Planet PC decision will create problems for women workers
Planet PC decision will create problems for women workers
EU laws guarantee employed pregnant workers and new mothers an income during a 14
week maternity leave period at least equivalent to that to which they would be
entitled if off work sick. Currently the UK exceeds that minimum, giving pregnant
women 52 weeks maternity leave. If the worker qualifies she will receive 39 weeks
pay, six weeks of it paid at 90 per cent of her average weekly pay, followed by 33
weeks on the current rate of Statutory Maternity Pay (124.88 a week). The remaining
13 weeks are unpaid.
Huge consternation has now been expressed as the European Parliament voted last week
to increase maternity pay to 20 weeks at the worker's full rate of pay. At a time of
serious economic instability and draconian cuts, it's impossible to understand the
logic of adopting the measure at this time (MEPS voted for the proposal by 390 votes
to 192). On hearing of the vote, Director General of the British Chambers of
Commerce, David Frost, said: On the day that the Chancellor announces 83billion
worth of cuts to Government spending, it is outrageous that the UK Exchequer could
be saddled with a bill for nearly 3billion.'
The move has been opposed by the UK Government. It's predicted that the extra right
would cost the economy an additional 2.5billion a year and British business has
stated clearly that we cannot afford it. Further, increasing the right to 20 weeks
on full pay could amount to a tax on employing women. Spokesman for the Institute of
Directors Alistair Tebbit said: The Government needs to block this terrible
proposal. The state can't afford 20 weeks of maternity pay at 100 per cent of
earnings. If this measure comes into force the Government may require employers to
pick up the 2.5billion bill, or at least a big part of it. The effect on small
firms, almost none of which can afford to supplement statutory maternity pay, would
be very severe.'
MEPs are being warned that proposed new maternity rights, far from supporting women
will create such a problem for employers that it will have the effect of turning the
clock back to the 1920s for female employment. Raising the amount of fully paid
maternity leave from 14 to 20 weeks may well have the effect of driving business
away from employing young women. It may introduce another form of glass ceiling for
women, damaging their prospects not only of promotion, but also their initial
recruitment.'
London Tory MEP Marina Yannakoudakis said the move was bad for business and bad for
women's choice. She went on to say, Sometimes I wonder what planet MEPs live on. I
fear that we have short-sightedly increased the chances of young women being
indirectly discriminated against in an already tough marketplace.'
Much of the cost of maternity leave is funded by the taxpayer, but businesses fear
that budget constraints could see much of the increase passed on to employers. The
Department for Business has said that while it is disaapointed, this is not the end
of the process. The UK will work hard to oppose the imposition of a requirement for
fully-paid maternity leave.
EU ministers will now consider the result of the vote, but it could take months to
reach a final conclusion.
Russell HR Consulting provides expert knowledge in the practical application of
employment law as well as providing employment law training and HR support services.
For more information, visit our website at www.russellhrconsulting.co.uk or call a
member of the team on 0845 644 8955.
Russell HR Consulting offers HR services to businesses nationwide, including
Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury,
Northampton, Towcester and surrounding areas), Nottinghamshire (covering
Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and
Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham,
Portsmouth, Southampton and surrounding areas).
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