From 2003, new fathers will be entitled to two weeks' paid paternity leave.

• Fathers should have worked with their employer for 26 weeks before the Notification week to qualify for paid leave
• Fathers will be able to take the leave at anytime during the first two months following their child's birth
• The time off will have to be taken in a single block to make it easier for employers
• Fathers will have to give 15 weeks' notice to their employer of when they intend to take their leave
• If the employee wishes to change the time of his paternity leave at a later date, he must give four weeks' notice
• Paternity leave mirrors arrangements for maternity leave where possible to keep it as simple as possible
• Small businesses will be able to reclaim the amount they pay in full and receive additional money in compensation.

Small businesses will be able to claim extra compensation for paternity pay and adoption pay in the same way that they claim Small Employer Relief for their Statutory Maternity Pay at present.

Small businesses with an annual National Insurance liability of £40,000 or less will be able to claim back in full the statutory adoption and paternity pay plus a percentage on top in compensation. Large employers will be reimbursed 92% of their costs.