global workplace law perspectives 1. U NITED S TATES The federal Family and Medical Leave Act (FMLA) provides up to 12 weeks unpaid leave for either mother or father to be taken at any time during the first 12 months of the child’s life. Employers with less than 50 employees are exempt from the FMLA’s requirements. To qualify for coverage, the employee must have worked for his or her employer for 12 months for a minimum of 1,250 hours in the 12 months immediately preceding the commencement of leave. Employees entitled to leave must be ensured employment upon return in the same or an equivalent position. Many U.S. states have their own version of FMLA unpaid leave with a range of coverage provisions, many of which go beyond federal law to some extent. In addition, a handful of states require employers to provide partial paid leave. Perhaps most importantly, employers may and often do offer their employees more generous benefits than those required by federal or state law with positive effects. For example, when Google lengthened its maternity leave from three to five months and adjusted compensation from partial to full pay, the attrition rate of applicable employees decreased by 50 percent. Smaller companies with less financial means to provide Legal provisions regarding maternity leave exist in varying forms in nearly every country throughout the world. While post-childbirth leave entitlements have historically been available to mothers only, recognizing the evolution of gender roles, the international trend has been to include paternal and parental leave as well. This article will look at the legal landscape of maternity and parental leave in select countries throughout the world to illustrate how different legal systems have chosen to institute such leave in a manner which reflects both the specific culture of the country and the overall global movement towards increased accommodations for parents before and after childbirth. F AMILY L EAVE T RENDS for a Global Company
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cross borderglobal workplace law perspectives
1 . United StateS
The federal Family and Medical Leave Act (FMLA)
provides up to 12 weeks unpaid leave for either
mother or father to be taken at any time during the
first 12 months of the child’s life. Employers with
less than 50 employees are exempt from the FMLA’s
requirements. To qualify for coverage, the employee
must have worked for his or her employer for 12
months for a minimum of 1,250 hours in the 12
months immediately preceding the commencement
of leave. Employees entitled to leave must be
ensured employment upon return in the same or
an equivalent position. Many U.S. states have their
own version of FMLA unpaid leave with a range of
coverage provisions, many of which go beyond federal
law to some extent. In addition, a handful of states
require employers to provide partial paid leave.
Perhaps most importantly, employers may and
often do offer their employees more generous benefits
than those required by federal or state law with positive
effects. For example, when Google lengthened its
maternity leave from three to five months and adjusted
compensation from partial to full pay, the attrition
rate of applicable employees decreased by 50 percent.
Smaller companies with less financial means to provide
Legal provisions regarding maternity leave exist in varying forms in nearly every
country throughout the world. While post-childbirth leave entitlements have
historically been available to mothers only, recognizing the evolution of gender
roles, the international trend has been to include paternal and parental leave
as well. This article will look at the legal landscape of maternity and parental
leave in select countries throughout the world to illustrate how different
legal systems have chosen to institute such leave in a manner which reflects
both the specific culture of the country and the overall global movement
towards increased accommodations for parents before and after childbirth.
Family leave Trends for a Global Company
competitive family leave packages, but still
interested in retaining top talent, have instituted
nontraditional benefits for their employees,
such as programs where parents can bring their
children to work when necessary.
Outside the U.S., there is a far greater
tendency to define maternity and family leave
by law and regulation.
2 . Canada
Established by the federal government, Canada’s maternity
and parental leave programs are instituted by each
province or territory with minimal modification, except
for the Province of Quebec, which launched a separate
program in 2006 called the Quebec Parental Insurance
Plan (QPIP). Nationwide, mothers are entitled to a range
of 15 to 18 weeks of maternity leave depending on the
jurisdiction. Through the national Employment Insurance
(EI) system, employees who have worked at least 600
hours in the previous 52 weeks and paid premiums
during that time are entitled to payment for 15 weeks of
maternity leave at 55 percent of their average earnings
up to an earnings ceiling of CAN$47,400 (as of January
1, 2013). There is an exception for low-income families,
who often qualify for a higher percentage of earnings and
additional benefits. In Quebec’s QPIP program, mothers
are entitled to 70 percent of their average weekly earnings
for 18 weeks of maternity leave up to an earnings ceiling of
CAN$67,500. Alternatively, Quebec mothers may choose
to take only 15 weeks of paid leave at a rate of 75 percent
of their weekly earnings.
