October 27, 2010
The European Parliament will shortly vote on extending maternity leave to 20 weeks on full pay for all workers but Britain is expected to block the legislation if passed.
An impact assessment on the proposals by the European Parliament found that the cost of the changes to the UK could be £2.5 billion a year and the British Chambers of Commerce (BCC) is urging MEPs to vote against the proposals.
"MEPs must think carefully about the implications of this directive for already overburdened companies and national social security systems,” argued Kieran O'Keeffe, Head of European Affairs at the British Chambers of Commerce.
"The figures provided in the Parliament's own impact assessment show that these proposals are completely unaffordable, particularly at a time when Governments across the EU are dealing with budget deficits and the aftermath of recession.
"The Commission's original proposal to extend maternity leave to 18 weeks, but with individual member states continuing to decide the level of pay, is a better, more affordable option."
The Federation of Small Businesses estimates the change could cost small businesses £7,000 each and prevent them taking on new staff.
However, Belinda Phipps, Chief Executive of the National Childbirth Trust, said families should be able to choose how long they stay at home to be able to bond with their baby and that the "temporary financial crisis" should not have an impact on policy.
