Check Against Delivery
Dáil Éireann
24 June 2016
A Cheann Comhairle,
I am delighted to present this Bill to the House today, the purpose of which is to give effect to the decision in Budget 2016 to provide for 2 weeks’ paternity leave and an associated social welfare benefit, known as paternity benefit, from the 30th of September this year.
Benefits of the legislation for families
I have been a strong advocate for the necessity of paid paternity leave for many years, and accordingly this legislation has been a priority for me since the new Partnership Government was established in May. As a former Minister for Children I know how important it is for fathers to have the opportunity to be involved at the earliest stages of a child’s development. It is in a child’s best interests to benefit from the care and attention of both parents in his or her early years. As we all know, investing in a child’s early years leads to better outcomes for both the child and wider society.
When enacted, this legislation will allow new fathers, including fathers of adopted children, to start the combined package of paternity leave and paternity benefit at any time within the first six months following birth. The Bill also provides for same sex couples on an equal basis with other couples. In relation to the operation of the Scheme, the Department of Social Protection will provide a minimum of paid paternity benefit of €230 per week for the two weeks of Paternity Leave.
I believe that the State can and should support families as they deal with all the different pressures they face. This legislation introducing two weeks of paid paternity leave in addition to the existing payment of maternity benefit means that the State now offers a total of 28 weeks of paid support to parents upon the birth of their child. By providing this investment in a child’s early years we are seeking to improve outcomes for children and families. It is my hope that this Government will be in a position to extend this provision further in the years ahead subject to the resources becoming available.
Genesis of the Bill
The genesis of the bill is a decision by the previous Government to introduce 2 weeks’ paternity leave and the associated social insurance-based benefit payment in Budget 2016. On 26th January 2016, the Government approved the General Scheme of the Paternity Leave Bill, priority drafting of the Bill and the insertion of the final text of the Bill as a new part of the proposed Family Leave Bill, in the event that the Family Leave Bill was sufficiently progressed as to allow its enactment before the end of the current legislative session in July 2016. On 22nd March 2016 however, on foot of a Memorandum brought by the then Tánaiste and Minister for Social Protection, the Government agreed that the matter should be progressed as a standalone Bill.
During the recent Programme for Government negotiations, I was keen to ensure the new Government would reaffirm the commitment to introduce paternity leave and I am glad that the new Programme for a Partnership Government includes a commitment to introduce two weeks’ paternity leave and to significantly increase parental leave. Since the Government was formed in May, it has been a key priority for me to progress the Bill through the House so that the new regime can be in place for September.
Detail of the Paternity Leave and Benefit Bill
Careful attention has been devoted to the drafting of this Bill. At one level, the Bill deals with a simple issue – the creation of 2 weeks paternity leave and a paternity benefit. However, there were also quite complex issues in relation to the interplay with Maternity and Adoptive leave that had to be resolved. These relate to rare and tragic situations that we must cater for, including stillbirth, death of a newborn baby, or death of one of the parents. Essentially, we take a humane approach. If the baby is stillborn or dies, the entitlement to paternity leave still continues and if one parent dies, the other parent inherits whatever leave has not been taken. Amendments also had to be made to the Workplace Relations Act 2015 and the Social Welfare Consolidation Act 2005.
So – the drafting of the bill was painstaking, challenging and required in an extremely short space of time in order for the Scheme to be operational by September. I want to thank the drafters of the Attorney General’s Office who have been so careful, conscientious and assiduous and in their approach even when working under severe pressure. I also want to thank the Department of Social Protection, who worked so effectively with my Department to bring this work to fruition. We have a very small window of opportunity to enact the Bill, and the assistance of all involved is very much appreciated.
I will now read into the record the main provisions of the Bill.
Part 1 Preliminary and General contains preliminary and general provisions.
Section 1 contains the short title and standard citations, construction and commencement provisions.
Section 2 defines a number of terms used in the Bill. One of the key terms is ‘relevant parent’, which means the father in most family circumstances. However, the definition has been drafted also to provide for same sex couples. Paternity leave can be taken by one person only, save in the case of adoption, where the Bill allows for circumstances where the father will have taken paternity leave, by ensuring that the adoptive father can subsequently also take paternity leave.
Section 3 clarifies that the Minister has a power to make regulations in relation to anything said to be prescribed in the Bill.
Section 4 is a standard provision in equality and employment rights legislation which prohibits private employment contracts from reducing the statutory rights of employees.
Section 5 is a standard provision that clarifies that expenses incurred by the Minister in the administration of this Act shall be paid out by moneys provided by the Oireachtas.
Part 2 Paternity Leave creates an entitlement of 2 weeks paternity leave and governs the operation of paternity leave.
Section 6 is one of the most important provisions in the Bill as it creates the entitlement to 2 weeks paternity leave.
