Can anyone explain in simple terms, how shared parental leave works?

[Darknight5]

Can anyone explain, in simple terms, how shared parental leave works when enhanced pay is involved?

Example is:
Parent A receives 100% full pay for 20 weeks reducing to SMP
Parent B receives 100% full pay for 3 months and 50% pay for 9 months

Does this mean that, parent A can take 20 weeks, then parent B can take over, kicking in with 100% pay for the next 3 months and finishing with half pay for the rest of the leave period (leaving A to go back to work)?

Theres loads of guidance on how it works with SMP but barely anything on how it works with enhanced pay!

Our ideal outcome is we bring in as close to our usual salaries for as long as possible whilst spending as much time with baby, so would appreciate if anyone can help on this.

You’ll need go request the company policies on enhanced oay and shared parental care as it varies from place to place. Some will pay the full amount, some will only pay SMP.

Sorry both policies are shared parental leave pay, not just maternity pay. The policies as to when you can take leave are about as clear as mud!

Enhanced pay is entirely at the discretion of the employer. They make the rules, and they can put conditions on paying it if they want. I know of at least one company that specifies that they will only pay enhanced shared parental pay in respect of time that is taken directly after the birth (so Parent B in your scenario wouldn't get any enhanced pay). Others allow you to take it whenever you want. You need to read the policies carefully, and clarify any ambiguity with HR.

You need to clarify with your employers. Some enhanced pay only applies for the first period of time.
More reasonable employers will apply the enhanced leave when it is their employee on SPL whenever that it, but it isn't the law.

We did SPL, 20 weeks each, and it worked as per @Dolma ’s example - I had the enhanced pay so took the first 20, and DH got SMP for three months and then nothing for the last three, but I am the higher earner so it was tight but OK.
Between annual leave and covid lockdowns, one of us was off with DS until he was 14 months.

Based on my experience of shared parental leave OP, yes your example would work, so yes, Parent A should take their 20 weeks then leave Parent B to take their time. That's how it worked for us our second time round and meant we increased the amount of money coming into our household in total during that time.

However the devil is in the detail and because enhanced pay is at the company discretion there can be all sorts of funny things which could catch you out.

With us the first time I got 9 months full pay and my OH got 3. BUT his company policy said he had to start it within 3 months of birth and it had to be an uninterrupted period, and that was too early for me to go back to work as I was breastfeeding and also still on full pay. He ended up just taking the time off and hanging out with us which was lovely if not a help financially.

By second child his company had amended their policy so we could do 9 + 3 and save on nursery fees but aware other companies probably have little ts and cs in their smallprint which could similarly catch you out.

I didn't get enhanced pay but my husband did. He took 3 months off on full pay when my son was 6 months old and I went back to work. So your example should work, but as others have said you'll need to check with parent B's employer in case there any conditions attached to the enhanced pay.

Our experience was that both companies started the clock for enhanced pay when the baby was born. So dh could not get the full pay his firm offer for the first 6 months unless he was off in the first six months after birth. He’s the higher earner and we need his salary so we both took time after birth and he looked after our toddler while I recovered and cared for newborn.