Parental Leave and Pay Arrangements (Publication) Bill (HC Bill 220)

A

BILL

TO

Require employers with more than 250 employees to publish information
about parental leave, and pay in the course of such leave; and for connected
purposes.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

1 Amendment of the Employment Rights Act 1996

(1) The Employment Rights Act 1996 is amended as follows.

(2) After section 80EE (inserted by the Parental Bereavement (Leave and Pay) Act
2018), insert—

“CHAPTER 5 5Parental Leave and Pay Arrangements (Publication)

80EF Requirements in respect of parental leave policy

(1) A relevant employer must publish a statement of that employer’s
policy on the entitlements of relevant employees to—

(a) parental leave,

(b) 10statutory pay in respect of parental leave, and

(c) pay and benefits in the course of parental leave.

(2) A statement of policy under subsection (1) must state—

(a) any qualifying conditions for the policy to apply to an
employee,

(b) 15whether and, if so, how the employer provides support to
employees who are parents in connection with parenthood in
relation to a child under the age of 18 in addition to
arrangements relating to leave and pay (including flexible
working arrangements).

Parental Leave and Pay Arrangements (Publication) BillPage 2

(3) The statement of policy under subsection (1) must be accompanied by
a written statement which—

(a) confirms that the statement of policy is accurate; and

(b) is signed in accordance with the requirements of regulation
514(2) of the Gender Pay Gap Information Regulations.

(4) The requirement in subsection (1) to publish a statement of policy, and
the requirement under subsection (3) that the statement of policy must
be accompanied by a written statement, are requirements that those
statements be published on the employer’s website in a manner that is
10accessible to all its employees and to the public.

(5) A relevant employer must also publish on the website designated by
the Secretary of State for the purposes of regulation 15(2) of the Gender
Pay Gap Information Regulations—

(a) the statement of policy; and

(b) 15the name and job title of the person who signed the statement
required under subsection (3).

80EG When a parental leave policy must be published

(1) This section makes provision about when a statement of policy under
section 80EF(1) must be published in accordance with the requirements
20of subsections (4) and (5) of that section.

(2) The first annual statement must be published within two months of this
Act being passed.

(3) A new statement of policy must also be published in any case where the
policy to which the statement relates is the subject of a material change.

(4) 25A new statement of policy under subsection (3) must be published
within two months of the material change having effect.

(5) Any change in statutory pay in respect of parental leave is not a
“material change” for the purposes of this section.

(6) Subsequent annual statements must be published within twelve
30months of the snapshot date unless a new statement of policy under
subsection (3) has been published during the period of two months
ending with the snapshot date.

(7) But the requirement of subsection (6) is met by a notification to the
Secretary of State to be published on the website designated by the
35Secretary of State for the purposes of regulation 15(2) of the Gender Pay
Gap Information Regulations that the policy has not been the subject of
a material change since the last time a policy statement was published.

80EH Enforcement

(1) It shall be the duty of Her Majesty’s Commissioners of Revenue and
40Customs to—

(a) designate officers of those Commissioners to act as officers for
the purposes of this Chapter,

(b) take such steps as they consider appropriate to enable relevant
employees and others to report possible instances of a relevant
45employer failing to comply with a relevant requirement, and

Parental Leave and Pay Arrangements (Publication) BillPage 3

(c) take such steps as they consider appropriate to investigate possible
instances of a relevant employer failing to comply with a relevant
requirement, whether reported to them or otherwise, and take
subsequent steps in accordance with provisions of this section.

(2) 5Where an officer acting for the purposes of this Chapter is of the
opinion that an employer has not complied with a relevant
requirement, the officer shall serve a notice on the employer requiring
them to do so (a “notice of non-compliance”).

(3) A notice of non-compliance must specify—

(a) 10the date of issue of the notice,

(b) the relevant requirement that the officer acting for the purposes
of this Chapter considers has not been complied with,

(c) the reasons why the officer acting for the purposes of the
Chapter has come to that opinion, and

(d) 15the period, which shall not be less than 28 days and not be more
than 60 days, within which the employer must comply with the
relevant requirement.

(4) Where an officer acting for the purposes of this Chapter is of the
opinion that an employer has not complied with a relevant requirement
20which has been the subject of a notice of non-compliance within the
period specified in that notice, the officer shall serve a notice on the
employer requiring them to pay a financial penalty (a “penalty notice”).

