Scotland’s small businesses could benefit from new laws which will allow both parents to share time off to care for their new baby.
The changes mean parents of children due on or after April 5 2015 can split the current time off allowance of 52 weeks, currently reserved for mothers. New dads are still entitled to two weeks’ paid leave on the birth of their child but they will now be able to take more time off in addition to this during their child’s first year.
Some commentators have claimed the statutory pay of £139.58 per week will deter uptake from fathers, who still tend to earn more than their female partners.
Sarah Gilzean, an associate in the employment law team at HBJ Gateley, said smaller firms could benefit from offering enhanced pay conditions in shared parental leave policies.
She said: “Lots of parents will like the idea of splitting leave over the year, but the statutory pay is quite limited and won’t work in practice for many people. Companies which offer a more attractive financial element in their shared parental leave policies, as part of a package of flexible benefits, are likely to give themselves an edge in the market for talent.
“SMEs often report frustration at not being able to attract the kind of talent they need because bigger companies can offer higher salaries. But employees now want more than just money – they want a job which pays fairly, but is flexible to their lifestyles and offers them a clear career path.”
Vento Ludens, a Germany-headquartered renewable energy company with its UK base in Edinburgh, offers partners which share parental leave 12 weeks at full pay, followed by eight weeks at half pay, and 19 weeks at statutory pay.
Kristy Docherty, business manager at Vento Ludens, said offering a compelling package of benefits, including shared parental leave, would help them to compete with major energy firms.
She said: “These changes have been quite timely for us, since we were looking at our maternity policies and there seemed to be an opportunity for us to send a message to the marketplace about the kind of business we want to be. We have quite a young staff and it was important we had good maternity policies in place, offering the same benefit for the men in the office was a fairly straightforward decision for us to take.
“Talent is at a premium in our industry, and we think that by taking this positive step we’ll be able to differentiate ourselves in a very competitive market. By offering enhanced shared parental leave conditions, we’ll be immediately more attractive to employees of both genders, who we believe will value the flexibility we can offer.”