EMPLOYERS said their questions about the new maternity leave law center on additional costs that companies are liable for, while noting the new 105-day leave entitlement exceeds the international norm of 98 days.
In a phone interview with BusinessWorld on Tuesday, Employers Confederation of the Philippines (ECoP) Acting President Sergio R. Ortiz-Luis Jr. said the Philippines was overdue for a maternity leave law that met the International Labor Organization’s (ILO) standards but raised concerns over the decision to make employers shoulder the added costs.
“International standards according to the studies show 98 days is the norm,” he said, adding that employers decided not to contest the legislators’ decision to go beyond to 105 days.
“The deal breaker is they changed the concept of (leave entitlement) being a social security (obligation),” he added, saying that employers will be obliged to pay additional benefits apart from paid leave, referring to the differential costs of maternity salary benefits beyond Social Security System (SSS) entitlements that will now be shouldered by the employer.
He said that the additional costs will be a particular burden to Micro, Small and Medium Enterprises (MSMEs).
“For us, we advance (the payment) but for small and medium [enterprises], that payment will hurt because it puts pressure on their cash flow,” he said.
The Expanded Maternity Leave bicameral report was ratified earlier this month by the Senate and House of Representatives. The bill expands on the current maternity leave of 60 days for natural delivery and 78 days for C-section delivery to a uniform 105 days. Solo parents are entitled to an additional 15 days. The new legislation applies to all pregnancies, removing the previous cap of four pregnancies.
Mr. Ortiz-Luis said there is a possibility that a woman’s employability could be impaired by the law, which is awaiting signature from the President.
“The employer will be discouraged. If they can help it, they won’t hire women,” he said.
Bureau of Workers with Special Concerns (BWSC) Director Ma. Karina Perida-Trayvilla said that the agency supports the bill and has been actively conducting consultations prior to its enactment.
“We have been very active in deliberations with the Congress. In fact we submitted a an official position on this supporting the bills,” she said in an interview with BusinessWorld.
Regarding the legislation’s potential to create discrimination in hiring, Ms. Perida-Trayvilla said “Regarding apprehension that it might create a disadvantage over preference in employment for men over a woman , our position is that we have a Magna Carta for Women.”
According to Section 8 of the Magna Carta of Women or Republic Act 9710: “All rights in the Constitution and those rights recognized under international instruments duly signed and ratified by the Philippines, in consonance with Philippine law, shall be rights of women under this Act to be enjoyed without discrimination.”
“Discrimination might happen but there are industries that need women,” Ms. Perida-Trayvilla said, adding that many industries have a female-majority work force.
She said the challenge is monitoring employers for compliance. — Gillian M. Cortez
