IoD: 52 weeks' leave will have “a significant detrimental impact”

Friday 09 February 2018

Another association representing businesses in Jersey has warned of the risks longer parental leave could have on businesses – especially smaller businesses – if approved by the States.

The Social Security Minister’s move to take the recommendations by the Employment Forum to introduce more time off work for parents of new-borns as well as surrogate and adoptive parents, and more flexibility to attend antenatal appointments to the States has caused a wave of concern among business groups.

The Institute of Directors is the latest to warn of the dangers this could have on the economy. While they “absolutely agree that employers should support their employees through these life changing events” they are urging for “some more balanced consideration around some of the issues” as they say the burden will fall on smaller businesses – which the island’s industries are heavily made up of.

Becky Hill, member of the IoD Jersey Industries sub-committee, said the second phase of the changes which will enable each parent to take a year off work within a three-year period is not sustainable: “We would support, for instance, increasing maternity leave from 16 weeks to 26 weeks, of which six weeks will be paid. However, extending that to 52 weeks from September 2019 is likely to have a significant detrimental impact on smaller employers, especially when you factor in that the maternity leave and parental leave can be shared between both parents and taken in four blocks of leave, potentially with only 28 days’ notice.

“This has the potential to be very disruptive and pose an operational risk where cover cannot be planned. In addition, recommending unlimited attendance at antenatal appointments for fathers, partners surrogate and adoptive parents, with up to ten hours paid leave, feels like a step too far. Allowing a more flexible approach, where time could be made up, would be a more balanced solution.”

The IoD’s response is similar to Jersey’s Chamber of Commerce, who told Express that the changes to the family-friendly legislation is making many of their members “…even considering whether they can trade at all as the changes are so significant.”

Pictured: Deputy Susie Pinel has put forward the changes to the family-friendly legislation to be debated by the States on 20 March 2018. 

The Social Security Minister claims the changes are part of two key priorities of the States “to support children and families from conception through the critical pre-school years, as outlined in the 1,001 Days Initiative, and to optimise economic growth by enabling increased participation rates, retention of appropriate skills in the workforce and removing barriers to work.”

Ms Hill raises the question on whether maternity and paternity payments by the government will also be reviewed: “We note that the States are still to consider whether they too will provide greater financial support to new parents, and we would like to see them respond to this before they ask employers to bear the whole burden.”

She adds that the voices of employees and employers haven’t been equal during the consultation process: “It’s useful to note the power imbalance in the consultation so far - 191 employees have provided feedback compared to just 27 employers, which underlines just how important it is for businesses to share their views on this significant issue. We would strongly encourage employers to speak up during the consultation stage - ultimately, the Forum can only work with the feedback in front of them.”

The States Assembly is due to debate the changes to the 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.