New Laws on Shared Parental Leave “Needed to Close Gender Pay Gap”
Legislation to make shared parental leave compulsory will be needed to help close the gender pay gap, according to a report on the workforce of the future by legal firm Burness Paull.
The Future Chemistry report says the UK Government will need to legislate because businesses are unlikely to act voluntarily to tackle the issue – and without new laws, the so-called ‘pregnancy penalty’ will remain.
Morag Hutchison, a partner in the Employment team at Burness Paull, said: “The root cause of the gender pay gap is biology – women take time off work to have children.
“That ‘pregnancy penalty’ is at the heart of the gender pay gap because when women return to work, their male contemporaries have often moved on into higher-paid positions and it is more difficult for women to progress as they often remain the primary carer. If we as a society want to truly address this issue, we need to take a long hard look at how we divvy up parenting duties.”
Burness Paull held a series of debates with major employers in London, Edinburgh and Aberdeen to gauge the views of the business community on diversity and equality in the workplace - and used the insights from the conversations to produce the report.
Ms Hutchison said existing rules on shared parental leave were complex and not all parents were eligible. She added: “Much depends on the employer and it was clear from our debates that human resources professionals believe companies won’t act alone to introduce a ‘use it or lose it’ system for parental leave.
“The reporting of gender pay gap figures and the ‘pregnancy penalty’ emphasises how UK society still has conflicting views about the role of men and women. If businesses won’t go down this route voluntarily, legislation would appear to be the only route to tackle this aspect of the gender pay gap. New laws would in effect make it compulsory for both parents to take time off work to raise their child, a system already in place in some Scandinavian jurisdictions.
“However, politicians will need pressure from society to enact such legislation, which in turn will require changes in the way society perceives the roles of parents and carers.”
Ms Hutchison highlighted one contribution to the London debate: “As one female participant put it, ‘If you talk about women’s place at work without talking about who looks after the kids at home, it’s like talking about why the ground is wet without being allowed to mention the rain’. It’s a completely ridiculous debate because that’s so much a part of it.”
Sean Saluja, Head of Employment at Burness Paull, added: “Our Future Chemistry report looks much more broadly at diversity in the workplace and recognises the wide range of complex issues at play. The debates were designed to hear what senior HR leaders from a wide range of business sectors thought about these issues – to deliver a realistic view of the challenges ahead and how businesses are facing up to them.
“This paper recognises that wider changes must take place in society if voters are to lobby politicians to introduce new laws. The gender pay gap is just one part of a huge debate.”
The report examines other major workforce issues such as tackling sexual harassment, supporting employees with mental health challenges, understanding that gender is only one issue when it comes to true diversity and the impact of technology on the workplace of the future.
It was published to mark the passing of the statutory deadline for companies with more than 250 members of staff to publish their gender pay gap, the difference between the average earnings of men and women, expressed relative to men’s earnings.
The full report can be downloaded here.
Watch the Future Chemistry video here.
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