Paternity rights plan 'needs reality check'

Small business groups have expressed concern over proposals to increase paternity rights, which they say could have a major impact on employment costs.

The plans, put forward by the Equality and Human Rights Commission, suggest that fathers should receive at least 90% of their weekly salary during their two weeks' paternity leave, rather than a minimum of Statutory Paternity Pay at £117.18 per week (£123.06 from 5 April 2009).

The Commission also proposes that fathers should be entitled to four months of 'parental leave' after the mother's maternity entitlement - to be available until the child's fifth birthday, with at least eight weeks paid at 90% of salary.

The Working Better strategy, which would be implemented over a 10-year period, also recommends that mothers should receive 90% pay for 26 weeks, rather than six weeks, of their maternity leave and subsequently be entitled to the same parental leave as fathers.

Earlier this month is was reported that women are cutting short their maternity leave as the recession forces them back to work earlier than intended.

However, Stephen Alambritis of the Federation of Small Businesses said that it was important to apply a "reality check" to the plans, given the current economic climate.

"We are not saying no to the proposals and we are not saying yes," he told More Than Business News. "But if the Government does agree to the plans, we need to make sure that small employers are reimbursed for the extra money they will have to pay out to employees on maternity or paternity leave."

Phil McCabe from the Forum of Private Business said: "At an estimated cost of £5.3 billion to implement, and alongside other spiralling employment costs, these proposals could be a significant disincentive to small business owners seeking to take on additional staff."

IMAGE Clara Molden/PA Wire