Local law firm Maxwell Hodge say small businesses in the area may struggle to cope as paternity leave is extended.
From now on, additional paternity leave (APL) will allow fathers to take up to six months leave instead of just two weeks.
Helen Oakes, family law solicitor at Maxwell Hodge in Formby said: “This change in family law is great for new parents, who now have longer to bond with their baby, but it might not sit well with employers, considering current economic conditions.”
Laura Chalkley, an Employment Law Solicitor at Maxwell Hodge said: “Many local firms are already feeling overstretched and further financial strains could be devastating to some of them.
“The Law changes mean that local businesses will have to cover these extended absences, which could be very costly for an average small firm with around four members of staff, if one person is absent, this equates to a quarter of the workforce.”
Laura said: “The new law change means employers who are already struggling will be hit even harder trying to cover the costs incurred by extended paternity leave. Smaller firms will particularly struggle to pay another wage out plus pay the new paternity leave”
The paternity pay rate is £128.73 a week, or 90% of average weekly earnings.
Helen added: “Paternity leave can only be taken 20 or more weeks after the child's birth or placement for adoption, and it must also be after the mother has returned to work from her maternity or adoption leave.”
The government also say they hope to make the shared parental leave into a more flexible system in 2015.
To qualify for the paid leave, the father must have been on a continuous contract with his employer for 26 weeks by the end of the 15th week before the baby is due.
Maxwell Hodge have offices in Formby, Liverpool and the Wirral. The Formby office can be contacted on 01704 872 156
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