Introduction to Newsletter 12.08.09

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There has been considerable speculation in recent months over the government’s apparent reticence to proceed with its plans to extend maternity and paternity rights next year. The enabling legislation is in place and there has been extensive consultation, in particular as to how additional paternity leave would be administered in practice. The latest statement from BIS does not rule out a 2010 implementation but the limited time left for final decisions makes it increasingly unlikely.

HMRC has also this week issued a clear warning to “umbrella” companies that they must comply with the law or face a statutory clampdown on their activities. Many umbrella companies claim that their schemes are fully compliant but there is a clear risk that those that abuse the rules will create problems for those who operate within the existing tax legislation, exemptions and concessions.

This week’s FAQ for employers explores the potential for fraud where employees on maternity, paternity or adoption leave work for another employer during the period of leave and continue to receive the statutory payment. How do your SMP/SPP/SAP rules explain your employees’ responsibilities in this situation?

This entry was posted on Wednesday, August 12th, 2009 at 05:05 and is filed under Maternity / Paternity / Adoption Pay & Leave, Statutory and Other Payments and Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.