PARENTAL LEAVE
An increase in paid parental leave from 18 to 26 weeks for Australian families is a welcome commitment, but it may have a sting in the tail for working women.
Prime Minister Anthony Albanese has cleared the policy, which will cost more than $600m a year, with federal cabinet so by 2026, every family with a new baby will have access to six months’ leave that can be shared between parents.
Albanese says this will provide
more flexibility for families, make it easier for women to juggle work and home life, and assist fathers and single mums.
I am all for flexibility and choice, particularly for working mums.
I don’t want them to feel forced to return to work too early, but equally I don’t want them to feel forced to take six months off.
I see some red flags here.
From a business perspective, this scheme needs to work for everyone, from government to small business, or it won’t work at all. And working mums could be
the losers if small businesses cannot manage having them on parental leave for six months.
Small businesses hire more women than pretty much anyone. Governments always base their decisions on a government department or large company, which is unrealistic. They need to understand what small business owners need and ask how do we make this work?
Small businesses will consider the cost and how hard it may be to hire a replacement for six months – and the risk is they will choose to
not hire women of child-bearing age to avoid the issues.
The flexibility the PM talks about needs to extend to a financial option, too. If a family doesn’t want to take the full six months, give them the money so they can spend it on things they need such as cleaning, food, or baby goods.
Removing barriers around parental leave is admirable, but making sure it provides families with real flexibility and choice – and doesn’t ruin small businesses at the same time – is paramount.