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Small firms 'should get more help with maternity benefits'

Jun 22 2007

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A new survey suggests that small businesses in Scotland ought to get more financial aid from the government in order to deal with changes in maternity benefits.
 
The Work and Families Act, which came into effect in April this year, means that paid maternity leave has increased from six to nine months, and is likely to hit small firms especially hard.
 
According to a survey conducted by UK law firm Shepherd and Wedderburn, almost three quarters of the larger (250 employees or more) businesses questioned believe the government should put up the money for small companies to cover the extra costs.
 
'This poll suggests larger organisations may not view targeted assistance by the government to smaller businesses to assist with the burdens imposed by the new legislation as favouritism,' says Shepherd and Wedderburn's Lesley Murphy.
 
She added that it indicates that bigger firms see small businesses as being an important driver for the UK economy.
 
'Any legislation that might either see some go out of business or deter others from setting up would be adverse for the UK as a whole,' Ms Murphy adds.
 
The Work and Families Act also entitles men to 26 extra weeks of paternity leave if the mother returns to work.

 
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