Chamber urges businesses to consider new parental leave proposals

Greater Manchester Chamber of Commerce is urging businesses to give their views on the new Government proposals on flexible parental leave, which could prove an administrative nightmare to businesses already over-burdened by red tape.

Sana Nabi, Employment and Skills Policy Officer at Greater Manchester Chamber of Commerce, said: “The new proposals would mean that parents are entitled to 18 weeks maternity leave and two weeks paid paternity leave for a continuous block around the time the baby is born, with the remaining maternity leave re-classified as ‘Parental Leave’, which would be available to either parent on an equal basis. This could result in both parents being in and out of work intermittently over a number of months, with businesses facing great difficulties when trying to plan ahead.

“We understand why Government is trying to improve the current system by giving parents more flexibility and making the system more equal for both parents, but this goes against previous commitments to reduce red tape, adding more work on to already over-stretched businesses. These are radical proposed changes to the existing parental leave arrangements and will inevitably have a serious impact on businesses.”

The current leave arrangements entitle parents to 52 weeks maternity leave, 39 weeks of which may be paid, and two weeks paid paternity leave. Under the new proposals, both parents would be entitled to ‘parental pay’ and it would be up to the parents to decide who takes the leave. Each parent would also have exclusive use of four weeks extra paid leave, proposed to incentivise fathers to have greater involvement in the early stages of a child’s life. Leave could also be taken in segments, rather than altogether, which could prove problematic for smaller businesses.

The Chamber is responding to the Government’s consultation on this issue and would like to hear from businesses about how they will be affected by the new proposals. Every employer in every sector will feel the effects of the proposed arrangements, from SMEs to large firms, so now is the time to make sure Government knows your views. Businesses who have a view on the proposed parental leave changes, should contact Sana Nabi on 0161 237 4045 or email sana.nabi@gmchamber.co.uk before 29th July. The legislation is proposed to come into force in 2015.