COMPLIANCE
Transition period before pay as you earn (PAYE) software is updated HM Revenue and Customs’ (HMRC’s) PAYE payroll software will be updated with the new paternity leave and pay terms by 6 April 2024. Employers of fathers or partners whose babies are born early may choose to take SPPL before this date – and before the PAYE software has been updated. This means some employers may need to claim repayment for statutory paternity pay (SPP) paid under the new rules, but before the PAYE software has been updated. What does this mean for employers? Employers should identify employees who have given / give you notice of their intent to claim SPPL, and whose babies have an expected week of birth after 6 April 2024. If no employees meet those conditions by that date, you will not need to consider the following transitional guidance. Transitional guidance on reclaiming ‘new rules’ statutory paternity payments before 6 April 2024 If your employee took one block of SPPL before 6 April 2024, you will be able to claim SPP repayment for one block of SPPL taken. A block can be one or two weeks. Employers can reclaim payment through their payroll software or as they normally would. If your employee took two, non- consecutive blocks of SPPL before 6 April 2024, you will only be able to claim repayment for one block before 6 April 2024. Employers will be able to claim repayment for the second SPP block when the PAYE system has been updated. You can claim payment for SPP costs in advance if your business paid £45,000 or less in class1 National Insurance (ignoring any reductions like employment allowance) in the last complete tax year and you cannot afford to make statutory payments. In these situations, you can apply for HMRC to pay you in advance. You can apply up to four weeks before you need the first payment.
immediately on return from maternity / adoption leave or following a period of six continuous weeks of shared parental leave.
existing 26-week qualifying period) through secondary legislation. This measure will bring an estimated 2.6 million more employees in scope of the entitlement. These changes will also come into force in April 2024.
A new right to unpaid carer’s leave The Carer’s Leave Act 3 received Royal Assent on 24 May 2023. Regulations made under it (the Carer’s Leave Regulations 2024 4 ) will introduce a new leave entitlement available from day one of employment for employed unpaid carers who, up until now, haven’t had a dedicated leave right. The legislation will come into force on 6 April 2024. It will entitle employees to be absent from work on leave in order to provide or arrange care for a dependant with a long-term care need and entitle all employees who meet the eligibility conditions to take carer’s leave, regardless of how long they have worked for their employer. Furthermore, it will ensure the leave will be available to take in increments of half-days or individual days (up to a week), to be taken over a 12-month period. Employees don’t have to provide evidence in relation to a request for carer’s leave. Guidance on carer's leave can be found here: https://ow.ly/6bgu50QxPkZ. Changes to flexible working legislation The Employment Relations (Flexible Working) Act received Royal Assent on 20 July 2023. The Act makes changes to the right to request flexible working, to provide employees with better access to flexible working arrangements. The key changes include: l allowing two requests in any 12 month- period (up from the current single request) l requiring employers to respond to requests more quickly (in two months rather than the current three) l requiring employers to consult with employees before rejecting a request. Alongside the measures in the Act, the government is committed to making the right to request flexible working apply from day one of employment (by removing the
Changes to paternity leave and pay The government is making changes to the way paternity leave and pay can be taken, which will make it more flexible for fathers and partners. The changes will: l allow fathers and partners to take their leave in non-consecutive blocks. Currently, only one block of leave can be taken, which can be either one or two weeks. Our changes will remove this barrier by enabling fathers to take two non-consecutive weeks of leave l allow fathers and partners to take their leave and pay at any point in the first year after the birth or adoption of their child. This gives fathers and partners more flexibility to take their paternity leave at a time which works for their family l shorten the notice period that fathers and partners are required to give their employers for each period of leave. The new measure will require an employee to give only four weeks’ notice prior to each period of leave. This means that they can decide when to take their leave at shorter notice to accommodate the changing needs of their families. Guidance for employers on how to reclaim statutory payments if an employee takes statutory paternity pay and leave (SPPL) early (before 6 April) due to early or premature birth Fathers and partners will be eligible to claim SPPL under the new rules if their baby’s expected date of birth is after 6 April 2024. Transitional provisions will be in place from 8 March 2024. They will also be able to claim their SPPL under the new rules if the child is born early and before this date. Fathers / partners can begin taking SPPL as soon as their baby is born. This means that fathers and partners will be able to take two non-consecutive weeks of leave before 6 April for babies born early who were expected after 6 April.
Links corner l 1 https://ow.ly/x9FA50QvnKT l 2 https://ow.ly/zQwY50QvnLN l 3 https://ow.ly/oopM50QvnNA l 4 https://ow.ly/7SJs50QvnOv.
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| Professional in Payroll, Pensions and Reward |
Issue 98 | March 2024
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