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PAYROLL ON POINT | APRIL 2020
PARENTAL BEREAVEMENT LEAVE
From April 2020, parents who suffer the loss of a child will be entitled to 2 weeks statutory leave. The Parental Bereavement Leave and Pay Regulations, known as “Jack’s Law” will implement a right to at least two weeks’ leave if a working parent loses a child under the age of 18 or suffers a still born from 24 weeks of pregnancy. The new policy for such leave is applicable irrespective of length of service, however Statutory Parental Bereavement Pay
(SPBP) will only come into effect for those with at least 26 weeks service whose average earnings are above the National Insurance Lower Earnings Limit during the relevant period. The weekly statutory payment rate will fall in line with the Statutory Maternity Standard Rate, therefore if an increase is implemented with the onset of a new tax tear for SMP, the same will apply for SPBP. Guidance relating to the employees’ relationship with the child does not
specify that you must be the biological parent of the child, but rather that the employee must be classed as the “Primary Caregiver” for that child in order to qualify for pay and leave. Leave will need to be taken within 56 weeks of the date that the child died and can be taken in either one full block of one or two weeks or in two separate blocks, each consisting of a week.
HOLIDAY PAY REFERENCE PERIOD FOR FLEXIBLEWORKINGHOURS Almost all workers are entitled to 5.6 weeks paid holiday each year. This includes agency workers, workers with irregular hours and workers on zero-hours contracts. Where a worker has fixed hours and is paid a salary, they continue to receive their salary whilst on leave. However, where workers undertake regular overtime, or have variable hours, their holiday pay should be calculated using a reference period. When calculating leave for employees with variable work hours, employers currently utilise a reference period of 12 weeks to calculate the appropriate amount of holiday pay. The average pay from the employee’s last 12 weeks of earnings (discounting weeks where no work was performed, so there were nil earnings) is utilised to determine the pay that the employees receive for their leave. From 6 April 2020, the reference period is being extended. Instead of looking back 12 weeks, employers need to calculate the average over a 52 week period. As unpaid weeks are still excluded, this can require employers to count back over a year into the past. To avoid having to go back indefinitely, a limit of 104 weeks’ worth of data is being introduced; two full years. If after that, there is still not 52 weeks’ worth of data, the employer uses an average of what they have. For new workers who have not worked 52 weeks, employers should utilise what pay data is available right back to their start date. For example, if a worker has been working with their employer for 14 weeks then takes leave, the employer should use the 14 weeks’ worth of data that is available Please note that contractually obliged overtime worked during the reference period must also be included in holiday pay.
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