UK businesses could be hit with a £2.5 bn annual bill under the recent EU plans to change maternity rights.
The scheme which is due to be voted on in October, would mean employers would be required to pay new mothers 20 weeks full pay. This would almost treble the cost of maternity pay paid by UK businesses.
Women on maternity leave within the UK currently receive the first 6 weeks at 90% pay followed by 33 weeks on £124.88 a week. The increase in payments would hit small to medium sized business dearly, particularly when trading conditions are still tough.
Andrea O’Hare, Head of Personnel & Employment Law at Citation, says “This proposal could lead to a rise in discrimination in the workplace towards women of a particular child bearing age. Employers may choose against such candidates when recruiting because of the additional financial costs they would incur should the woman fall pregnant.”
Citation ensures its clients are updated should any changes in legislation (such as the EU changes to maternity rights) take place ensuring they are meeting the necessary legal requirements. Citation’s employment law compliance solutions provide SMEs with 24/7 advice relating to any issue and provide ongoing support to deal with issues they face.
For more information about Citation and the services they provide, visit the Citation website at http://www.citation.co.uk/.
This release is for guidance only.
Ref: CEL-HS-17910
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