RSS

Parental leave reforms ‘ignore business needs’

Jan 18 2011

Shared parental leave reforms receive mixed responses Shared parental leave reforms receive mixed responses

David Frost, director general of the British Chambers of Commerce (BCC), has accused the government of ‘rushed thinking’ regarding the reforms to parental leave announced by Deputy Prime Minister Nick Clegg yesterday.

Frost has trenchantly criticised the proposals, which include allowing parents to split leave into short periods rather than take it all in one block, saying they ignore ‘the needs of business’ and go against the ‘pro-growth, pro-business, pro-jobs agenda’ as outlined by David Cameron last week.

He adds, ‘This is too difficult for small businesses to deal with, and could prevent them from taking on staff at a time when they are expected to create wealth and jobs.’

The Department for Business will be launching a consultation soon to explore proposals for an alternative system of parental leave and consider how best to extend the right to request flexible working to all employees. Among the proposed changes is giving a father the right to take more time off work if a woman does not wish to use her entire maternity entitlement.  

The coalition government wants the new system in place by 2015.

Alistair Tebbit, spokesman for the Institute of Directors (IoD), says the current system is already costly for SMEs. ‘If employees were given the opportunity to take leave in short blocks, the system would become virtually unmanageable – how would firms arrange cover?’

Not everyone opposes the reforms. CBI director for employment policy, Katja Hall, says the moves could help families balance work and home life, but adds, ‘Any changes will need to be simple to administer and must allow firms to plan ahead to cover staff absences.’

Business Secretary Vince Cable says the government is ‘conscious of the concerns of some companies, particularly SMEs’.

Comments

There are currently no comments on this article

Fixed fee banking puts you in control

Our simple fixed fee banking means you’ll always know where you stand. It’s just one of the reasons why we’ve been named Moneyfacts Best Business Current Account provider for the 10th year running. Find out more.

Barclays Business Start Up Account

Get everything you'd expect from a Barclays Business account…Free business banking for up to 2 years (Ts&Cs apply). Free day-to-day support from our Barclays Business Team by phone 24/7 and Mobile Banking, manage your account quickly and easily from a web-enabled phone. Apply online.

Make business more rewarding with up to 3% cashback on your Barclaycard business credit card spend

Reward those unavoidable costs you already face every day in your business. Things like office supplies & stationery, legal and accounting services, computer equipment and support. Plus get 0% interest on purchases for 3 months from account opening. Terms & conditions apply. Find out more.
 

Are you expecting to hire this year?




Site map

« Expand to view
Small Business Offers