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Parental leave reform: what employers should know

By Helena Rozman and Sarah Beeby
December 4, 2025
  • Carer's leave
  • Discrimination
  • Maternity leave
  • Parental leave
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Calls for reform to the UK’s parental leave framework are gaining traction after the first Working Dads’ Summit and publication of new University of Bath research highlighting persistent workplace bias. These follow the Women and Equalities Committee report on paternity and shared parental leave (the WEC Report) earlier this year. We explore the government’s response to the WEC Report and what employers should prepare for.

Shifting expectations on parental leave

At the Summit, Parenting Out Loud founder Elliott Rae urged greater gender equality in parental leave. He argued that supporting dads at work would help tackle the motherhood penalty. A third of dads do not feel able to talk about their caring responsibilities at work but Rae believes transparency over parental responsibilities will help drive the necessary cultural shift.

Evidence of continuing bias in hiring and promotion

The University of Bath’s recent study adds weight to these concerns. Researchers interviewed 37 managers across England, Scotland and Wales, uncovering discriminatory attitudes towards pregnant applicants. Some admitted they would avoid hiring pregnant women, reflecting a perception that the “ideal worker” has no external responsibilities. The study also found that senior or client-facing roles presented greater barriers for women returning from maternity leave, with one CEO remarking that they would not employ someone who was “going to be away for a year and come back exhausted”.

These findings, combined with the Working Dads’ Summit’s calls for change, reinforce the need for a cultural as well as legislative shift in how employers view and support working parents.

Government review under way

In September, the government published its response to the WEC Report on paternity and shared parental leave. The response confirms that an 18-month review of all parental leave and pay entitlements began in July. The review aims to improve women’s participation in the labour market, address the financial disadvantages faced by mothers and reduce the gender pay gap.

While the government’s response largely signals further review rather than immediate action, several developments are already in train.

Key proposals on the table

  • Review of parental leave and pay: The government will review all parental leave and pay entitlements with the aim of improving the women’s labour market, addressing the financial disadvantages often faced by mothers and reducing the gender pay gap.
  • Day-one rights: The Employment Rights Bill will make unpaid paternity leave and parental leave a day-one right. The government maintains that calculating pay from day one would create unnecessary complexity for employers, though it will revisit this issue during the wider review.
  • Length and flexibility of paternity leave: The Employment Rights Bill will also enable partners to take paternity leave after shared parental leave with a view to supporting working family life while helping parents stay in work and progress their careers.
  • Better support for self-employed parents: Save for maternity allowance, the current system generally excludes self-employed employees. The government recognises this and has committed to reviewing the options available for self-employed individuals and whether the system meets their needs.
  • Cultural and societal barriers: The review will explore how social and gender norms have evolved and how policy can better reflect modern parenting. The government will engage with focus groups, made up of employers, trade unions and advocacy groups, and host roundtables later this year.
  • Shared parental leave system: The government acknowledges that shared parental leave, on the whole, has had relatively low participation. It will consider the WEC’s recommendations to simplify eligibility and administration.
  • Discrimination protection: The government will assess how effective current protections are for fathers who take paternity leave, particularly regarding discrimination and protection from redundancy.
  • Kinship carers, single parent families and parents of multiples: The government’s review will consider better support for these groups, with reference to international systems. As part of that, it has announced a £40 million package to trial a new Kinship Allowance in several local authorities to test whether a payment to cover additional childcare costs will increase the number of children looked after by family members and friends.

What employers should do now

With the government’s review scheduled to last 18 months, there will be no immediate legal changes. In the meantime, employers may wish to:

  • review existing family leave and pay policies to ensure they are up to date and applied consistently;
  • train line managers on handling flexible working and family-related requests;
  • assess whether workplace culture supports both parents in taking and returning from leave; and
  • monitor progress of the government’s 18-month review and the Employment Rights Bill.

The review signals gradual but inevitable change. Employers who wish to be at the forefront of change can take the lead by reviewing policies and practices now, setting the standard for the next phase of reform.

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Carers Leave, Discrimination, Maternity leave, parental leave
Helena Rozman

About Helena Rozman

Helena has experience in acting for both employees and employers covering both contentious and non-contentious work. Helena's experience includes defending Employment Tribunal claims and engaging in settlement negotiations; advising clients on complex disciplinary matters, exit strategies and large restructuring exercises, including TUPE and redundancy; co-ordinating and responding to data subject access requests; advising on the employment implications on business and asset purchases and outsourcing arrangements; project managing and advising clients on multi-jurisdictional projects with our international offices; drafting settlement agreements for exiting employees; advising on the employment aspects of corporate transactions and undertaking due diligence; and reviewing contracts, company handbooks and policies.

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Sarah Beeby

About Sarah Beeby

Sarah is a partner and head of the Firm's tier one ranked People, Reward and Mobility practice in Milton Keynes. A very experienced employment lawyer, she undertakes a full range of employment work for a wide variety of clients in the private and public sectors, including many leading companies and household names. Sarah's work includes advising on large-scale redundancy and restructuring exercises, TUPE transfers and complex outsourcing arrangements, as well as advising on the employment aspects of large corporate transactions, having worked on numerous multi-million pound transactions for an impressive portfolio of clients.

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