A clear parental leave policy sets out the types of leave and pay available, how to apply, and what employees can expect. It demonstrates the organisation’s commitment to supporting working parents, so builds trust, improves retention, and helps employees feel valued.
What parental leave is available?
As an employer, you are obliged to offer:
- Maternity, adoption, paternity, shared parental leave
- Unpaid parental leave
- Statutory pay (see links above for details)
You can enhance statutory leave and pay if you choose and are able to.
Did you know? You might be entitled to get money back on statutory parental payments! Under the Small Employers’ Relief scheme, small employers can reclaim 108.5% of statutory parental payments paid to employees if they paid £45,000 or less in Class 1 National Insurance (before any reductions like Employment Allowance) in the last full tax year.
What influences employee decisions about leave?
When planning maternity, paternity, or adoption leave, SME employees have to consider a mix of personal and professional factors. Examples include:
- Affordability and financial security: The level and length of pay during leave are significant factors, especially for lower-income employees. Other considerations related to the household budget, like mortgage payments, childcare costs, and the partner’s income, also play an important role.
- Job security and career impact: Employees consider how taking leave will affect their job security, opportunities for promotion, and overall career progression (see Fear of job insecurity and negative career implications). They might also fear that the person covering for them might do a better job, making the need to return less appealing, if not redundant.
- Commitment to work activities, clients and colleagues: Employees often share concerns with their employers about the impact of their absence on the workflow, the workload of their colleagues, or – where relevant – the service provided to clients.
- A supportive workplace culture: A Supportive workplace culture and knowing that their job is well looked after helps to ensure that employees worry less about work while on leave. On the contrary, a toxic workplace culture or asserting pressure on the employee to return to work can be very stressful, affect the employee’s health and result in not returning to work at all.
- Childcare availability: High-quality childcare providers often have long waiting lists and high fees. Childcare options are particularly limited for workers involved in shift work.
- Maternal, paternal and child health and wellbeing: Complications during and after the birth, mental health issues like postnatal depression, and a general lack of physical recovery can prevent a mother from returning to work as planned. A child with specific health needs, such as a premature birth, can necessitate more care, forcing parents to take leave longer than they initially planned. Fathers and other non-birth parents can also experience postnatal depression and need related support. As with postnatal depression in mums, it often goes undiagnosed, as the symptoms can look like the everyday stresses of having a newborn or stress at work.
- Partner’s availability: The amount of (un)paid leave the partner can take is often a key part of the decision-making process.
- Personal and family dynamics and preferences: Individual family situations and gender role values can also influence the decision on leave.
Supportive Practices
Consider whether you can offer enhanced leave or pay beyond the statutory minimum. If that’s not feasible, there are many meaningful, low-cost ways to support expectant and new parents.
Here is some advice from a range of SME employers and employees that we spoke to:
- Flexibility. This could include being flexible with work hours or having phased returns following a period of leave.
“The most positive thing that we have is that we are very flexible as an organisation” (Francis – Employer, 10-49 staff)
- Open conversations. Sometimes parents feel nervous about requesting time off work.
“[when requesting leave] it wasn’t…a combative discussion… it was immediately like, yes of course, that sounds very reasonable” (Julia – Employer, 50-249 staff)
- Ensuring policies and available support is clear and accessible. Employees may not necessarily know about all the company policies
“We’ve got policies which are easily accessible. But …we could be more explicit in how we can help in that respect” (Nisha – Employer, 10-49 staff)
- Promoting policies and support to staff e.g., on posters, via other communications or encouraging staff support networks may help employees navigate their parenting journeys at work
“[It is about] knowing that the support is there if they want it”
“…even saying there are other mums [or dads] in the team who have been through it, and you can talk to them about their experience…But also saying…come to us if we can help plan finances, plan your leave” (Nisha – Employer, 10-49 staff)
