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Maternity benefits scheme could ‘undermine flexible working'

The government has introduced measures forcing employers to offer non-cash benefits to workers on maternity leave.

The rule, introduced at the start of October, means that employers have to continue to provide non-cash benefits for staff on maternity.

Since UK staff previously paid for childcare vouchers with a percentage of their salary, the new rule means that employers offering this benefit are being forced to pay for something that was previously free.

"By confusing the system and introducing potential costs for employers who provide it, the government risks undermining any incentive to take it up," said Chris Hanant of the British Chamber of Commerce (BCC).

This BCC has written to the financial secretary of the Treasury to warn that the rule will undermine the government's recently announced flexible working plans.

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Post Date: December 8th, 2008