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News - 16 October 2012

New Government proposals on parental leave.

Under new coalition proposals, if a mother is the main breadwinner, she will be able to go back to work after two weeks and the father will be able to take most of the first year of a baby's life off work under "flexible parental leave".

However, implementation of the scheme will not take place until October 2015 following a disagreement in Cabinet over the impact on business, the Daily Telegraph said.

A Government source commented: "This is being introduced slowly and with great care to ensure that it does not undermine business during the difficult economic times.

Lavinia Newman, founder of ABDS comments: “Under the current system, mothers are legally entitled to 90% of their earnings for the first six weeks after birth. They can then receive a maternity allowance - equivalent to either 90% of earnings or £135.45 a week, whichever is the lowest - for an additional 33 weeks.”

Fathers are entitled to two weeks of paternity leave and mothers can transfer their leave to their partners after the first six months.

The new system will mean that either the mother or father can claim parental leave and the allowance after two weeks.

If you need any help and advice for your business on this or any other business related matter, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar to discuss how ABDS can help

ABDS Chartered Certified Accountants of Southampton.
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