The new law will give mothers up to a year off work, recognise the rights of fathers and adoptive parents to paid time off for the first time and help business by simplifying rules governing maternity, paternity and adoption leave and pay.
The package includes:
- six months paid and a further six months unpaid maternity leave for working mothers;
- two weeks paid paternity leave for working fathers;
- six months paid and a further six months unpaid leave for working adoptive parents;
- a total increase of over 60% in the rate of statutory maternity pay from £62 to £100 and;
- reimbursement of maternity, paternity and adoption payments made by employers, with a full 100% recoverable by small employers and a further compensation payment on top.
The Act also includes steps to help employers and employees resolve their disputes internally, and measures to modernise the employment tribunal system.
These include:
- new ways of handling disputes in the workplace and requirements for employees to raise grievances with their employer before applying to a tribunal;
- changes to the way tribunals calculate awards to support discussion in the workplace;
- a fixed period of conciliation to promote timely settlement of disputes and;
- a fast track system and other measures to modernise employment tribunals.
After concerns expressed during consultation, the new Employment Act does not include measures to charge applicants for bringing a claim before an employment tribunal.
The new law is due to come into force in April 2003.