Canada’s EI system also includes 35 weeks of paid
parental leave at the same rate and with the same
requirements as maternity leave. Parental leave may
be taken by one parent or shared, and generally must
be taken within 52 weeks of the child’s birth. As with
maternity leave, low-income families are eligible for
supplemental contributions. Quebec offers
a base seven weeks at a rate of 70 percent
of income per week and an additional 25
weeks at the nationwide rate of 55 percent
per week, subject to the same earnings cap as
that applicable for maternity leave. Another
available option is 25 weeks total at 75
percent of income per week. (This leave may
be taken up to 70 weeks following the birth
of the child, and eligibility only requires that
a parent earn CAN$2,000 of insurable income
over the previous year.) Some provinces
provide additional parental leave, and, like maternity leave,
eligibility for leave ranges from 13 to 52 weeks of previous
employment, depending on the province. Quebec also
provides five weeks of partial paid paternity leave.
In general, some employers in Canada choose to
compensate their employees partially or entirely with the
difference between the federal maternity leave payment
and the employee’s salary.
3. eUrope
a. European Union Directives
The European Union (EU) sets minimum standards for
member state legislation. The EU requires a maternity
leave option of at least 14 weeks for all member states. In
addition, mothers must receive either their salary or an
“adequate allowance” benefit. Parental leave is provided
to both parents for at least four months, and at least one
of the four months cannot be transferred to the other
parent. Employees choosing to take their entitled leave
must be ensured employment upon return in the same
or an equivalent position. While accommodations across
Europe are all generous on an international scale, there
remains a wide variety both within EU countries and in
other European countries. In addition, the Organisation
for Economic Co-operation and Development finds that
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While
accommodations
across Europe are
all generous on an
international scale,
there remains a wide
variety both within
EU countries and
in other European
countries.
Regardless of the
standards set by the
federal legislation,
many private employers
often supplement the
requirements with
increased payments
equal to the employee’s
typical earnings, as
well as an extended
leave period.
the majority of employees in Europe report
that their companies provide extra-statutory
family leave benefits including maternity and
parental leave, sick child leave, child day care
and flex-time work.
b. Switzerland
Swiss federal law entitles mothers to 14
weeks of paid maternity leave and two
weeks of unpaid leave. During the paid
leave period, mothers receive 80 percent of
their earnings, with a ceiling of CHF 196 per
day. This payment is funded by the Federal
Loss of Earnings Compensation fund, financed by equal
contributions of employer and employee. Eligibility requires
that the female employee demonstrate a record of nine
months of contribution to an insurance fund and have
worked for her employer a minimum of five months during
the nine months of her pregnancy. The canton of Geneva
provides for 16 weeks of leave paid at 80 percent of the
employee’s salary.
Regardless of the standards set by the federal
legislation, many private employers often supplement
the requirements with increased payments equal to the
employee’s typical earnings, as well as an extended leave
period. There is no statutory entitlement for paternal or
parental leave in Switzerland. (Switzerland is not subject
to the EU standard.)
c. Germany
Women in Germany are entitled to 14 weeks of maternity
leave, traditionally taken six weeks prior to the child’s
birth and eight weeks after birth. (The eight weeks
following birth are obligatory, while the weeks prior to
birth are optional.) During this period, the employee
receives 100 percent of her earnings, with no ceiling.
This is funded by the mother’s health insurance with the
remaining amount supplemented by the
employer. All female employees, including
part-time employees, are eligible for
maternity leave regardless of the length of
time they have worked for their employer.
