Legal Duties Around Shared Parental Leave

Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) are statutory rights that allow eligible parents in England and Wales to share leave and pay in the first year after their child's birth or adoption. Employers have specific duties to administer these rights correctly, assess eligibility, manage notices, process payments through payroll, and preserve employees' employment protections. Failure to comply can lead to disputes, claims to employment tribunals for unlawful deductions or discrimination, and reputational harm. This article explains employers' legal duties clearly and step by step.

What Shared Parental Leave Is and Why It Matters

Shared Parental Leave enables parents to share up to 50 weeks of leave and up to 37 weeks of statutory pay between them after the birth or placement of a child. It offers flexibility in how parents balance work and family life, allowing leave to be taken in blocks rather than only in a single continuous period. Employers must understand how eligibility works, how to manage notifications, and how to administer pay correctly.

Who Is Eligible for Shared Parental Leave and Pay?

Shared Parental Leave (SPL)

An employee is eligible for SPL if they meet the following conditions:

• They are an employee (not just a worker or contractor).
• They and their partner share main responsibility for caring for the child.
• One parent has ended (or given notice to end) their statutory maternity, adoption, or maternity allowance leave/pay.
• They have worked for the same employer for at least 26 weeks by the 15th week before the expected week of birth (or by the date a child is matched for adoption).
• They remain employed by the same employer when taking the leave.
• Their partner also meets employment and earnings tests.

If an employee does not meet these conditions, the employer may lawfully refuse SPL but must ensure that refusal is lawful and in line with statutory criteria.

Statutory Shared Parental Pay (ShPP) Eligibility

Employees may qualify for statutory shared parental pay if:

• They meet the eligibility tests for statutory maternity pay (SMP) or statutory paternity pay (SPP), and their partner meets corresponding employment and earnings criteria.
• They (or their partner) have reduced their maternity/adoption leave/pay in order to generate shared parental pay entitlement.

Workers (who are not employees) may be eligible for ShPP but are not entitled to SPL unless they meet the statutory employee definition.

Employer Duties: Notice and Documentation

Receiving and Acknowledging Notices

Employees must provide written notice of their intention to take SPL and ShPP. Notices must include:

• The date when they intend to start SPL.
• How much leave they intend to take.
• A declaration confirming that their partner meets the eligibility criteria for shared parental leave and pay.

Employers should acknowledge receipt of such notices promptly and confirm in writing whether they have accepted them. Employers should allow employees reasonable opportunity to provide required notifications and certificates.

Allocating Leave Blocks

Employees can take shared parental leave in up to three separate blocks. Each block must:

• Be taken in whole weeks.
• Begin after the birth or adoption placement until the child's first birthday.
• Be accompanied by at least 8 weeks' notice for each block of leave, unless the employer agrees otherwise.

Employers must be prepared to record these leave blocks accurately in HR and payroll systems and manage multiple applications where an employee requests them.

Calculating and Paying Statutory Shared Parental Pay

How Much to Pay

Statutory shared parental pay is:

• £187.18 per week (or the statutory weekly rate in force at the relevant time)
• Or 90% of the employee's average weekly earnings, whichever is lower

This pay applies for up to 37 weeks of shared parental leave once statutory maternity/adoption pay has been curtailed to generate SPL entitlement. Employers should process ShPP through payroll with deductions for tax and National Insurance.

Payroll and Reporting

Shared parental pay must be included in payroll software and reported to HM Revenue & Customs (HMRC) through Real Time Information (RTI) submissions. Employers may be able to reclaim a portion of statutory pay (typically 92%, or up to 108.5% under Small Employers' Relief) depending on size and eligibility. Employers must ensure accuracy in payroll reporting to avoid penalties or disputes.

Interaction With Other Leave and Pay Rights

Maternity, Adoption, and Paternity Rights

Shared parental leave interacts with other family leave rights:

• An employee must take two weeks' compulsory maternity leave immediately after birth (four weeks for factory workers) before converting remaining leave into shared parental leave.
• Shared parental pay and leave are diminished by the amount of statutory maternity, adoption, or paternity pay taken first, leaving the remainder available for SPL and ShPP.

Employers must ensure they understand these interactions when assessing entitlement.

Equal Treatment and Workplace Protections

Employees taking shared parental leave retain most employment rights during leave. Employers must not subject an employee to detriment or dismissal because they take shared parental leave. This includes terms and conditions of employment (excluding pay while on leave) and protection from discrimination. Failure to protect these rights can result in claims before an employment tribunal and compensation orders.

Record‑Keeping and Compliance

Employers should retain the following records:

• Notices of intended shared parental leave.
• Dates and durations of leave taken.
• Payroll calculations and payments of statutory shared parental pay.
• Correspondence relating to eligibility and pay decisions.

Records should be kept for at least three years to support compliance and help defend against potential disputes or tribunal claims.

Common Practical Issues and Risks

Complex Pay Arrangements

Some employers offer enhanced shared parental pay above the statutory minimum. These arrangements must be clearly documented, and employees should understand how enhanced pay fits alongside statutory entitlements. Contractual terms govern enhancements, not statutory law.

Multiple Employers

Where an employee or their partner works for more than one employer, rights to shared parental leave and pay should be determined with respect to each employment contract and employer's policies.

Changing Leave Plans

If an employee changes dates or blocks of SPL after initial notice, they must provide updated notices within the statutory time frames. Employers should have processes to record and adjust leave schedules and ensure payroll reflects these changes.

Key Takeaways

Employers in England and Wales have clear statutory duties relating to shared parental leave and statutory shared parental pay. These duties include:

• Assessing eligibility based on continuous service, shared responsibility, and earnings criteria.
• Managing written notices of leave requests and providing timely acknowledgements.
• Calculating statutory shared parental pay and processing it through payroll.
• Maintaining accurate records of leave and pay.
• Protecting employees from detriment or dismissal for exercising their rights.

Compliance helps protect employers from disputes, tribunal claims, or financial penalties while supporting employees' rights to balance work and family responsibilities.