Wednesday 3 November 2010

Maternity leave to be extended to 20 weeks with full pay


Under the Pregnant Worker’s Directive 92/85/EC, EU member states are required to ensure that pregnant women who are employed receive a guaranteed income for a 14 week period that is equivalent to the income they would receive if off sick.

The European Parliament has now voted to increase the maternity leave period to 20 weeks. The Federation of Small Business (FSB) after calculations claimed that this could result in an extra £7,140 wage bill for small businesses on an average salary of £25,428. They fear that this change will result in an increase in the cost of paternity and maternity leave and these costs will have to be shared between the employer and the Government however placing a further strain on cash flow. It is also feared that the small business will deter from employing young women. A propose of 18 weeks have been made, but this propose has been turned down. Under this Commission’s alternative plan, mothers would be entitled to 18 weeks maternity leave- not necessarily on full pay and it could be at or above the sick leave rate.
National chairman John Walker told that “the FSB believes that members stated should decide this issue but it needs to be looked at more seriously”. The UK Department for Business told that it was "very disappointed" by the vote and that they know that other member states share their concerns about the real costs of this directive. Danish MEP Britta Thomsen, of the Socialists and Democrats (S&D) claimed that the measure would encourage women to have more children at a time of widespread concern about Europe's ageing population and low birthrates. However, on 20 weeks the vote was 327 MEPs in favor, 320 against. And on full pay, the vote went 354 for, 308 against.
My personal view is that this vote introduces many uncertainties and complexities which are unnecessary. EU countries have well- developed national maternity pay systems. My fear is that employers may discriminate women of child- bearing age and make it more difficult for them to get jobs. However, small business owners would have difficulties in shouldering the costs. The original proposal of the Commission to extend maternity to leave to 18 weeks with individual member states allowed to decide the level of pay was more reasonable and better option.
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1 comment:

Antonis said...

Very nice post Andrea although I will have to dissagree with you...my belief is that the more laws the better, especialy if its an EU law that means both uniformity and another chance to take action in the courts in cases of breach :)