David Stanton (Cork East, Fine Gael) | Oireachtas source

I move amendment No. 3:

In page 3, to delete line 12 and substitute the following:“(a) by inserting the following subsection after subsection (1):

“(1A) The reference in subsection (1) to a period of 18 working weeks shall be construed—

(a) in the year 2019, as a reference to a period of 20 working weeks,

(b) in the year 2020, as a reference to a period of 22 working weeks,

(c) in the year 2021, as a reference to a period of 24 working weeks, and

(d) on and from 1 January 2022, as a reference to a period of 26 working weeks.”,”.

I propose to discuss amendment No. 3 in isolation. As colleagues said, it is a subject of some debate. The purpose of the amendment is to amend the Parental Leave Act 1998 to increase the current 18 week unpaid parental leave entitlement to 26. The Government proposes that the increase in parental leave be phased in at a rate of two additional weeks per year between 2019 and 2022. As I have mentioned, while we are all in favour of providing the upmost support for working parents, we must remain cognisant of the potential impact on employers. As Members will recall, on Committee Stage I invited the views of all stakeholders affected, including employers. IBEC subsequently made a submission to the Department in which it underlined its key concerns, chief among which are the consequences for employers, particularly small and medium employers. The big companies will manage, but they were worried about the administrative and cost burdens for small companies. In the light of the challenges involved in replacing key skills and ensuring alternative arrangements will not result in a loss of productivity or output, IBEC submits that it is vital that any increase be on a phased basis to lessen the impact on employers, especially SMEs.

Deputies will also appreciate that extending parental leave on a phased basis is not only about supporting the interests of business. As I mentioned in my opening remarks, the Office of the Attorney General has raised the issue of the cumulative burden on employers and the risk of constitutionality.

The Bill has moved quite quickly. In my time in the House I have rarely seen a Bill move as fast, with the exception of emergency legislation. Unfortunately, there was no consultation or pre-legislative scrutiny, although on Second Stage I suggested strongly that the committee do so. A phasing-in approach, as proposed by the Government, would enhance the Bill's presumption of constitutionality, as it is contended that phasing in the leave over a four year period, starting on 1 January 2019, would be a proportionate approach and not put a disproportionate burden on employers. This approach stems from previous case law where, as Deputies will recall, the Supreme Court found it to be unconstitutional to place a disproportionate burden on employers which would cause "undue hardship". There is, therefore, a precedent.

As alluded to previously, negotiations on a draft work-life balance directive are still under way at EU level and the Government wishes to highlight the need to ensure that whatever changes are made to domestic legislation will dovetail with the provisions and timeframe for transposing the directive as far as is practicable. Negotiations are ongoing on the directive and we are not yet sure what will emerge. Member states will have three years in which to transpose it into national law; therefore, we are also working at that level on the issue of a work-life balance. Some member states are concerned about the cost; there are, therefore, considerable negotiations taking place on the issue.

In some ways, the amendment is quite complex and a lot of work went into making it happen. I am curious to hear what colleagues have to say about it.

See this speech in context