One of the problems with any new legislation is that it can be seen as a burden for business, with increased costs, extra bureaucracy and red tape to contend with. However, the recent changes to maternity legislation can lead to greater flexibility and significant benefits to both employer and employee. Lucie Benson finds out how it has affected businesses so far.

It has been two months since the latest changes to maternity legislation came into effect and it seems like the dust is still settling on this one. Many organisations are still getting used to the new laws and adjusting their policies accordingly, so here is a quick recap of a few of the changes that happened on 1 April.

Under the new legislation, all women are now entitled to 12 months’ maternity leave, made up of six months’ ordinary maternity leave (OML) and six months’ additional maternity leave (AML). To make things slightly confusing, statutory maternity pay (SMP) has been extended to 39 weeks, an increase of 13 weeks, therefore meaning that SMP now spans both OML and AML. Still with me?

Perhaps, though, the more significant changes are those that haven’t been there before, such as the Keeping in Touch (KIT) days. Employees are now allowed to work for up to 10 days at any time during their maternity or adoption leave. This does not signify the end of their maternity leave nor does it affect their SMP entitlement. Both parties must agree to these arrangements and an employee is not obliged to work any KIT days, nor is an employer obliged to offer such days.

So, how has all this affected you? How have you and your employees adjusted to the new law? Are more women returning to work? Are your staff pleased with the changes?

Ahead of the game

Gill Roberts, HR manager at BT, says that BT’s previous policies and procedures meant that it was already ahead of the game before the new legislation was introduced. “Our previous maternity/adoption policies and employee entitlements far exceeded statutory requirements, offering paid leave for a full 12-month period,” she remarks. “We also had much of the required contact strategy in place following the launch a couple of years ago of the ‘maternity checklist’, a document outlining best practice in terms of contact with an employee prior to, during and on return to work following a period of maternity leave. This document was requested as part of the legislative consultation exercise to provide an example of good practice.”

BT has formally introduced the new concept of KIT days, but otherwise the changes have been minor. “The changes made have predominantly been to ensure that the payments we offer for weeks 27 to 52 align and track the SMP rate,” states Roberts.

In order to incorporate the new legislation into existing maternity policies, BT reviewed all its policy and procedural documents and updated the parental guidance documents available to employees.

“In addition, our website has been revised to include the changes, and our online employee support tool – the ‘Ask HR facility’ – has been updated with a range of questions and answers covering the changes,” she adds. “We have also communicated the changes in detail to our HR community and more widely to employees via company briefing articles last October when the Work and Families Act 2006 was introduced and then again in April when the alteration first came into effect.”

Before the new legislation came in to effect, BT already benefited from a 97 to 99 percent return rate, in terms of women coming back to work after leave. “Our existing maternity arrangements undoubtedly assisted the high retention rates that we have enjoyed,” she comments. “Employees were accustomed to our policy and the expectation that a full year could be taken as maternity leave. Most employees took advantage of this entitlement and so the recent changes have had little impact on the time employees choose to take off following the birth or adoption of a child.”

Keep in touch

Now, back to those KIT days. Yes, it is a new concept that everyone has to get used to, and it may seem a bit of a pesky administrative and cost burden right now, but it does actually have the potential to be extremely beneficial to both employer and employee.

Michelle Lofthouse, director of business development at LearnDirect Business, was involved in the implementation of a 30-minute online course, available free on the LearnDirect business website. The course covers changes brought in by the Act, including longer maternity and adoption leave, potentially longer paternity and carer leave, and the optional KIT working days.

“Most employers are saying that they have skills gaps and are finding it difficult to recruit for particular posts, so it is really vital that we keep women engaged, who would have left the workforce, if we want to keep them there,” she remarks. “KIT days allow employers to be more flexible about the contract offered to employees, and therefore helps them to retain those skills that they absolutely need to compete. This will be attractive to working families, and employers will gain access to a wider talent pool. So it doesn’t have to be a cost burden for the business.”

Laurie Anstis, associate solicitor at law firm Boyes Turner, says it will be interesting to see how businesses use the KIT days. “It is unlikely that businesses will use those days for people to come back and do a day’s work at their desk as part of their daily routine job,” he comments. “But it does give them the opportunity to invite people back for conferences, training on new products and so on. It ought to mean some of the things that happened before, when employees came back from leave and found everything had moved on, will no longer be an issue.”

Flexible approach

As managing director of HR consultancy HR180, Claire Morley-Jones is well aware of the new maternity legislation, therefore has a good idea of how to incorporate it into the business and ensure her staff are offered a flexible approach to work so that she can attract the very best in the industry.

For instance, she has offered one employee a contractual agreement to take the whole of August off each year to spend with her two small children. “This is a good example of our approach to people management and goes to show that we practise what we preach; and these initiatives are paying off,” she comments. “Businesses that allow employees to combine work and family life and create an environment where they can excel in both have a great opportunity to differentiate themselves from their less enlightened competitors. I urge business managers to consider the upside of the legislation, rather than focusing too much on the challenges.”

Morley-Jones says that the Work and Families Act has some significant benefits. “Most of the new legislation enhances what employers already do,” she remarks. “The KIT days help communication on both sides and allow employers to involve a key member of their team in areas such as important meetings whilst they are technically away from the office.”

She does admit that a challenging aspect of the new legislation for many of her clients is the extension of the length of maternity leave. “We prefer to advise our clients on the opportunities this brings: in this case it allows them to employ someone to cover maternity leave on a temporary, but fixed term contract,” she says. “This means that the temporary ‘maternity cover’ can get their teeth into the job for a decent length of time and be more productive, as opposed to taking three months to get up to speed and then having to leave a little while later.”

Most employees, says Morley-Jones, are looking for flexibility combined with challenging work and employers need to adapt to this approach in order to retain people who remain loyal to the company. “The Work and Families Act helps women balance their role in society and employers should see that a more rounded and fulfilled person is a benefit to their business,” she emphasises. “People that grasp this and put flexible working practices into action have a real opportunity to differentiate themselves from their competitors.”