From April, a radical new law will extend paternity leave rights for fathers of children due on or after 3 April 2011. New dads will have a right of up to six months additional leave which can be taken once the mother has returned to work.[1] This will be paid at the same standard rate as Statutory Maternity Pay (SMP) which is currently £123.06.[2]
The change of legislation will offer families greater choice about who takes leave, the opportunity for both parents to share childcare during the first few months of a baby’s life and enable a woman to return to work earlier – secure in the knowledge her newborn child is at home with their father.
But what does this new legislation mean for businesses? What potential challenges does it throw up? And, what can companies do to ensure their business and their employees are prepared ahead of time for the changes?
What the dads said
In October last year, we surveyed over 100 new fathers and fathers-to-be to gauge their views on the forthcoming legislation and found that almost half welcomed it. Forty-six per cent of fathers said they would take advantage of the opportunity to share parental leave, just a third (33%) said they don’t plan to use the leave, and 18% were undecided.
However, whilst many would relish the additional paternity leave, the research revealed several barriers to adoption including financial pressures, workload responsibilities and the fear of going against traditional cultural stereotypes, where the responsibility for childcare traditionally falls to women. And, some men believed their earning potential might be damaged if they took extra time off.
These concerns raised by men highlight the need for employers to consider carefully the support they will provide for those opting to take extended leave. This includes the financial packages they offer fathers, to the management and handover of the work/duties, how they communicate the news of the extended leave to colleagues and clients and the support they offer their employees.
With the date for the new legislation approaching fast, employers need to ensure they are ready for the changes ahead. Those who assume that men won’t take up the provisions could be taking unnecessary risks.
Opportunity to update policies
This is a great opportunity for employers to review internal policies and practices around paternity leave, and to ensure there is clear and up-to-date information and guidance for staff around managing parental leave.[3] A good starting point for companies is to define their philosophy on paternity leave, including the levels of pay they will offer (statutory or more generous) and whether they will provide coaching or training for men who are planning to take extended leave. In reality, companies need to decide if they are going to emulate their maternity policies and treat men taking paternity leave in the same way as they treat women going on maternity leave.[4]
Communicating the policy
Once a company has its policies in place, these procedures then need to be communicated clearly to line managers and employees. We recommend that HR teams produce best practice materials outlining the policies and the company’s approach. These documents need to be communicated to line managers to ensure they understand the new legislation; they are well briefed and will adopt a consistent stance when approached by any employee who requests extended leave.
It will also be important for employers to plan how they will communicate the new changes to their staff. They may also need to consider how they will change their corporate culture so that men are encouraged to take additional paternity leave without it being viewed in a negative way or damaging to their careers. In effect, they should work towards emulating the best practice around maternity. If the transition into parenthood is successfully managed, it can help in retaining and attracting valuable talent, and minimising the impact on the broader team and business.
Transition support
The provision of training and coaching programmes for prospective mums and dads can also be an effective way of supporting and preparing employees emotionally and practically for the transition to parenthood. The investment in this sort of proactive practical preparation sends positive signals to employees which in turn will help with longer-term retention.
On a practical level such support would help employees find the best ways of communicating they are taking leave, cover off their workload responsibilities, and establish what support and training they may need on their return to work, which may involve requesting greater flexibility in their work schedule.
Notification
One challenge for businesses to consider is that men often announce their paternity leave out of the blue. Legally, women have to notify their company about their pregnancy when they are 25 weeks pregnant; however, no such official notice is required for men requesting paternity leave. Until this point, line managers may be totally unaware their key team member is about to become a father and as a result they can be left unprepared when it is requested. Whilst this may prove a minor inconvenience for a company over two weeks, it could have a major impact on a business if the employee was suddenly to take several months off. With this in mind, companies will have to consider how they would manage a sudden departure, if they need to build greater flexibility into their workforce and if as part of their policy, men will need to request extended leave within a given time frame to allow the business adequate time to prepare cover.
So there are many considerations for businesses, but in its essence this legislation is very exciting as given time, we could see a fundamental cultural shift in UK companies. The most important priority for any business now is to plan ahead for April and to ensure policies are in place and that they are understood by key members of the business. Employers need to be ready for the first request from a man wanting to take extended paternity leave and be certain they are able to handle the potential impact on their business.
[1] See also our news story ‘Dads on track to take more time out with junior under new rules’ in The People Bulletin, 10 November 2010.
[2] www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_10018741
[3] See also the CIPD’s factsheet: ‘Maternity, paternity and adoption rights’.
[4] See also Deborah Nathan’s article ‘The family way’ in The People Bulletin, 24 September 2009.