Small business dismay at extended paternity leave

Small business leaders are reportedly dismayed by Labour's six month extension to paternity leave for new fathers.

From April 2011 a reported 400,000 men a year will qualify for the right to extend their time off work by six months after the birth of their child.

Previously men were only allowed to take a maximum of two weeks off after their child was born, and only 60% of eligible men were able to take up the offer.

The reform means that parents will have the ability to decide how to divide up a total of 12 months parental leave between them. So a mother that wanted to return to work after 6 months would be able to transfer the remainder of her leave to her partner.

Despite the benefits to both parents, small businesses are unhappy with these extended rights for new dads as they feel that this could have a significant impact on business performance.

Small firms argue that there is a very small chance of them returning to full health by 2011 and the new system is likely to cause a major administrative problem.

Chief Spokesman for the Federation of Small Businesses (FSB), Stephen Alambritis, commented:

"These are difficult times. We need to be concentrating on stimulating the economy rather than bringing in new legislation."

Mr Alambritis added that small businesses are going to need all "hands to the pump, and having one out of a workforce of four means a quarter of your staff being out of action."