The Work and Families Act 2006 came into force on 1 October last year, but the first of its effects really unfolded as at the beginning of April this year. The legislation has received a great deal of concern and consternation from small and medium-sized enterprises (SMEs). So what are the implications for employers?

As of April 1, 2007, mothers are entitled to up to 52 weeks of maternity leave. Previously, mothers were required to have been with their employer for 26 weeks in order to be eligible for the full 52 weeks. Employers will need to clearly spell out to someone recruited to cover the maternity leave that their employment will end with the return of the pregnant employee, as they are now likely to have a year’s service and unfair dismissal rights.

The Act seeks to encourage communication between employer and employee and the latter can work for up to 10 days during her maternity leave. Employers should make arrangements to keep in touch before the maternity leave commences. One improvement for employers is that the employee must now give at least eight weeks’ notice if she wants to change her return date.

Maternity and Adoption pay is now payable for 39 weeks. This is calculated at 90 per cent of the employee’s wage for the first six weeks (not for adoption pay) and at a rate of £112.75 for the subsequent 33 weeks. The government has committed to extending this period to 52 weeks, so employers should keep up-to-date with changes. This has been a major concern to smaller businesses, even though up to 92 per cent of this can be claimed back from the Revenue. Small businesses (those with a NI bill of less than £45,000) can claim up to 104.5 per cent.

From April 6, 2007, employees caring for dependant adults will have the right to request flexible working. The employer must ensure that they seriously consider the request and follow the statutory procedures of meeting, written response and appeal. Failure to do so can cost them eight weeks of pay and possibly an unfair, constructive dismissal or sex discrimination claim.

The government has indicated its intention to bring in further rights under the act, most notably that fathers should be able to take advantage of the mother’s unused maternity leave and pay. Employers should watch out for future developments.

Fergal Dowling is an employment partner at law firm Irwin Mitchell

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