Maternity vote to cost region £106m a year
East Midlands firms face an additional annual bill of almost £106m after MEPs voted through controversial proposals for new parents. That’s according to the Derbyshire and Nottinghamshire Chamber of Commerce, which is now seeking a meeting with East Midlands MEPs to discuss the issue.
The European Parliament has approved an amendment to the EU’s Pregnant Worker’s Directive which will extend maternity leave to 20 weeks on full pay. The proposals also introduce a compulsory full paid paternity leave of two weeks.
According to the EU’s own impact assessment, the proposals will cost the UK almost £3bn a year.
The Chamber says it is now seeking a meeting with East Midlands MEPs to discuss the legislation.
Chief executive George Cowcher said: “The UK is looking to reduce the deficit and encourage the private sector to grow, so this is absolutely the wrong time to adding costs of almost £3bn a year to UK plc.
“The Pregnant Workers Directive should be about setting minimum EU standards for the health and safety of pregnant workers, not increasing the cost base of an already overburdened business sector and a public purse which is under intense pressure because of the need to reduce the national debt.
“Business in general and small firms in particular will struggle to carry the extra cost of having to pay not only for maternity leave but also for extra staff providing cover and this may have an adverse effect on the decision-making process when it comes to recruitment.”
