Entitlement to OSPP in Respect of a Newborn Child

Ordinary paternity leave and Ordinary Statutory Paternity Pay can be taken by employees to help care for a baby or support the mother in the first few weeks after the birth of a child.

These rights apply to employees, regardless of the hours they work, provided that they satisfy the following conditions:

  • They have worked continuously for you for 26 weeks ending with the 15th week before the baby is due (the 'qualifying week').
  • They remain in continuous employment with you from the end of the qualifying week (QW) up to the date of birth of the child.
  • They have average weekly earnings at or above the Lower Earnings Limit for National Insurance at the end of their qualifying week (QW) to qualify for SPP.
    The employee does not have to pay National Insurance to qualify.
  • They have signed a declaration (form SC3) that they are taking the time off either to support the mother or to care for the new baby, and is either or both
    • the biological father of the baby;
    • the mother's husband or partner;
    • a female partner in a same sex couple.
    You must not pay OSPP without a declaration, but you can allow paternity leave without one.

To qualify for OSPP your employee must confirm the date of birth of the newborn child. You can ask for this in writing.

An employee must tell you that he wants to receive OSPP at least 28 days before he wants his OSPP to begin or as soon as is practicable. Where an employee is entitled to both pay and leave, the notice given for leave by the 15th week before the week the baby is due can count for pay as well.

An employee can change the date on which he wants his leave to start (but not the length of the leave he is taking) as long as he gives you the required notice.

A qualifying employee is entitled to paid leave if his baby is stillborn after 24 weeks of pregnancy.

If the baby is born alive at any point in the pregnancy but dies later, the employee will be entitled to paid paternity leave in the usual way.

  The employee is not obliged to give you any medical evidence of the pregnancy or birth (unlike the obligation on the mother to provide medical evidence to claim Statutory Maternity Pay).

Average Weekly Earnings for OSPP (for 2012-13)

As part of the conditions that must be met for an employee to qualify for OSPP, the employee's average weekly earnings must be:

  • £102.00 if their baby is due on or before 14 July 2012
  • £107.00 if the baby is due on or after 15 July 2012.

The employee's average wage is calculated automatically from the last 8 weeks pay recorded on Payroll Management and the qualifying week for OSPP. Both the QW and average wage are displayed automatically when you add the employee's OSPP data using the OSPP Employee Data Entry (Birth) option.

If a pay rise is awarded that would affect an employee who is on paternity leave, or is about to start paternity leave, you must ensure that their OSPP takes account of that pay rise. You must recalculate their average weekly earnings if either their pay rise falls between the start of the original set period and the end of the paternity leave, or if their pay rise is before the start of the set period but you had not adjusted their earnings accordingly.
You can manually enter the adjustment as follows:

If a salary sacrifice arrangement is in place during the set period for an employee who is on ordinary paternity leave, or is about to start ordinary paternity leave, you must ensure that their OSPP is calculated on their gross earnings, i.e. earnings that are subject to Class 1 National Insurance contributions (NICs). Under that arrangement their average weekly earnings are calculated using the amount of earnings actually paid to them during the set period, therefore their OSPP will be based on their reduced salary. You should note also that where a salary sacrifice arrangement lowers an employee’s average weekly earnings to below the Lower Earnings Limit for National Insurance they are not entitled to OSPP.