Author
Author
On the same day it released its roadmap outlining the timeline of changes to be introduced by the Employment Rights Bill (ERB) – see our update here for more information – the Government also announced it is launching a full review of parental leave and pay.
The review will look at the whole system (including maternity, paternity and shared parental leave and pay) to understand how it can be modernised to work better for parents and employers. The Government understands the current system is overly complicated and doesn’t always give families the support they need, with paternity and share parental leave uptake being relatively low.
In terms of reforms to the parental leave system, the ERB already includes a number of proposed changes, including:
- Introducing a day 1 right to paternity leave and unpaid parental leave;
- Enabling paternity leave and pay to be taken after shared parental leave and pay;
- Enhancing dismissal protections for pregnant women and new mums.
However, the Government has acknowledged that reform needs to go further and therefore future changes are likely to be on the horizon.
In terms of timescales, the Government expects the review to run for 18 months (i.e. until January 2027), concluding with a set of findings and a roadmap of potential reforms and timescales.
The review is welcome given the piecemeal and often complex parental leave provisions; however employers may understandably be unsettled by the idea of further reform. Given the review itself will take 18 months, any radical overhaul of the system will likely take much longer. As such, employers do not need to take any immediate action in relation to the review itself, though they should of course be prepared for the various reforms to be implemented by the ERB.
Should you wish to discuss the topics raised in this article, please contact Lynsey Blyth.