FSB calls for overhaul of maternity leave

A leading business group is calling on the Government to reform statutory maternity and paternity leave to make it easier for small firms to administer the ‘complex’ employment entitlement.

The Federation of Small Businesses (FSB) has argued that, while small enterprises are the most flexible employers, many often find it difficult to deal with the implementation of maternity and paternity leave.

Unlike large companies, small businesses do not have HR departments that can manage such issues, the FSB said.

Currently, women are allowed to take 52 weeks leave, 39 weeks of these are paid on statutory maternity pay, and men can take two weeks paid paternity leave.

In a new report, entitled ‘Flexible Working: small business solutions’, the lobby group suggests introducing a ‘flexible leave’ system to allow parents to choose their leave arrangements. It claims that this would give employers more certainty over an employee’s expected return date.

In addition, the organisation is proposing that a national definition of flexible working should be set out to provide clarity to small businesses and employers. Other recommendations include promoting all new posts in the public sector as flexible and part-time and creating a childcare bond to enable businesses to provide sustainable childcare for families.

John Walker, the FSB’s national chairman, said: ‘Laws surrounding maternity and paternity leave are complex and confusing to administer and can act as a barrier to small firms taking on new staff simply because they do not understand the burdensome system.  

‘Family leave should be tailored to suit each individual – a one size fits all approach fails to adapt to those needs,’ he added. ‘Parents should be able to choose not only how long they take leave but how and when they receive the pay they are entitled to. In doing so small firms will have more clarity on when that invaluable and skilled member of staff will return to work.’