2016 - Could grandparents become an employer’s nightmare?

Could grandparents become an employer’s nightmare?

Like me, you may recall that before the last General Election, the Government had talked of giving grandparents paid Parental leave, but had thought that the idea had melted away along with the votes for the Lib Dems.

I therefore received a nasty shock at a recent ACAS employment law ‘refresher’, when I learned that the present Government is intending to extend Shared Parental Leave (SPL) and Pay (ShPP) to working grandparents! It has published a timetable whereby it will consult on its proposals during the first half of 2016, with the aim of implementing the new rules by 2018.

This will surely send a shiver of fear down the spine of employers still trying to get to grips with SPL and ShPP for parents. At least most employers have an idea of when the partners of their employees are having a baby, but many are less likely to know when their employees might be becoming grandparents, particularly if those employees already have other grandchildren.

Would extending Shared Parental Leave and Pay to Grandparents really have an impact?

Statistics indicate that nearly 2 million grandparents have given up work, reduced their hours or have taken time off work to help families who cannot afford childcare costs. Grandparents are thought effectively to be contributing as much as £8bn each year to bridge the gap.

Evidence also shows more than half of mothers rely on grandparents for childcare when they first go back to work after Maternity Leave, and over 60 per cent of working grandparents with grandchildren aged under 16 provide some childcare. In total, some 7 million grandparents are involved in childcare.

Of working grandparents who have never taken time off work to care for grandchildren under 16, around 1 in 10 have not previously been able to do so because they have either been refused time off by their employer, or simply felt that they weren’t able to ask.

Do you know how many of your employees might become grandparents at any given time? How many of these work for you on a part-time basis? Those that do are likely to earn less than their children, and so would be the obvious candidates to take SPL, allowing their children to go back to work sooner and earn more money.

How might it work?

If the proposals are implemented, the provisions are likely to fall in line with the current statutory scheme.

This means that entitlement for grandparents to take Leave will be shared with the child’s parents, meaning that eligible grandparents may be able to share up to a 50 weeks of SPL.

Not only that, eligible grandparents may be able to share up to 37 weeks of statutory Shared Parental Pay (ShPP), which is currently set at the lower of £139.58 per week or 90 per cent of weekly earnings. For those employers who have enhanced provisions for Shared Parental Pay, as they do with Maternity Pay, taking the same approach with this new entitlement would add further costs – and not to do so could lead to claims of ageism.

Other possible impacts

In addition to the proposed extension of Shared Parental Leave, an increasing older workforce means that employers are likely to face a new wave of requests for flexible working arrangements which is in addition to a working grandparent’s existing rights to unpaid time off to care for dependents.

Conclusion

Employers will need to keep a close eye on the consultation and the development of the Government’s proposals generally in this area. If you get a chance to participate in the Consultation, do so – it’s important that it’s not just the voice of big business that is heard.

Finally – don’t panic! Here at Su Allen HR we can provide you with clear, unbiased and timely advice should you need to do anything about this further complication of Shared Parental Leave.

Su Allen HR helps employers by providing a range of HR support that includes advice on how to handle difficult situations, writing clear policies which ensure fairness and consistency in all aspects of managing employees, and providing coaching and training where required. Contact us on 01582 883299 if you’d like to hear more.

Helen Skepper

Su Allen HR

The purpose of this information is to provide guidance only.  Reference has been made to various publications including People Management, Croners, Equality and Human Rights Commission, IDS and XpertHR. The information contained within this document is accurate, to the best of our knowledge. It is intended to provide general employment related information only and must not be relied upon as a substitute for legal advice from your Solicitor. Consequently we cannot accept any responsibility for this information or for any errors or omissions.