. Terms & Conditions
• Employee is:
− Entitled to all benefits of terms and conditions
(except remuneration)
− Bound by any obligations (except where
inconsistent with right to absence)
• SPLIT days
− Reasonable contact
− 20 days
− In addition to maternity leave KIT days
27. Redundancy
• Priority for an offer of suitable alternative
employment
• Failure to comply = automatic unfair dismissal
• Suitable alternative
− Work which is both suitable and appropriate in all
the circumstances AND
− Terms and conditions not substantially less
favourable
Simpson v Endsleigh Insurance Limited and other
(UKEAT/0544/09)
28. Rights on returning to work
• Depend on how much Shared Parental leave
taken (alone or with other statutory leave)
• Return to work after 26 weeks or less
− Return to work in the job employed before their
absence
29. Rights on returning to work
• Return to work after more than 26 weeks
− Return to work in the job employed before
absence unless not reasonable practicable
− Another job which is both suitable and
appropriate for them in the circumstances
− Not less favourable terms
30. Protection from detriment and dismissal
• Employee entitled not to be subject to any
detriment or dismissal because:
− Took, sought or made use of Shared Parental
Leave
− Employer believed employee was likely to take
Shared Parental Leave
− Took, considered or refused to undertake SPLIT
days
31. Shared Parental Pay
• Ordinarily anyone who is eligible for Shared
Parental Leave is eligible for Shared Parental Pay
• Not payable
− If person also entitled to Statutory Sick Pay
− Shared Parental Leave and Shared Parental Pay
may be suspended where the employee too ill to
care for child
32. Shared Parental Pay
• Statutory Rate is Lower of prescribed rate
(£139.58) or 90% of normal weekly earnings
• No 6 weeks at 90% as with Statutory Maternity
Pay
33. Enhanced Shared Parental Pay
• To enhance or not to enhance that is the
question!
• Direct Discrimination
• Indirect discrimination
− Shuter v Ford Motor Company ET/3203504/13
35. Legal framework – annual leave and pay
• Working Time Directive - Article 7
− 4 weeks’ paid annual leave
• Working Time Regulations 1998
− 5.6 weeks’ paid annual leave (Regulation 13)
• 4 weeks WTD
• Additional 1.6 weeks
− Holiday Pay (Regulation 16)
• A week’s pay in respect of each week of leave
36. Legal framework – annual leave and pay
• Week’s pay – Employment Rights Act 1996
− No normal working hours
• Average of remuneration earned in previous 12
weeks – including overtime and commission
− Normal working hours
• Basic salary disregarding additional pay elements
(except compulsory overtime)
37. Case law – annual leave and pay
• Bamsey v Albion Engineering and Manufacturing plc
(2004) COA
− ERA 1996 meant that overtime included only where it is
guaranteed and compulsory
− Overtime regularly worked but not guaranteed not included
• British Airways plc v Williams (2012) ECJ
− Pay which is “intrinsically linked” to the performance of the
contract of employment
• Lock v British Gas Trading Ltd (2014) ECJ
− Correspond to “normal remuneration”
− Commission “directly linked” to his work
38. Case law – annual leave and pay
• Themes
− The “intrinsically linked” test
− Reduction in remuneration that will deter from
taking holiday is contrary to the WTD objective
− Ancillary costs or expenses not included e.g.
subsistence allowance
39. Bear Scotland Ltd & Others – The facts
• Construction companies
• Claimants working under the terms of the
National Agreement for Engineering and
Construction Industry
− Basic working week of 38 normal working hours
− Obligation to work overtime
− No obligation on employer to provide overtime
40. Bear Scotland Ltd & Others – The facts
• Agreement terms
− overtime would be required- not guaranteed
− did not form part of the normal working hours
− would not form part of any of the calculations on
holiday pay entitlement
• Unauthorised deductions from wages claims
• Specific claims for breach of contract (Hertel &
Amec)
41. Bear Scotland Ltd & Other – The issues
Issue 1
•What does Article 7 WTD require by way of paid
annual leave?
