Work and Families Act 2006-no April Fool for SME’s
From 1 October The Work and Families Act 2006 comes into effect for women whose expected week of childbirth/adoption is on or after 1 April 2007.
Significant changes apply to all businesses and the small employer’s (five employees or less) exemption is now removed.
The main aspects are:
- Payment of Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP) and Maternity Allowance (MA) are extended from 26 to 39 weeks.
- All pregnant employees will qualify for 12 months’ maternity leave regardless of their length of service.
- Employees returning from extended maternity or adoption leave now have to give 8 as opposed to 4 weeks’ notice.
- Additionally there are now “Keeping In Touch” days for the women with the workforce whilst off on leave and such do not suffer SMP or SAP reduction.
SME’s will claim this is evidence of further “red tape” but the number of employees chosen for the small employer exemption was always arbitrary.