Section 7 contains a number of provisions that set out the process by which the relevant parent notifies his or her employer of the intention to take paternity leave, and the documentation required to be submitted to the employer. Paternity leave must usually be applied for 4 weeks in advance.
Section 8 provides that paternity leave can be taken as one continuous period of two weeks at any time commencing on the date of the birth (or placement in the case of an adoption) and ending not later than 26 weeks thereafter. This means that a couple can chose to avail of the leave at the time of the birth, or at the end of the period of paid maternity leave (thus if they chose, they can have 28 weeks continual paid maternity/paternity leave) or any time in between.
Section 9 provides for relaxation of the normal notification period in cases where the date of confinement occurs four or more weeks before the expected date, subject to a minimal notification period of 14 days.
Section 10 provides for postponement of paternity leave that has been applied for but not taken, in the event of the postponement of the day of placement or the date of confinement.
Section 11 provides for postponement of paternity leave that has been applied for but not taken, in the event of sickness of the relevant parent.
Section 12 provides for postponement of paternity leave in the event of hospitalisation of the child.
Section 13 provides a definition of Relevant Parent to whom Section 16 of the Maternity Protection Act 1994 applies.
Section 14 provides a definition of Relevant Parent to whom section 9 of the Adoptive Leave Act 1995 applies.
Section 15 provides for transfer of paternity leave to the surviving parent where a father or other relevant parent dies while having an entitlement to paternity leave that has not been used.
Section 16 contains a number of provisions that deal with the abuse of paternity leave. A key requirement is that paternity leave must be used for the care of the child to which the leave relates.
Part 3 Employment Protection relates to the protection of the employment of employees who avail of paternity leave.
Section 17 is a technical provision which establishes that where paternity leave or part of such leave is legitimately postponed, the times on leave before and after such postponement are treated as separate periods of leave.
Section 18 provides for preservation and suspension of certain employment rights while on paternity leave and is in line with the existing legislation in this regard as it relates to maternity and adoptive leave.
Section 19 is also an employment rights protection provision which voids purported terminations of employment if the employee is absent from work on paternity leave at the time. It follows the maternity leave regime in that regard.
Section 20 provides that certain notices of termination or suspension of employment must be extended if notice is given before the employee begins a period of paternity leave or before the receipt by the employee’s employer of a notification of intention to take paternity leave. Again, it follows the arrangements for other types of family leave.
Section 21 prohibits penalisation of an employee for proposing to exercise or for having exercised his or her entitlement to paternity leave, and is a standard provision in equality legislation.
Section 22 again is a standard provision, which provides for a general right to return to work on expiry of paternity leave.
Section 23 sets out the arrangements in relation to an employee notifying the employer of his or her return to work on the expiry of a period of paternity leave.
Section 24 provides for delayed return to work in case of an interruption or cessation of work at an employee’s place of employment.
Section 25 sets out the provisions that apply where an employee is not permitted to return to work.
Part 4 Resolution of Disputes. These provisions dovetail with the reformed and streamlined redress mechanisms provided for in the Workplaces Relations Act 2015.
Section 26 is a technical provision, which excludes the Defence Forces from the application of this Part and also excludes disputes involving dismissals (which are dealt with under Unfair Dismissals legislation).
Section 27 relates to decisions made under section 41 or 44 of the Workplace Relations Act 2015 and the remedies that an adjudication officer or the Labour Court, as applicable, may order if the decision is in favour of the employee.
Section 28 is a required feature of gender equality legislation. In essence, it provides that, in any proceedings where the established facts carry a presumption of discrimination, it is for the respondent to prove the contrary.
Part 5 Paternity Benefit, provides for the amendments to the Social Welfare Acts to provide a new social welfare payment to be known as Paternity Benefit.
Section 29 includes Paternity Benefit in the description of benefits in section 39 of the Social Welfare Consolidation Act 2005.
Section 30 defines a number of terms used in relation to paternity benefit, provides entitlement to and duration of paternity benefit, outlines the social insurance contributions that will be required, details the rate of paternity benefit that will be paid and allows regulations to be made to outline the circumstances where a person may be disqualified from receiving paternity benefit.
Part 6, Miscellaneous, mainly focuses on consequential and technical amendments to other primary legislation.
Section 31 amends Schedule 3 to the Redundancy Payments Act 1967 to take account of paternity leave.
Section 32 amends Section 6 of the Unfair Dismissals Act 1977 to include dismissal arising from the exercise or proposed exercise of the right to avail of paternity leave.
Section 33 amends the Maternity Protection 1994 to ensure that a mother to whom paternity leave is transferred on the death of her partner can take that transferred leave at the end of any remaining period of paid maternity leave to which she is entitled.
