Maternity leave rejig is a windfall for parents

Legislation has come into force this week to increase the period of Statutory Maternity Pay (SMP) by a third and pave the way for 26 weeks unpaid paternity leave for fathers.

Under the new rules, mothers will now be eligible for six weeks’ maternity pay at 90% of their salary and 33 weeks at a maximum of £112.75, increased from £108.85.

However, to help business, the number of days mothers can work during their maternity without losing their SMP entitlements has been increased to 10 and the period of notice for mothers’ return to work has been doubled to two months.

The government hopes this will help companies to better plan maternity cover. However, some quarters have raised concerns over the bill’s impact on small businesses, which previously had a number of exemptions, with particular reference to mothers’ automatic right to return to work.

“It is always small businesses that are hit hardest and are least able to absorb the impact and there is no doubt that the bulk of the British printing industry is made up of SMEs,” said Dani Novick, managing director of print and packaging recruitment specialist Mercury Search and Selection.

The government estimates that the changes will only cost UK business around £25m-£70m. Under the rules, employers will continue to pay SMP and will then be reimbursed by the Treasury.

Novick added that there are numerous very successful and valuable women in the print industry who have returned to work after having children.

“Employers giving these women appropriate support are usually rewarded with high levels of motivation and loyalty,” she said.

“Of course, the flipside is women should also recognise that… maternity absence is a difficulty for employers and they should demonstrate an equal measure of support for their employer.”

To find out how the changes could affect your business, click here.

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