Equality and Diversity - Updating the Sex Discrimination Act
Comments from ACCA
May 2005
ACCA is pleased to comment on Consultation Paper on the above. ACCA is the largest and fastest-growing international accountancy body, with 320,000 members and students in 160 countries. Over half ACCA�s 100,000 members work in or service SMEs (Small and Medium-sized Enterprises) and so we have a special interest in issues affecting businesses in this sector. Our comments below concentrate on one particular aspect of the proposals.
Pregnancy and maternity, paternity and adoption leave
We agree that less favourable treatment on grounds of pregnancy or maternity leave amounts to unlawful sex discrimination. We support the proposed removal of the current small firms exemption. This will make it clear that an employee cannot be dismissed or selected for redundancy simply due to pregnancy or adoption leave, whatever the size of the organisation. In our experience the small firms� exemption is to a great extent unfamiliar to small firms and case law has anyway established that an employer who denies a woman a post on her return from maternity leave is likely to be in breach of the Sex Discrimination Act. The current exemption is therefore effectively redundant, as well as being impossible to justify in terms of fair treatment.
The small firms� exemption was introduced to help very small firms who could find the burden of keeping a post open, or allowing a woman to return to an equivalent post, potentially damaging to the business. The fact that small firms are often unaware of this exemption, and the fact that it is rendered ineffective by case law, does not in any way undermine the fact that small businesses do struggle and need extra support when coping with the consequences of staff maternity leave. Whilst we agree that it will be most straightforward for both employers and employees to remove the small firms� exemption, Government should consider providing extra support for small businesses.
The consultation document admits that businesses are uncertain about the rights and responsibilities of both the employer and employee. Far more must be done to communicate responsibilities to employers and employees. The Government could, for example, consider the introduction of a free telephone helpline where small businesses and employees working in small firms can get legal guidance and free face-to-face support if required.
Benefits and costs of the legislation
The document points out that there will be a cost to the manager in each business or organisation of reading and understanding the proposed new guidance and estimates that there will be a total cost to small employers of between £6.3 and £9.5 million. The Government should consider ways in which small firms can be compensated for this cost.