Section 34 amends the Adoptive Leave Act 1995 to ensure that an adopting parent to whom paternity leave is transferred on the death of the other parent can take that transferred leave at the end of any remaining period of paid adoptive leave to which she is entitled.
Section 35 amends Section 126 of the Taxes Consolidation Act 1997 to provide for taxation of paternity benefit.
Section 36 amends the Workplace Relations Act 2015 to ensure that disputes in relation to paternity leave are covered by the adjudication and redress procedures set out in that Act.
Next steps
Ireland’s introduction of paternity leave at this juncture is particularly timely given that the European Commission is reviewing its policy options for better addressing the challenges of work-life balance faced by working families. I hope that the Government will be in a position to extend this provision further in the years ahead, and I strongly support the Programme for a Partnership Government commitment to significantly increase parental leave in the first year of a child’s life over the next five years. In this regard, the process of examining the case for an increase in the level of parental leave should be taken forward under the aegis of the Cabinet Committee on Social Policy. That Committee might also take forward the implementation of the recommendations of the Inter-Departmental Group on Future Investment regarding additional paid parental leave, which could be taken by either parent, immediately after the paid maternity leave and paid paternity leave and, as resources allow, resulting in one full year of paid parental care for children under one.
Benefits of Paternity Leave
Evidence shows that fathers want to spend time caring for and bonding with their children and it is clear that children benefit most from parental care in the first year. However as things stand, in order to take time off around the birth of their child (or later on in the first year) fathers have to use other existing leave arrangements. Parents want choice and flexibility. This Bill gives parents the flexibility to choose when they take the time off to care for their young child. A father can commence paternity leave right up to the end of the 26th week after the child’s birth. In the case of adoption, the father can take leave within 26 weeks of the day of placement.
I believe that the provision of family related leave is one of the important areas to create a balance between family and working life. I am pleased that this legislation is another important step in supporting families in the workplace. Evidence from countries such as Norway shows that paternity leave promotes social benefits and a fairer sharing of family responsibilities. It has a positive impact on fatherhood. Research also indicates that mothers who are supported at home in the weeks following their child’s birth tend to be healthier and to have lower incidences of post-natal depression. Co-parenting habits that are established in the first few months of a child’s life continue to benefit the home for years to come. Simply put - the more time that fathers can spend with their babies - the better. It’s a good thing for dads, for families and for society.
Impact on Employers
It is important to note that this proposed legislation ensures there will be no statutory obligation on an employer to continue to pay the normal salary during paternity leave. Employers will have the option of providing a further top-up to the father's regular salary if they so choose. Further, there will be no change to employers PRSI to fund this proposal. We are conscious, in this regard, of limiting the potential additional costs for business. We have also included provision in this legislation that employees will be expected to give their employers at least four weeks’ notice which will allow employers to plan accordingly.
Benefits for the Self-Employed
The introduction of paternity benefit will extend the range of benefits available to people paying social insurance contributions. I’m very happy that the 256,000 self-employed men in Ireland will able to avail of Paternity Benefit. Because they are self-employed, they can already take leave but most do not do so due to loss of income or business. Becoming a new parent is a huge undertaking, and for parents who are forced to take unpaid family leave, the situation becomes infinitely more challenging. This measure of two weeks paid paternity leave will give them a guaranteed income which will make it a little bit easier for them to combine parenting with the responsibility of running a business.
European Context
The legislation that we are asking you to approve is worthwhile, progressive, and in the Irish context, groundbreaking. Unlike many EU Member States we have no provision for paternity leave, a situation that sets us out of step with the changed and more active role that fathers play in raising their children in most comparable societies. This combined package of paternity leave and paternity benefit will help to ensure that fathers in Ireland have entitlements that are similar to those of dads in other EU countries.
It is very difficult to estimate accurately what the actual take up will be. The Department of Social Protection estimates that 30,000 to 40,000 fathers might choose to apply for paternity benefit in a full year, at a cost of €20 million. This year, 2016, the payment is expected to cost the exchequer €5 million. Fathers will normally have to give four weeks’ notice before taking the leave, but there is provision in this bill for the paid paternity leave to be taken at short notice, should a baby be born early.
Conclusion:
Parenting is changing and fathers are more and more involved in raising their children. International studies have shown that fathers who take paternity leave are more likely to take an active role in child care tasks. There is also plenty of evidence showing the vital role that fathers as well as mothers play in the life of new-born babies and young children. The introduction of paternity leave and a paternity benefit scheme is an important milestone in providing support to fathers who wish to care for their children shortly after their birth. It will enable the father to spend time with his partner, new child and older children.
In conclusion, this legislation is good news for parents and good news for children, and I look forward to engaging further with Deputies from all sides of the House and ensuring that an effective Bill is passed and enacted as quickly as possible.