•Does it follow from Williams and Lock that non-
guaranteed overtime should be included in the
calculation of holiday pay?
42. Bear Scotland Ltd & Other – The issues
• Pay received during holiday should be natural
continuation of pay before holiday
• Payment needs to be for sufficient period of time
to be “normal remuneration”
• Required by employer
• Perverse to hold overtime was not intrinsically
linked to performance of tasks
• “normal remuneration” not easily identifiable –
average over appropriate reference period
43. Bear Scotland Ltd & Other – The issues
Issue 2
•Could WTR 1998 and ERA 1996 be interpreted to
give effect to Article 7?
•Yes – reading words into Regulation 16 to allow
overtime to be included in the definition of “a
week’s pay”
44. Bear Scotland Ltd & Other – The issues
Issue 3
•Does the underpayment of holiday constitute a
“series of deductions”?
•Must be brought within 3 months of the
deduction or last in series of deductions
•Gap of 3 months between two deductions will
break the “series of deductions”
•Restrict scope of back pay claims
45. Where does Bear Scotland Ltd leave us?
The following must be included in calculation of
holiday pay
•Compulsory or contractual overtime
•Commission
•Non-guaranteed overtime
•Travel time payments
•Acting up supplements
46. Where does Bear Scotland Ltd leave us?
• Voluntary overtime?
• Productivity, attendance or performance bonuses
• Allowances (e.g. shift allowance)
• Standby and emergency call out payments
• Sleeping in payments
• Acting up supplements
• Profit related or annual discretionary bonus?
47. Holiday Pay – Other considerations
4 weeks or 5.6 weeks?
•Less generous provisions can apply to the
additional 1.6 weeks under WTR
− Neidel v Stadt Frankfurt am Main (2012)
• It is for member states to decide whether to
provide workers with holiday rights above the
minimum
48. Holiday Pay – Other considerations
4 weeks or 5.6 weeks?
•Practical to distinguish?
•Could break the series of deductions
•Employer has power to direct within the leave
year when holiday should be taken
•“additional leave” last to be agreed upon in the
leave year
49. Holiday Pay – Other considerations
What is an appropriate reference period?
•“reference period considered to be representative
under national law” Lock
•Not dealt with by EAT in Bear Scotland Ltd &
Others
•ERA 1996 – 12 weeks
•Is this representative?
50. Holiday Pay – Other considerations
Back pay claims
•Unlawful deduction of wages claim
•“series of deductions” limited
•Does the 1.6 weeks additional leave break the
series?
52. Strategy options
• Include non-guaranteed overtime in holiday pay
calculations going forward
− Provide a break in “series of deductions” and start
the clock running on back pay claims
53. Strategy options
• Costing
• Which elements of pay
• Approach to “additional 1.6 weeks”
• Appropriate reference period
54. Other thorny pay issues
• On call, standby and sleeping in allowances
− NMW issues
• Care worker arrangements
56. The Background
• Address long standing concerns about pension
saving in the UK
• Came into force in July 2012
• Requires employers to automatically enrol
eligible employees into a pension scheme
• Staging date – varies depending upon number of
employees. From 1 June 2015 will extend to <50
employees
57. The Duty
• Automatically enrol an eligible job-holder as an
active member
• Qualifying automatic enrolment scheme
• With effect from the date the job-holder
becomes eligible
• Unless they are already an active member of a
qualifying scheme
58. Who is a job-holder?
• Defined as a “worker”
• Is working (or ordinarily working) in Great Britain
under contact:
− Is aged between 16 and 75
− Is paid qualifying earnings by an employer in a
relevant pay reference period
• Very broad definition substantially the same as
the definition of worker in the ERA 1996
• Encompasses permanent, temporary, agency
workers and apprentices
59. Qualifying earnings
• Qualifying earnings means annual earnings
between £5,824 and £42,385;
