New law set to impact sector

The new shared parental law which came into force today gives parents the right to share their leave following the birth or adoption of their child.

Sue Robinson, director of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle retailers across the UK said, ‘The shared parental leave will have an impact on businesses within the retail motor sector. The new rights allow parents an initial two weeks of maternity leave for the mother and up to 50 weeks of leave and 37 weeks of pay can be shared between the parents.

‘An agreement must be made between the employee and the employer with a minimum of eight weeks’ notice.

Robinson continued, ‘With the new law more than 285,000 working couples would be eligible to share the leave’.

The new rights in brief:

  • Shared parental leave is open to parents whose baby is due, or who have a child matched or placed for adoption, on or after 5 April 2015.
  • It must be taken between the baby’s birth and first birthday, or within one year of adoption.
  • Eligible parents can share up to 50 weeks of leave and 37 weeks of pay, after an initial two weeks of leave that is compulsory for the mother to take.
  • Shared parental leave can be taken in one block, or split into blocks with periods of work in between.
  • Statutory shared parental pay is paid at £139.58 per week or 90% of your average weekly earnings, whichever is lower.