UK firm offers 6 months’ paid leave to all new parents

AN insurance company has become the first firm in Britain to offer all new mothers and fathers six months of fully paid parental leave. Insurers Aviva, which has a 16,000-strong workforce in the UK, will grant 26 weeks of leave at full basic salary after a staff member has a child.

The rights apply to both men and women regardless of how they become a parent, whether it is through birth, adoption or surrogacy.

The law requires companies to give all employees six weeks of maternity leave paid at 90 per cent of average earnings before tax, followed by 33 weeks paid at £140.98 per week or 90 per cent of earnings, whichever is the lower figure.

New mothers are entitled to a year off work but after 39 weeks employers can cease to pay the employee anything. Under new shared parental leave laws, which came into effect in 2015, parents can split their 52 weeks of leave and receive payment for 39 of those weeks at the same rate of £140.98 a week.

Aviva’s policy now means that parents do not have to share their leave, and couples in which both parents work for the company each have their own equal allowance.

This applies to all full-time and parttime employees who become a parent after Nov 19 in the UK, Ireland, France, Singapore and Canada.

The company employs 30,000 staff worldwide. Sarah Morris, chief people officer at Aviva, said: “We think this is one of the most ground-breaking, family-friendly policies offered by any employer. “It’s time to equalise parental leave and create a level playing field for men and women who want to take some time out from their career to spend with their family.”

Ms Morris is on the steering committee of the 30 per cent Club, which campaigns for greater representation of women on the boards of FTSE 100 companies.