• Gross salary, wages, commission, bonuses and
overtime
• Qualifying earnings band reviewed annually
60. Who must be auto-enrolled?
• Not all job-holders will be eligible
• To be eligible a job-holder must:
− Be at least 22 years old and not have reached
state pensionable age
− Have earnings that exceed the earnings trigger
(currently set at £10,000)
− Not already be an active member of the
employer’s qualifying scheme
• Must be enrolled from the date the job-holder
meets the qualifying requirements
• 1 month to make arrangements
61. Opting in and opting out
• Job-holder has a statutory right to opt out of any
scheme to which he has been automatically
enrolled
• Once in any 12 month period
• Non-eligible job-holders
• Entitled workers
62. Postponement period
• Three months before a job-holder becomes
entitled to be auto-enrolled;
− From staging date
− From the first day of a worker’s employment
− From the first day a worker becomes eligible
• Assessment of eligibility at the end of the
postponement period, with effect from the
deferral date
63. Postponement period
• Practical option
− Align auto-enrolment with existing payroll
processes;
− Obviate the need to auto-enrol short term
workers
• Must provide worker with notice of deferral date
within one month
64. What is a qualifying scheme
• Complex statutory requirements
• Occupational pension scheme or personal
pension scheme as defined (section 18 and 19
Pensions Act 2008)
• Is a registered pension scheme
• Satisfies quality requirements (sections 20 -27
Pensions Act 2008)
• Does not levy excess charges on its members
65. What is a qualifying scheme
• Does not contain provisions that are specific
barriers to entry which:
− Prevent an employer using the scheme to meet
auto-enrolment, opting in and re-enrolment
duties;
− Require a job-holder to make a choice or provide
information to become an active member
66. Information and consultation
• Must provide prescribed information to workers
• Rights to opt in or join
• Consultation required for any changes
• Duty to automatically re-enrol
67. Transitional arrangements
• Defined contribution Schemes
− Minimum contributions phased in two transitional
periods spanning six years
− Staging date to 30 September 2017: Employer
contributions 1% with a total employer and job-holder
contribution of 2%*
− 1 October 2017 to 30 September 2018: Employer
contributions of 2% with a total employer and job-holder
contribution of 5%*
− 1 October 2018 onward: Employer contributions of 3%
with total employer and job-holder contributions of 8%*
*including tax relief
68. Transitional arrangements
• Defined Benefit and Hybrid Schemes
− Optional transitional period ending on 30
September 2017
− Delay auto-enrolment requirements for eligible
job-holders who have opted out of scheme
− Prescribed notice
− Eligible job-holder can opt in
• There may be changes to the legislative
provisions regarding hybrid schemes
69. The contract of employment
• ERA 1996 requires basic information regarding
pensions to be included
• Can refer to pension scheme document
• Avoid setting out auto-enrolment duties and
terms in the contract
• Provide details to the pension scheme
administrators
• Transmission of personal data
70. Employment Protection Measures
• Designed to protect the rights of job-holders and
prospective job-holders
• Apply even before the staging date
• Cannot contract out
• Should not ask job applicants if they intend to opt
out
• Should not offer financial inducements
• Right not to suffer detriment
71. National Employment Savings Trust
• NEST is a government established pension
scheme
• Contributions must match the minimum
contribution requirements that apply to a
defined contributions scheme
• Currently an annual limit and a ban on transfers
in and out
• Restrictions removed from April 2017
72. Enforcement
• The Pensions Regulator
• Powers to investigate, issue warning letters and
enforcement notices
• No right of action for breach of statutory duty in
the employment tribunal
73. Preparing for the staging date
• Assess the workforce
• Does the transitional period apply?
• Is your scheme a qualifying scheme?
• Will the scheme need amending?
