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Employment

Family friendly employment rights go one step further

The Herald Business Supplement
June 2007

With government plans under consultation to allow new mothers to transfer the balance of their maternity leave to fathers are we seeing a move towards equality in parenting?

Since the late 90's so-called "family friendly" rights have continued to improve and have once again been extended for women with babies due on or after 1 April 2007. The majority of improvements have related to the entitlements of new mothers, although in 2003 for the first time there came into being a statutory right to paid paternity leave for new fathers. This was, however, limited to two weeks.

It was recently reported that Beverly Hughes, Minister for Children, would soon call for statutory paid paternity leave to be extended to one month following research which found that fathers wanted more time at home. However, the DTI has confirmed that there are no plans to change current government policy on paternity leave.

Current policy includes an ongoing consultation on proposals to allow new mothers to transfer some of their statutory maternity leave and pay to fathers if the mothers return to work. As such, fathers could be entitled to up to six months' leave and would have to give 8 weeks notice of their intention to take leave. The scheme would not be likely to come into effect until April 2009. Described by some as "career death" for higher paid staff and potentially unattractive to lower paid staff, it is anticipated in some quarters that few fathers will take up this proposed right.  Perhaps the most interested will be that minority of families where the mother earns significantly more than the father.

In contrast with father's employment rights, mothers who qualify for maternity leave are now entitled to nine months' (39 weeks') paid maternity leave. Maternity pay is 90% of earnings for 6 weeks followed by statutory maternity pay, which has increased from £108.85 to £112.75 per week, for the remaining 33 weeks.  Furthermore all pregnant employees will now be entitled to Additional Maternity Leave, which is an additional 26 weeks, with the previous length of service requirements having now been removed.   

Extensions to family rights are often greeted with scepticism by employers' groups. In a recent survey conducted by Shepherd and Wedderburn LLP of over 50 employers in the Scottish central belt, more than three quarters of respondents believed that small businesses should receive additional financial aid from the government to assist with the extra cost of maternity benefits. The CBI has expressed its concern that increased parental rights are not without cost to the employer, calling on the Government to "balance its desires to support parents with the need for businesses to function effectively".

Any moves to extend paternal rights in pursuit of greater equality in parenting between mothers and fathers are therefore likely to be controversial. However, whilst no change of policy may be likely in the near future, who knows what developments a change of prime minister may herald.

Sheila Gunn is a partner specialising in employment law with UK law firm Shepherd and Wedderburn
0141 566 8555