How to maximise paternity leave and pay as a self-employed dad

While once not a statutory right, employed workers are now entitled to a minimum of two weeks paternity leave following the birth of their child. However, this sadly isn’t the case for those who are self-employed.

Unfortunately, there is currently no legal entitlement to paternity leave or paternity pay for self-employed fathers, so planning ahead during the pregnancy is important for those wishing to take a break to bond with their new baby.

This article will explore paternity leave as a self-employed person, including tips for planning your finances and workload.

How does self-employed paternity leave work?

Being self-employed means you’re in control of your own work schedule. This also means you can decide how much paternity leave you want to take after the birth of your child, so you must plan accordingly for the financial impact of this. You could take no time off, two weeks off, or a whole year away from work – the choice is yours.

Unless a mother is having a scheduled c-section, there is uncertainty around when a baby will arrive and that can be tricky for self-employed fathers with clients who rely on them. Be transparent with your customers and manage their expectations of your availability.

It’s a good idea to make two plans for paternity leave in case your partner struggles with the healing process, or if there are issues during the birth. Think about:

• Plan A: The amount of time you hope and plan to take off after the baby’s arrival
• Plan B: A back up plan in case you need to take more time off, such as if your partner needs additional support

Can self-employed dads claim paternity pay?

Unfortunately, self-employed fathers aren’t entitled to statutory paternity pay. Paternity pay – both statutory and enhanced – can only be claimed by employed fathers who have reached eligibility requirements, such as working with their employer for at least 26 weeks prior to the 15th week before the baby is due.

If possible, it’s a great idea for self-employed dads to start financially planning for their paternity leave before their partner is pregnant. This alleviates the financial pressure of saving on monthly finances, as it gives you more time to fill up the paternity leave fund.

However, we understand this isn’t always possible – if not, it is important to make financial plans as soon as you get that positive pregnancy test.

Discuss with your partner how much time you might want to take off and then work out how much money you would need to cover bills, new baby-related costs, and a bit extra for emergencies. Once you’ve crunched the numbers, you can then work out how much you need to save each month in the lead up to the birth to reach this figure.

If you’re looking to take over two weeks off for your paternity leave, set up a separate savings account for this fund to avoid dipping into it.

Navigating paternity leave: tips for self-employed dads

Paternity leave and pay can feel especially overwhelming for self-employed dads who have no government support in the form of statutory allowances. It can be a worrying time, but making plans as far in advance as possible can alleviate this stress.

Here are some tips to consider:

• Cancel any unnecessary direct debits and put the money saved into your paternity leave fund
• Take on extra work during the pregnancy to earn more money for this fund
• Research current market rates for your line of work to see whether you could increase your fee for new customers
• Block out your calendar for your paternity leave as soon as possible so you don’t accidentally book a customer for that period
• Decide on your Plan A and Plan B for your ideal paternity leave periods
• Inform your customers when you will be on paternity leave – and put on an ‘out of office’ alert for your work email address
• Have a clear understanding of how much money you need to save for your paternity leave and what that equates to in savings per month – and include extra for an emergency fund

Managing workload during paternity leave as a freelancer

If you’re a self-employed business owner who has employees, it’s likely your business will be able to run as usual without you for a short period. Ensure you have delegated essential roles to other staff members for your time off – like getting back to customer queries – and inform your staff that you will be less accessible than usual during this time.

If you work alone, it’s important to let your customers know in advance when you will be on paternity leave and what that means for them. Some new dads are happy to answer some emails on their phone in quieter moments during paternity leave, while others choose to do no work at all. There is no right or wrong approach, so it’s important to decide what works best for you.

In some scenarios, you may be able to pass work onto a trusted peer in your field. How this would work is different for every case – but it’s important to communicate this possibility with your customers to find out whether it’s necessary, and ensure they would be happy to temporarily work with someone else.

If you decide to choose this avenue, be sure you trust the person and ensure they fully understand what’s expected of them – your business and reputation will be in their hands during your paternity leave.

Final thoughts

Paternity leave as a self-employed dad can be tricky to navigate, but with smart planning and execution, it can be done without stress and financial difficulty.

Be sure to plan your finances as soon as possible, making sure you fully understand how much money you need to cover your paternity leave – you don’t want your leave period to be filled with money stresses instead of special baby bonding time.

Kirstie Pickering - business journalist

Kirstie is a freelance journalist writing in the tech, startup and business spaces for publications including Sifted, UKTN and Maddyness UK. She also works closely with agencies to develop content for their startup and scaleup clients.