(5) The penalty shall be such amount, not less than £500 and not exceeding
£5,000, as an officer acting for the purposes of this Chapter shall
25determine.

(6) Her Majesty’s Commissioners of Revenue and Customs must issue
guidance on the determination of a penalty under subsection (5) having
regard to—

(a) the number of employees of an employer, and

(b) 30the nature of the non-compliance with a relevant requirement.

(7) A penalty notice must specify—

(a) the date of issue of the notice,

(b) the relevant requirement specified in a notice of non-
compliance that the officer acting for the purposes of this
35Chapter considers has not been complied with within the
period specified in that notice,

(c) the reasons why the officer acting for the purposes of the
Chapter has come to that opinion,

(d) the amount of the financial penalty, and

(e) 40the period, which shall not be less than 28 days and not be more
than 60 days, within which the employer must pay the financial
penalty.

(8) A financial penalty paid to Her Majesty’s Commissioners of Revenue and
Customs pursuant to this section shall be paid by Her Majesty’s
45Commissioners of Revenue and Customs into the Consolidated Fund.

Parental Leave and Pay Arrangements (Publication) BillPage 4

80EI Appeals

(1) An employer upon whom a notice of non-compliance or a penalty
notice is served may in accordance with this section appeal against any
one or more of the following—

(a) 5the decision to serve the notice,

(b) any requirement imposed by a penalty notice to pay a financial
penalty, and

(c) the amount of that penalty.

(2) An appeal under this section lies to an employment tribunal.

(3) 10An appeal under this section must be made within 28 days of the date
of issue of the notice.

(4) Where the employment tribunal allows an appeal under this section it
must—

(a) rescind the notice, or

(b) 15vary the terms of the notice.

80EJ Interpretation

(1) In this Chapter—

  • “the Gender Pay Gap Information Regulations” means the
    Equality Act 2010 (Gender Pay Gap Information) Regulations
    202017 (SI 2017/172SI 2017/172);

  • “notice of non-compliance” has the meaning given in section
    80EH(2);

  • “other pay and benefits in respect of parental leave” means any
    pay or benefits provided by a relevant employer to a relevant
    25employee in addition to that employee’s statutory pay in
    respect of parental leave;

  • “parental leave” means—

    (a)

    maternity leave (within the meanings given by sections
    71 to 73),

    (b)

    30paternity leave (within the meanings given under or by
    virtue of sections 80A and 80B),

    (c)

    adoption leave (within the meanings given under or by
    virtue of sections 75A and 75B),

    (d)

    parental leave (within the meanings given under or by
    35virtue of section 76),

    (e)

    shared parental leave (within the meanings given under
    or by virtue of sections 75E and 75G),

    (f)

    parental bereavement leave (within the meaning given
    under or by virtue of section 80EA), and

    (g)

    40any additional discretionary leave granted by the
    relevant employer to a relevant employee in connection
    with parenthood in relation to a child under the age of
    18;

  • “penalty notice” has the meaning given in section 80EH(4);

  • 45 “qualifying conditions” includes—

    (a)

    any period for which an employee must have worked
    for the employer;

    Parental Leave and Pay Arrangements (Publication) BillPage 5

    (b)

    any clawback arrangements that affect entitlement to
    leave or pay for employees that leave employment
    within a period of time;

    (c)

    any requirements that affect some employees, but not
    5others;

  • “relevant requirement” means a requirement under section 80EF
    or 80EH;

  • “statutory pay in respect of parental leave” means any pay to
    which a relevant employee is entitled in respect of parental
    10leave under or by virtue of the Social Security Contributions
    and Benefits Act 1992.

(2) Expressions used in this Chapter and in the Gender Pay Gap
Information Regulations have the same meaning in this Chapter as in
those Regulations.”

2 15Amendment of the Employment Tribunals Act 1996

(1) The Employment Tribunals Act 1996 is amended as follows.

(2) In section 4 (composition of employment tribunal) in subsection (3) (which
specifies proceedings to be heard by the chair alone) after paragraph (ch)
insert—

(ci) 20proceedings on a complaint under section 80EI of the
Employment Rights Act 1996;”.

3 Extent, commencement and short title

(1) An amendment made by this Act has the same extent as the provision to which
it relates.

(2) 25This Act shall come into force on the day on which it receives Royal Assent.

(3) This Act may be cited as the Parental Leave and Pay Arrangements
(Publication) Act 2018.