Welcoming a new member into the family is a significant life event that brings joy and challenges alike. Maternity leave for new parents is designed to help address these challenges and is pivotal in supporting mother-child interactions and attachment security. It is also beneficial to the physical, mental and emotional health of mothers. However, for maternity leave to positively influence new parents and their children, it needs to be adequate in length and pay and work in unison with other forms of parental support for employees.
Paid leave is guaranteed in 178 countries worldwide. However, the United States is not one of them, ranking last among the 36 OCED countries for its maternity leave laws and support for pregnant employees.
Overall, only 12% of Americans receive paid parental leave and for low-income families and families of color, it can be as low as 5%. This is despite 82% of the population supporting paid maternity leave and 69% supporting paid paternity leave.
This means that 25% of women have to return to work within two weeks of giving birth to support their families. A lack of paid maternity leave and other support for working parents also means that 54% of postpartum women experience financial stress and 60% suffer health care unaffordability.
Numerous studies illustrate that paid maternity and parental leave delivers overwhelmingly positive outcomes for employers, employees and their families. Companies that offer 12 weeks of paid maternity leave see 70% less turnover. Paid family leave decreases infant, neonatal, and under-five mortality rates and is associated with better maternal mental health.
In this guide, we explain the importance of having a paid parental leave policy, highlighting the financial and health-related benefits. We also offer a sample maternity leave policy and outline best practices for implementation for HR leaders.
Understanding the importance of a maternity or parental leave policy
The Family and Medical Leave Act (FMLA) entitles eligible employees whose company has more than 50 employees to 12 weeks of unpaid, job-protected leave in a 12-month period for:
- the birth of a child and to care for a newborn within the first year after birth
- the placement of a child as part of the foster care or adoption process and to care for that child within the first year of placement
- to care for a spouse, child or parent with a serious health condition
- a serious health condition that renders them unable to perform their job
- any qualifying need arising from a spouse, son, daughter or parent being on 'covered active duty'
State maternity leave laws do differ. While some only offer what's required by FLMA, other states have increased eligibility, provide enhanced parental leave or include additional benefits.
For example, the Connecticut Family and Medical Leave Act (CTFMLA) allows all pregnant and adoptive employees to request and take 12 weeks of paid leave within a calendar year, as well as an additional two weeks for health conditions that impact expectant mothers during pregnancy.
In Rhode Island, most employees are eligible to apply for temporary disability insurance (TDI) if unable to work due to pregnancy. TDI can be paid for up to 30 weeks at a maximum of $1043 per week.
It's important to recognize that while paid maternity leave is a step in the right direction of better employee support, paid parental leave and paternity leave policies encompass fathers and LGBTQ+ parents, making for a more inclusive, equitable workplace.
Research shows that organizations that provide paid leave to workers are significantly more likely to see employees return to their roles rather than drop out of the labor force and improved employee morale.
Key elements of a maternity and parental leave policy
Effective maternity and parental leave policies are crucial for supporting employees during what is an important transition period of their lives while maintaining organizational stability and compliance. For any parental, maternity, and paternity leave policy to be impactful, the scope and conditions must be well-defined.
Eligibility criteria
Eligibility criteria for maternity and parental leave often differentiate between full-time and part-time employees, with full-time employees typically receiving more comprehensive benefits and part-time employees receiving prorated benefits. However, this doesn't have to be the case; part-time employees can receive full benefits depending on the nature of the coverage.
Additionally, many policies require a minimum length of service, often ranging from three to twelve months, to qualify for leave. Eligibility requirements help manage expectations and ensure fair and consistent application across your organization.
Duration of leave
The duration of maternity and parental leave varies widely, with minimum leave periods often mandated by federal or state laws. Many companies offer leave periods that exceed these minimums to align with industry standards and best practices. Comparing your policy with those of industry leaders can help in crafting a competitive and attractive leave program that supports employee well-being and retention.
For example, research indicates that companies in the internet industry lead in the amount of paid parental leave they provide employees, at 18 weeks for primary caregivers and 17 weeks for secondary caregivers.
Paid vs. unpaid leave
Compensation during maternity and parental leave can range from full pay to unpaid leave, with many organizations offering a blend of both. The average OECD and European Union paid parental leave equates to over 50% of earnings.
Common financial support options include partial salary continuance, short-term disability insurance, and state or federal family leave benefits. Providing paid leave can significantly reduce financial stress for employees and allow new parents to focus on bonding time with their children with negligible costs to employers.
Job protection and return-to-work policies
A critical element of maternity and parental leave policies is ensuring job protection, guaranteeing that employees can return to the same or an equivalent position.
