April 12, 2011
As working fathers undergo changes to their paternity leave allowances, a slim majority of employers believe that such reforms will have a hugely detrimental impact on their business’ bottom line.
Just over 50% of employers claim that new regulations, which came into force on Sunday, April 3, are worried by the changes in paternity leave, which will give fathers of newborn children the right to 26 weeks' additional paternity leave within the first year of the child's life, should the mother return to work.
This is according to a survey of 1,300 organisations by the British Chambers of Commerce (BCC), which also found that one-fifth of employers believe the abolition of the default retirement age will be detrimental.
As of Wednesday, April 6, employers will no longer be able to issue notifications of retirement on the basis of the default retirement age (DRA) or the employer's normal retirement age.
Under the Government's plans, businesses with fewer than 10 employees and new start-up organisations will have a three-year moratorium on new business regulation. However, the BCC claims there is an "urgent need" to review and “scale back” policies, such as DRA and paternity reforms, already on the statute books.
"Our survey results show that employment law changes are causing great concern among employers, who, instead of concentrating on running their business, have to cope with more and more shifts in employment law. Every change, no matter how small, costs employers time and money,” said David Frost, BCC Director General.
"Unless practical steps are taken to help free businesses from red tape, the burden on employers will only increase, and barriers to job creation and economic growth will remain."
But while the BCC and 52% of employers may fear the paternity reforms, while others question changes to the DRA, Brendan Barber, General Secretary of the TUC, believes employers have "nothing to fear".
"The extension of family-friendly working over the last decade has helped to drive record employment rates for working families, which businesses have hugely benefited from," he added.
