More Flexibility for Working Parents

The DTI has recently published for consultation draft Regulations proposing changes to the family-related and flexible working rules. The changes are due to come into force in April 2007, so would apply to parents of children expected to be born, or placed for adoption, on or after 1 April 2007.

Maternity/adoption rights and pay

• Under current rules, all pregnant employees are entitled to 26 weeks ordinary maternity leave regardless of length of service. However, in order to qualify for additional maternity leave they must have six months' service by the 14th week before the baby is due. It is proposed that this qualifying condition will be removed so that all pregnant employees will be able to take additional maternity leave. It is anticipated that the existing distinctions in contractual rights enjoyed by employees between ordinary and additional maternity leave, as well as the different rights of return after each period of leave, will remain untouched.

• The notice period which the employee is required to give her employer of her intention to return to work, if earlier than the end of her additional maternity leave, will be extended from 28 days to 8 weeks.
• A new provision will entitle an employer to make "reasonable contact" with the employee whilst she is on maternity leave.
• "Keeping in Touch" days will be introduced to enable mothers to work for a limited number of days during their statutory pay period, without losing their entitlement to payment or bringing an end to their leave. It is expected that the days to be worked and the nature of any work to be performed will be agreed by employers and employees. It is anticipated that there will be a maximum number of days that can be worked and that an employer will not be entitled to demand that an employee undertake any work, and nor will the employee be able to demand that work be given to her.
• The statutory maternity pay period will be extended from 26 to 39 weeks.
• Changes will be introduced to help employers manage the administration of maternity pay by enabling statutory maternity pay to start on any day of the week and to be paid on a daily basis.
• The above changes will be mirrored in the case of adoption leave and pay, except with regard to the eligibility for additional adoption leave, since an employee who qualifies for ordinary adoption leave is already entitled to additional adoption leave.

Flexible working

It is proposed that the entitlement to request flexible working will be extended to carers who are involved in substantial and regular care. The definition of a "carer" is likely to be the source of much debate but it is anticipated to apply to an employee who is caring for an adult who (a) is married to, or the partner or civil partner of the employee, (b) is a relative of the employee, or (c) lives at the same address as the employee.

Further proposals

In addition to the proposals set out above, various other changes are working their way through Parliament as part of the Work and Families Bill. The principal change proposed is to give fathers the right of up to 26 weeks additional paternity leave, some of which could be paid if the mother returns to work before taking her full entitlement to statutory maternity pay.

New Caps

As highlighted in our December bulletin, the new limits on statutory awards came into effect on 1 February 2006, applying to all dismissals after this date. The statutory cap for the compensatory unfair dismissal award was increased from £56,800 to £58,400. At the same time, the cap on a weeks' pay, which is used to calculate the basic award for unfair dismissal and a statutory redundancy payment was increased from £280 to £290.