Shared Parental Leave and Pay

Introduction

Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) allow eligible parents to share up to 50 weeks of leave and 37 weeks of pay after having or adopting a child. This flexible arrangement lets parents choose how to divide the time off between them, provided they meet the eligibility criteria and follow the required notice procedures. Understanding how the scheme works will help you support employees who wish to take advantage of this option.

What is Shared Parental Leave and Pay?

Shared Parental Leave and Pay allows parents to share the leave and pay that would otherwise be available as maternity or adoption leave. For SPL to become available, the mother or adoptive parent must end their maternity or adoption leave or pay early. The remaining leave (up to 50 weeks) becomes available as SPL, and the remaining pay (up to 37 weeks) may be available as ShPP.

Parents can choose how to split this time between them, and leave can be taken in up to three separate blocks. Both SPL and ShPP must be taken within one year of the child's birth or adoption placement.

The scheme is only available in England, Scotland and Wales.

Eligibility for Shared Parental Leave

For an employee to qualify for SPL, they must share responsibility for the child with their husband, wife, civil partner, joint adopter, the child's other parent, or their partner if they live together.

Either the employee or their partner must be eligible for maternity pay or leave, adoption pay or leave, or Maternity Allowance.

Your employee must also meet these requirements:

• Still be employed by you while taking SPL
• Have been continuously employed by you for at least 26 weeks up to the end of the 'qualifying week' (the 15th week before the baby is due, or the week they're matched with a child for adoption)
• Give you the correct notice, including a declaration that their partner meets the employment and income requirements

If only one parent meets these criteria, they can still use SPL to book leave in separate blocks, but cannot share the leave with their partner.

Eligibility for Statutory Shared Parental Pay

An employee can get ShPP if they're an employee and either:

• They're eligible for Statutory Maternity Pay (SMP) or Statutory Adoption Pay (SAP), or
• They're eligible for Statutory Paternity Pay (SPP) and their partner is eligible for SMP, Maternity Allowance, or SAP

Workers (not just employees) can also get ShPP if they're eligible for SMP or SPP.

ShPP is paid at £187.18 per week or 90% of the employee's average weekly earnings, whichever is lower.

How Much Leave and Pay is Available?

The amount of SPL and ShPP available depends on how much maternity or adoption leave and pay the mother or adopter has already taken.

A mother must take a minimum of two weeks' maternity leave following birth (four weeks if she works in a factory). An adoptive parent must take at least two weeks' adoption leave from the day of placement, or up to 14 days before placement starts.

After this compulsory period, if the mother or adopter ends their leave and pay early, the remaining time becomes available:

• Up to 50 weeks of SPL from the full 52 weeks of maternity or adoption leave
• Up to 37 weeks of ShPP from the full 39 weeks of maternity or adoption pay

For example, if a mother ends her maternity leave after 12 weeks, 40 weeks of SPL and 27 weeks of ShPP become available for the parents to share between them.

Notice Requirements

For SPL to start, the mother or adopter must either:

• Return to work, ending their maternity or adoption leave
• Give you 'binding notice' of when they'll end their leave (a decision that cannot normally be changed)
• End maternity pay or Maternity Allowance if they're not entitled to maternity leave

The mother must give at least eight weeks' notice to end her maternity pay, or notify Jobcentre Plus to end Maternity Allowance. Adopters must give you notice to end adoption pay.

Once binding notice is given, the partner can start SPL even while the mother or adopter is still on leave. For example, if a mother gives binding notice that she'll take 16 weeks of maternity leave, her partner can start SPL as soon as the baby is born (provided they've given at least eight weeks' notice).

What Employees Must Provide

Employees must give you written notice if they want to start SPL or ShPP. They can use forms created by Acas (the Advisory, Conciliation and Arbitration Service) for this purpose.

After receiving notice, you can ask for:

• A copy of the child's birth certificate
• The name and address of their partner's employer

You have 14 days to request this information, and the employee then has a further 14 days to provide it.

Employees must give at least eight weeks' notice of any leave they wish to take. If the child is born more than eight weeks early, this notice period can be shorter.

Blocks of Leave

Employees have a statutory right to take SPL in up to three separate blocks. You can agree to allow more blocks if you wish. This flexibility enables parents to structure their leave around their work and family needs.

Shared Parental Leave in Touch (SPLIT) Days

Employees can work up to 20 days during SPL without ending their leave. These are called 'shared parental leave in touch' or SPLIT days. These days are in addition to the 10 'keeping in touch' (KIT) days available during maternity or adoption leave, and are optional for both you and the employee.

Cancelling the Decision to End Leave Early

The mother or adopter may be able to change their decision to end maternity or adoption leave early if the planned end date has not passed and they have not already returned to work.

They can withdraw their decision if one of the following applies:

• It's discovered during the eight-week notice period that neither partner is eligible for SPL or ShPP
• The employee's partner has died
• It's less than six weeks after birth and the mother gave notice before the birth

Refusing SPL or ShPP

You can refuse SPL or ShPP if the employee does not qualify. You must tell the employee the reason if you refuse ShPP, but you do not have to give a reason for refusing SPL.

Company Schemes and Reclaiming Payments

You can offer more than the statutory amounts through a company shared parental leave and pay scheme. Your scheme's policies must be clear and available to staff.

When reclaiming statutory payments, you can usually reclaim 92% of the ShPP you've paid, even if you pay more than the statutory rate. If you qualify for Small Employers' Relief, you may be able to reclaim 109%.

Sources

• Shared Parental Leave and Pay: employer guide
• Recover Statutory Payments

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.