Statutory Paternity Pay (SPP) - What to do if an employee is not eligible

If you have an employee who isn't eligible to receive SPP via payroll you'll need to issue form SPP1 to them within 28 days of their pay request to explain why.

TIP: Form SPP1 is available from HMRC's website. Visit Gov.uk >

The employee can still take one or two weeks off work as Paternity Leave. The steps you take in your software will depend on whether the employee is due any other payments. Let's take a look now.

If the employee is not due any other payments

The employee should be placed on hold while no payments are due. This status is included in your FPS meaning HMRC are notified that the employee is still employed by you, but that no payments are due to them.

If the employee is due other payments

Depending on the employee's contract of employment, they may be due some pay while not being eligible for SPP. If this is the case, you should include the employee in your pay run and process any payments due to them.

NOTE: If you aren't certain if the employee is due other payments, you should contact your HR advisor.