This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Understand how UK employers must comply with statutory paternity pay and leave rules, including eligibility criteria, notice requirements, pay calculations, payroll processing, and record‑keeping duties. This guide explains employer obligations under current paternity leave and pay legislation in England and Wales.
Employers in England and Wales have specific legal duties when an employee becomes eligible for statutory paternity pay and paternity leave. These duties ensure that eligible workers can take paid time off when a child is born or a placement for adoption is made. Failure to comply with paternity pay and leave rules can lead to disputes, claims to employment tribunals and financial penalties. This article explains employer responsibilities clearly, covering eligibility, notice requirements, calculation of pay, managing payroll, record‑keeping, and common practical issues.
What Is Statutory Paternity Leave and Pay?
Statutory Paternity Leave is a legal right that allows certain employees to take time off work when their partner has a baby, when a child is placed for adoption, or when a child is born through a surrogacy arrangement. Under current law, eligible employees can take one or two weeks' leave following the birth or placement. Leave must be taken in consecutive weeks and cannot start before the birth.
Statutory Paternity Pay (SPP) is the minimum amount an employer must pay an eligible employee during paternity leave. SPP is processed through payroll, with the correct deductions for income tax and National Insurance. The statutory rate is £187.18 per week (for the relevant recent tax year) or 90% of average weekly earnings, whichever is lower, for up to two weeks.
Many employers offer enhanced paternity pay or additional leave through workplace policies, but this article focuses on the statutory minimum that employers must provide.
Eligibility Criteria Employers Must Check
Before approving leave and pay, an employer must confirm that the employee meets the statutory requirements.
Employment Status and Duration
An employee must be:
- Classed as an employee under employment law.
- Employed by the employer at the time of the child's birth (for pay eligibility).
- Continuously employed for at least 26 weeks up to any day in the qualifying week (usually the 15th week before the baby's due date) in order to qualify for SPP.
Under reforms expected from 6 April 2026, employees will be eligible for paternity leave from their first day of employment, removing the 26‑week qualifying period for that aspect. However, the right to statutory pay may still depend on qualifying conditions.
Earnings Threshold
To qualify for statutory paternity pay, the employee must:
- Earn at least the Lower Earnings Limit - currently a fixed weekly amount (e.g. £125 per week for the 2025/26 tax year).
- Have paid income tax on these earnings.
Purpose of Leave
Employees must be taking time off to look after the child or support their partner's welfare following the birth or adoption. Employers should check this purpose when assessing leave requests.
Notice and Timing Requirements
Employers must set out clear procedures for how and when employees must give notice of their intention to take paternity leave and pay.
Timing of Notice
Employees must give written notice to their employer by the 15th week before the expected week of childbirth. If the child is born early or if adoption arrangements change, employers should allow notice as soon as reasonably practicable.
The notice must state:
- The date the employee wants leave to start.
- Whether they want one or two weeks of paternity leave.
- The expected week of childbirth or placement.
If notice is not given in time, employers should engage with the employee to agree alternative arrangements.
Changes and Early Births
Special rules apply when a child is born early. Employers should accept notice given as soon as possible and adjust start dates accordingly. Proper documentation helps avoid disputes later.
Calculating and Administering Paternity Pay
Employers must ensure SPP is calculated and paid through payroll in the same way as wages.
How Much Pay Is Due
For eligible employees:
- Up to two weeks of pay is due at the higher of:
- The statutory weekly paternity rate (£187.18 per week for recent tax years), or
- 90% of the employee's average weekly earnings, if that is lower.
Tax and National Insurance contributions must be deducted in the usual way.
Payroll Reporting and Reclaiming Payments
Most employers can reclaim a portion of statutory pay through payroll. Typically, 92% of SPP can be reclaimed from HM Revenue & Customs (HMRC), and small employers may reclaim up to 103%. This reclaim is done through payroll by reducing PAYE and NIC liabilities.
Employers must also report SPP accurately using Real Time Information (RTI) submissions. Errors in reporting can lead to HMRC enquiries or corrective action.
Recording and Documentation Duties
Effective record‑keeping supports compliance and protects the employer in case of challenges.
What to Record
Employers should retain:
- Written notice of the employee's paternity leave request.
- Payslip records showing the calculation and payment of SPP.
- Any forms used to explain non‑payment when an employee is ineligible (for example forms such as SPP1).
- Correspondence about changes in dates or eligibility details.
Responding to Non‑Eligibility
If an employee does not qualify for statutory paternity pay or leave, the employer must inform them in writing within 28 days, providing the reason and, where appropriate, the statutory form (SPP1). This ensures that the employee knows why the entitlement does not apply and can explore other support options.
Interactions With Other Rights
Shared Parental Leave
Employees may be eligible to take shared parental leave and shared parental pay instead of or in addition to paternity leave. Employers' payroll and HR teams must understand both systems and how they interact. Employers should provide information to employees on their rights to shared leave and pay when applicable.
Annual Leave
Employees may choose to take annual leave before, after, or during paternity leave subject to the employer's holiday policy. Employers must ensure that taking annual leave does not reduce statutory paternity entitlements.
Common Challenges and Risks
Eligibility Mis‑Assessment
Incorrectly assessing eligibility can lead to claims for unlawful deduction from wages or breach of statutory rights. Employers should review continuous service and earnings carefully before refusing paternity pay.
Notice Issues
Disputes often arise when employees miss notice deadlines or when employers rigidly enforce notice requirements without considering reasonable practicability. Documenting communications and considering individual circumstances helps mitigate complaints.
Payroll Errors
Miscalculation of pay rates or incorrect RTI submissions can trigger HMRC investigations and employee claims. Payroll staff should be trained in family leave payment rules and employers should regularly audit payroll processes.
Key Takeaways
Employers in England and Wales must comply with paternity pay and leave rules by confirming eligibility, managing employee notices correctly, calculating statutory pay accurately, processing payments through payroll, and keeping clear records. Paternity leave typically entitles eligible employees to up to two weeks' paid leave, and statutory pay is either £187.18 per week or 90% of average earnings, whichever is lower. Employers should also prepare for future changes that may extend day‑one rights to paternity leave, although pay eligibility may continue to require additional conditions. Effective administration protects both employees' rights and the employer from disputes, tribunal claims, and financial risk.
