HSBC has become the first UK corporate to guarantee all new parents returning from maternity or paternity leave a part-time working option in a bid to help them improve their work-life balance.
The move comes as a charity called on the coalition government to reverse proposed changes to the Working Tax Credit, which it said would push some working parents into poverty.
HSBC plans to offer returning parents a part-time role equivalent to at least two and a half days per week at a pro rata salary and at the same level as their original role before they took leave. The bank’s head of employee relations, Sue Jex, has already taken it up on its suggestion.
Under UK employment legislation, employers have no obligation to provide part-time working hours, although every parent has a right to request them.
The Working Families charity, meanwhile, warned that changes proposed to the Working Tax Credit from April means that couples who are currently employed for 16 hours per week will have to increase them by a third to 24 hours (with one parent working at least 16 hours) in order to continue receiving benefits.
A key problem was that only 17% of the employers that the charity questioned were confident of being able to provide their staff with an additional eight hours or more of work. About a third said that they may be able to offer some extra hours, but a further 17% said that it was either “unlikely” or “impossible” that they could help.
However, a huge two thirds were not even aware of the proposed changes, while a majority appeared unconcerned if staff would have to leave as a result of the situation. Only 17% believed that the business would suffer if that were the case, 56% felt that it would prove to be a ‘minor inconvenience’, while 17% were confident that they could easily find replacements.
Working Families’ chief executive, Sarah Jackson, said the suggested changes to the Working Tax Credit rules were “harsh” and many parents, especially single mothers, would find that it was no longer worth staying in employment.
“It isn’t for want of trying that these parents can’t get more work: our survey shows employers can’t offer them what they need to stay out of poverty,” she said. “We call on the government to reverse this change in the forthcoming budget. Until the economy picks up, making parents look for work that just isn’t there and taking away tax credits is all stick and no carrot.”
One Response
Great Post
It is good to see organisations like HSBC implementing this kind of the policy. It shows the public but more importantly their employees that they are in tune with the struggles and and demands that they are under. Establishing a work-life balance can be difficult for new mothers returning to work so this shows a real positive step forward.
— Dave Evans, commercial director at accessplanit, specialising in training administration software and learning management system.