Chamber: Longer parental leave could force businesses to close

Tuesday 06 February 2018

Parents of newborn babies are one step closer to getting more time off in Jersey - but already businesses are warning the new proposals could force them to close.

The Social Security Minister, Deputy Susie Pinel, has accepted the Employment Forum’s recommendations to extend maternity and paternity leave – which could see each parent take a year off work.

The proposed initial changes to family employment rights include:

• increasing maternity, adoption and parental leave to 26 weeks.
• Increase paid maternity leave from 2 weeks to 6 weeks.
• Introduce 2 weeks of paid parental leave.
• Introduce 6 weeks of paid adoption leave.
• Introduce time off for antenatal appointments for the father/partner.
• Extend the right to request flexible working to all employees.

A second stage, which will enable parents to take up to a total of 52 weeks of leave each, including six weeks paid, will come into force a year later.

Deputy Pinel, says the changes – which she has submitted for agreement with the States Assembly this week - will, “...improve the position for parents in the workplace, give families more choice and flexibility, and to encourage gender balance in childcare roles.”

 “I am sure that some employers will be concerned about the impact of the additional periods of leave, but I believe that the recommendation is balanced in view of the cost to business. This is bold move, which will be a significant change for some businesses, but the time has come to increase employment rights for parents. I propose to do this in two stages to give employers a bit more time to prepare.”

Pictured: Deputy Susie Pinel has accepted the recommendations to parental leave by the Employment Forum. 

But while the Social Security Minister believes the changes will benefit the economy, and families, while, “...potentially reducing discrimination against women in employment and recruitment,” industry leaders believe the new legislation could have a damaging impact.

The Chair of Jersey’s Chamber of Commerce Human Resources Committee, Lorna Pestana, told Express that they support moves to make the island’s workforce feel supported - but a survey of their members revealed that many are concerned with, “...the burden of costs small businesses will be faced with,” due to the new family-friendly legislation.

Ms Pestana said: “…some are even considering whether they can trade at all as the changes are so significant.”

Currently, employers can deduct any maternity payments made by the Social Security department during the employee’s two weeks maternity leave following a birth of a baby - but there aren't any increases in this with the new family-friendly legislation.

Ms Pestana compared the lack of additional funding to the UK’s shared parental leave policy, which enables employers to reclaim 92% of statutory leave - and up to 103% if companies qualify for small businesses relief - to help with the costs incurred.

“The Government can’t expect companies to keep taking on these additional costs. More thought needs to go into how they [changes to parental leave] are funded.”

The States Assembly is due to debate the new family-friendly legislation on the 20 March 2018. If approved the first set of changes will come into force on 1 September 2018, with the second phase following on 1 September 2019.