Knowledge Centre
22nd October 2010
A controversial draft law to extend maternity leave to 20 weeks on full pay has been backed by Euro MPs.
Today's support will make the extension mandatory in the EU, but it cannot become law unless EU governments also get behind it.
The UK Government is among those lobbying against the idea of an extra six weeks being tagged onto the existing 14 weeks currently granted to new mothers.
An initial assessment conducted by the European Parliament suggests the 20-week proposal could cost UK businesses an extra £2.5bn a year, according to the Federation of Small Businesses (FSB).
National chairman John Walker said: "The FSB believes that member states should decide this issue - it needs to be looked at more seriously.
"It's crucial that small businesses are able to afford new regulations. The worry is that the reimbursement structure which is in place - which allows businesses to claim the full amount of maternity pay back from the Government - will be put to one side. We hope that MEPs will relent and review it."
The federation said that the measures could end up costing each small business an extra £7,000 each.
Women in the UK are currently entitled to 12 months maternity leave, with the first six weeks on 90% pay followed by 33 weeks on Statutory Maternity Pay of just under £125 a week.
The BBC reports that the vote outcome was 327 in favour of 20 weeks versus 320 against. On full pay 308 were against, with 354 voting for the additional cash. It highlighted Danish MEP Britta Thomsen, who said that at a time when birth rates were low and women were having children later, this change would encourage women to have more children.
Meanwhile, David Frost, director-general of the British Chambers of Commerce (BCC), said that the vote "will leave business dismayed".
"The idea that employers or our public finances can bear an additional £2.5bn per year is deeply out of touch with reality," he added.
"UK businesses will be hoping that member states can now curb the worst excesses of these proposals."
Work-life balance
Two MEPs leading the charge on extending maternity leave feel that a better work-life balance would help keep more woman in work.
Antonyia Parvanova from Bulgaria and Edite Estrela from Portugal also argued that at least two weeks of paid paternity leave would also be within budgets.
However, one of the chief opponents of the new proposal, Conservative MEP Marina Yannakoudakis, called it "well-intentioned but completely out-of-step with reality".
The Commission has previously suggested an alternative plan of 18 weeks - not necessarily on full pay, but potentially on or above the sick-leave rate.
IMAGE Katie Collins/PA Wire
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Extended maternity leave plan backed by MEPs
Today's support will make the extension mandatory in the EU, but it cannot become law unless EU governments also get behind it.
The UK Government is among those lobbying against the idea of an extra six weeks being tagged onto the existing 14 weeks currently granted to new mothers.
An initial assessment conducted by the European Parliament suggests the 20-week proposal could cost UK businesses an extra £2.5bn a year, according to the Federation of Small Businesses (FSB).
National chairman John Walker said: "The FSB believes that member states should decide this issue - it needs to be looked at more seriously.
"It's crucial that small businesses are able to afford new regulations. The worry is that the reimbursement structure which is in place - which allows businesses to claim the full amount of maternity pay back from the Government - will be put to one side. We hope that MEPs will relent and review it."
The federation said that the measures could end up costing each small business an extra £7,000 each.
Women in the UK are currently entitled to 12 months maternity leave, with the first six weeks on 90% pay followed by 33 weeks on Statutory Maternity Pay of just under £125 a week.
The BBC reports that the vote outcome was 327 in favour of 20 weeks versus 320 against. On full pay 308 were against, with 354 voting for the additional cash. It highlighted Danish MEP Britta Thomsen, who said that at a time when birth rates were low and women were having children later, this change would encourage women to have more children.
Meanwhile, David Frost, director-general of the British Chambers of Commerce (BCC), said that the vote "will leave business dismayed".
"The idea that employers or our public finances can bear an additional £2.5bn per year is deeply out of touch with reality," he added.
"UK businesses will be hoping that member states can now curb the worst excesses of these proposals."
Work-life balance
Two MEPs leading the charge on extending maternity leave feel that a better work-life balance would help keep more woman in work.
Antonyia Parvanova from Bulgaria and Edite Estrela from Portugal also argued that at least two weeks of paid paternity leave would also be within budgets.
However, one of the chief opponents of the new proposal, Conservative MEP Marina Yannakoudakis, called it "well-intentioned but completely out-of-step with reality".
The Commission has previously suggested an alternative plan of 18 weeks - not necessarily on full pay, but potentially on or above the sick-leave rate.
IMAGE Katie Collins/PA Wire
Whatever the outlook for the economy, let MORE TH>N insurance inspire confidence. Ask us for a cheap shop insurance quote today, or find out about our great value van insurance.
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