Shared Parental Leave: How It Works

What Is Shared Parental Leave?

Shared Parental Leave (SPL) is a system that allows parents to share a pool of leave between them, rather than assigning it exclusively to the mother (as with traditional maternity leave). The concept emerged from the recognition that rigid gender-based leave assignments reinforce traditional gender roles and limit fathers' involvement in childcare.

The first major SPL system was introduced in Sweden in 1974, replacing gender-specific "maternity" and "paternity" leave with gender-neutral "parental" leave. Since then, many countries have adopted various forms of shared leave, though the specifics vary dramatically.

Models of Shared Parental Leave

There are three primary models for sharing parental leave between parents:

Model 1: Transferable Leave (UK Model)

In the transferable model, the mother begins with a maternity leave entitlement and can choose to "curtail" (end) it early. The unused portion is then transferred to the father or partner. This is the system used in the UK, where mothers can share up to 50 weeks of leave and 37 weeks of pay with their partner.

Model 2: Shared Pool with Individual Portions (Nordic Model)

In the Nordic model, there is a total pool of leave that can be shared between parents, but portions are reserved (non-transferable) for each parent. If a parent does not use their reserved portion, it is lost. This "use it or lose it" design encourages both parents to take leave.

Model 3: Flexible Individual Entitlements (Canadian/Australian Model)

In the flexible model, each parent has an individual entitlement to parental leave, and they can choose when to take it—either simultaneously or sequentially. There is typically a combined maximum that cannot be exceeded.

UK Shared Parental Leave (SPL)

The UK's SPL system, introduced in 2015, allows eligible mothers to end their maternity leave early and share the remaining leave with their partner. Here is how it works:

SPL Entitlement

• Total shared leave: up to 50 weeks
• Total shared pay (ShPP): up to 37 weeks at £184.03/week or 90% of AWE (whichever is lower)
• Must be taken in the first year after birth (or adoption)
• Can be taken in blocks or continuously
• Parents can take leave simultaneously or at different times

How to Set Up SPL in the UK

1. The mother gives notice to her employer to end maternity leave (at least 8 weeks before the end date)
2. Both parents submit a "notice of entitlement and intention" to their respective employers
3. Each parent provides a "curtailment notice" confirming when maternity leave will end
4. Parents submit a "written notice" specifying the SPL booking pattern they want
5. Employers must respond within 14 days

Parents can make up to 3 separate notifications of leave arrangements, and can cancel SPL bookings up to 6 weeks before the leave starts.

SPL Eligibility

Both parents must meet specific criteria:

• Mother: Must be entitled to maternity leave, maternity pay, or maternity allowance, and must have at least 26 weeks of continuous employment
• Partner: Must have at least 26 weeks of continuous employment with the same employer, and be the father or partner of the mother
• Both parents must be employed (not self-employed) and meet the income requirements
• At least one parent must meet the employment test (26 weeks continuous)

UK SPL Take-Up Rates

Despite being available since 2015, UK SPL take-up has been disappointingly low. According to HMRC data, only 2-8% of eligible parents use SPL. Barriers include:

• Complex notification requirements (many parents find the process confusing)
• Lower pay compared to maternity leave (ShPP at £184.03/week vs. SMP's 90% for first 6 weeks)
• Cultural expectations that mothers take the primary leave
• Employer unfamiliarity with the system
• Financial constraints of having both parents on reduced pay simultaneously

Canada: Flexible Parental Leave Sharing

Canada's EI system allows parents to share parental benefits flexibly. Unlike the UK's formal SPL process, Canadian parents simply apply for EI parental benefits separately and indicate that they are sharing. Key features:

Quebec's QPIP system offers dedicated paternity leave (5 weeks) that cannot be transferred to the mother, plus parental benefits that can be shared. This dual approach—non-transferable paternity leave plus transferable parental leave—has proven more effective at encouraging father participation than the UK's purely transferable model.

Nordic Countries: The Non-Transferable Quota Model

The Nordic countries have the most successful shared parental leave systems in the world, combining a shared pool with non-transferable quotas for each parent. Here is how each country structures its shared leave:

The non-transferable quotas ensure that both parents take leave. In Sweden, if a father does not use his 90 days, they are lost—the mother cannot claim them. This design has driven Swedish father participation to approximately 80%, the highest in the world.

Australia: Combined PPL and DaPP

Australia's system, reformed in 2024, combines the 18 weeks of Paid Parental Leave and 2 weeks of Dad and Partner Pay into a single 20-week entitlement that can be shared between parents. Key features of the Australian shared system:

• 20 weeks total, paid at minimum wage rate
• Only one parent can claim at a time
• Can be taken in flexible blocks of 1 day or more
• Must be taken within 2 years of birth or adoption
• Expanding to 26 weeks by July 2026, with 4 weeks non-transferable per parent

The 2026 expansion will introduce the first non-transferable quotas in the Australian system, which is expected to significantly increase father participation in parental leave.

Benefits of Shared Parental Leave

Research consistently shows that shared parental leave produces significant benefits for families and society:

For Children

• Stronger attachment to both parents, not just the mother
• Better developmental outcomes when both parents are involved in early care
• Reduced behavioral problems in early childhood

For Mothers

• Faster physical recovery when caregiving is shared
• Reduced risk of postpartum depression (25% reduction when partners take leave)
• Faster return to career advancement when the father shares leave
• Reduced "motherhood penalty" in earnings

For Fathers

• Stronger bond with children that persists long-term
• Increased confidence in caregiving skills
• Greater involvement in childcare decisions and routines

For Employers and Society

• Reduced gender pay gap (from 11.9% to 7.6% in Sweden)
• Higher female labor force participation
• More balanced distribution of caregiving responsibilities
• Reduced career disruption for women

How to Optimize Your Shared Leave

To make the most of shared parental leave, consider these strategies:

1. Plan early: Discuss leave arrangements with your partner before the baby arrives. Consider who will take leave first, for how long, and whether you will overlap.
2. Check employer top-ups: Some employers offer enhanced pay for shared leave, while others only top up maternity leave. Know your employer's policy.
3. Consider sequencing: Having the mother take leave first (for recovery and establishing breastfeeding) followed by the father taking the second portion often works well.
4. Maximize non-transferable portions: Always use any non-transferable leave available—leaving it unused means losing it.
5. Plan for childcare: Use shared leave to bridge the gap between parental leave end and childcare start, reducing the need for early infant childcare.