• Opting out
• Employment contracts
• Re-enrolment
The Children and Families Act 2004 inserts new provisions into Part 8 of the Employment Rights Act 1996 (Chapter 1B sections 75E to 75K).
The Expected Week of Childbirth is the week beginning midnight between Saturday and Sunday, in which is it expected that the child will be born.
Regardless of whether the baby is born early.
The Additional Paternity Leave will remain in place for parents of children with an Expected Week of Childbirth before 5 April 2015. As a result, the Additional Paternity Leave and Pay system will remain in operation until mid-April 2016.
A mother or primary adopter can opt to end their maternity or adoption leave, or commit to ending it at a future date and share the untaken leave with the other parent.
Shared Parental Leave makes 50 weeks of Shared Parental Leave and 37 weeks of Shared Parental Pay available for either parent (provided they are eligible) to share.
In order to effect a Shared Parental Leave entitlement eligibility requirements and a series of notice provisions must be met.
Eligibility requirements for both parents regardless of which is taking Shared Parental Leave
Curtail her maternity leave, either by returning to work, or by serving a maternity leave curtailment notice 8 weeks before she wants her maternity leave to end
What is the continuity of employment test?
To satisfy the continuity of employment test the employee must:
•Have been continuously employed with an employer for a period of not less than 26 weeks ending with the “relevant week” which is the 15th week before the Expected Week of Childbirth;
•Remain in continuous employment with that employer until the week before any period of shared parental leave they take.
Shared parental leave is only available for employees
Q do both parents need to be employees in order to be able to access Shared Parental Leave?
Cover situations where one parent is self-employed, unemployed or an agency worker.
They won’t be eligible for share parental leave – wont satisfy the continuity of employment test but their partner can still access Shared Parental Leave if they’re economically active.
So where you have an employee whose partner is self-employed or unemployed and therefore would not technically qualify for Shared Parental Leave as they have no employer, the employee will still be able to access the Shared Parental Scheme if their partner has been economically active.
The amount of Shared Parental Leave that is available to each parent will be how much they decide the share between them once the total amount of maternity leave or maternity pay or allowance is taken into account i.e. what is left after the mother curtails her maternity leave.
For example:
A mother can end her maternity leave after 12 weeks, leaving 40 weeks of the total 52 week entitlement available for Shared Parental Leave. If both the mother and the partner are eligible they can share the 40 weeks. They can take the leave at the same time or separately.
Right to two week’s ordinary paternity leave to be taken with in 56 days after birth.
Father can take this in addition to any shared parental leave.
Once a period of Shared Parental Leave is taken any untaken paternity leave entitlement is lost. Highlight to employee – take Paternity Leave first.
How does Shared Parental Leave interact with other types of family leave?
An employee may be absent on Shared Parental Leave at the same time that another employee is:
Absent on leave under Part 8 of the Employment Rights Act 1996 which covers maternity, paternity, adoption, shared parental and parental leave, in relation to the child;
In receipt of statutory maternity pay, maternity allowance, statutory paternity pay, statutory adoption pay, or statutory shared parental pay in relation to the child.
In practice this means that:
Shared Parental Leave and Shared Paternal Leave
Both parents can be on Shared Parental Leave at the same time.
Shared Parental Leave and Parental Leave
Either parent can take a period of unpaid parental leave under statutory parental leave while the other parent is on Shared Parental Leave.
Shared Parental Leave and Maternity Leave
If the mother has served a curtailment notice on her employer then her partner can start a period of Shared Parental Leave even while the mother remains on maternity leave.
Regulation 5(3)(d) states that the partner cam only take Shared Parental Leave if the mother has “ended any entitlement to statutory maternity leave by curtailing that leave”. Some commentators argue that giving notice to curtail maternity leave is not the same as curtailing the leave. Semantics?
Period of Leave Notice – Formal Notification
A Period of Leave Notice may not:
Be given before the mother or partner give a notice of entitlement and intention to take Shared Parental Leave;
Request leave with a start or end date which is outside the period during which Shared Parental Leave can be taken.
