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11816: Shared Parental Leave and Pay

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Article ID 11816
Article Name Shared Parental Leave and Pay
Created Date 27 Feb 2019 00:00:00
Product IRIS PAYE-Master, IRIS Payroll Business, IRIS Bureau Payroll, IRIS GP Payroll, IRIS Payroll Professional, Earnie, Earnie IQ
Codes: GGLEARNIE GGLENIEIQ GGLBURPAY GGLGPPAYROLL GGLPAYEMST GGLPAYBUS GGLPAYPRO
Problem

Overview of Shared Parental Leave and Pay - new legislation from April 2015

Resolution

Information provided by Gov.uk.


Overview


Employees may be entitled to Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) if:


•  their baby is due on or after 5 April 2015
•  they adopt a child on or after 5 April 2015


Employees can start SPL if they’re eligible and they or their partner end their maternity or adoption leave or pay early. The remaining leave will be available as SPL. The remaining pay may be available as ShPP. The same as SMP, total leave is 52 weeks and total pay is 39 weeks.


Employees can take SPL in up to 3 separate blocks. They can also share the leave with their partner if they’re also eligible. Parents can choose how much of the SPL each of them will take.


SPL and ShPP must be taken between the baby’s birth and first birthday (or within 1 year of adoption).


Eligibility


Sometimes only one parent in a couple will be eligible to get Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP). This means that they can’t share the leave.


If your employee is eligible then they can use SPL to book their leave in separate blocks.


Shared Parental Leave


To qualify for SPL, the child’s mother (or adoptive parent) must be eligible for either:


Maternity leave or pay
Maternity Allowance
Adoption leave or pay


Your employee must also:


Have worked for you continuously for at least 26 weeks by the end of the 15th week before the due date (or date they are matched with their adopted child)


Still be employed by you while they take SPL


Give you the correct notice including a declaration that their partner meets the employment and income requirements which allow your employee to get SPL


Statutory Shared Parental Pay


Your employee can get ShPP if one of the following applies:


they qualify for Statutory Maternity Pay or Statutory Adoption Pay
they qualify for Statutory Paternity Pay and have a partner who qualifies for Statutory Maternity Pay or Maternity Allowance or Statutory Adoption Pay


Refusing SPL or ShPP


You can refuse SPL or ShPP if the employee doesn’t qualify.


You must tell the employee the reason if you refuse ShPP. You don’t have to give a reason for refusing SPL.


Entitlement


If an employee is eligible and they or their partner end maternity or adoption leave and pay (or Maternity Allowance) early, then they can:


Take the rest of the 52 weeks of leave (up to a maximum of 50 weeks) as Shared Parental Leave (SPL)


• Take the rest of the 39 weeks of pay (up to a maximum of 37 weeks) as Statutory Shared Parental Pay (ShPP)


A mother must take a minimum of 2 weeks’ maternity leave following the birth (4 if she works in a factory).


ShPP is paid at the rate of £148.68 (19/20 tax year) a week or 90% of an employee’s average weekly earnings, whichever is lower.


Record keeping


You must keep records for HM Revenue and Customs (HMRC), including:


the evidence provided by the employee to show that they’re eligible for ShPP
the date ShPP began
your ShPP payments (including dates)
the ShPP you’ve reclaimed
any weeks you didn’t pay and why


You must keep records for at least 3 years from the end of the tax year they relate to.

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