Shared parental leave rules come into force in UK amid small business fears
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Version 0 of 1. New rules heralding Scandinavian-style shared parental leave of up to 50 weeks come into force this weekend as concerns continue that many employers are not ready for the “complicated and challenging” changes. From Sunday parents who both work have the right to take up to almost a year off after having a baby, or adopting a child. Mothers will continue to take the first two weeks, the compulsory part of maternity leave, and fathers will also still be entitled to two weeks paternity leave. But it is nowpossible to transfer the remaining maternity leave to the father or, in theory, to share it. Since the measure was first announced 18 months ago by Nick Clegg, the deputy prime minister, it has won plaudits from family groups and advocates of women in the workforce. But employers – particularly small business – say there are still coming to terms with the policy, which at the time was labelled by some as a disaster. Employment law specialists Irwin Mitchell said many UK businesses are simply unprepared for the “sea-change” in working patterns that this represents. The firm’s Chris Tutton added that employers could face allegations of discrimination, particularly from male staff, if they repeatedly rejects requests for leave. The scheme, which has been one of the Liberal Democrats’ flagship policies, has also been criticised for ruling out many stay at home parents. According to a TUC study, 40% of new fathers will not be eligible because the mother does not have a paid job. The concept has been the norm across Scandinavian countries for years but with generous payments for new parents. This will not be the case in the UK, however. . Unless an employer offers an enhanced package, pay will be 90% of a worker’s average weekly earnings before tax, for the first six weeks, and then £139.58 a week, or 90% of average weekly earnings – whichever is lower – for the next 33 weeks. In total, 39 of the 52 weeks will be paid, meaning many families simply won’t be able to afford to take the full time off. Parents have already been able to share some parental leave, with the father allowed to take up to six months after the child reaches 20 weeks. But relatively few men have taken up the opportunity. Each year 285,000 working couples are expected to be eligible, although the government predicts that just 5,700 couples will take advantage in the first year, negating its impact. Employees are not guaranteed the right to take the time off they request. Following an outcry by business leaders, new parents will be required to give their employer eight weeks’ notice of their intention to take leave. There will be a cap on requesting separate blocks of time off, at three per employee. “Provided you give the right notice, employers cannot refuse leave. But they can refuse discontinuous blocks of leave,” said Marian Bloodworth, an employment lawyer at Berwin Leighton Paisner. Attitudes of employers appear to have shifted. In 2013, Andrew Yates, the founder of software company Artesian Solutions, described the measure as a disaster. This week the chairman of the Federation of Small Businesses, John Allen, was more considered, saying the measure has the potential to enable more women to return to work sooner after childbirth. “Nevertheless, the rules are complicated and many small firms will find them challenging to implement. Clearly though, the reforms will need to be closely monitored – both in terms of their impact on business but also employee takeup rates,” he added. Estelle Brachlianoff, a vice-president at the waste management company Veolia, was much more upbeat. “For too long our archaic parental leave laws have hampered career women’s opportunities by not giving them the option to share leave with their husbands. It’s about time we recognise women’s careers are just as important as men’s. This is an approach fit for the 21st century and something men and women will equally welcome,” she said. How the UK compares? Sweden’s policy is particularly generous, with parents having had the right to shared leave since 1974. Parents receive 480 days of leave – including 390 at around 80% of their salary – for each child, with 60 days exclusively for each parent and the remaining 360 shared. The Danes have a similarly generous scheme. In Norway, the father’s quota was introduced in 1993 and now totals 14 weeks. In the rest of Europe, new mothers mostly get between 14 and 22 weeks. Paid leave for fathers ranges from two days in Greece to three months in Italy. Germany allows parents up to 14 months on 65% of salary. France allows both parents to share up to two years of unpaid leave, while in Spain it’s three years. Parents in the US do not get paid leave, but can take up to 12 weeks unpaid. |