More Crazy antics from Brussels

UK Businesses face bearing the £2billion cost of new EU Maternity Directive

Despite objection from UK politicians & business leaders, the UK government’s surrender of its Veto on Employment law may well mean the imposition of crazy EU Directives over the basic needs of UK businesses.

The latest European Parliament plan regarding Maternity pay was revealed last week, with a directive that new mothers are to be paid their ‘full salary’ for a minimum 20 week period.

The UK currently boast one of the most generous Maternity Leave policies in Europe, with women receiving 90% of their salary for six weeks, followed by a standard £123 per week for a further 27 weeks. 

However, if the Pregnant Worker Directive goes ahead this could treble statutory maternity pay costing companies an estimated £1.5 - £2billion a year, with already struggling companies potentially asked to take on more of the burden.  Small Business owners with only a small number of staff are already struggling to meet payroll costs, without the EU forcing them to pay for an absent member of staff and her replacement for five months.

And what is more, the very women the Directive is fighting to protect are likely to be unable to find employment in the future if the directive goes ahead.  Many businesses, particularly small business would be forced to reconsider employing young women; something that could potentially harm the prospects of all women of child rearing age. 

The UK government currently reimburses companies for the bulk of statutory maternity pay, however the implications of such a heavy burden being born by the taxpayer is giving businesses enormous cause for concern as the poor state of the UKs public finances could well see the government either directly or indirectly passing on the additional financial cost to employers.  However with the Vito on employment already surrendered by the UK Government there is a chance that the greater interests of the UK could give way to the whims of ill considered EU Directives.

Many Business Leaders are calling for a moratorium on changes to legislation to enable employers to find their feet again.  The UK focus ought right now to be creating jobs and helping to get Britain out of recession.  And if passed this EU Directive will actually exacerbate the UK employment crisis.