What periods of leave can be requested?
Continuous Leave
Where an employee notice requests a continuous period or Shared Parental Leave they will be entitled to that period
Discontinuous Leave
The employee may wish to split a block of leave into shorter periods of leave, these must be at least a week.
For example, they may request to work every other week during a 12 week period using 6 weeks of Shared Parental Leave. This is known as a discontinuous period of Shared Parental Leave.
Where an employee notice requests discontinuous periods of Shared Parental Leave, in the two weeks beginning with the date the notice was given the employer may:
Consent to the periods of leave requested
Propose alternative dates for the periods of leave
Refuse the periods of leave requested without proposing alternative dates
Where at the end of the 14 days the employer has consented or the parties have agreed then the agreement is binding and the Shared Parental Leave may be taken.
If they fail to choose a start date then their leave will start on the start date of the first period of leave requested in their Period of Leave notice.
Mirror provisions in relation to maternity leave
Terms and conditions of employment
As is currently the case during a period of maternity leave, paternity or adoption leave, during a period of Shared Parental Leave and employee is:
SPLIT Days
The employer and absent employee are entitled to make reasonable contact with each other during a period of Shared Parental Leave e.g. to discuss an employee’s return to work without bringing the period of Shared Parental Leave to an end.
These are known as SPLIT “Shared Parental Leave in Touch” days.
These are separate and additional to the 10 KIT days that a woman has on maternity leave.
n employees on or returning from maternity leave, additional paternity leave and adoption leave priority over other employees who are at risk of redundancy when it comes to an offer of suitable alternative employment.
automatic unfair dismissal.
Simpson v Endsleigh Insurance Limited and other (UKEAT/0544/09)
EAT held that both parts of the definition of suitable alternative employment needed to be read together and both needed to be satisfied in deciding whether a vacancy was a suitable alternative for the employee.
EAT held than an employer was not obliged to offer a job in Cheltenham to an employee based in London on the basis that the location was substantially less favourable to her and didn’t amount to suitable alternative employment.
Relevant statutory leave which would be maternity, paternity or adoption leave.
Where an employee returns to work after a period of Shared Parental Leave which when added to any other period of relevant statutory leave is 26 weeks or less then the employee is entitled to return to the job in which they were employed before their absence.
Where an employee returns to work after a period of Shared Parental Leave which when added to another period of relevant Statutory Leave is more than 26 weeks, the employee is entitled to return to the job in which they were employed before their absence unless it is not reasonably practicable for their employer to return them to that job, in which case they will be entitled to return to another job which is both suitable for them and appropriate for them to do in the circumstances.
An employee should return with the same seniority, pension rights and similar rights and on terms no less favourable than those which would have applied had there been no absence.
Where an employee returns to work after a period of Shared Parental Leave which when added to another period of relevant Statutory Leave is more than 26 weeks, the employee is entitled to return to the job in which they were employed before their absence unless it is not reasonably practicable for their employer to return them to that job, in which case they will be entitled to return to another job which is both suitable for them and appropriate for them to do in the circumstances.
An employee should return with the same seniority, pension rights and similar rights and on terms no less favourable than those which would have applied had there been no absence.
Recover as overpayment of wages if shared parental pay paid when entitled to statutory sick pay.
Not alone, Personnel Today and Expert HR survey 75% said that they would mirror the pay offered to mothers.
Direct discrimination – unlikely to amount to DD – comparator would be a woman or shared parental leave – provided all on SPL paid the same then no claim for DD
Indirect discrimination – ostensibly there is the potential for a indirect discrimination claim – PCP of not enhancing shared parental pay where maternity pay is enhanced disproportionately disadvantages men – women have the ability to remain on enhanced maternity pay.
Shuter v Ford Motor Company
OJ cost alone insuffficient