Employment Law Update (September 2009)

Brown backtracks on new Maternity and Paternity rights

In a long-awaited announcement, Gordon Brown has announced at the TUC conference that the Government will delay its proposed extension of maternity pay and the facility for mothers to transfer part of their maternity leave to fathers until after the general election. The announcement effectively means there is no fixed timescale for the introduction of the new rights, and, depending on the outcome of the general election, they may not happen at all.

What were the proposals?

The proposals have been around since the Work and Families Act became law in 2006. However, the Act left the details of the scheme and the introduction date up in the air, to be introduced when the Government felt appropriate. It had previously been expected they would come into force in April 2010.

The original proposals were:

• Paid Maternity Leave to be extended from nine months to one year;
• Mothers able to transfer part of their Maternity Leave to the father to take as Paternity Leave.

What's the law now?

• All mothers qualify for one year's Maternity Leave;
• Subject to qualifying conditions, 9 months of the Maternity Leave is paid at Statutory Maternity Pay rates;
• Fathers qualify for two weeks' paid Paternity Leave at Statutory Paternity Pay rates.

What is likely to change and when?

The Government's proposals are that:

• Paid Maternity Leave to be extended from nine months to one year – this proposal has been delayed indefinitely;
• Mothers able to transfer up to six months' of their Maternity Leave to the father (including three months' paid leave) to take as Paternity Leave – delayed until April 2011.

Because a general election must be held by June 2010 at the latest, it is impossible to say whether the paternity leave proposals will go ahead at all, but the government has said it wants to pass the new legislation by April 2010. If this happens, it would be practically and politically difficult for any new incoming government to repeal.

As the legislation progresses, Mentor will keep you informed of developments and will provide appropriate updates to policies and procedures where necessary.