The Family and Medical Leave Act (FMLA) offers job-protected unpaid maternity leave. In addition, the Pregnancy Discrimination Act prohibits any company from firing, reducing the hours, or terminating employment due to pregnancy and stipulates that employers must hold a job open for a pregnancy-related absence for the same length of time as employees on sick leave or disability leave. However, to be fully inclusive and protect financial and emotional well-being, all employees should be able to return to their roles after welcoming a new child.
Additionally, flexible working arrangements, such as reduced hours or remote work, can facilitate a smoother transition back to work. 81% of companies offer new mothers ramping back to work options after the return from leave but again, this support should not just be for female employees but extend to all parents.
Health benefits and support services
Maintaining health insurance coverage during maternity and parental leave is vital for ensuring employees' continued access to medical care, especially given that 24% of new moms report unmet health needs and 60% struggle to afford costs associated with pregnancy-related conditions.
Offering mental health and wellness programs can also provide crucial support during this transitional period. Worldwide, 10% of pregnant women and 13% of new mothers experience mental health issues. In addition, 38% of first-time fathers worry about their mental health and around 10% experience postnatal depression.
Comprehensive health benefits and support services demonstrate an organization's commitment to the holistic well-being of employees. In turn, better parental mental health is associated with more positive outcomes for their children, including improved physical health, higher levels of academic attainment, and better relationships.
Sample maternity or parental leave policy template
Creating a paid parental leave or maternity leave policy takes time and it's important that it is thorough but that the wording is clear. Below is a sample paid parental leave policy that acts as a starting template for your own. It's worth noting that its content is for general guidelines only and that the terms and conditions of your company's policy should align with your ethos, nature of business, and employee needs (1).
1. Overview
- 1.1 Our company is committed to supporting all employees during significant life events such as the birth, adoption, or fostering of a child. This Parental Leave Policy outlines the benefits and support available to employees to ensure they can balance work and family responsibilities.
- 1.2 This policy applies to all employees but does not form part of your employment contract and we may update it at any time.
- 1.3 Most of the benefits set out in this policy apply to each pregnancy, rather than each child. For example, the duration of leave is the same whether you have one baby or twins.
2. Eligibility
- 2.1 Full-time employees: All full-time employees are eligible for parental leave after [X months] of continuous service.
- 2.2 Part-time employees: Part-time employees who work a minimum of [Y hours] per week are eligible for prorated parental leave benefits after [X months] of continuous service.
- 2.3 Temporary or contract employees: Temporary or contract workers are not classed as eligible employees for paid leave. They are, however, able to take [number] of weeks unpaid in line with federal law.
3. Duration of Leave
- 3.1 Maternity, paternity or parental leave: Up to [number] weeks of leave, with [number] weeks paid at [percentage]% of salary, followed by [number] weeks of unpaid leave.
- 3.2 Adoption/foster care leave: Up to [number] weeks of leave for adoption or foster care placement, with [number] weeks paid at [percentage]% of salary.
- 3.3 Extended leave: Employees may request additional unpaid leave, up to a maximum of [number] weeks, subject to manager approval and organizational needs.
4. Job protection and return-to-work policies
- 4.1 Job guarantee: Employees on parental leave are guaranteed the right to return to the same or an equivalent position with the same pay, benefits, and working conditions.
- 4.2 Flexible working arrangements: Upon return, employees may request flexible working arrangements, such as reduced hours, telecommuting, or adjusted schedules, subject to manager approval.
- 4.3 Return-to-work plan: A return-to-work plan will be developed in consultation with the employee to facilitate a smooth transition back to work.
5. Health benefits and support services
- 5.1 Health insurance: Health insurance coverage will continue during parental leave under the same terms and conditions as if the employee were actively at work.
- 5.2 Mental health and wellness: Employees will have access to mental health, pediatric, and wellness support, including counseling services, expert advice resources, and consultations with specialists. These can be accessed through the Maven portal.
- 5.3 Lactation support: Lactation support, including access to private lactation rooms and breaks for breastfeeding or expressing milk, will be provided.
6. Arranging parental leave
- 6.1 Notice period: Employees are required to notify their manager and HR department at least [number] weeks in advance of their intended leave start date.
- 6.2 Submitting leave request: Submit a formal leave request in writing, via email or through the designated HR system, specifying the expected start and end dates of the leave.
- 6.3 Documentation: For maternity leave, provide a medical certificate confirming the expected due date. For adoption or foster care leave, provide relevant documentation confirming the placement date.
- 6.4 Leave parameters: Leave can start no more than [number] weeks before the expected due date or anticipated placement date.
- 6.5 Unexpected circumstances: In cases of premature birth or unexpected early placement, employees should notify their manager and HR as soon as possible to adjust their leave start date. The company will provide flexibility in such cases to accommodate the employee’s needs.
