Britain’s SMEs are firmly against new paternity leave legislation, according to research from uSwitchforbusiness.com. The new rules will give fathers of children due on or after 3rd April the right to take up to six months paternity leave. But just 1% of business owners believe the new rules will have a positive impact on their business and 39% believe that small businesses should be exempt.
Despite the new paternity rules being designed to promote flexibility and increase equality for parents, three in ten SME owners (32%) have admitted that they would now think twice about the staff that they employ, perhaps making it harder for men planning a family to find employment in the small business sector.
The outcry against this new legislation from SMEs has led to reports that the Treasury will be using the budget to announce an exemption for businesses of less than ten people. This exemption may come as a relief to some, but certainly not all, small business owners and may potentially put smaller businesses off employing more staff.
James Constant, Director of uSwitchforbusiness.com, says: “Our research shows that SMEs are prepared to change their hiring policy as a result of what many see as punitive new paternity leave rules. The rules were designed to create more flexibility, but in fact may be forcing SMEs into a corner and could potentially lead to a less competitive job market. It will come as a relief to those employing less than ten people that the Government is considering a reprieve for them. But this in itself could then be a barrier to expansion or taking on more staff.
“This legislation is being introduced at a time when trading conditions are tough and many business owners are working hard to keep their business afloat. Legislation like this will have an impact on the cost of running a business, so it’s important that business owners compensate by keeping a close eye on other overheads. In the current climate no business can afford to be paying more than competitors for overheads such as energy. Our service allows busy SME owners to compare prices across the market quickly and easily so they can be sure that they are getting the best available deal.”
