Maternity Leave – Can It Damage Your Career?

Women taking maternity leave could damage their career prospects according to comments by the Chief Executive of the Equality and Human Rights Commission this week. Similarly the proposed extension to request flexible working for those with children under 16 (the current age limit is under 6) may compound employers’ views of employing women, even though the right applies equally to both sexes.

All women, regardless of their length of service, can take a year’s maternity leave. Provided they meet certain conditions, they receive statutory maternity pay (SMP) for 9 months of that time. SMP is paid at 90% of a woman’s salary for the first 6 weeks. She then receives 33 weeks’ pay at a “flat rate” (currently £117.18).

Maternity rights are here to stay; they will not be eroded. What the Equality and Human Rights Commission wants to see is greater flexibility and leave for fathers (as well as for other workers).

It is a brave business that openly admits that it ignores a woman’s CV or that it views a woman differently when she becomes pregnant. If they do, there is a significant risk in employment law and financial terms. Failing to employ a woman because she has or may have children (or treating her in any less favourable way as a result of a pregnancy or having taken maternity leave) amounts to automatic sex discrimination.

Employment Tribunals are used to probing to see how matters really stack up. Women often complain they are side-lined after returning from maternity leave. A Tribunal will look for evidence of discrimination and at statistical data to see if a business operates a discriminatory recruitment policy.

Employees need no length of service to bring a sex discrimination claim, nor do they require the usual year’s service to bring a claim for unfair dismissal if the dismissal is for pregnancy related reasons. A finding of sex discrimination carries with it an uncapped award to compensate for any financial loss and an award for “injury to feelings”, ranging from a minimum of £500 to around £25,000.

The risks do not stop there. Pay for women who take time off to have children is often affected exposing employers to a risk of an equal pay claim. The Government recently announced its intention for greater transparency in pay. Public sector employers will be required to report on inequalities in gender pay and there may be a knock on effect to the private sector.

Balancing the needs of a business with the law is not an easy task. In the future the emphasis will be on increased flexibility for both men and women. By 2010 men will be allowed to take paid paternity leave for up to 6 months by transferring part of a the mother’s maternity leave. Businesses that have until now resisted embracing parental rights should beware; financial penalties for discrimination can far out-weigh working with employees to accommodate their requirements.

Contact Susie Halliday for further information or advice

Published 17/07/2008. The author of this article is Susie Halliday