Companies need to undertake a critical review of current workplace practices, according to a new study by Remchannel.
The Employee Benefits survey which was conducted in 2021 found a rising inequality against women over maternity leave.
60 percent of the Employee Benefits survey participants were provided fully paid maternity leave for four mounts while 24 percent indicated that they would not receive a salary during their maternity leave.
Remchannel Managing Director René Richter said the Basic Conditions of Employment Act (BCEA) makes provision for both paid and unpaid maternity leave, and the choice is defined by each company’s maternity leave policy.
The Act also makes provision for female employees to claim UIF during the period; however, it is only a portion of an employee’s remuneration.
“It’s important to understand that many organisations in following the letter of the law are not fully aware of unintended consequences. Unpaid maternity leave places a major financial burden on the family unit at a time when it is crucial to have access to these funds,” said Richter.
Richter said the consequence of this was that the family would probably need to obtain loans, and this would have a longer-term impact on their financial recovery.
“As the major caregiver, it also by implication means that more than one pregnancy in a woman’s career will impact financial wellbeing as well as career progression over a period of time.”
Richter said with such stark workplace inequalities, companies are missing an opportunity to create a compelling employee value proposition that would attract and retain top female talent.
“The advantage of changing to a paid maternity leave policy will mean that women will no longer have to choose between a career and having a family. They will be able to enjoy the time with their new-born baby without financial concerns,” said Richter.
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