Business: Plan for ten months of paternity leave 'sledgehammer for firms'

Deputy Prime Minister Nick Clegg confirmed yesterday the coalition would press ahead with measures drawn up by the previous Labour government, enabling fathers to take up any remaining unpaid maternity leave if mothers went back to work early, up to a maximum of six months.

But he was accused of hitting small businesses with a "sledgehammer" after saying that he wanted to go further and "transform" the opportunities for fathers to take time off to care for their children as he denounced the current system as "Edwardian".

This could involve taking leave in a number of chunks, rather than a single block, or mothers and fathers taking time off together, rather than one after the other.

Fathers could be offered additional blocks of "use-it-or-lose-it" leave which would not be transferable to their wives or partners to encourage them to spend more time at home with their young child.

Mr Clegg promised Ministers would consult fully before making any changes – which would not be introduced before 2015 – but the plans met with immediate concern from businesses.

David Frost, the director general of the British Chambers of Commerce, said: "Business is not against the principle of shared parental leave but how is an employer expected to plan and arrange cover with this fully flexible system?

"This is too difficult for small businesses to deal with, and could prevent them from taking on staff at a time when they are expected to create wealth and jobs."

He accused the Government of "rushed thinking" and added: "This sort of red tape is like a sledgehammer hitting small businesses which should be sources of growth and jobs."

In his speech, Mr Clegg insisted that Ministers were committed to working with business to ensure that any changes were "sustainable" and he acknowledged that some proposed measures could prove to be "unaffordable" and would have to be dropped. But he said that the coalition was determined that the existing culture, which deterred fathers from taking time off to be with their children, must change.

"These rules patronise women and marginalise men. They're based on a view of life in which mothers stay at home and fathers are the only breadwinners. That's an Edwardian system that has no place in 21st century Britain," he said.

The Institute of Directors said the Government "jeopardises its pro-enterprise credentials with this proposal" and said allowing workers to take leave in small blocks would create a system which would be "virtually unmanageable".

And the Confederation of British Industry said any changes must be simple to administer, although it said it supported moves to make parental leave more flexible.

Katherine Sinclair, solicitor in Langleys' employment team in York, said: "Implementation of the proposals will be highly advantageous from an employee's perspective.

"Female employees who have been consistently concerned with the thought of a potential halt in career progression or discrimination due to pregnancy would be able to share the burden of maternity leave with their spouse or partner.

"However, it is likely to have a significant affect on employers, especially small businesses which are suffering in already difficult times. It is also appears that it will be difficult to administer and 'police' the scheme."

Time off for bringing up baby

AT the moment, women are entitled to up to 52 weeks' maternity leave. For the first six weeks, they receive 90 per cent of their usual pay, while statutory maternity pay for the following 33 weeks is 124.88 per week. The final 12 weeks are unpaid.

New fathers are currently only entitled to two weeks' paid paternity leave but from April they will be able to take up to 26 weeks off – claiming 124.88 per week – if the mother returns to work.

That plan was drawn up by Labour, but David Cameron and Nick Clegg want to go even further – allowing new dads up to 10 months' paternity leave if the mother wants to return to work.

Exactly how this would work is still being considered. Yesterday Mr Clegg revealed that ideas on the table include allowing leave to be taken in a number of chunks, rather than a single block, and allowing mothers and fathers to take time off together, rather than one after the other – for example they could both take six months' off before their pay ran out.

Fathers could be offered additional blocks of "use-it-or-lose-it" leave not transferable to their wives or partners.