Small Business Left Holding the Baby - 12 July 1999
Over fifty per cent of small businesses in the UK believe jobs could be at risk if the Government’s intention to bring in first time paternity leave goes ahead later this year, according to a survey out today.The research commissioned by Business Pages’ Small Business Watch (SBW) was across 1200 small UK firms. The study centred on the Fairness at Work Bill and surprisingly showed that small businesses are more concerned about the Parental Leave Directive than about any other single item in the bill.
Eighty two per cent of small businesses say that recruitment is or will be slowed down as a direct consequence of the legislation. In addition, 43 per cent believe extended maternity leave will have a negative effect on their business. Only 32 per cent agree that the legislation will be motivational to their staff.
The recognition of trade unions worried 32 per cent of businesses surveyed, while the 48 hour week was a concern to 27 per cent. And despite the ongoing controversy over the minimum wage, a mere 15 per cent say they have concerns over its effect on their business.
Under the Parental Leave Directive both parents, after just 12 months with a company, will, for the first time be able to claim up to three months unpaid, protected leave, when they have a baby or adopt a child. This measure alone is expected to cost business £35 million annually, according to the Department of Trade and Industry.
Phil Rowden, Product Manager at Business Pages says: "The research is worrying on two counts. First, that the majority of small businesses believe it will have a negative impact on their business practice and second, and perhaps more alarming, is that over a third are simply not aware of the legislation. This is very concerning to Business Pages - more than 18,000 small companies advertise in our directories and they need to be more aware of this important piece of legislation and how it will affect them."
The Bill, which comes out of the Government signing up to the Social Chapter in Amsterdam in 1997, is expected to come into force in December. At present there is no statutory provision for paternity leave in the UK.
