The Government’s announcement to extend parental leave for mothers and fathers of young children, has been approved by trade unions, but criticised by businesses.

Under the new rules to come into force later this year, around 2.8 million parents whose children are aged under five will be able to take 13 weeks unpaid leave from work. Parents with disabled children will be entitled to 18 weeks.

CBI chief, Digby Jones, was disappointed with the Government’s decision, saying it was an unnecessary and potentially damaging move, particularly for small firms. He added: “This decision will only stiffen employers’ resolve to fight proposals to give working parents a legal right to work part-time.”

Roger Lyons, general secretary of the Manufacturing, Science and Finance union, said: "We are delighted that Trade and Industry secretary Stephen Byers has ignored the forces of conservatism within the Confederation of British Industry who have called for a voluntary code on parental leave."

Head of policy at the Institute of Directors, Ruth Lea, is concerned about the new rights, saying many small firms will face problems if large numbers of staff take parental leave.

She says it is becoming more difficult for firms to cope with absences, including parental and maternity leave: "It is the cumulative effect of all these rights which is worrying. It is becoming more difficult for small businesses to cover the absence of staff."

The Industrial Society is supportive of the extension and believes it will improve people’s work-life balance. Theo Blackwell, policy specialist at the Society said: “Looking at the broader picture there is wealth of new evidence that there exists a strong business case for strengthening parental rights and increasing forms of flexible working.

“Properly conceived, we believe that proposals which actively encourage take up present a ‘win-win’ scenario for employers and employees alike.”

Jessica Jarlvi