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Changes in maternity benefits coming into force next month will amount to a huge extra financial burden for small businesses, says an employment law specialist.

A recent amendment to the Sex Discrimination Act (SDA) means that employers must now provide all non-cash benefits for the full duration of maternity leave, instead of only the first 26 weeks.

Stephanie Dale, head of employment law at Stevens and Bolton, says this will result in employers picking up the tab through salary sacrifice schemes: ‘There is a particular implication for small employers here especially with things such as the popular childcare salary voucher scheme.’

A spokesperson from the Government Equalities Office and Business, Enterprise and Regulatory Reform, says: ‘We recognise that the changes to the SDA will mean an increase in costs for some employers and we acknowledged this in the impact assessment that accompanied the amending regulations.

‘Employers affected will be those who provide benefits of terms and conditions of employment (other than remuneration), and employ women who take maternity leave for periods longer than 26 weeks, and do not currently provide those benefits after the 26th week, (i.e. during additional maternity leave).’

The law will affect all employees with an expected week of childbirth beginning on or after 5 October 2008.

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