Best practices for implementing a maternity or parental leave policy
Implementing a successful maternity or parental leave policy requires thoughtful planning and continuous improvement. It needs employees at all levels of the organization to understand the policy, with managers and HR staff upholding its terms and actively encouraging employees to access the benefits they are entitled to.
Communicating the policy to employees
Effective communication of a maternity or parental leave policy is crucial for ensuring employees are aware of their rights and benefits, and know how to make use of them.
Utilize multiple channels such as emails, employee handbooks, intranet postings, and informational sessions to disseminate the policy. It's essential to ensure the policy is easy to understand and accessible to all employees, with clear language and translations, and differing formats to accommodate a diverse workforce.
Training managers and HR staff
Consistent enforcement of maternity and parental leave policies hinges on well-trained managers and HR staff. Training programs should emphasize the importance of adhering to the policy, addressing common questions, and handling sensitive situations with empathy and confidentiality.
Providing managers with resources and support, such as checklists, FAQs, and direct HR contacts, will help them support their team members in preparing for leave before their baby's due date, whilst on leave and on returning to work.
Evaluating and updating the policy
A great paid parental leave policy requires employers to regularly review and adjust its contents to ensure it remains relevant. This includes staying informed about legislative changes and incorporating feedback from employees who have used the leave.
Employers can gain valuable feedback about paid parental leave policies through various methods that encourage open communication and honest responses including:
- Questionnaires
- Pulse surveys
- Focus groups
- Employee resource groups
- One-on-one interviews
- Feedback workshops
- Digital and/or physical suggestion boxes
- Post-leave follow-ups
By also considering industry trends and benchmarking against peer organizations, you can ensure your policy remains competitive and continues to meet the needs of an evolving workforce.
Carefully analyze the collected feedback and wider research to identify common themes and areas for improvement. Share the results and planned actions with employees to demonstrate that their feedback is valued and being acted upon.
Prioritize the most critical issues raised and develop action plans to address them. Involving employees in the development of these plans will help ensure the solutions meet their needs.
Provide regular updates on the changes being made and the progress of implementation, ensuring all employees are aware of new policies once released.
The benefits of a comprehensive maternity and parental leave policy
A well-structured maternity and parental leave policy offers significant advantages, enhancing the well-being of employees while contributing positively to your organization's overall performance.
For employees
Paid parental and maternity leave allows employees to spend crucial bonding time with their new child, fostering healthier family dynamics and reducing stress. It also provides the necessary time for physical recovery from childbirth and adjustment to new family routines, contributing to overall well-being.
It also ensures continued financial support during a critical period, reducing the financial burden associated with taking time off. With guaranteed job security, the leave allows employees to return to their role without the anxiety of job loss or sacrificing their career progression, promoting long-term professional growth.
Access to mental health and wellness programs as part of leave policies helps employees manage the emotional aspects of parenthood. 33% of Maven members report being better able to manage anxiety and depression.
For employers
There is a wealth of research that highlights the employer benefits that come from family-focused policies that support the well-being of new parents and their children.
For example, paid leave improves employee morale and can have a positive impact on workplace productivity. Employees are less likely to quit their jobs or seek new positions and paid leave also increases employee satisfaction and loyalty.
Women who have access to paid time off after birth are 69% more likely to return to their role after the first twelve weeks than those without paid leave. This benefits employers as they don't have to swallow the costs of hiring and training new employees and are able to retain skilled staff with firm-specific knowledge instead.
Elevate maternity and parental leave policies with Maven
A well-crafted maternity and parental leave policy is essential for supporting all employees through significant life changes. Key elements such as an extended duration of leave, compensation structures, job protection, and comprehensive health benefits ensure that employees feel valued and supported.
Implementing best practices, including effective communication, thorough training for managers, and regular policy evaluations, further enhances the effectiveness of maternity leave and parental leave policies.
The benefits of such a policy are manifold, positively impacting employee well-being, retention, and engagement, while also boosting organizational productivity and reputation.
Maven is at the forefront of women and family-centered employee health. We work with organizations to help them create robust benefit policies that support employees on their family-building journeys, encompassing prenatal, fertility, maternity, newborn, and pediatric care. Whether you already offer paid maternity leave and are looking to improve your policy or your company provides what the law requires but you're ready to go above and beyond, Maven can help deliver better outcomes for all. To find out more about what you can deliver with Maven, book a demo today.
1. Disclaimer: The sample policy templates are provided by Maven as general information and guidance. These templates are not intended to serve as legal advice or to replace professional judgment. They are offered as a starting point for creating your own policies and should be customized to fit the specific needs and circumstances of your organization.
Please note that Maven makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of these templates for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
It is strongly recommended that you consult with legal, HR, and other relevant professionals to ensure that any policies you implement comply with applicable laws and regulations and meet the specific needs of your business. Maven assumes no responsibility for any errors or omissions in the templates or for any damages resulting from their use.
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