This is copied from Business Link an advice site for employers
Paternity leave and pay
Fathers who have 26 weeks' service by the 15th week before the Expected Week of Childbirth (EWC), are entitled to two weeks' paternity leave at or around the date the child is born. An employee may also take paternity leave if they are not the father but are the mother's partner and expect to have responsibility for the child's upbringing.
Where a child is adopted, one member of a couple may receive Statutory Adoption Pay and the other Statutory Paternity Pay if they have 26 weeks' service by the time the adopter is told they have been matched with a child for adoption.
During paternity leave, most employees are entitled to Statutory Paternity Pay (SPP). Employees must earn enough to pay National Insurance to qualify for SPP. Low-paid employees and those who don't qualify for SPP may be able to get Income Support.
Employees must give you 28 days' notice of when they want their SPP to start. They should tell you that they will be taking paternity leave by the fifteenth week before the baby is due.
SPP is paid at a rate of £108.85 per week or 90 per cent of weekly earnings from 2 April 2006 (this will increase to £112.75 per week in 2007/08), whichever is lower.
Employers can recover 92 per cent of payments but if your total National Insurance payments are less than £45,000 per year you can recover 104.5 per cent to cover payments and other costs. You can recover SPP by deducting it from payments you make to HM Revenue & Customs (HMRC) for PAYE and National Insurance. You can also get funding in advance for payments of SPP from HMRC.
Further information about SPP for employees is available from the HMRC Employer Helpline on Tel 0845 7143 143