family unfriendly?

McGrigors is one the leading UK-based law firms with offices in London, Edinburgh, Glasgow, Belfast, Aberdeen, Manchester, Qatar and Falkland Islands. It describes itself as one of the UK’s most dynamic law firms and reports in a recent press release that it has signed a commitment to widen access to the legal profession.

However, in a firm-wide memo issued on 13 September, staff were informed that it is commencing a consultation on paying bonuses to mothers who return to work and reducing pay for mothers who take a second maternity leave within 18 months from their last one.

It also plans to reduce long term sickness benefits. Continue reading

consultation on modern workplaces – parental rights

The Government issued its BIS "Modern Workplaces Consultation" on 16 May 2011 . One of the topics covered is "Flexible Parental Leave". Consultation closes on 8 August 2011.
In bare outline, the main elements in the “flexible parental leave” part of the proposals are :

Initial leave rights (around the birth/adoption of a child):
  • Maternity leave to be reduced from the current 52 weeks to 18 weeks (the minimum required by new EU law);
  • "Flexible parental leave" would be available for the next 34 weeks (i.e. after the 18 weeks’ maternity leave period), shared between the parents as they see fit;
  • If the parents decide not to share the 34 weeks so that one of them takes it in full, then a further period of "reserved leave" (4 weeks is suggested) will be available to the other (this is social engineering – the government specifically says at para. 48 that this is because it wants to change the "widespread cultural expectation that it should always be the mother who takes time out from work to care for children");
  • Ordinary paternity leave to remain at 2 weeks;
  • Fathers also to have the right to time off before the birth to attend a limited number (two is suggested) of pre-natal appointments.

Employers would be able to insist that leave is taken in a continuous period (the consultation paper says that "the process of agreeing when leave is taken is left up to the parties … Where they can not agree, the default position would be for parents to take leave in one continuous block"). It also suggests that there "should be no restriction on parents choosing to take leave concurrently. Allowing only one parent to be out of the workplace at any one time would place unnecessary restraints on how leave may be taken, and interfere with the ability of parent and employer to agree how leave is taken".

Subsequent leave rights

Currently parents who have been employed by their current employer for a year or more are entitled to 13 weeks’ parental leave for each child aged between one and five, Not more than four weeks can be taken in any year and the leave must be in blocks of a full week.

The essence of the proposals is to increase the amount of parental leave from 13 to 18 weeks (this is required by new EU law), to remove the requirement of a year’s employment and possibly to increase the age of the child from 5 to 8, 12, 16 or even 18.

Pay

Currently employed mothers who qualify get statutory maternity pay (SMP) for 39 weeks. They receive 90 per cent of their average earnings, subject, after the first six weeks, to a cap of (currently) £128.73 per week.

Under the new proposals the 18 weeks’ maternity leave and the first 21 weeks of the 34 weeks of flexible parental leave would be paid at 90 percent of average earnings subject to the cap noted above, currently £128.73 per week. There is no mention in the consultation paper of special provision during the first six weeks, as at present. The four weeks’ "reserved leave" noted above would be leave with pay as would the two weeks ordinary paternity leave (as at present).

Other leave (including the father’s right to time off for pre-natal appointments and the right to parental leave after the child’s first birthday) would generally be unpaid.

Finally

The suggestions in the consultation paper are not set in stone. They may well be changed, although no doubt the general thrust of encouraging parents to share in the bringing up of small children will be retained. Concerns have been raised that in practice there will be enormous administrative costs involved, not least in policing, if a new system along the lines suggested in the consultation paper is to be adopted and not abused. Concerns have been expressed by, amongst others, the British Chambers of Commerce (BCC) and the Federation of Small Businesses (FSB).

SMP and other April benefit increases

The main employment related National Insurance and similar benefits for 2011/2012 (starting at various dates in April 2011) are as noted below (see the Social Security Benefits Up-rating Order 2011). Equivalent details for earlier years going back as far as 1939 are available on a website maintained by the Institute for Fiscal Studies.

Main employment related means tested benefits for 2011/2012 are:
• Income Support and Income-based Job Seekers Allowance: Single person under/over 25: £53.45/£67.50; Couple both over 18 – £105.95.
• Employment & Support Allowance: £67.50/£105.95 (reduced rate for certain claimants during first 13 weeks’ “assessment phase”)

Main other employment related benefits for 2011/2012 are:
• State Retirement Pension: £102.15 (category A);
• Incapacity Benefit: £71.10 (lower rate) /£84.15 (higher rate);
• Industrial Injuries Benefit: £18.42 to £150.30;
• Jobseeker’s Allowance: under/over 25: £53.45/£67.50;
• Maternity Allowance: £128.73 (earnings threshold £30);
• Statutory Adoption Pay: £128.73 (earnings threshold £102);
• Statutory Maternity Pay: 90% average earnings for first 6 weeks, then £128.73 for next 33 weeks (earnings threshold £102);
• Statutory Paternity Pay: £128.73 (earnings threshold £102);
• Statutory Sick Pay: £81.60 (earnings threshold £102)

newsletter – maternity leave changes and the EU

The Pregnant Workers Directive 92/85/EC requires EU Member States to ensure that employed pregnant women and new mothers are guaranteed income during a 14 week maternity leave period at least equivalent to that to which they would be entitled if off work sick.  The European Parliament voted on 20 October 2010 in favour of plans to increase to 20 weeks this current 14 week period.  A compromise “18 week” suggestion was rejected.

At the same time the Parliament has voted to extend the requirement for compulsory maternity leave from two to six weeks and for paternity leave pay to be at full rate of pay for two weeks.

General details are available on the Europa website “Extending maternity leave to 20 weeks with full pay“.

The Parliament’s proposals will now pass to the Council of Ministers. Given the controversial nature of the proposals it is likely that there will be pressure from Member States to ensure that they are amended before they are formally adopted – and it is even possible that they may be rejected.  It can also be argued that the proposals could be counter-productive from the point of view of feminist MEPs in that raising the amount of fully paid maternity leave from 14 to 20 weeks will tend to drive private business away from employing young women.

According to the Federation of Small Businesses (FSB), the proposals could end up costing small businesses £7,140 for an employee on an average wage of £25,428.

Tina Sommer, EU and International Affairs Chairman of the FSB said:

“Small businesses are known to be flexible employers and it is unfortunate that maternity and paternity leave is one of the biggest barriers for them when looking to take on staff. The FSB fears that that these changes will result in an increase in the cost of maternity and paternity leave and will mean these costs have to be shared between government and the employer, at a cost of more than £7,000 to a small business – placing a further strain on cash-flow.”

maternity pay

On this day which will no doubt be dominated by the Comprehensive Spending Review, it is worth bearing in mind that the European Parliament is voting today on the question of whether to extend a mother’s right to maternity pay to 20 weeks’ full pay. Although there has been a good deal of lobbying, particularly on behalf of small businesses, it seems likely that the proposal will be passed.

The British Chamber of Commerce has suggested that the amendment to the Pregnant Workers’ Directive, if passed, could cost Britain £2.5bn. That terminology “could cost Britain” is significant because, under British law, employers are fully reimbursed for the cost of statutory maternity pay. Under current UK legislation pregnant women are entitled to six weeks’ pay at 90% of their usual pay, followed by 33 weeks on statutory maternity pay of a little under £125 per week.

According to the Equality and Human Rights Commission, 18 member states already have maternity pay arrangements which are comparable to those being proposed.