A committee of the European Parliament has recently (Feb 2010) passed draft legislation that will extend maternity leave to 20 weeks on full pay across Europe. The UK currently stipulates the first six weeks at 90% of salary plus a further thirty-three weeks at Statutory Maternity Pay.

It appears that the European legislators are continuing in their quest to make European businesses uncompetitive. Such demands may also impact negatively on women of child-bearing age with companies doing their best to avoid recruiting them.

Adam Marshall, director of policy at the British Chambers of Commerce (BCC), said: "The Pregnant Workers Directive should be about setting minimum EU standards for the health and safety of pregnant workers - not adding new payroll costs for overburdened companies and national social security systems."This vote introduces complexity and uncertainty, which are totally unnecessary, as the UK and other EU countries already have well-developed national maternity pay systems.

"Companies need to be given the space to deliver growth and jobs - without being hamstrung by new and costly maternity rules."As the Directive moves forward, we urge the European Parliament as a whole and the council to overturn these costly amendments."

Conversely, Sarah Jackson, chief executive of Working Families, added: "Yesterday's vote in favour of 20 weeks of maternity pay on full pay from Brussels is an ambition that we would endorse.  Evidence shows that finances dictate when low paid women return to work.  Apart from the first six weeks, the UK pays women less than the national minimum wage in SMP.  This sends a poor message about the best start in life for low income families. 

"The idea that this would have an impact on employability should be knocked on the head:  in the UK the state - not the employer - pays SMP.   We're also pleased to hear EU talking about paternity pay - over 40% of fathers don't take any paternity leave at all; the majority because they can't afford it and this needs addressing urgently."

However, experts warned that the move could cost UK companies up to £2billion a year and although the state currently reimburses firms for the bulk of statutory maternity pay, business leaders fear the scale of the increase would see struggling companies ordered to shoulder more of the burden.