Pregnancy Leave II

There has been a lot of recent media coverage about the inconsistencies between the Federal Government and the provinces with respect to maternity and parental leave.

The Federal Employment Insurance Act is changing December 31.  If a baby is born on or after that date, the parental benefits under EI last as long as 50 weeks.   The Canada Labour Code has been amended to provide a total of one year combined maternity and parental leave. The Code only applies to employees under federally regulated industries. This includes banks, airlines and railways, among others.

The pregnancy and parental leave provisions of the Ontario Employment Standards Act forces employers to keep a job open while the employee is on leave and protects pay, benefits and seniority.  The Act provides for a maximum pregnancy/parental leave of 35 weeks.  After that time, there are no provisions to protect an employee's job.  A number of provinces are in a similar boat, in that their Acts are inconsistent with the feds.

This would mean that, if the parents take a combined pregnancy/parental leave longer than 35 weeks, they lose their job protection. The employer does not have to take the employee back.  If you do take them back, it does not have to be the same job, same pay, or same seniority.

The Ontario government announced in November that it would change the Employment Standards Act to be consistent with the Federal EI Act.  If passed (which is highly likely), you will now have to allow an employee to be off for up to a year.

What does the business community think?

The knee-jerk reaction is that it is more of a burden on business.  ?Now we have to keep a job open for a year and put up with second-rate replacement help for four more months? is a typical reaction.

Is it really that bad?  My hiring experience has shown me that it is hard to get good help for 6-8 months.  My suspicion is that there would be better candidates applying if the position lasted longer. There might end up being a whole new sector of the labour force that goes from 1-year contract to 1-year contract, filling in for maternity leaves.

What is the impact on your business?  How will you change your approach to hiring replacement help for a maternity leave? If you think it will cost you, tell me how. 

I would like to hear your views on this subject. 

Please write me at ijohncox@kksm.com or fax to (905) 579-6073 with your views on what a change to the parental leave provisions in Ontario would mean to your business.