Businesses will be hit hard financially by European proposals to extend maternity leave.
EU plans to lengthen the period of leave to 20 weeks from 14 will cost small and medium enterprises an extra £7,000, says the Federation of Small Businesses (FSB).
Ahead of the EU vote on the proposals, the FSB is concerned that the change could act as a deterrent for small firms to take on new members of staff.
While the FSB believes a flexible maternity and paternity leave system is paramount, it sees the proposals as adding payroll costs for already over-burdened companies.
Tina Sommer, head of the EU and international affairs of the FSB, says: ‘Small businesses are known to be flexible employers and it is unfortunate that maternity and paternity leave is one of the biggest barriers for them when looking to take on staff.’
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