NDR 2024: Business associations support more parental leave but highlight operational challenges for firms

SINGAPORE: Business associations expressed support for the government’s move to increase parental leave but also warned that companies might encounter operational challenges as a result.
Prime Minister Lawrence Wong had announced in his National Day Rally speech on Sunday (Aug 18) that parents of newborns will get an extra six weeks of shared leave from Apr 1, 2025, before going up to 10 weeks a year later.
New fathers will also get four weeks of government-paid paternity leave, up from the current two weeks’ mandatory leave. 
In a nutshell, the total paid parental leave will rise from 20 weeks now to 30 weeks by Apr 1, 2026.
With the enhancements increasing the length of time new parents could be away from their workplace, the Singapore Business Federation (SBF), Singapore National Employers Federation (SNEF), and the Association of Small & Medium Enterprises (ASME) said this may pose issues to employers. 
Speaking to CNA, SBF said the extension of shared parental leave will require companies to manage workload distribution, temporary staffing, and the reintegration of employees after extended leave periods. 
This is especially challenging in sectors that rely heavily on specialised skills, where finding suitable temporary replacements is not always so easy, said SBF’s vice chairman Mark Lee. 
He added that companies may incur additional costs because the returning employee might need time for a handover from a temporary staff member, or the temporary staff member might have a short-term contract that may not necessarily end at the time the employee returns.
Given the tight manpower situation, the changes will especially affect small- and medium-sized enterprises (SMEs) with a lean set-up, said SNEF’s executive director Sim Gim Guan. 
Echoing his sentiments, Mr Lee Tuck Wai, who chairs ASME’s human capital action group, said the fact that the government is bearing the cost of the parental leave showed that it recognised that business costs are already high, especially in the current economic climate.
He said that the staggered implementation of the new scheme will help SMEs put in place more sustainable manpower strategies, but the additional six weeks, and subsequently 10 weeks, of shared parental leave will still need to be planned for.

In a media release on Sunday, the National Population and Talent Division (NPTD) said that the government had consulted tripartite partners and employers in the design of the leave enhancements.
To manage the impact on business costs and operations, the new scheme will be rolled out in two phases to give employers time to adjust their operational and manpower arrangements. 
The government will also introduce a new minimum notice period of four weeks, which employees will be required to serve before consuming any of the parental leave schemes. 
ASME, SNEF and SBF stressed that good communication between employers and employees will be crucial to mitigating operational challenges. 
“Employees should give sufficient time to employers when applying for leave and use these leave benefits with integrity, ensuring that the time away from work is genuinely used for parental duties,” said SBF’s Mr Lee. 
“This builds trust between employers and employees, which is essential for the successful implementation of these policies.
“Also, employees must understand that other colleagues are working together for the workload distribution. As such, employees on leave should also try to be flexible even when they are on leave and be there for their colleagues during emergencies.”
Advocates for families welcomed the increased parental leave, saying that it will give parents more time to care for and bond with their babies. 
Parenthood champion Albert Lim, who is a council member of Families for Life, said the enhancements are a step in the right direction to support couples. But he said it was too early to tell if the enhancements will be enough to support the caregiving aspirations of parents. 
NTUC’s women and family unit director Yeo Wan Ling said the enhancements will enable working parents to better balance professional and personal responsibilities. 
“Fathers, in particular, can lean in to contribute to caregiving needs. When coupled with flexible work arrangements and the wider ecosystem of support, working parents with newborns can enable both parents to fulfil their career goals and responsibilities in the home,” she said. 
She added that companies should look to shifting to outcomes-based performance appraisals so that those who might be away for an extended period of time will not be penalised or disadvantaged.
Chief executive officer of non-profit Centre for Fathering Xander Ong, said workplace culture plays a crucial role in whether employees feel empowered to make use of these benefits.
“In some companies, fathers who take parental or paternity leave are viewed negatively, which impacts their career prospects,” said Dr Ong.
“Organisations need to cultivate an environment where taking parental leave is not only accepted but encouraged. Leadership support and clear communication of policies can foster a culture where employees can make family a priority while still contributing effectively as employees.”