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Media Releases
2007

21 June
2007

Goliath backs David

Small businesses in Scotland should get financial help from the Government to deal with the extra cost of maternity benefits brought about by the Work and Families Act, a survey by leading UK law firm Shepherd and Wedderburn suggests.

The Act, which came into force on 1 April this year, has seen paid maternity leave increased from six to nine months. Also, all pregnant employees are now entitled to Additional Maternitiy Leave, which extends leave from six months to one year, with the previous length of service requirements now removed. This is against the backdrop of consultation on whether mothers should be able to transfer some statutory maternity leave to fathers. 

Two months since the Act was implemented there remain fears that small to medium-sized enterprises (SMEs) will be hit particularly hard. However, one way to lessen the blow for SMEs would be for the Government to offer them financial assistance − and this has the backing of larger businesses.

Nearly three quarters of organisations employing more than 250 people who took part in the Shepherd and Wedderburn poll believe the Government should stump up for the extra costs associated with this piece of legislation.

Lesley Murphy, an employment law specialist at Shepherd and Wedderburn, said: "This poll suggests larger organisations may not view targeted assistance by the Government to smaller businesses to assist with the burdens imposed by the new legislation as favouritism.

"This may reflect a recognition by bigger business that SMEs are one of the key drivers of the economy and any legislation that might either see some go out of business or deter others from setting up would be adverse for the UK as a whole."


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