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

The purpose of this amendment is to amend the Parental Leave Act 1998 to increase the current 18-week unpaid parental leave entitlement to 26 weeks. The Government now proposes that this increase in parental leave should be phased in in two blocks of four additional weeks from 1 September of this year and a further four weeks from 1 September 2020. As I have already mentioned, while all of us are in favour of supporting working parents we must remain cognisant of the potential effect on employers, especially very small employers. In the absence of pre-legislative scrutiny, I invited the views of all affected stakeholders, including employers. IBEC subsequently made a submission to the Department in which it outlined its key concerns regarding the legislation. It cited the consequence for employers and particularly, as I said, SMEs with small numbers of employees in terms of administrative and cost burdens, the challenge involved in replacing key skills and ensuring that the alternative arrangement did not result in loss of productivity or output. Employers have indicated that it is vital that any increase is on a phased basis to lessen the impact on employers, especially SMEs. I know Senators are very concerned about SMEs because the larger companies will probably be able to handle it okay.

Senators will also appreciate that extending parental leave on a phased basis is not only about supporting the interests of business. As I previously mentioned, the Office of the Attorney General has raised the issue of the cumulative burden on employers and the risk of constitutionality if the impact on employers is deemed to be disproportionate. A phased basis, as proposed by Government, would enhance the Bill's presumption of constitutionality as it is contended that phasing in the leave over the next 17 months will give employers time to adjust, thus helping to avoid the risk that the new leave might be considered to impose a disproportionate burden on employers. This approach stems from previous case law, which Senators will recall, in which the Supreme Court found it unconstitutional to place a disproportionate burden on employers which would cause undue hardship.

In selecting the phasing-in dates of 1 September 2019 and 2020 respectively, my officials engaged with Government Departments and the public sector. These dates were selected on the basis that they give public sector organisations, including large organisations such as the HSE, adequate time to put measures in place to facilitate the additional leave being provided for in the Bill and also to budget for the cost of providing the leave. It also reduces potential costs arising for the Exchequer in this year.

As I mentioned earlier and on Committee Stage, even if 10% of eligible parents in the public sector will take their leave, this will amount to approximately €1.2 million in costs in the health and education sectors. A take-up of 100% would increase the costs in these sectors to €12.4 million. Again I must stress that these figures do not include the costs that would arise in An Garda Síochána, the Irish Prison Service, the Defence Forces, other rostered public services or in customer-facing units of the public service, including the Department of Employment Affairs and Social Protection and the Revenue Commissioners. I commend the amendment to the House.