Paternity Leave and Pay: Employer's Guide

Paternity leave has become more flexible. Understanding the rules helps you support new fathers and partners properly.

Who Qualifies

For Paternity Leave

Must be:

• Employee (not worker)
• Child's biological father, OR
• Mother's spouse, civil partner, or partner, OR
• Intended parent (surrogacy)

AND:

• Responsible for child's upbringing
• Taking leave to care for child or support mother

For Statutory Paternity Pay (SPP)

Above, plus:

• 26 weeks' continuous service by qualifying week (15th week before EWC)
• Average earnings at or above Lower Earnings Limit (£123/week for 2024/25)
• Still employed at time of birth/placement

Leave Entitlement

Amount

Either:

• One week, OR
• Two weeks

Not two separate days or partial weeks.

From April 2024

More flexibility:

• Can take as two separate one-week blocks
• Can be taken any time within 52 weeks of birth
• No longer need to be consecutive

When to Take

• Any time in 52 weeks from birth/placement
• Must be in complete weeks
• Starts on day you choose

Statutory Paternity Pay

Rate

Lower of:

• Flat rate: £184.03/week (2024/25)
• 90% of average weekly earnings

Duration

Paid for same period as leave taken:

• One week or two weeks
• Matching leave taken

Average Earnings

Calculate over 8-week reference period ending with:

• Qualifying week (15th week before EWC)
• Use gross pay including overtime, bonuses

Tax and NI

SPP is:

• Taxable income
• Subject to NI
• Processed through payroll

Notice Requirements

Employee Must Give Notice

For leave: By 15th week before EWC (or as soon as reasonably practicable):

• Expected week of childbirth
• Length of leave (1 or 2 weeks)
• Start date

For pay:

• Same timing as leave notice
• Usually combined

Can Change Date

28 days' notice to change start date (unless not reasonably practicable).

Your Response

Should:

• Confirm receipt
• Confirm entitlement
• Confirm dates
• Explain pay arrangements

Evidence

What You Can Request

Employee must provide:

• Child's expected date of birth (or placement)
• Declaration of eligibility
• Self-certificate (SC3 form or equivalent)

Cannot require: Medical evidence or birth certificate.

Reclaiming SPP

How Much

• 92% of SPP paid, OR
• 103% if qualify for Small Employers' Relief

Small Employers' Relief

Qualify if:

• Total NI payments (employee and employer)
• Were £45,000 or less
• In last complete tax year before qualifying week

How to Reclaim

Deduct from monthly PAYE payments to HMRC.

If SPP exceeds what you owe:

• Apply for advance funding from HMRC

Contractual Paternity Pay

Enhanced Pay

Can offer more than SPP:

• Full pay
• Enhanced rate
• Longer period

Benefits

• Attracts talent
• Supports diversity
• Employee goodwill
• Tax-efficient benefit

Typical Enhancements

• Full pay for 2 weeks
• Extended leave beyond statutory
• Additional unpaid leave option

Employment Rights During Leave

Protected From

• Dismissal for taking leave
• Detriment for taking leave
• Not renewing fixed-term contract because of leave

Continuity

Leave counts for:

• Continuous service
• Contractual benefits accrual (usually)
• Pension (depends on scheme)

Return to Work

Right to return to:

• Same job
• Same terms and conditions
• As if hadn't been away

Adoption Paternity Leave

Who Qualifies

Partner of main adopter:

• Spouse, civil partner, or partner
• Of person taking adoption leave

Same Rules

• Same notice requirements
• Same leave entitlement
• Same pay rules
• Within 52 weeks of placement

Surrogacy

Intended Parents

If child born through surrogate:

• Intended parents may qualify
• If applying for parental order
• One parent can take adoption leave
• Other can take paternity leave

Multiple Births

Twins, Triplets, etc.

Still only:

• One period of paternity leave
• One period of SPP
• Not doubled for multiple births

Premature Birth

When Baby Arrives Early

Leave can be taken:

• From actual date of birth
• Still within 52-week window from birth
• Qualifying service based on when expected

Stillbirth

If Baby Born After 24 Weeks

Father/partner still entitled to:

• Paternity leave
• SPP (if otherwise qualifying)
• Same as live birth

Before 24 Weeks

Not statutory paternity leave/pay, but:

• Consider compassionate leave
• Sensitive handling essential

Common Scenarios

Scenario 1: Father Wants Split Weeks

Father asks to take one week at birth, one week later.

From April 2024: Permitted within 52 weeks of birth.

Scenario 2: Low Earner

Employee earns £100/week average.

Not eligible for SPP: Below Lower Earnings Limit (£123).

Still entitled to: Unpaid paternity leave.

Scenario 3: New Starter

Joined 20 weeks before EWC.

Leave: Entitled (no service requirement). Pay: Not entitled (needs 26 weeks by qualifying week).

Scenario 4: Agency Worker

Agency worker's partner expecting baby.

No statutory entitlement: Not an employee. Consider: Goodwill leave, especially for long-term workers.

Administration

When Notified

1. Check eligibility
2. Calculate SPP if applicable
3. Confirm in writing
4. Diary dates
5. Plan cover

Record Keeping

Keep records of:

• Notice received
• Dates of leave
• SPP paid
• Reclaim calculations
• For 3 years after tax year ends

Payroll

• Process SPP through normal payroll
• Tax and NI as usual
• Record keeping for HMRC
• Reclaim via PAYE

Checklist

When Request Received

• Check notice timing
• Verify employment status
• Calculate service length
• Calculate average earnings
• Determine entitlement

Before Leave Starts

• Confirm leave dates in writing
• Confirm pay entitlement and rate
• Arrange cover
• Brief team
• Set up payroll

During Leave

• Process SPP
• Maintain contact if appropriate
• Don't contact about work (unless agreed)

Return

• Confirm return date
• Welcome back
• Update on any changes