It is a family entitlement in Germany for
parents to receive up to three years of parental
leave post-childbirth. The parent will receive
a payment of two-thirds his or her usual
earnings for the first 12 months following
childbirth, or alternatively receive half this
payment for 24 months, up to a maximum
amount. If both parents share the parental
leave entitlement, they receive a maximum
of 14 months’ parental allowance. If a parent chooses to
utilize parental leave, he or she must take the first two years
before the child’s third birthday, and the third year may be
taken at any time prior to the child’s eighth birthday, with
the employer’s consent. In addition, parents also have the
option of requesting part-time work during this period, and
receiving supplemental compensation accordingly.
d. Norway
Norway grants general parental leave with no distinction
between maternal and paternal leave. Parents are entitled
to a period of 49 to 59 weeks of paid leave. Both mother
and father are guaranteed 14 weeks of the total weeks
allotted to the family.
The remaining weeks of the parental leave may be
divided as the family sees fit. Parents may choose to take
their leave simultaneously, separately, and/or combine
with part-time work and be compensated accordingly.
During the initial period, each parent is paid 100 percent
of his or her typical earnings. Following the initial period,
the family may choose whether to extend the period
28 more weeks at a rate of 80 percent of their typical
earnings, or extend the period an additional 18 weeks
at a rate of 100 percent of their typical earnings.
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Funding for payment of parental leave comes
from general taxation. Eligibility is equivalent
for both mothers and fathers, requiring
employment for six of the last 10 months prior
to childbirth and earning at least half the basic
national insurance benefit payment during
the previous year.
4. aS ia
a. Japan
In Japan, expecting mothers are entitled to
14 weeks of maternity leave – six weeks prior to childbirth and
eight weeks after. Six of the eight weeks following childbirth
are obligatory for new mothers. During maternity leave, most
mothers receive two-thirds of their salary up to a certain amount.
This leave is funded by the Employee’s Health Insurance system,
with contributions from employers, employees, and the federal
and local government. While all female employees are eligible
for maternity leave, only women who receive insurance from the
Employees’ Health Insurance system receive funding during their
leave. Women whose insurance is supported by the National
Health Insurance system, which includes self-employed,
part-time and freelance employees, will not receive financial
benefits during maternity leave.
Parental leave is available for one parent for up to 12
months following childbirth. In order to incentivize parents
to share parental leave, parents may take up to 14 months
parental leave if the duty is shared. During this period, the
parent utilizing the leave receives 50 percent of his or her
typical earnings up to a specified amount. This is funded by
the same Employment Insurance fund that provides benefits
for maternity leave. In order to qualify, the parent utilizing
parental leave must have contributed to the Employment
Insurance fund for a minimum of 12 months during the
two years prior to childbirth.
b. China
In April 2012, China’s State Council published
the Special Provision of Labor Protection
of Female Employees, which increased
maternity leave from 90 to 98 days.
During this period, female employees receive
maternity insurance equivalent to their
typical earnings. In addition, all medical
expenses for childbirth and complications
are paid for by the maternity insurance fund.
The maternity insurance fund is supported
by contributions from the employer, employee
and the government. There is no legislative entitlement to
paternal or parental leave in China.
• • •
What can a global company that must institute varying
family leave policies worldwide take away from all of this
information? There are four major factors for a global
company to consider when shaping its family leave polices:
1) legislation of the locale;
2) the business culture of the locale;
3) the global trend towards increased family leave
and benefits; and
4) the corporate image it wishes to create for both its
employees worldwide and the public.
One unifying element in the myriad of international legal
systems discussed in this article is the growing trend both
through legislation and business culture to increase family
benefits, which could in turn enhance morale, productivity,
loyalty and retention while fostering a family friendly
corporate image.
4
One unifying element
in the myriad of
international legal
systems discussed in this
article is the growing
trend both through
legislation and business
culture to increase
family benefits.
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