placeholder
Stuart Gentle Publisher at Onrec

One in four employers see maternity leave as a business risk

According to research from AXA, one in four companies see maternity and paternity leave as a business risk, with 7% seeing it as a serious threat

According to research from AXA, one in four companies see maternity and paternity leave as a business risk, with 7% seeing it as a serious threat. Perhaps not surprisingly, smaller companies are the most concerned. Some 28% of businesses with 20 or less employees said that it was a business risk as opposed to 15% of those with more than 100 staff.

Proposals made to the government in May, which are likely to form the basis of a new Parental Rights Bill, recommend extending paid maternity leave from the current six months to nine and then 12. Mothers would also be able to transfer some of their leave to their partners.

Carol Anne Stewart, risk control training manager at AXA said: ìEmployers need to make sure that they not only cover staff on maternity or paternity leave, but also that they are aware of their legal rights and that they respect these. If they donít, they could find themselves facing legal action. Some 6.2 million was awarded in employment tribunals last year, compared to 4.3 million in 2003.î

Sadly, research would suggest that many employers are not fully aware of the rights of pregnant members of staff. According to research by the Equal Opportunities Commission (EOC) earlier this year, almost half (45%) of women who are pregnant claim they experience some form of discrimination.

On a regional basis, 38% of businesses in Wales said they see maternity and paternity leave as a risk ñ the highest percentage in the UK. This is followed by 28% in London and the South West.

Below are some of the main rules on maternity leave:
All pregnant employees are entitled to six months maternity leave

Employees with 26 weeks of service by the end of the 15th week before childbirth can take an additional six months leave

Maternity pay lasts for six months and is payable to employees with 26 weeks of service by the end of 15th week before childbirth

Maternity pay consists of 90% of an employeeís average weekly earnings for the first six weeks. For the remaining 20 weeks, it is paid at 102.8 a week or 90% of earnings, whichever is lower

Women have the right to return to their employment after maternity leave.

Employees returning from maternity leave have the right to request flexible working

AXA advises all business managers / HR managers to think about succession planning, and put solutions in place, so that they are better prepared for maternity and paternity leave. Such ësolutionsí for example might include:

Succession planning ñ For example, existing employees shadowing an employee before they go on leave for at least six months

Employing temps to assist with the workload of those who are given added responsibility whilst a colleague is on maternity leave

Identify temp agencies that specialise in providing appropriately trained individuals for the position to be filled ñ this can reduce the amount of training or supervision required.

Wider training for all employees across difference roles

Where it is not possible to employ a temporary worker, consideration could be given to reallocating salary savings across the business asked to cover the extra work/duties

Carol Anne Stewart continued: ìIn addition to covering periods of maternity leave, business can greatly benefit by providing ëfamily friendlyí hours or practices which could include flexible working hours or partial working from home. The lifeblood for successful businesses is the quality of individual employees By ensuring that all staff - not just those on maternity leave but also those undertaking additional duties - are managed correctly will assist in maintaining a settled workforce.