Written Answers. - Parental Leave.
Paul Nicholas Gogarty
Ceist:
149
Mr. Gogarty
asked the
Minister for Justice, Equality and Law Reform
the response his Department has made to the call from the chief executive of the Equality Authority that paid paternity payments need to be introduced, highlighting Ireland's record on parental leave as being one of the worst in Europe.
[8401/03]
Seán Ryan
Ceist:
168
Mr. S. Ryan
asked the
Minister for Justice, Equality and Law Reform
if it is intended to introduce paid paternal and paternity leave as recommended by the Equality Authority; and if he will make a statement on the matter.
[12793/03]
Eamon Ryan
Ceist:
190
Mr. Eamon Ryan
asked the
Minister for Justice, Equality and Law Reform
if his Department has examined the implications for business in Ireland of the introduction of an entitlement for new fathers to have a fortnight's paid paternity leave at ?147 a week to be taken within eight weeks of a child's birth as is due to be introduced by the British Government in April 2003.
[8169/03]
I propose to take Questions Nos. 149, 168 and 190 together.
In accordance with section 28 of the Parental Leave Act 1998 and a commitment in the Programme for Prosperity and Fairness, my Department chaired a working group which undertook a review of the Parental Leave Act 1998 in 2001. The working group comprised the social partners, relevant Departments and the Equality Authority. The report of the working group on the review of the Parental Leave Act 1998 was published on 29 April 2002. During the course of its deliberations, the working group considered both the paternity leave and parental leave schemes in operation in other EU member states, including the proposal to introduce paid paternity leave in Britain which is now in place. The various schemes are detailed in the working group's report which is available on my Department's website at www.justice.ie.
Comparison between parental leave provisions in member states is difficult as some member states have a range of schemes which serve the purpose of providing leave from work for child-minding purposes. It can be difficult to ascertain what may be classified as parental leave in terms of the EU Parental Leave Directive and what may not. However, an examination of the parental leave regimes across the EU shows that the parental leave provisions differ widely. For example, in Sweden, part of the full-time parental leave period, until the child is 18 months old, would be classified as maternity leave in other member states. Also, the parental leave entitlement is the combined entitlement of the mother and the father rather than an individual entitlement in some member states. The manner in which parental leave may be taken in member states also varies from full-time, part-time, single block leave periods to a broken leave format, or a combination of the aforementioned leave types. The maximum age of the child, the payment, if any, available, the employment rights and general administration procedures in relation to the parental entitlement also vary greatly between member states. Furthermore, collective agreements in some member states provide for entitlements beyond the statutory minima.
The Framework Agreement on Parental Leave, which was incorporated into Directive 96/34/EC, represents an undertaking by European Social Partners. The directive does not provide that parental leave provision in member states must attract payment. However, member states are allowed the option of providing more favourable provisions than those set out in the Directive. Parental leave is unpaid in Greece, Ireland, the Netherlands, Portugal, Spain and the United Kingdom. In France, parental leave allowance is only available in respect of the second and subsequent children. In Belgium, if leave is taken under the career break scheme, and the employee is replaced, the leave taker is entitled to an allowance from the unemployment benefit scheme. Parental leave is paid in Austria, Denmark, Finland, Germany, Italy, Luxembourg and Sweden.
The working group which reviewed the Act made 16 recommendations, ten of which were agreed and six were by majority. Among the six majority recommendations, it was recommended that employees should have a statutory entitlement to three days paid paternity leave per child, payable by employers, and that parental leave should attract payment. The Equality Authority supported both of these majority recommendations.
The working group did not reach consensus on the principle of paid parental leave and accordingly, did not address all the possible options this raises. However, the potential cost of a social insurance payment for parental leave, based on the qualifying criteria for the maternity benefit scheme and a payment level equivalent to maternity benefit, was estimated by the Department of Social and Family Affairs in the context of the review of the Act.
The potential cost per annum: social insurance payment in respect of parental leave based on the earnings related maternity benefit rate and a 90% parental leave uptake level by women and a 15% uptake level by men would amount to €78.74 million; public sector employer costs – where the rate of payment for parental leave to public sector employees is full pay, similar to maternity leave, the cost to public sector employers, net of Department of Social and Family Affairs reimbursements in respect of full PRSI contributors, would amount to €50.5 million; and the total cost to the Social Insurance Fund and the Exchequer if parental leave attracted a payment on the same basis as maternity leave is estimated to amount to €129.24 million.
In relation to paternity leave, the cost implications for employers, both in terms of the absence of the father from the workplace and the monetary cost arising in the event of such leave being paid by employers, were considered by the review group. Concern was expressed in relation to the adoption of any new measure which would result in increased costs for employers in view of the current economic climate and the need to maintain international competitiveness. It was counter-argued that fathers should have a legal right to paternity leave and that such leave should attract payment. A statutory arrangement to allow for a father's entitlement to leave at the time of and-or immediately after childbirth would enhance arrangements for the reconciliation of work and family life.
In the context of the review of the Parental Leave Act, the annual cost of three days paternity leave paid by employers was roughly estimated at €12 million based on the number of children born in 2000 and the average industrial wage rate at that time. Of course, this estimate assumes that for every birth, the father is in employment and takes the full period of leave. Extrapolating this out to two weeks paid paternity leave, as is available in the UK would cost Irish employers €40 million.
The Government is committed under, Sustaining Progress – Social Partnership Agreement 2003-2005, to strengthening the parental leave scheme in line with the agreed recommendations of the social partners arising from the working group on the review of the Parental Leave Act 1998. The working group's recommendations are currently being examined in detail by my Department with a view to bringing concrete proposals to Government.
