Mixed Response To Paid Parental Leave

Mixed Response To Introduction Of Paid Parental Leave – But Government Should Fund The Scheme

The Paid Parental Leave scheme due for introduction on 1 April 2002, has met with a mixed response in the TMP Salary Survey results released today (July 31). The main issues with it appear to be costs and the provision of funding.

These and other findings are the result of the TMP Salary survey (formerly Lampen Salary survey), which is conducted on an annual basis. This survey (its 16th) looks at salary and employment trends for the year ended June 2001 and covers 550 employers over 21 industry groups nationwide.

In relation to the Paid Parental Leave scheme, 55% of respondents surveyed agreed with the introduction of it, with 45% against.

General Manager Lampenalectus Recruitment TMP Worldwide, Jane Kennelly, says that the funding of Paid Parental Leave raised a major issue, with an overwhelming 72% of respondents feeling it should be fully Government funded. Only 28% cited it should be the responsibility of the employer.

“In addition, respondents were polled with four options regards the funding structure in order to assess their preferred approach. 40% felt the scheme should be a percentage of the qualifying person’s salary with a cap, 36% advised that the scheme should be standardised regardless of income, and only 5% responded that Paid Parental Leave should be a percentage of household income.”

“The remaining 14% said the scheme should be paid on a percentage of the qualifying person’s salary without a cap,” Jane Kennelly says.

When it came to the responsibility of administering the scheme, 57% of respondents believed the Government should administer it, 29% that Government and employers should share the responsibility and 14% that employers should be solely responsible. A significant 57% advised that 12 weeks was the optimum length of paid leave.

“Employers want a scheme that’s easy to implement and won’t require endless paperwork. It appears they are asking for a clear cut administration and funding process to ensure the scheme’s viability.”

On the subject of paternity leave, the survey drew a divided response. 55% responded in agreement that a qualifying person’s partner be entitled to paternity leave under the Paid Parental Leave scheme, while the remaining 45% advised not.

Finally, when it came to choosing qualifying prerequisites for paid parental leave, the majority of respondents felt that it should be qualified after 12 months service.

Ends

TMP SALARY SURVEY 2001

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