Magazine |
Paternity leave could be fraudulent

London MEP Mary Honeyball

Business groups have hit out at extended paternity leave, saying that it could be disruptive to businesses, and could be claimed fraudulently.

The announcement last month that Additional Paternity Leave will be offered to fathers will come into force 6 April 2010.

John Wright, National Chairman, Federation of Small Businesses, said: ‘Small firms are flexible employers but a “one size fits all” prescriptive approach to maternity and paternity leave will not work for all businesses.

‘Employment law is often one of the most complicated issues for a small business, and laws around it are frequently changing. It is really important, especially during a recession, that small businesses have clear and reliable advice that is easily accessible and well advertised to small businesses.’

Business leaders have also raised a concern that the legislation will make it relatively easy to conduct fraud because eligibility checks will not take place, giving fathers the right to self certify.

The official document, ‘Additional Paternity Leave and Pay – Administration of Additional Statutory Paternity Pay’ admits there may be a risk of fraud. It says: ‘Although checks with third parties may prove useful, the financial and time costs of involving, in every case, either HMRC and/or the mother’s employer in the verification process would be significant and are likely to outweigh the benefit derived.’

Instead it proposes to use HMRC for a ‘combination of random and risk-based checks on employers and employees.’

The Government predicted that initial take up will be relatively low with between 4-8 % of eligible fathers taking up the leave.

But London MEP Mary Honeyball, urged employers to view the reform positively. She told Payroll World that ‘it will enable many highly sought after and gifted female workers to return to work at the earliest opportunity, which for their employers will certainly be welcome.

‘Supporting hard working families to make the choice that best suits them is what this legislation is designed to achieve. It will have a positive impact on the family.

‘The cost to an organisation of losing the expertise of its female employees is surely far more damaging than allowing her to take maternity leave.’

02/02/10