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EU maternity plans will cost SMEs £7,000
Date 19/10/2010 13:03  Author webmaster  Hits 1228  Language Global
19 OCT 2010

Real Business

European Union plans to extend maternity and paternity leave to 20 weeks could add significant additional payroll costs to your business.

Ahead of the EU vote on proposals to extend maternity leave to 20 weeks from the current 14 weeks, the Federation of Small Businesses (FSB) is raising concerns that the additional cost to the UK economy – estimated to be some £2.5bn, or £7,140 per new mom – could act as a deterrent for small firms to take on new members of staff.

Tina Sommer, EU and international affairs chairman at the FSB explains that while a flexible maternity and paternity system is paramount, these proposals will add payroll costs for already over-burdened companies: “These costs will be shared between government and the employer, at a cost of more than £7,000 to a small business – placing a further strain on cashflow.”

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