| Extended Maternity Rights |
Facts/BackgroundProposals to amend the EU Pregnant Workers Directive have been agreed by the European Parliament this October which will extend maternity rights. The following are some of the proposals which have been agreed:
It is important to emphasise that none of the above are yet UK law, so watch this space. Impact on the UKThe main impact these proposals will have on the UK will be in relation to the extended compulsory maternity leave and increases in both maternity and paternity pay. Employers when awarding bonuses for work done (such as performance related bonuses) already have to treat the current 2 week compulsory period as time worked, this therefore would have to be increased by a further 4 weeks when calculating a woman’s bonus entitlement. At present statutory maternity pay (SMP) is paid at 90% of average earnings for the first 6 weeks and then reduces to the flat SMP rate for the remaining 33 weeks. The EU Parliament’s proposal would therefore significantly increase the UK’s current provision by having to pay 20 weeks’ at full pay. Fathers are currently entitled to 2 weeks paternity pay at the statutory paternity pay (SPP) rate, the period of leave can be increased up to 26 weeks for fathers were their child is born on or after 3 April 2011. There will be an increase in costs for businesses with the proposal for the 2 week period being paid at full pay. CommentSome of these proposals, in particular maternity pay, are controversial. In order for these proposals to be adopted, a majority of the Council of Ministers is needed. Due to the current economic climate the UK government is lobbying against the increase in pay and the consensus is that the Council may not approve the proposals without further amendment. For the time being we need to wait and see what the future holds. |
